brewing a better future - heineken ireland · overview to be the world’s greenest brewer brewing...

Sustainability Report 2010

Brewing a Better Future

Contents 01 Foreword

IMPROVE04 Green Brewer07 Green Commerce

EMPOWER09 Engaging Employees12 Heineken Cares

IMPACT14 Responsible Consumption15 Partnerships for Progress

Heineken Ireland is a wholly owned subsidiary of Heineken N.V. the most international brewer in the world. Based in Cork since 1856, the brewery is the No.1 lager supplier in the Irish marketplace and combines a long and proud brewing tradition with the most up to date technology and innovative marketing.

Heineken Ireland, whose operations include that of Northern Ireland, directly employs 441 employees, and a further 145 employees are engaged in its West Cork Bottling, Western Beverages and Northern Ireland wholesale operations.

The brewery’s portfolio includes Heineken, Ireland’s No 1 lager, Coors Light, Amstel, Fosters, Beamish Stout, Murphy’s Stout, and a full range of specialty beers which includes Paulaner, Affligem, Moretti, Zywiec, Tiger, Sol and Desperados.

Heineken Ireland is also a member of MEAS which promotes the responsible consumption of alcoholin Irish society.

About Heineken Ireland

We in Heineken Ireland are committed to building a company for the long-term, with a legacy of which we can be proud. Over the last number of years we have been on a journey towards that goal, and in 2010 we transformed our approach to building a more sustainable business with the launch of our ‘Brewing a Better Future’ initiative.

Brewing a Better Future is our road map to becoming the greenest brewer in Ireland – a comprehensive and integrated sustainability strategy hinged on three strategic imperatives:

•ContinuouslyIMPROVEtheenvironmental impactofourbusiness

•EMPOWERourpeopleandthecommunities inwhichweoperate

•PositivelyIMPACTtheroleofbeer insociety

Our initial three-year plan to 2013 will see us striving to achieve ambitious environmental targets where we aim to reduce energy and water usage levels by a further 15%. Our plans will also extend our commitment to the responsible marketing and consumption of our products.

We have always been committed to increasing the energy and water efficiency of our brewery. Our efforts to date, have succeeded in reducing our electricity and energy usage by 10% over the past three years.

We are recognized as being one of the most water-efficient breweries in the Heineken group. Our 2010 water usage of 3.3 hls of water per hectolitre of beer, is well below the 2020 Heineken group target of 3.7 hls per hectolitre of beer.

Our focus on Green refrigeration has seen us play a lead role in developing and introducing a new generation of cooling equipment into the Irish marketplace. The new energy efficient Hydrocarbon Coolers have resulted in a 35% reduction in energy usage for our customers, a considerable reduction in our carbon footprint.

Supporting the local economy has also been an integral part of our operation in Ireland. Testament to our commitment to local suppliers within the manufacturing and services sectors is our annual spend of €100m in the local economy. We also source our malt from local farmers, which represents a €4m injection into the agricultural sector.

Providing support to local communities is a key part of our business and this we will continue to do through our many and varied charitable support programmes.

Ultimately to realize our vision of a more sustainable world, we are committed to making positive and long-term investments in people, communities and the environment, and to deliver our promise of ‘Brewing a Better Future’ for everyone.

David FordeDavid FordeManaging DirectorHeineken Ireland

Brewing a Better Future,Together

Foreword

Heineken Ireland Sustainability Report 2010 1

Overview

To be the World’s Greenest Brewer


Green Brewer

Green Commerce

Engaging Employees

Heineken Cares

Responsible Consumption

Partnerships for Progress

ImproveContinuously improve

the environmental impact of our brands

and business

EmpowerEmpower our people

and the

communities

in which we operate

ImpactPositively impact

the role of beer

in society

Governance, Senior management incentives, Reporting & transparency, Supplier Code,

Communication & engagement

Our long-term ambition

23 programmes grouped into six key initiatives

Our journey is summarised by

Three strategic imperatives

Five enablers

InApril2010,weproudlyunveiledBrewingaBetterFuture,ourcomprehensiveandintegratedsustainabilitystrategyforthenextdecade.Itincreasesthescopeandscaleofourworkonsustainabilityandgivessubstancetoourlong-termambitiontobetheworld’sgreenestbrewer.Italsoallowsustobalanceourneedforfinancialsustainabilitywiththeroleweplayinsociety.


On a day to day basis, the Brewing Better Future Programme activities are managed and implemented by a Sustainability Team, headed by the Corporate Relations Manager, together with representatives from our Supply Chain, HR, Facilities, and Brewing functions.

The Sustainability Team is guided in its work by the Board of Directors of Heineken Ireland, with the office of the Managing Director acting as a sounding board and counsel for the company’s social responsibility efforts. We also report our Brewing a Better Future progress to our Board of Directors on a biannual basis.

To further embed our Brewing a Better Future approach into our business procedures we have developed an initial three-year plan containing key targets and objectives, which will ensure the setting and measurement of key social responsibility metrics and the sharing of best practices across all functions in the company.

Above:Our Sustainability Team, left to right; insert, Theresa Kiely, Environmental Engineer, Noreen Murphy, Internal Communications Manager, Frank Maher, Technical Services Manager, Aidan McSweeney, Supply Manager, and Declan Farmer, Corporate Relations Manager.


2

Green Brewer


The sustainability of our business and sustainability of the environment go hand in hand. For Heineken Ireland, this means being as efficient as possible in the use of natural resources, such as the water we use to brew our beers; recycling our by-products and waste; and taking on the shared challenges of the future by reducing our carbon footprint.

Our beers are made of natural ingredients and the water we use is crucial to our brewing process. Our commitment is to continually strive to

decrease the amount of water we use in the brewing process. Additionally, being energy efficient and avoiding waste is also an important part of our company culture.

Our three year plan for water and energy consumption contains targets which will result in further usage reductions in the order of 15%.

Energy

The major portion (99%) of the fuel used in our operations for energy is natural gas.

Energy conservation has been a strategic focus in our company for many years, this has resulted in a reduction in our energy consumption usage levels by 10% over the last three years.

Much of this reduction has been achieved through such initiatives as regular inspection and upgrade of plant and equipment, the installation of heat recovery systems, and the introduction of energy sub metering and energy efficient lighting systems.

Specific thermal energy consumption MJ/hl beer • Target • Actual

2013

2012

2011

2010

2009

2008

0 10 20 30 40 50 60 70

50

53

55

60 59 60

65

Specific electricity consumption Kwh/hl beer • Target • Actual

2013

2012

2011

2010

2009

2008

6.0 6.2 6.4 6.6 6.8 7.0 7.2

6.2

6.3

6.4

6.8 6.5 6.7

7.1

‘Over the past five years or so, we have reduced our energy consumption by 10% as a result of our energy awareness and efficiency programmes’

Petra HissinkSupply Chain Director, Heineken Ireland

To ensure a viable environment for future generations, businesses and communities are embracing more sustainable ways of producing and consuming. Heineken Ireland is committed to playing its part and is working hard to increase the energy and water efficiency of its brewery, warehousing and offices.

ImproveBrewing a Better Future

4

Brewing a Better Future | Green Brewer Brewing a Better Future

Despite a reduction in energy consumption, our CO2 emissions have increased slightly by 1% in 2010, as a result of higher emissions in CO2 from fuels used in our brewery.

Water Use

High-quality water is fundamental to our business as it is a key ingredient in our beers. Conservation is a primary focus in how we address our water use,while maintaining our quality standards.

We achieve this through a combination of initiatives comprising of;

• Process improvements identified and implemented by brewery employees

• A range of engineering solutions

• Ongoing training sessions that help identify key environmental issues, and ensure the economical use of resources and fine-tune procedures.

Our water is sourced from the local municipal water supply and is then further treated on site to ensure that only the highest quality water is used in the production of our beers. Water is also used in the cleaning of kegs and installations.

The amount of water we use (3.3 hls. of water) to produce one hectolitre of beer increased slightly in 2010 as a result of cleaning associated with additional production runs. However, our usage rate is 10% below the Heineken Group 2020 target which represents a saving of enough water to fill nine Olympic sized swimming pools.

Close attention is constantly given to the quality of waste water produced at the brewery. All the waste water produced at our facility is treated by the municipal waste water treatment plant, ensuring that it is fully and properly treated before being returned to the environment.

Waste Management

Everybody at Heineken Ireland acknowledges their responsibility with respect to post-consumer packaging waste. We are members of REPAK, a voluntary packaging and recycling initiative. All employees are encouraged to segregate, recycle and compost their waste.Facilities are provided in each workspace for this purpose.

As a result of our efforts in 2010 we reduced our waste to landfill by 6% and recycled in excess of 150 tonnes of various materials into the recycling chain in 2010.

Ourwasteandby-productsarerecycledinthefollowingmanner;

Brewer’s grains Animal feed componentYeast Animal feed component or food flavoring for human consumptionPaper Paper recycling Glass bottles Glass manufacturing Metal Packaging Various metal products

Direct and indirect CO2 emission Kg CO2 / hl beer • Target • Actual

2013

2012

2011

2010

2009

2008

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

6.1

6.3

6.4

6.7

6.6

7.4

2.80

2.90

3.00

3.15 3.28 3.17

3.32

Specific water consumption hl water/hl beer • Target • Actual

2013

2012

2011

2010

2009

2008

0 .50 1.00 1.50 2.00 2.50 3.00 3.50

GreenCommerceWe in Heineken Ireland are passionate about offering the finest quality beers to our consumers in a manner that contributes to a better environment. Specifically, we are continuously reviewing methods to improve and reduce the weight of our packaging materials as well as stimulating recycling.

In 2010, we introduced a new Heineken 33cl bottle into the market place. Whilst the bottle itself does not look visually different to its predecessor, it is 15% lighter in weight with no change in capacity. This change in bottle weight meant a restructure of load sizes being shipped to Ireland from Heineken Netherland, resulting in a reduction of Container deliveries of Heineken Bottle by 18% per annum. This is bringing significant reductions to our carbon footprint.

Overall, 70% of our total sales volumes in Heineken Ireland are in returnable format. Kegs and bottles are collected from on-trade premises by delivery trucks, resulting in a recycling rate of close to 100%.

Cooling that’s Greener

To serve our beer at the optimum temperature, we aim to use equipment with minimal carbon emissions. In 2010, Heineken Ireland was among the first brewers in Ireland to introduce eco friendly, energy saving coolers into the marketplace.

The equipment is a safe and more environment friendly hydrocarbon refrigerant and contains a thermostat with an energy management system for larger fridges.

6 Heineken Ireland Sustainability Report 7

Local Case Study

Green Coolers

HydroCarbonRefrigerants-“Our Green Journey so far...”

In a climate where ecology and economy are critical factors, the need to provide energy efficient refrigerants has become an integral part of the green approach to beverage cooling systems.

In this context, Heineken Ireland has taken a lead role within the Irish beer market and was the first brewery within the Heineken group worldwide, in developing and introducing the next generation of cooling technology (hydrocarbon refrigeration) into the marketplace. The new coolers are natural, non toxic & zero ozone depleting, having a low global warming potential.

To date over 1000 coolers have been introduced into the market as part of our Heineken Served Extra Cold roll out. This ensures that we are now serving our beer at the optimum temperature whilst simultaneously reducing the carbon footprint of our customers.

The coolers use energy-saving technology, have a longer lifetime and require less maintenance. The intelligent control management system also switches the unit off during non-trading hours overnight.

Aidan McSweeney, Purchasing Manager says Heineken Ireland is fully committed to investing in eco-coolers that contribute to a greener world.

“We aim to serve our consumers a quality beer, using best in class equipment with the lowest environmental impact. The introduction of hydrocarbon coolers to the marketplace has also had significant impact on reducing the carbon footprint of our customers, which has been very well received to date”.

Distribution

We recognize that our brewing operations have an environmental impact across the entire value chain — which includes suppliers and a complex distribution network. In late 2010, Heineken Ireland commenced a review of its carbon footprint for distribution operations, aimed at identifying CO2 improvement opportunities and carbon footprint reduction.

Sustainability criteria are now an integral part of the procurement process for transportation services as we continue to identify high priority areas for further efficiencies and environmental improvement.

8

For Heineken Ireland to attract and retain the best employees, we must provide a safe work environment, an environment that promotes learning and talent development and one that promotes and supports only the highest standards of integrity in our business conduct.

‘It is important that people work in an environment in which their rights are respected and their talents and contributions recognised, developedand rewarded.’

Denise BurkeHR Director,Heineken Ireland

Empower


Brewing a Better Future | Green Commerce Brewing a Better Future

EngagingEmployeesHealth and Safety

The health and safety of our workforce is of the utmost importance to us at Heineken Ireland and we are always looking for ways to improve our performance.

Total Production Management (TPM) is Heineken’s mandatory strategic improvement programme for production units. A critical aspect of this is the safety pillar designed to work and create a safer working environment.

As we strive for a zero accident environment, we continue to invest in training programmes designed to promote an increased awareness of behavioural safety and an extended use of personal protective equipment.

We are also re-designing some of our production processes on an on going basis, so as to further improve our safety record. Our on-line OHS (Occupational Health & Safety) induction programme has been recently reviewed and updated. All contractors and visitors to the site are required to complete it.

No contractor accidents were recorded in 2010. In the past year, we developed an approved list of contractors, meaning that all third party contractors who work on our site have been screened and therefore meet our safety criteria. They are also required to carrypermits at all times.

In 2010, there were 3 accidents in our production operations resulting in lost days.

Relative to 2008 levels, accident severity has significantly decreased owing to the corrective and preventative measures that we implemented. Heightened awareness around employee responsibility in the workplace has also contributed to this reduction.

Our Health & Wealth Roadshow in 2010, (ref case study) proved to be an enormous success among employees who benefited from the advice of experts in how best to manage their health and finances.

Integrity - Code of Business Conduct

Heineken Ireland’s Code of Business Conduct establishes parameters to ensure that the highest standards of integrity are upheld and that any potential business conduct violations can be effectively reported without recrimination. The company now has its own trusted representatives as part of its Whistle Blowing Procedure.

In 2010, our Code of Business Conduct was fully revised, re-issued to every employee

and an e-learning tool was introduced to provide training on the Code. The training module covered conduct relating to such areas as Conflict of Interest, Business Gifts, Corruption, and our Whistle Blowing procedure.

Accident Severity in Production Lost Days / 100 fte • Target • Actual

2013

2010

2009

2008

0 50 100 150 200 250

Accident Frequency in Production Cases / 100 fte • Target • Actual

2013

2010

2009

2008

0 1 2 3 4

10 Heineken Ireland Sustainability Report 2010 11

Climate Survey Results

Our 2010 employee climate survey indicated a high level of engagement amongst our employees. Some of the findings were as follows;

• 96% of employees reported that they are proud to work for Heineken Ireland and they report a clear understanding of the direction of Heineken Ireland and strong alignment with individual goals.

• 89% are happy in their current roles.

• 91% feel that their work makes a real contribution to the success of Heineken Ireland.

• 91% of respondents would recommend Heineken Ireland to their friends as a good place to work.

Local Case Study – Employee Engagement

EmployeeHealth&WealthRoadshowThroughout 2010, recession and austerity were very much front of mind for Irish people and Heineken Ireland employees were no exception. What was happening externally was impacting on the wellbeing of our employees.

The Health & Wealth Roadshow was developed to provide employees with some expert support and information to help them to better manage their money and their health.

A mix of internal expertise and external professionals was utilised to provide group presentations and one-to-one clinics. Workshops with focus on health and energy taught people how nutrition and exercise can impact on mental as well as physical health.

Content included;

• Health & Wellness – Managing Your Health & Energy• Private Healthcare Options• Legacy & Inheritance Planning • Managing Your Money – Pay, Pensions, and Taxation AVCs & Shares

This message from one of our Customer Service team captures the general feedback received.

‘I think the topics were well chosen and covered by experts in their field. Anyone outside that I discussed it with thought it was a great idea and showed Heineken’s commitment to its workforce. It was a great morale boost and generated much excitement. Thanks so much. I was one of the people who saved money from the show so job well done I’d say’.

Brewing a Better Future Brewing a Better Future | Engaging Employees


Heineken CaresHeineken Ireland plays an active and supportive role in the communities in which it operates through its Charitable and Corporate Foundation programmes.

Our community support takes many forms, from employees volunteering their time to community projects, to corporate support and charitable donations, a more extensive outline of which is available on our website at www.heinekenireland.ie.

Employee volunteerism continues to be embedded into our company culture. In 2010 our people were actively involved in Plato, a confidential business support forum for small businesses, together with mentoring roles in the Junior Achievement programmes.

We also activated an internal appeal for Haiti which raised in excess of €23,000 through a number of novel activities.

Our employees have also been to the forefront in organising an annual fundraising event in aid of a local hospice namely Marymount Hospice. Over the past four years, sums in excess of €300,000 have been raised for this worthy cause.

In 2010, we supported many charities including Simon Community, a well known organisation which battles homelessness.

Simon Community is currently our preferred partner in our BABF programme.

Being an operational brewery located in the heart of a city can bring many challenges. Over the course of 2010 we received four noise complaints from local residents. Three of the complaints related directly to noise attributable to steam cleaning in the water treatment process. This has since been addressed. The final complaint related to noise levels attributable to the reversing sounds of fork-lifts operating in our distribution areas. Currently all options are being evaluated without compromising the operational safety of the distribution yard users.

We also make significant contributions to tourism through profile building, support to public houses, festival and sport sponsorships, many of which are conducted at local level in communities throughout Ireland.

An economic impact study, independently commissioned by Munster Rugby, revealed that a Heineken Cup quarter final home match in 2009 generated €10.5 million for the city of Limerick.

Located within 2kms of the Heineken Brewery in Cork is St. Patrick’s Marymount Hospice. Founded in 1870, the hospice established itself as iconic centre of excellence caring for older people. The centre also provides a full palliative care programme. At the turn of the millennium plans were drafted to relocate all of the Hospice’s services from its current site to a green field site on the outskirts of the city with a planned completion date for 2011. The cost associated with the project would be in the region of €75 million, €12 million of which needs to be raised locally over the next 4 years.

To assist in alleviating the financial burden, Heineken Ireland, teamed up with the hospice and committed its resources to a four year fundraising campaign. In doing

so, Heineken Ireland volunteers launched plans for a five star fundraising inaugural ball. The event which was Heineken sponsored and organized raised in excess of €75k in its first year.

For another three years, Heineken personnel continued to administer, manage and profile all elements of the event from PR launch to event management on the day. The total amount raised over the four events was in excess of €350k.

The event continues to this day and is one of the must attend functions on the city’s social calendar. Supported by politicians, corporates and individuals alike, it has proved to be a major success. The new state of the art hospice facility is due to open in the latter part of 2011.

Local Case Study – Employee Engagement

VolunteeringandCaringfortheCommunity

Brewing a Better Future Brewing a Better Future | Heineken Cares


‘A comprehensive strategy to continuously promote our brands in a responsible manner together with the promotion of responsible consumption, lies at the heart of our alcohol policies in Heineken Ireland’.

Declan FarmerCorporate Relations Manager, Heineken Ireland

When consumed in moderation, beer can be part of a healthy balanced lifestyle. It is an unfortunate fact that a minority of people abuse alcohol and consequently harm themselvesor others.

This is a serious and complex problem and Heineken Ireland has long been committed to playing its part in its solution.

ImpactOur approach to the responsible promotion, marketing and consumption of our beers has been completely integrated in the way we market and sell our

brands. This includes the promotion of individual responsibility along with marketing our products responsibly in line with the self and co regulatory codes in the marketplace. Finally, it means working with governments and partners in promoting appropriate and effective measures to address the problem.

Amongst our employees, we promote responsible drinking through our own in house employee drinking policies. Our Cool@Work initiative provides our employees with an understanding of their responsibilities in relation to the beers we brew. To that end, an Addiction in the Workplace seminar was conducted for line

managers in 2010 and our in house bar staff also attended a Responsible Alcohol Serving programme.

As the world’s most international beer, the Heineken brand plays a key role in encouraging people to enjoy our beer responsibly as part of a positive lifestyle.

This is activated via the website (EHR) www.enjoyheinekenresponsibly.com which is promoted on all primary and secondary packaging and pitch hoardings at Heineken Cup and Champion League games which carry the EHR responsibility message and logo.

Programmes and Partnerships

In partnership with MEAS (Mature Enjoyment of Alcohol in Society), ABFI (Alcohol Beverage Federation of Ireland) and the IBA (Irish Brewers Association), Heineken Ireland plays a lead

part in the promotion of responsible consumption of alcohol in the marketplace together with ensuring the existence of a balanced stakeholder debate on issues affecting our industry.

MEAS and the drinkaware consumer campaigns are representative of a consumer-focused industry partnership initiative aimed at changing the culture of excessive drinking. They also promote the responsible use of alcohol and challenge anti-social drinking behaviors.

Progress on such work is tracked regularly and public comment is monitored on alcohol issues. This has resulted in our responsibility programmes and education efforts being adjusted to ensure our efforts remain relevant and effective.

Our CommercialCommunications Code

Heineken’s Global Commercial communications play a fundamental role in ensuring that all of our commercial communications are responsible and directed to those of legal drinking age, regardless of the country.

The Code is the minimum standard we apply wherever we do business. If local rules are less strict than the Code, then the Code prevails. If local rules are more exacting, then these apply. In many cases, our own Code goes beyond existing legal frameworks.

ResponsibleConsumption

Brewing a Better Future Brewing a Better Future

14

Notes


In ensuring a responsible and code compliant alcohol marketing environment, an integral challenge for the Irish Drinks industry has always been to ensure that appropriate training is provided to all those involved in the marketing of alcohol.

The marketing codes in themselves which have been developed jointly with government, govern advertising content, placement, packaging, and sponsorship. The codes are among the strictest in the world. The fact that the code applies to all media demonstrates the industry efforts to reduce exposure of young people to alcohol advertising.

To address this, Heineken Ireland together with other key stakeholders in the alcohol industry, acting under the ABFI (Alcohol Beverage Federation of Ireland) umbrella, recently introduced a unique Alcohol Marketing Codes Training Programme.

The programme itself is designed to provide attendees with an in-depth knowledge of the codes of practice relating to alcohol marketing communications and a practical understanding of how to interpret the Codes.

The highly participative programme uses group exercises, industry examples and reflects on previous case complaints to invoke discussion among participants, exploring the skills needed to understand and to work within the Codes.

To date, in excess of 300 marketing personnel from 10 major alcohol brand companies, plus personnel from a number of advertising and communication agencies, have taken part in the training courses.

This has resulted in near total compliant alcohol advertising and has been recognized by the government as a very positive and impactful initiative by the industry in reducing exposure and providing greater protection to young people.

Local Case Study – Responsible Marketing

AuniqueAlcoholCodesTrainingProgramme

Brewing a Better Future | Responsible Consumption

Heineken IrelandMurphy Brewery, Leitrim Street, Cork

Phone: + 353 21 4503371

Fax: + 353 21 4503011

Customer Care, On-Trade: 1850 514455

Customer Care, Off-Trade: 1850 514600

Web: www.heinekenireland.com

E-Mail: [email protected]

brewing a better future - heineken ireland · overview to be the world’s greenest brewer brewing...

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