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Reporting basis and governance of non-financial indicators
Sourcing sustainably
Heineken N.V.
Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability Other
Review Information
CO2 emissions in distribution
(Scope 3, GHG protocol)
This indicator refers to CO2-eq emissions from outbound distribution
of finished goods and returns of empty packaging material. It includes
domestic and export transport by road, rail and sea. Excluded is
inbound transport
We focus our actions on reducing the distance we drive, improving fuel
efficiency with our transport partners, switching from road to rail and
water, and using more carbon-efficient vehicles. As the majority of our
transport is outsourced, we work in collaboration with our transport
service providers and also with peer companies, customers, fuel
providers, industry groups and other key stakeholders
CO2 emissions from fridges
(Scope 3, GHG protocol)
This indicator refers to CO2-eq emissions as a result of the electricity used
by beverage fridges (branded and non-branded) invoiced to HEINEKEN
Green fridges HEINEKEN buys and supplies fridges used to store and display our
beer products in supermarkets, bars and restaurants. This allows us to
control the quality of the beer by setting the correct temperature, as
well as the appearance of the fridge and our brands within it. To reduce
our emissions, we focus on installing more energy-efficient fridges in
conjunction with our suppliers. We ask our suppliers to test new fridges
to determine the HEINEKEN Energy Efficiency Index (HEEI): the energy
consumption of the fridge divided by the average energy consumption of
similar HEINEKEN fridges on the market in 2010, multiplied by 100
In case our suppliers have not (yet) provided us with the HEEI, we
calculate the HEEI based on the energy saving features of the fridge
model. We consider our fridges 'green' if they have one or more of
the following green features: use of hydrocarbon refrigerant, LED
illumination, an energy management system and energy-efficient fans
We further enhanced our data gathering method, and decreased our
reliance on self-declared numbers by the operating companies to using
our centralised procurement tool where possible
Waste destination Destination of residual products from the brewing process: either
and absolute value* recycled into feed, material loops, compost or energy, or - when not
recycled - incinerated or sent to landfill. Brewer's grains and yeast, for
example, have a high nutrition value and are recycled for animal or
human consumption
It is our ambition to achieve zero waste to landfill in our production
facilities, and this is part of our mandatory TPM framework
Sustainable agriculture
of our main agricultural
raw materials from
sustainable sources
of agricultural raw materials
locally sourced in Africa
Number of farmers and
families impacted
By sourcing raw materials sustainably, we help improve farming practices
and enable farmers all over the world to adopt better environmental and
social standards. Our procedures for sourcing sustainably cultivated
crops are based on the principles of the Sustainable Agriculture Initiative
platform (SAI), an organisation of multinational food companies working
towards a more sustainable food chain. Suppliers allocating sustainably
cultivated crops to us are required to follow our procedures and we
encourage them to work with farmers who grow their crops sustainably
We follow the definition of the Sustainable Agriculture Initiative (SAI):
the efficient production of safe, high quality agricultural products, in a
way that protects and improves the natural environment, the social and
economic conditions of farmers, their employees and local communities,
and safeguards the health and welfare of all farmed species
Our sustainable sourcing reporting is based on the concept of 'mass
balance'. This tracks what percentage of a suppliers' materials are
produced sustainably and is auditable, from farm to brewery
Contracted sustainable volumes as percentage of total contracted
volumes. Sustainable is any agricultural product in scope of the
Sustainable Agriculture programme, that has been:
1. cultivated in accordance with an approved Code of Practice and
2. allocated to HEINEKEN by our supplier in accordance with the mass
balance approach
Volumes contracted in 2020 for delivery in 2021 are reported in this
Annual Report. In scope are barley, hops, apples, sugar beet, sugar cane,
rice, sorghum, wheat and maize supplied to our operating companies and
joint ventures via HEINEKEN Global Procurement
Quantity (in tonnes) of agricultural 'extract' producing raw materials (plus
hops) that are cultivated in the Africa and Middle East region (AME) and
that are purchased for use in the production of beers, soft drinks, cider,
wine and spirits at our own production facilities in that region, divided by
the total quantity of raw materials purchased within the region
Calculation based on the total quantity of agricultural raw materials
purchased (tons), divided by the average farm size (hectares) and the
average yield per crop produced (tons per hectare), plus the number of
farmers supported with training in our PPP projects
