Other climate-related disclosures
178
The Corporate Sustainability Reporting
Directive (CSRD)
The EU taxonomy Regulation
Brew a Better World 2030 Strategy
Environmental
Social
Responsible
Reporting basis of non-financial indicators
Introduction Context
Foundation
1Climate Change Mitigation (CCM);
The disclosure tables are included on the next pages.
Introduction
622
Note 6.3
110
Note 6.3
732
2023
2,255
Note 8.2
350
Note 8.2
241
Note 8.1
Total CapEx
2,846
Disclosures
Sustainability
Review
Other
Information
Financial
Statements
Report
of the
Supervisory
Board
Report
of the
Executive
Board
The Corporate Sustainability Reporting Directive
(CSRD) was adopted by the European Parliament on
10 November 2022 and published in the Official
Journal on 16 December 2022.
The CSRD will come into effect for HEINEKEN as of
1 January 2024 and will require limited assurance in
the 2024 Annual Report (filed in 2025). The
introduction of CSRD will significantly increase our
disclosure requirements, as provided in the European
Sustainability Reporting Standards (ESRS).
We are carrying out CSRD implementation activities
towards CSRD compliance. In 2023 we have carried
out our first double materiality assessment, which
determines the ESRSs HEINEKEN will report on in our
2024 Annual Report. In addition, a gap assessment
has been conducted and new metrics have been
defined. Deployment of the metrics is in progress,
including implementing the related control framework.
A cross-functional team is managing the CSRD
implementation, following a detailed
implementation roadmap.
As the CSRD will have a broad organisational impact,
including on governance, strategy, systems, processes
and controls, many functions within HEINEKEN are
involved in the execution of the CSRD
implementation.
Its purpose is to increase transparency on
environment, social affairs and governance matters
across companies. This should help to improve
consistency and comparability in sustainability
reporting and drive the quality of reporting against
sustainability matters.
More information on our double materiality
assessment can be found on page 135
The EU taxonomy Regulation, adopted by the
European Commission on 4 June 2021, is a
classification system which defines a list of activities
that could make a substantial contribution to one or
more of six environmental objectives:
For each of these objectives, companies should
assess if their economic activities are in scope.
For economic activities in scope, it is required to report
on how much Turnover, Capital Expenditure ('CapEx’)
and Operating Expenses ('OpEx’) are 'eligible’ (in
scope), and how much is 'aligned’ with the EU
taxonomy. For an economic activity to be aligned, it
should make a substantial contribution to one or more
of the EU’s environmental objectives, providing it does
not do significant harm ('DNSH’) to the other
objectives, and that the company as a whole complies
with the minimum safeguards and the economic
activity has to comply with the applicable technical
screening criteria.
Reporting
Based on further guidance published on the practical
application of the EU taxonomy, we have re-assessed
our approach during 2023. Non-revenue generating
activities have now been included in the scope of the
eligibility assessment for the CapEx and OpEx KPIs.
This resulted in the inclusion of activities related to
energy efficient equipment, renewable energy
technology, wastewater treatment and water
collection into the reporting of the eligible CapEx KPI.
As the eligible CapEx is not material, HEINEkEn has
not assessed the alignment criteria and therefore
reports 0% alignment. The OpEx KPI is not reported as
the amounts are also considered immaterial and
therefore reporting 0% eligible and aligned OpEx.
4. Pollution prevention and control (Pollution);
5. Protection and restoration of biodiversity and
ecosystems (Biodiversity); and
6. Transition to a circular economy (Circularity).
2. Climate Change Adaptation (CCA);
3Sustainable and protection of water and marine
resources (Water);
In the future HEINEKEN will further update and
fine-tune the reporting as more practical guidance
comes available.
New EU taxonomy requirements came into effect
in 2023 related to Water, Pollution, Biodiversity
and Circularity. HEINEKEN has assessed the new
requirements and found no additional activities to
report on.
Assumptions and accounting policies applied
in our eligibility analysis
There are different practices in reporting and
interpretations observed in the market. We continue
to monitor the developments in the regulation and
market practice and consider this in our future
reporting.
- Total Turnover under the EU taxonomy is assumed
equal to Revenue as reported under IFRS and
HEINEKEN’s accounting policies (see note 6.1 of the
consolidated financial statements).
- Total CapEx includes purchased PP&E, additions to
ROU assets and purchased intangible assets as
reported in the consolidated financial statements.
See the table below with the total CapEx as included
in the denominator of the CapEx KPI, including
references to the consolidated financial statements.
Additions to ROU
Assets
Purchased Intangible
Assets
Reference to
consolidated
financial
statements
Net zero carbon emission strategy
As part of Brew a Better World, we aim to reach net
zero carbon emissions in scope 1 and 2 in 2030 and in
scope 1, 2 and 3 in 2040.
Power Purchase Agreements (PPAs) and Energy
Attribute Certificates (EACs) are an important part of
our sourcing strategy to contract renewable energy
and drive progress towards our net zero emissions
ambitions in scope 1 and 2. While these steps
contribute in decreasing our carbon emissions in scope
1 and 2, they are not part of CapEx and OpEx KPIs as
reported under the EU taxonomy.
The biggest part of our carbon footprint lies in the
value chain beyond our own production sites (scope
3). Any measures taken to reduce the carbon footprint
in the value chain are also out of scope of the CapEx
and OpEx KPIs.
OpEx denominator
In millions of
Repair and
Maintenance
More information on our Sustainability strategy
and measures can be found in the Sustainability
Review section
Amount in
mn
Reference to
consolidated
financial
statements
Heineken
N.V.
Annual
Report
2023
The key assumptions and policies applied by
HEINEKEN are:
Short-term lease
expenses
Total OpEx
CapEx denominator
In millions of
Purchased owned
PP&E
- Total 'OpEx’ includes direct non-capitalized costs
incurred for the day-to-day servicing of assets,
consisting primarily of repair and maintenance costs
and short -term lease expenses. See the table below
with the total OpEx as included in the denominator
of the OpEx KPI, including references to the
consolidated financial statements.
