184
Reporting basis of non-financial indicators
Brew a Better World 2030 Strategy
Environmental
Social
Responsible
Disclosures
Introduction Context
Foundation
Introduction
Reporting basis of non-financial indicators
Sustainability
Review
Other
Information
Financial
Statements
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Heineken
N.V.
Annual
Report
2023
2023 scope
Coverage per stream based on total volume produced
Raw materials
Top-34
85%
Processing
Top-34
85%
Packaging
Top-23
75%
Logistics
Top-32
82%
Cooling
Top-32
86%
Beverage
Production
64 (All)
100%
Significant estimates and judgements
- HEINEKEN strives to report the Carbon Footprint as accurately and completely as possible. Due to inherent limitations
in relation to the uncertainty of measurement equipment and/or availability of actual data we apply extrapolations,
use estimates, assumptions and judgements in our reporting. Estimates, assumptions and judgements are based on
historical data. As such, emissions reporting provides inherent limitations to the accuracy of information.
We used the following significant estimates to report our emissions:
- To calculate emissions of our own production operations, we use data provided by our energy and fuel suppliers. If this
data is not available, we use the 2006 IPCC Guidelines for National Greenhouse Gas Inventories for emission factors of
fossil fuels, International Energy Agency data (September 2022) for country grid emission factors and UK DEFRA
emission factors for biofuels;
- The transport emissions reporting has limitations for all transport modes. For fleet within our control, we have started to
use fuel-based data in countries where we have telematics systems in place. For contracted partners where have the
data of kilometres driven and type of vehicle used, we calculate emissions based on a Global Logistics Emissions Council
(GLEC) framework accredited emission factor gCO2-eq/km. For contracted partners where data on distance travelled is
not available, calculations are based on estimates. For inbound transport, emissions are calculated for our biggest
categories such as glass bottles, aluminium cans, malt and adjuncts.
- Emissions at outsourced logistics sites also have limitations. For such sites where data on electricity (kWh)
consumption and fuel consumption for forklift trucks is not available, estimations are used.
- Packaging emissions are based on a circular carbon footprint formula (as per PEFCR) incorporating upstream
production, use and end of life of the product. As glass bottles and aluminium cans are HEINEKEN’s most significant
emissions contributors, suppliers making up 80% of these emissions provide information about the carbon intensity
of their production locations supplying HEINEKEN. For the remainder of our packaging materials, an industry-
approved PEFCR emissions factor is applied.
- Agriculture and processing emissions reporting has limitations. We use external party inputs for land use change
(LUC) emission factors per country and per crop. Based on the available data per supplier shed base (regional base
of our farmers) and per crop in the external party database, a weighted average emission factor per crop is
calculated (for barley we have data available for 67% of the total volume). This weighted average emission factor is
applied to calculate the emission per crop for all countries. For processing, we collect data from suppliers. In case
there is no data available, we estimate the emission factor per material group.
- To calculate cooling emissions, we assume the lifetime of fridges and DBIs to be seven years. We calculate DBI
emissions based on the actual number of DBIs in the market. Emissions of fridges are based on the total number of
fridges purchased in the last seven years (2017- 2023). We also estimate home cooling emissions based on the
volume sold via non-keg pack types and percentage sold via home cooling (vs. fridges).
- For the other emissions category we also apply assumptions and judgement. For goods purchased for resale, we
assume that these have a similar carbon footprint as our own produced products. For assets under construction
(purchased Property, Plant and Equipment), we assume that these have a similar carbon footprint as our capitalised
assets. For employee commuting distance and methodology, we use an employee survey to have HEINEKEN
related statistics about average distance of the commute, its frequency per week and the chosen mode of transport.
For emissions factors, we use those published by parties like DEFRA - with a frequency of update to match the
change scale. As of 2022 we also included emissions related to UK Star Pubs Bars business in the ‘Other’ category.
Key definitions
Lifecycle definitions:
- Agriculture covers all activities for land-bound inputs used for beverage production, for example, cultivation
of barley, hops, sugar beets, fruits. The impact related to land use change is included in this lifecycle stage.
- Raw materials processing covers all processing of inputs before the beverage production stage, for
example malting barley, concentrating hops, producing sugar syrup or fruit concentrates.
- Packaging material production and disposal covers all activities for packaging material production,
generated at the packaging suppliers. This indudes input materials, energy used and the recycled material
used. The disposal (recyding) of packaging materials are calculated with the ‘Circular Footprint Formula’ (as
per the Product Environmental Footprint Category Rules (PEFCR) and indudes country- and material
specific recycling rates).
- Logistics covers both inbound transport of raw agricultural inputs, processed inputs and packaging
materials to our breweries as outbound distribution of beverages to the point of sale consumer, and
warehouse energy consumption. It includes the logistics network, both controlled and not controlled by
HEINEKEN, to get the finished product to the point of sale and back (returnable packaging).
- Cooling covers the emissions from cooling the beverages. This can be cooling in draught beer
installations (DBIs), cooling in fridges in bars and restaurants and home cooling by consumers.
- Other emissions cover: Purchased goods and services (other than packaging and raw materials), Capital
goods, Business travel, Commuting, Upstream leased assets and Investments.
- Emission categories: As per GHG protocol requirements we split our emissions into scope 1scope 2 and
different scope 3 categories.
- Scope 1 emissions are emissions from fuel combustion and fugitive emissions at our production plants
and own transport.
- Scope 2 emissions are emissions from acquired and consumed electricity, steam, heat.
Scope 3 emissions fall under different categories:
- Category 1 - upstream emissions from production of raw and packaging materials, external
processing, co-packing and municipal water intake. This category also includes end-of-life
treatment of packaging materials related to recycling credits;
- Category 2 - emissions from capital goods (purchased Property, Plant Equipment);
- Category 3 - upstream emissions of fuels, electricity and heat used by own production sites,
warehouses and transport;
- Category 4 - emissions from inbound and outbound transportation;
- Category 5 - emissions from solid waste and wastewater;
- Category 6 - emissions from business travel;
- Category 7 - emissions from employee commuting;
- Category 8 - emissions from leased cars (fuel);
- Category 9 - emissions from transportation to end customers and storage of products at retailers;
- Category 11 - emissions of fridges, DBIs and home cooling;
- Category 1 2 - end-of-life treatment of sold products emissions, as well as fridges and DBIs;
- Category 14 - emissions from franchises (UK Star Pubs Bars)
- Category 1 5 - emissions of joint ventures and associates.
Scope
- We calculate the GHG emissions for the largest emitting operating companies and extrapolated the obtained results to reach the absolute total amount. Every year we add entities in scope of the calculation and at the same time decrease the extrapolated
amount. calculation (e.g. pubs and bars in UK). Russia has been excluded from the scope of calculation and included in the extrapolation due to unavailability of actual information from 1 January 2023 until 26 August 2023 (moment of HEINEKEN’s exit
from Russia)
