sustainability report 2015 - the heineken company

Sustainability Report 2015Brewing a Better World

More than 80 years of brewing excellence, quality ingredients sourced from all corners of the globe, the labour of love of our master brewers – and our steadfast dedication to Brewing a Better World. From the ambitious goals to consciously reduce our carbon footprint and water consumption at our brewery, to the initiatives we champion in growing with our community, APB Singapore is committed to making every part of our business count towards our vision for sustainability. Beyond the short-term costs and efforts necessary, we stand by these beliefs as we look ahead to Brew a Better World for us, the environment and the people we serve.

Worth every effortWhat’s in a bottle of our beer?

Sustainability Report 2015 3

Values and behaviours GRI Index & Appendix

ContentsThe big picture

Managing Director's foreword About Asia Pacific Breweries Singapore About this report Brewing a better world Stakeholder engagement and dialogue Materiality assessment

Our focus areas

Protecting water resources Reducing CO2 emissions Sourcing sustainably Advocating responsible consumptionPromoting health and safety Growing with communities

Values and behaviours

Profile of our workforceBusiness conduct and employment practices GRI 4 reference table GRI content index for ‘In Accordance' – Core

12 1419212629

32 33

40 41

35

4 5 5 68 9

Appendix

Definition of parameters and indicators Reference information

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Values and behaviours GRI Index & AppendiContents

Welcome to Asia Pacific Breweries Singapore’s (APB Singapore) inaugural Sustainability Report.

In 2015, Singapore celebrated her Golden Jubilee. APB Singapore is proud to have grown alongside Singapore, the country we call home, for the past 50 years of her independence. As we celebrate our past successes, it is also an opportune time to look into the future.

In order to continue creating shared, sustainable value for our business and stakeholders, we require a long-term approach. Hence, APB Singapore adopted the HEINEKEN global sustainability strategy, Brewing a Better World (BaBW), which features six core strategic pillars: (1) Protecting water resources; (2) Responsible consumption; (3) Reducing CO2 emissions; (4) Sourcing sustainably; (5) Promoting health and safety and (6) Growing with communities. In each strategic pillar, we have set a target for 2020 and are now at the midway point towards achieving them.

I am delighted to share that APB Singapore has made good progress in 2015. One notable achievement was the installation of over 8,000 solar panels on our brewery rooftops, which is expected to reduce our carbon footprint by 20% or

1,500 tonnes annually for the next 25 years. Spanning an area of three FIFA football fields, this is the largest rooftop solar installation for HEINEKEN globally and one of the largest in Singapore. Today, every Tiger Beer consumed in Singapore is “Brewed by the Sun”.

Advocating responsible drinking is a strategic imperative of ours and our employees are an avenue of channelling this message. APB Singapore celebrated the global Enjoy Responsibly Day on 21 September 2015, where we launched the “Cool@Work” programme which saw more than 150 employees pledge to be “Cool@Work” and participate in activities to encourage them to be ambassadors for responsible drinking.

We trained over 500 Beer Promoters on the responsible sale of alcohol throughout the year. They were taught to identify the effects of alcohol consumption and practical interventions to empower them to refuse alcohol service and manage intoxicated consumers. This training was also extended to our customers, who subsequently trained their frontline staff on the responsible sale of alcohol.

Health and safety is another important pillar of our BaBW strategy. In 2015,

we established a committee to promote a healthy lifestyle. Various outreach programmes were organised to promote lifestyle changes towards better health among employees.

On safety, I am pleased to announce that we achieved zero fatality in 2015. Our accident frequency rate declined from 1.67 in 2014 to 0.49 in 2015, while our accident severity rate decreased significantly from 6.69 in 2014 to 2.00 in 2015.

Beyond the business, we continue to give back to the community through our employees, who volunteered and touched the lives of the elderly and low-income families in Singapore. We celebrated the Chinese New Year festive season by treating our elderly beneficiaries to a sumptuous meal. We also participated in “Football With A Heart”, an annual charity futsal tournament organised by Singapore Pools.

Lastly, I would like to thank all our employees, partners and customers who gave us their fullest support on our sustainability journey. Amid the uncertain economic climate, we remain steadfast in delivering on our sustainability agenda. We will build upon our achievements in 2015, and strive to do even better in the years to come. Samson WongManaging Director

Managing Director’s foreword

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About Asia Pacific Breweries SingaporeAsia Pacific Breweries Singapore (“APB Singapore”) is the largest commercial brewery in Singapore with a rich history dating back to 1931. Having over 80 years of brewing experience has enabled us to brew consistently high quality and great tasting beers.

Today, APB Singapore boasts a vast portfolio of beers, including world-acclaimed and locally-brewed Tiger Beer, Heineken, ABC Stout, Anchor Beer, Baron’s Strong Brew, Guinness and the Archipelago range of craft beers and ciders, among others. Our state-of-the-art brewery adopts the most technologically advanced brewing process that is extensively automated, coupled with nimble packaging capabilities at the same time.

Sustainability is one of our business priorities. APB Singapore adopted HEINEKEN’s “Brewing a Better World” (“BaBW”), our global corporate strategy to create sustainable value for our company, society and the planet. BaBW focuses on six strategic areas where we believe we can make the biggest difference.

About this reportThis is our inaugural sustainability report, which attempts to detail our journey and progress towards our sustainability commitments outlined in our BaBW strategy.

Reporting scope and period

Unless otherwise stated, this report covers APB Singapore’s progress on BaBW from 1 January to 31 December 2015, with historical data included for comparison where possible. We aim to report our sustainability performance annually as a way to communicate and be accountable to our stakeholders.

Reliability, completeness and methodology

This report has been prepared in accordance to Global Reporting Initiative (“GRI”) G4 guidelines - Core. We have prepared the report to the best of our knowledge, in good faith, and in accordance with agreed procedures, using the global data collection systems of HEINEKEN, including:

• The Accident Reporting & Investigation Software (ARISO) system, for safety reporting• The Business Comparison System (BCS), for environmental reporting• The Green Gauge reporting system, for progress reporting on global commitments• The EcoVadis Platform, for Supplier Code and performance information• The Annual Sustainability Survey, for all other sustainability-related reporting

We have not sought external assurance for this particular report, as this is our inaugural reporting year. Using the information gathered in this reporting period, we aim to improve by seeking feedback from our stakeholders, refining our internal controls and better extracting meaningful data from our data collection systems. Lastly, our sustainability performance has been included in the HEINEKEN N.V. 2015 Sustainability Report, which has been externally assured.

http://www.theheinekencompany.com/sustainability

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REDUCINGCO2 EMISSIONS

SOURCINGSUSTAINABLY

ADVOCATINGRESPONSIBLECONSUMPTION

PROMOTINGHEALTH ANDSAFETY

GROWING WITHCOMMUNITIES

VALUES ANDBEHAVIOURS

AGRICULTURE

FOCUS AREAS

MALTING BREWING PACKAGING DISTRIBUTION CONSUMERCUSTOMER

PROTECTINGWATERRESOURCES

BREWINGA BETTERWORLD

PROTECTING WATER RESOURCES

REDUCING CO2 EM

ISSION

S

SOURCING S

USTA

INAB

LY

ADVOCATING RESPONSIBLE CONSUMPTION

PROM

OTING HEALTH AND SAFETY

GRO

WIN

G W

ITH

COM

MUNIT

IES

Our focus areas

Our sustainability efforts are focused on the six BaBW pillars and rooted upon our values and behaviours. At the global level, this covers the entire value chain “From Barley to Bar1”. At APB Singapore, the value chain starts from the brewing process and ends with the consumers’ disposal of the product packaging after consumption. We are on track towards our BaBW commitments for 2020, with some good progress on our 2015 milestones. New 2018 milestones have been created to guide us in achieving our 2020 commitments.

Figure 1: HEINEKEN's Brewing a Better World Strategy

Brewing a Better World

Figure 2: HEINEKEN's value chain "from barley to bar"

1A full description of our value chain can be found on HEINEKEN’s website.

http://www.theheinekencompany.com/sustainability/brewing-a-better-world/value-chain

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Crisis management

At APB Singapore, we instituted a Business Continuity Management system consisting of crisis management and business continuity plans to safeguard human life, organisational assets and business reputation in the event of a crisis or disaster. These plans are adopted from the Crisis Manuals of HEINEKEN N.V. and HEINEKEN Asia Pacific, with the following objectives:

1. Protect and preserve human life, health and well-being2. Minimise damage to the natural environment3. Minimise loss, damage or disruption to the company’s facilities, resources and operations4. Manage immediate communications and information regarding emergency response operations and safety

These plans were developed and directed by our Crisis Team, consisting key representatives from all departments. To maintain operational readiness, these plans are simulated and reviewed annually.

Global Sustainable Development Team

Asia Pacific Breweries Singapore

HEINEKEN CEO & Executive Team

Managing Director

Corporate Relations

Responsible MarketingEnvironment

Product Quality

Operational Safety

Sustainable Sourcing

Health and Safety

Stakeholder Communications

Employment Practices

Responsible Consumption

Community Investments and Philanthropy

Industry Partnerships

Sustainability Coordinator

Sustainability governance

A robust governance structure is crucial to ensure we achieve our BaBW commitments. At APB Singapore, our sustainability efforts are led by our Management Team and implemented by the Corporate Relations Department. A Sustainability Coordinator (under Corporate Relations) works closely with representatives across various business functions to implement sustainability programmes and initiatives. Progress on APB Singapore’s sustainability performance is reported regularly to the Global Corporate Affairs Committee.

Figure 3: APB Singapore's sustainability governance structure

Supply Chain Marketing and Sales Human Resources

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Ensuring product safety, quality and hygieneOur consumers deserve nothing but the highest quality beers from us. As such, we are fully dedicated to using only the best raw materials, which are sourced and pre-approved by HEINEKEN before undergoing the brewing process. To produce these high-quality beers, we impose stringent quality controls at every stage of the brewing process within our extensively-automated brewery. Notably, we are the first Asian brewery to be ISO 14000 and ISO 9001 certified.

As a testament to our commitment to provide safe and hygienic beers, we have obtained Hazard Analysis & Critical Control Point (“HACCP”) certification and an “A” grade for Agri-Food & Veterinary Authority of Singapore (“AVA”) food factory grading system for the past 15 years. In 2015, we attained the Platinum Food Safety Excellence Award from AVA for consistent hygiene and quality of our products.

Stakeholder engagement and dialogueOur stakeholders are integral to our sustainability journey. Hence, we engage them on a regular basis to share updates on our business activities and sustainability programmes and obtain feedback on their concerns. These inputs are taken into account towards our sustainability programmes. Our approach towards stakeholder engagement can be summarised in the following table:

Stakeholders Engagement purpose Methods of engagement Frequency of engagement

Government bodies and agencies

• Form strategic partnerships to benefit the larger communities, such as partnerships for responsible alcohol consumption, recycling, and water stewardship programmes

• Advocacy in the development of alcohol-related laws and regulations

Festive occasions: Chinese New Year and Christmas

On events

Dialogues and discussions Periodically

Strategic partnerships Ongoing

Media • Disseminate information, including marketing and responsible alcohol consumption to stakeholders

• Articulate and build a positive brand image to the public

Brand campaigns Periodically

Events: Solar power launch event

On events

Sustainability factsheet Annually

Non-Governmental Organisations and Voluntary Welfare

Organisations

• Form partnerships to create community impact

Corporate Social Responsibility (“CSR”) activities

On events

Retailers • Strengthen and expand distribution networks

Dialogues and discussions Ongoing and on events

Training on Responsible Sale of Alcohol

On events

Suppliers • Procure good quality materials in a responsible and sustainable manner

Meetings and discussions Periodically

Trade Associations • Support in the development of alcohol-related laws and regulations

Dialogues and discussions Periodically

Training on Responsible Sale of Alcohol

On events

Table 1: APB Singapore's approach towards stakeholder engagement

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Interviews with senior management to obtain feedback on significant issues

Materiality assessment workshop with internal and simulated external stakeholders to prioritise material issues

Material issues were aligned to HEINEKEN’s focus areas and mapped to GRI-G4 aspects

Materiality assessmentOur first formal materiality assessment was conducted with the Management Team in February 2016. The materiality assessment was assisted by independent consultants and followed the procedures depicted in Figure 4. A total of 14 issues were identified as material, while two other issues were also chosen for reporting due to their importance to HEINEKEN’s focus areas. These issues are summarised in Figure 5.

1 Promoting Health and Safety2 Employment Practices3 Career Advancement4 Protecting Water Resources5 Reducing CO2 Emissions6 Waste Management and Recycling7 Sustainable Packaging8 Ethical Business Conduct9 Regulatory Compliance 10 Responsible Consumption11 Staff Alcohol Responsibility12 Responsible Marketing13 Product Safety, Quality and Hygiene14 Public Policy Advocacy15 Sourcing Sustainably16 Growing with Communities

Figure 4: Four-steps for materiality assessment

Figure 5: Materiality Matrix

Desktop review of peer sustainability reports and HEINEKEN N.V sustainability report 2015 to identify a broad range of subject areas

16

15

612

5

4

8 9

1131410

11

3

72

Impo

rtan

ce to

exte

rnal

stak

ehol

ders

High

Low

Importance to internal stakeholdersHighLow

High priority (Material)Low priority but considered important

Legend:

16

15

612

5

4

8 9

1131410

11

3

72

Impo

rtan

ce to

exte

rnal

stak

ehol

ders

High

Low

Importance to internal stakeholdersHighLow

High priority (Material)Low priority but considered important

Legend:

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Mapping material issues to GRI G4 aspects

S/N Material issue Definition GRI aspect Report section

1 Promoting Health and Safety Cultivate a strong culture and management of health and safety to all employees from production, logistics and distribution, commerce and business services

Occupational Health and Safety Promoting Health and Safety

2 Employment Practices Provide equitable opportunities and treatment to all employees including proper grievance management, etc.

Employment Values and Behaviours

3 Career Advancement Effective management of employee talents through opportunities for growth and development

Training and Education Values and Behaviours

4 Protecting Water Resources* Efficient use of water Water

Effluents and Waste

Protecting Water Resources

5 Reducing CO2 Emissions* Efficient use of energy to reduce carbon emissions

Energy

Emissions

Reducing CO2 Emissions

6 Waste Management and Recycling*

Minimising waste generation and reusing/recycling waste for beneficial use

Effluents and Waste Reducing CO2 Emissions

7 Sustainable Packaging* Reduce emissions and material use in the design and production of our packaging, and recycle and reuse after use

Materials

Products and Services

Reducing CO2 Emissions

8 Ethical Business Conduct* Practising responsible business policies such as anti-corruption, anti-competition, anti-trust, including a clause on ethical practices in contracts, etc.

General Standard Disclosure

Anti-Corruption

Anti-Competitive Behaviour

Values and Behaviours

9 Regulatory Compliance* Compliance to local alcohol regulations and other core operational regulations e.g. environment, labour, health and safety

Compliance Values and Behaviours

10 Responsible Consumption* Actively promote the enjoyment of beer in moderation and collaborate with partners to address alcohol abuse

Local Communities Advocating Responsible Consumption

11 Staff Alcohol Responsibility Encourage employees to lead by example on responsible alcohol consumption

Occupational Health and Safety Advocating Responsible Consumption

12 Responsible Marketing* Advertise brand and drinking in an accountable and positive manner, including responsible product labelling

Product and Service Labelling

Marketing Communications

Advocating Responsible Consumption

13 Product Safety, Quality and Hygiene*

Pursuing high standards in product safety and product quality

Customer Health and Safety Ensuring Product Safety, Quality and Hygiene

14 Public Policy Advocacy* Participating in international forums/discussions, partnerships with government, NGOs in addressing issues and lobbying for policies within the industry

General Standard Disclosure Stakeholder Engagement and Dialogue

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Mapping of low priority issues but considered important to GRI G4 aspects

S/N Material issue Definition GRI aspect Report section

15 Sourcing Sustainably* Encourage local and sustainable sourcing of raw materials, and manage suppliers for responsible business conduct in areas of human rights, labour, anti-corruption, health and safety and environment.

Supplier Environmental Assessment

Supplier Assessment for Labour Practices

Supplier Human Rights Assessment

Supplier Assessment for Impacts on Society

Sourcing Sustainably

16 Growing with Communities* Investing in the communities in which we operate through direct contributions, shared-value projects, and the APB Foundation

Local Communities Growing with Communities

*Note: The following issues were identified to have material impacts outside the organisation.


Contents Values and behaviours GRI Index & Appendix

Reduce specific water consumption in our breweries by 25%

Protecting water resourcesActions and results

Our 2020 commitments

Protect our water resourcesin water-scarce and waterdistressed areas

Aim for significant water balancing in these areas



Protecting water resourcesFocus area 2015 global milestones Our 2015 local

achievementsIndicator 2018 global milestones 2020 global

commitments

Reduce specific water consumption in the breweries to 3.9 hl/hl2

Not achievedWe have reduced our water consumption by 1.6% to 4.27 hl/hl, short of our target of 3.9 hl/hl in 2015.

Reduce specific water consumption in our breweries to 3.6 hl/hl2

We have raised our ambition for 2020 to 3.5 hl/hl2 overall, and 3.3 hl/hl on average for breweries in water- scarce and water- distressed areas

100% of production units4 in water-scarce and water-distressed areas will have a Source Water Protection Plan

Not Applicable to APB Singapore 18 production units4 in water-scarce and water- distressed areas have begun implementing their action plan for Water Balancing

Aim for significant water compensation/ balancing by our production units in water-scarce and water-distressed areas

Water is a vital raw material which makes up 95% of beer. At the same time, it is a scarce resource in Singapore, where demand is expected to almost double by 20605. With such competing demands, it is imperative that we manage our water resources in the most efficient way possible. We recognise this under our Total Productive Management (“TPM”) Framework where we work towards streamlining processes and introducing innovations to reduce wastage.

We did not meet our 2015 global target of reducing water consumption to 3.9 hl/hl, despite the plant undergoing a retrofit of more efficient equipment. The installation of our new water tanks has expanded our brewing capacity to 2 million hectolitres. Despite this, our production output did not achieve sufficient economies of scale to meet our 2015 water efficiency target. Nonetheless, our water consumption has decreased by 1.6%, down from 4.34 hl/hl in 2014 to 4.27 hl/hl in 2015. Moving forward, we expect our water consumption to be further reduced, as more water efficiency initiatives are implemented.

One of our key initiatives will be implementing a water reclamation project to process brewery effluent into non-potable water. From this water reclamation project alone, we expect to recycle 19% of water that we consume, amounting up to 0.60 hl/hl.

2Baseline 2008. 3In comparison to 2014’s performance. 4Twenty-three production units. 5Public Utilities Board, Our Water Our Future 6Chemical Oxygen Demand (“COD”) is an analysis of wastewater that gives that total sum of all organic compounds represented.

Specific water consumptionhl/hl beer

4.3 hl/hl

Our global policy is to treat all wastewater before discharging it into surface water. At APB Singapore, we fully comply with this policy by discharging it into the public sewers for subsequent treatment by the Public Utilities Board (“PUB”). The treated wastewater would either be reclaimed for other uses or discharged into the sea. In 2015, over 56.5 tonnes COD6 of our wastewater organic load was discharged for treatment.

2015 4.3

2014 4.3

2013 4.5

Figure 6: APB Singapore's water consumption

Achieved On track Partly achieved Not achieved

Wastewater management

56.5 tonnesof wastewater organic load was discharged for treatment. average water consumption in our

breweries in water-stressed areas

3.6 hl/hl

https://www.pub.gov.sg/Documents/PUBOurWaterOurFuture.pdf



Reducing CO2 emissionsActions and results


Reduce CO2 emissions in production by 40%

Reduce the CO2 emissions ofdistribution by 20% in Europeand the Americas

Reduce the CO2 emissions ofof our fridges by 50%



Reducing CO2 emissions

7Baseline 2008. 8In comparison to 2014’s performance. 9Baseline 2010/2011, scope is Europe and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK, Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, USA. Scope represents 80% of volumes traded for total scope. HEINEKEN Asia Pacific is not in scope for the 2015 commitment as the business was not consolidated at the time the commitment was made. 10Baseline 2010. 11Data based on 80% of the HEINEKEN volume in 2014. The HEINEKEN product carbon footprint is based on a life cycle approach including GHG scope 1, 2 and 3 emissions from agriculture, malting, brewing, packaging materials, distribution and cooling.

Focus area 2015 global milestones Our 2015 local achievements

Indicator 2018 Global milestones 2020 global commitments

Reduce CO2 emissions in production by 27%7

(resulting in 7.6 kgCO2-eq/hl)

Not achievedWe have reduced our CO2 emissions8 by 1% to 8.3 kg CO2-eq/hl in 2015. However, this was still above the CO2 emissions target of 7.6 kg CO2-eq /hl


(resulting in 6.5 kg CO2-eq/hl)


Reduce CO2 emissions from distribution by 10%9 in Europe and the Americas

Not Applicable to Asia Pacific Reduce CO2 emissions from distribution by 16%9 in Europe and 0% in the Americas

Reduce CO2 emissions from distribution by 20% in Europe and the Americas

Reduce CO2 emissions of our fridges by 42%10

AchievedAll our new and existing fridges are ‘green’, achieving 100% compliance with the HEINEKEN Global Fridge Policy.

100% green fridges purchased. Reduce CO2 emissions of our fridges by 47%10

Reduce CO2 emissions of our fridges by 50%10


Our carbon footprintFigure 7: HEINEKEN’s carbon footprintIn 2015, HEINEKEN published a revised

carbon footprint11 which encompassed global operations and the entire value chain “From Barley to Bar”. Owing to various energy-saving initiatives across its value chain, HEINEKEN’s total carbon footprint was reduced by 6.3% from 68.4 kg CO2-e/hl in 2012 to 64.1 kg CO2-e/hl in 2015.

Packaging materials

Distribution

Cooling

Agriculture

Malting and adjuncts

Beverage production

5%9%

21%

12%

39%

14%

64.1(kg CO -e/hl)2



At the local level, we recognise our responsibility to reduce our carbon footprint in our operations. In compliance to the Singapore’s Energy Conservation Act, we monitor and report our energy usage regularly while implementing various measures to reduce our energy usage and carbon footprint. Overall, we have achieved a consistent reduction in our energy consumption and corresponding carbon emissions.

In 2015, we achieved 2% reduction in our energy consumption from 99.5 MJ/hl in 2014 to 97.3 MJ/hl and corresponding 1% reduction in carbon emissions from 8.4 kg CO2-e/hl in 2014 to 8.3 kg CO2-e/hl. However, our carbon emissions still stood above the global target of 7.6 kg CO2-e/hl despite upgrading our plant and warehousing facilities. This was attributable to insufficient economies of scale in our production output. To meet the global target in the coming years, we strive to step up our efforts in reducing carbon emissions. Towards the end of 2015, we installed over 8,000 solar panels on our rooftops, which are expected to save 1,500 tonnes of carbon emissions annually for the next 25 years.

Our approach towards reducing carbon emissions can be broadly categorised into

Reducing CO2 emissions in productiontwo main areas: energy-saving initiatives and use of renewable energy.

Energy-saving initiatives5% of roofs at our brewery is currently made up of skylights. This has enabled us to reduce our energy usage through daylight harvesting. Moreover, we have replaced our induction lightings to LED, resulting in further energy and carbon footprint reduction. These two initiatives have saved approximately 177,914 kWh of energy, sufficient to power up 38 four-room HDB flats for a year. This is equivalent to mitigating over 76.8 tonnes carbon emissions. We plan to continue our efforts to reduce energy usage and carbon footprint by replacing old machinery with newer energy-efficient models.

Use of renewable energyIn 2015, we installed over 8,000 solar panels on our rooftop. The installation is expected to reduce our carbon footprint by about 20%. Approximately 2.3 million kWh of clean energy will be generated each year for the next 25 years, enough power for 600 four-room HDB flats annually.

2015 97.3

2014 99.5

2013 111.8

2015 8.3

2014 8.4

2013 9.4

Total specfic energy consumptionMJ/hl beer

Specific greenhouse gas emissionskg CO2-eq/hl beer

2015 63.9

2014 65.5

2013 75.3

2015 9.3

2014 9.4

2013 10.1

Specific thermal energy consumptionMJ/hl beer

Specific electricity consumptionkWh/hl beer

Figure 8: APB Singapore's total energy consumption

Figure 9: APB Singapore's greenhouse gas

Figure 10: APB Singapore's thermal energy consumption

Figure 11: APB Singapore's electricity

12The average electricity consumption for four-room HDB flats in 2015 is retrieved from Singapore Power statistics

Case study: Brewed by the SunIn 2015, APB Singapore mounted high-performance photovoltaic panels across its three rooftops. Spanning an area equivalent to three FIFA football fields in size with the capacity of 2.196 megawatt peak (MWp), this solar installation was approximately four times the size of typical corporate solar installation projects. At the same time, this represents HEINEKEN’s first solar installation project in the Asia Pacific region and also its largest rooftop installation worldwide. Scheduled to run for the next 25 years, the solar panels are expected to generate approximately 2.3 million kilowatt-hours (kWh) of clean energy

annually, enough to power up 600 four-room HDB households12 for a year. All in all, the solar panels are expected to mitigate 1,500 tonnes of carbon emissions annually, reducing APB Singapore’s carbon footprint by approximately 20%. This marked a significant milestone and further cemented APB Singapore’s commitment to ‘Brewing a Better World’, bringing to life its long-term approach to create shared sustainable value for its stakeholders. Set at the home of the iconic Tiger Beer, this initiative also means that every Tiger Beer consumed in Singapore is now ‘Brewed by the Sun’.



Reducing CO2 emissions from fridgesRefrigerating our beers is essential to maintain quality and freshness. However, refrigeration consumes a substantial amount of electrical energy, thereby resulting in considerable indirect carbon emissions. As such, we are committed to minimising our carbon footprint in this aspect by complying with HEINEKEN’s Global Green Fridge Policy. As compared to a standard fridge, a “green” fridge saves up to 45% energy by having one of the characteristics shown in Figure 6. In 2015, we achieved full compliance with HEINEKEN’s Global Green Fridge Policy as 100% of our new and existing fridges are “green”.

13 Virtually zero waste to landfill is defined as diverting at least 98% of waste from landfill 14 Total percentage may not add up to 100% due to rounding

Figure 12: Characteristics of a "green" fridge

Destination % of total

Re-use -

Human consumption -

Animal feed 95%

Materials 5%

Compost/ soil improvement 0%

Energy (biogas) -

Combustion with energy recovery 0%

Combustion without heat recovery 1%

Landfill -

Total 100%

Recycling Recovery Disposal

Mos

t pre

ferre

d op

tion

Figure 13: APB Singapore's waste hierarchy14Waste managementWe seek to keep waste to a minimum within our production. In line with HEINEKEN’s aim of sending “zero waste”13 to landfill, we recycle our residual products as much as possible. In 2015, we generated 27,643 tonnes of waste comprising spent grains, surplus yeast and other materials, such as glass, cardboard, aluminium, plastic and paper. Virtually 100% of this amount was sent to vendors for recycling. An approximate 1% of our waste was sent to local waste-to-energy incineration plants and the incinerated remains were subsequently transferred to the landfill. This shows a better performance than the HEINEKEN group which sent 6% of its waste to landfill in 2015.

Waste and compliance

Circular economyTo further reduce our environmental footprint, we aligned ourselves with HEINEKEN’s “Circular Economy” model in which resources are reused or refurbished as part of new product life-cycles. From using our raw materials efficiently to optimising our brewing process, our approach towards “Circular Economy” can be summarised into four activities:

1. Recycle

• At APB Singapore, virtually 100% of our waste is sent for recycling.

• 95% of our waste was made up of brewers’ grain which was recycled as animal waste

3. Renew

• We have recently completed the installation of solar panels which are expected to reduce our carbon footprint by 20% for the next 25 years

Figure 14: APB Singapore's circular economy model

2. Reduce

• Our water and energy consumption have shown a decreasing trend over the last three years

• We have also reduced the thickness of our aluminium cans as a move to reduce packaging waste

4. Reuse

• In compliance to HEINEKEN global policy, all wastewater is sent for treatment

1. Use of a hydrocarbon refrigerant

2. LED illumination

3. Energy-efficient fans

4. An energy management system, wherever legally and technically possible



Case study: Recovery of beer bottles at APB SingaporeProduction of glass leaves a high ecological footprint. Unfortunately, only 20% of glass waste weighing approximately 15,700 tonnes is being recycled in Singapore. APB Singapore saw an opportunity to be more sustainable by reducing the amount of glass waste by proactively pursuing its return policy and reusing its glass bottles.

In compliance with HACCP standards, retrieved bottles are thoroughly checked for defects and disinfected before they are refilled, while damaged bottles are sent for recycling. Each beer bottle can be reused for up to nine times. In 2015 alone, APB Singapore retrieved 86% of bottles and crates distributed to the hospitality sector, amounting to over 18.2 million bottles or 15,868 tonnes of glass – more than the amount of recycled glass in Singapore.



50% of our main raw materials to be suppliedfrom sustainable sources


60% of agricultural rawmaterials in Africa to be locallysourced within the continent

Ongoing compliance with our Supplier Code Procedure

Sourcing sustainablyActions and results



Sourcing sustainablyFocus area 2015 global milestones Our 2015 local


commitments

Aim for sustainable sourcing of raw materials for crop year 2015: 20% (barley), 40% (hops), 60% (bittersweet apples for cider)15

Not Applicable to Asia Pacific, as agricultural raw materials are imported by HEINEKEN-approved suppliers overseas, for consistent taste and quality

Aim for at least 25% of our main raw materials to be sourced sustainably

Aim for at least 50% of our main raw materials16 to be sourced sustainably

50%17 of agricultural raw materials used in Africa to be locally sourced18 within the continent

56%15 of agricultural raw materials used in Africa to be locally sourced18 within the continent

Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent

Four-step Supplier Code Procedures operational within all operating companies

Achieved100% of our suppliers have signed the Supplier Code

95% compliance with four-step Supplier Code Procedure

Ongoing compliance with our Supplier Code Procedure

Building a sustainable supply chain is imperative to our BaBW strategy. Beyond mitigating the environmental and social impacts along our own value chain, sourcing sustainably enables us to influence our suppliers’ business practices positively. We do this through HEINEKEN’s four-step approach towards sustainable sourcing, as illustrated below.

15Based on volume. 16In scope are barley, hops, cider apples, fruit concentrates, sugar, rice, sorghum, wheat, maize. 17Based upon tonnage. 18With local sourcing we refer to sourcing within the region of Africa & Middle East.

Although the Asia Pacific region was out of scope for the Supplier Code programme in 2014, we proceeded to implement the initiative ahead of time. By the end of 2015, we completed step 1, where 100% of our

Moving forward, we will monitor our suppliers’ compliance to the Supplier Code and take necessary actions for any cases of violation. For full details, please refer to our Supplier Code.

Signing Supplier Risk Analysis

Supplier Monitoring

CSR questionaire

Supporting evidence

360° scan

Suppliers score card

Supplier definition Category risk

Signing of SupplierCode by Supplier

Supplier specific risk

Storage and monitoringprogress in database

Identification of potentially high risk suppliers

Audit Plan

Site selection

Site audit

Follow up on non-complainces

Figure 15: HEINEKEN's approach towards sustainable sourcing

suppliers have signed the HEINEKEN Supplier Code. By signing the HEINEKEN Supplier Code, our suppliers agreed to comply with our principles of integrity, environmental care and human rights.


Step 1 Step 2 Step 3 Step 4

http://www.sustainabilityreport.heineken.com/Sourcing-sustainably/Actions-and-results/Supplier-Code-governance/index.htm



Make responsible consumption aspirational through the Heineken brand


Build measurable partnershipsin every market in scope, aimed at addressing alcohol-related harm

Take action at an industry level, in collaboration with 11 global alcohol businesses

Advocating responsible consumptionActions and results

®



Advocating responsible consumptionFocus area 2015 global milestones Our 2015 local


commitments

We commit to invest a minimum of 10% of our media spend19 for HEINEKEN in supporting our dedicated responsible consumption campaign in at least 50% of our market volume20

Singapore market is not in scope We commit to invest a minimum of 10% of our media spend19 for HEINEKEN in supporting our dedicated responsible consumption campaign in at least 50% of our market volume20

Make responsible consumption aspirational through HEINEKEN

Every market in scope21 has a partnership to address alcohol-related harm.

AchievedWe forged partnerships with Singapore Police Force for the “Don’t Drink to Drive” campaign in 2013, as well as the Association of Bartenders and Sommeliers Singapore in 2014 and 2015

Operating companies representing 90% of sales volume have and report publicly on a measurable partnership aimed at addressing alcohol abuse

Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse

All partnerships meet HEINEKEN’s seven-point partnership criteria

Not Applicable to Asia Pacific. Works on these commitments are coordinated on a global level.

Operating companies representing 90% of sales volume have and report publicly on a measurable partnership aimed at addressing alcohol abuse

Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse

Contribute to the five industry commitments and related KPI’s, as defined through the International Alliance for Responsible Drinking (IARD)

Deliver global industry commitments by end of 2017 and report in 2018

N/A

19Investments dedicated to responsible consumption messaging with regards to Heineken® brand communication. This includes the ‘Dance More Drink Slow’ and ‘Sunrise’ campaign, UEFA® Champions League-specific responsible consumption boarding and other specific activations at festivals and events. 20Market scope covers a total of at least 50% of Heineken® global volume. We focus our efforts on the larger markets where we can make the biggest impact; out of scope are those markets where we are unable to run our responsible consumption campaign due to local (legal and religious) restrictions on alcohol advertising. 21Out of scope include Islamic markets and markets where we have a Joint Venture and three minimal-volume markets for whom allocating resource is not realistic (Laos, Solomon Islands and Sri Lanka)




Case study: APB Singapore’s “Enjoy Responsibly Day” 2015

Self-regulation To be a credible advocate for responsible consumption, it is vital that we demonstrate responsible behaviour and lead by example. Against this backdrop, we consider our staff to be ambassadors of the company and champion the cause of responsible consumption. Our Human Resources policies, adopted from HEINEKEN, are designed to guide our staff on their conduct in relation to alcohol in the workplace and in the community. For instance, HEINEKEN Life Saving Rules provides a clear guideline of “do’s” and “don’ts” to curb drink-driving, which APB Singapore takes a resolute stand against. Any staff who is charged with a drink driving offence will face severe disciplinary action and probable dismissal.

Aside from policies, we regularly conduct outreach programmes and participate in industry-led initiatives to educate staff on responsible alcohol consumption.

APB Singapore first celebrated “Enjoy Responsibly Day” in 2014 with the aim to raise employees’ awareness about the impact of alcohol abuse and to work together to make moderate consumption the social norm. In 2015, APB Singapore engaged our employees through interactive games and health talks as part of “Enjoy Responsibly Day”. For instance, our

employees had the opportunity to undergo a driving simulation with frosted goggles to replicate the impaired vision arising from over-consumption of alcohol. Approximately 150 employees took part in our alcohol self-assessment and pledged themselves to be “Cool@Work” through responsible alcohol consumption.

Figure 16: APB Singapore’s approach towards advocating responsible consumption

Advocating responsible consumption

Self-regulation Multi-stakeholder partnerships

Relevant consumer engagement

Every day, millions of consumers enjoy our beers. A study by Flanders Investment & Trade in 2013 revealed that beer is the most common alcoholic drink in Singapore, with consumption per capita amounting to 22 litres22 . In view of this, we actively promote sensible and moderate consumption of our beers to be both socially responsible and economically viable in the long term. Recognising that the cause of alcohol-related harm is multi-faceted, we embarked on a three-pronged approach to encourage alcohol responsibility and attitude change.

22According to “Specialty Beer in Singapore” market survey done by Flanders Investment & Trade in 2013.

http://www.flandersinvestmentandtrade.com/export/sites/trade/files/market_studies/402150529084129/402150529084129_1.pdf



Responsible marketing communications

Case study: Partnering with customers for responsible sale of alcohol

23Singapore Code of Advertising Practice was issued by Advertising Standards Authority of Singapore. For more details on the code, click here.

Being stationed at traditional on-premise outlets, our Beer Promoters are our consumers' immediate touch-points and can be a source of positive influence. Hence, we equipped them with the knowledge and skills to prevent alcohol intoxication to mitigate alcohol misuse and alcohol-related violence. With that in mind, we initiated the first responsible service and sale of alcohol (“RSA”) training and certification to coffee shops using the internationally-recognised Alcohol Sales/Service Educational Tools (“ASSET”) programme. The ASSET programme is a continuation of efforts from the Training for Intervention ProcedureS (“TIPS”) programme launched by APB Singapore in 2014. TIPS itself was a public-private partnership for responsible alcohol service between APB Singapore, the Association of Bartenders and Sommeliers Singapore (“ABSS”) and its partner, United States-based Health Communications, Inc.

To customise the ASSET programme to suit the local conditions, training is conducted mainly in Mandarin and includes a role-playing module which reflects the unique environment of coffee shops in Singapore. All Beer Promoters who are ASSET certified can now be identified through a badge that indicates, “I’m A Responsible Server”. To date, more than 50 outlet managers and supervisors from Kopitiam Investment Pte Ltd and S-11 F&B Holdings Pte Ltd, our key customers, have participated in the training. On top of that, 507 Beer Promoters across 500 coffee shops have participated in the training, and 33 of APB Singapore’s sales and promotion employees have undergone a ‘Train the Trainer’ workshop to become ASSET trainers. This programme was supported and subsidised by Singapore’s Employment and Employability Institute.

Multi-stakeholder partnershipsTo tackle alcohol-related harm, we leverage the power of communities and partner with various stakeholders from the public and private sectors.

APB Singapore actively ensures that all outgoing marketing collaterals consistently communicate responsible consumption. This is in full compliance with the Singapore Code of Advertising Practice23 issued by the Advertising Standards Authority of Singapore "ASAS".

We also go above and beyond the legal requirements, imposing stricter marketing rules developed by HEINEKEN than those issued by the ASAS. These guidelines include age declaration to access our promotional materials in the media, programmes or events where at least 70% of the audience is above 18 years old. In addition, we advocate responsible consumption through product labelling, such as the “Above the Legal Age”, “Don’t Drink and Drive”, and “Don’t Drink When Pregnant” icons printed on our packaging.

As a result, there were no cases of non-compliance with regulations, voluntary codes concerning advertising and product labelling in 2015.

https://asas.org.sg/Portals/0/Images/ASAS/docs/SCAP%202008.pdf?ver=2014-05-16-093651-153



Case study: “Have a Good Night Out!” campaign

Relevant consumer engagementWe engage our consumers directly to most effectively convey our message of responsible consumption. These messages are embedded within our promotions and usually timed during periods of higher consumption, such as festive seasons. Through such direct engagement, we have the opportunity to gain deeper insights into our customer’s needs and deliver the message of responsible consumption more effectively.

Case study: Partnering with Singapore Traffic Police against drink-drivingTo discourage drink-driving, Singapore’s Traffic Police and the Singapore Road Safety Council had jointly organised the annual “Don’t Drive to Drink” campaign. In 2013, APB Singapore provided a digital activation to this campaign through a micro-site “dontdrive2drink.sg”, which called for the public to share creative ways of getting to a party without driving via the hashtag “#dontdrive2drink” on their social media pages. To drive public participation, APB Singapore rewarded the Most-Liked Entry and the Most-Shared Entry with prizes, including taxi vouchers to promote the “dontdrive2drink” message. By engaging the public, we reinforced the key campaign message of “don’t drive to drink and you’ll never drink and drive”.

During the year-end festive season in 2015, APB Singapore initiated a responsible consumption programme. We deployed Heineken Beer Ambassadors to share tips on how to “Have a Good Night Out!” with consumers. Targeting the season of celebration, we approached consumers in Clarke Quay and CHIJMES with responsible consumption messages such as “Fill Your Stomach before Drinking”, “Pace Your Drinks with Water”, “Know Your Limit”, “Don’t Drink and Drive” and “Drink Slowly” to enjoy alcohol responsibly.

To encourage responsible drinking, we rewarded responsible consumers with cards printed with $10 Grab (previously known as “GrabTaxi”) promotional code and responsible consumption messages, distributing them to more than 4,000 consumers. A shout-out on Heineken’s Facebook page prior to the event had successfully garnered more than 3,000 likes, further extending the reach of the campaign.



Health and safety has always been an integral part of theHEINEKEN business. Nothing is more important than ensuring that our employees and the people we work with are safewhen they perform their duties.

Promoting health and safetyActions and results



Promoting health and safetyFocus area 2015 global milestones Our 2015 local


commitments

10% reduction in Accident Frequency within HEINEKEN production units

AchievedIn 2015, we achieved 70% reduction in Accident Frequency as a result of our efforts to increase the awareness of safety in the production unit

Global commitments for 2018 to be decided in the coming years

Global commitments for 2020 to be decided in the coming years

90% of Operating Companies to report at least one near miss in 75% of sites

AchievedWe reported 18 near-misses in 2015

90% of operating companies to report 90% completion of targeted e-learning modules

Partly achievedWe completed 86% of targeted e-learning modules by the end of 2015

2,000 sales managers to have received road safety training with Alert Driving

Not achievedThe Alert Driving training will only commence in 2016




Improving safetyAt APB Singapore, safety is not just a precaution but a frame of mind. We have cultivated a strong safety culture within our organisation and established a dedicated Safety and Health Environment (“SHE”) Committee comprising representatives from various departments. Recognising that everyone plays a part in ensuring safety; the SHE Committee welcomes any safety observations and suggestions from all our employees and contractors. To improve safety awareness, our employees completed 86% of safety e-learning modules designed by HEINEKEN. In addition, we included safety as one of the key pillars under our TPM framework, with tools presented in Figure 1. In the coming year, we plan to embed HEINEKEN’s newly developed 12 “Life Saving Rules” comprising safety “do’s” and “don’ts” to guide our day-to-day operations.

Healthcare and well-beingBesides ensuring safety, we care about our employees’ health and well-being too. We advocate healthy living and have established the Provider of Interesting activities N Knowledge (“PINK”) Committee who organised various outreach programmes which promote lifestyle changes towards better health among employees. This is reinforced with the availability of an in-house clinic and gymnasium within our premises, allowing them to stay in the pink of health even at work. At APB Singapore, we take good care of not just our employees but their family members too, providing them with comprehensive health screening at subsidised rates.

Accidents and safety performanceWe have achieved an unblemished safety record of zero fatality and case of occupational disease in 2015, thanks to our robust safety management. All accidents, incidents and near-misses were reported in ARISO, our global reporting system, and our safety performance is tracked and discussed monthly by the SHE committee to identify areas for improvements. Our accident frequency rate declined from 1.67 in 2014 to 0.49 in 2015, while our accident severity rate fell significantly from 6.69 in 2014 to 2.00 in 2015. Overall, we have reduced both factors by approximately 30%.

Figure 18: Accident frequency rate at APB Singapore

Figure 19: Accident severity rate at APB Singapore

2015 0.49

2014 1.669

X.X

2015 2

2014 6.69

X.X

Accident Frequency Rate

Accident Severity Rate

Figure 17: APB Singapore's Safety Tools under the TPM Framework

Root Cause and Failure Analysis ("RCFA")

Operational Risk Reduction ("ORR") Team

Safety Tags / Safety Observations ("SOS")

• The aim of RCFA is to understand the underlying cause of incidents, accidents and near-misses to prevent future re-occurences.

• All our employees are encouraged to provide information and suggestions to prevent the relapse of accidents.

• We call for everyone's participation to observe different unsafe situations or acts that may lead to an accident, and write tags for them.

• In 2015, a caustic leak in the brewery was brought into attention and solved within a day due to a safety tag written by one of our employees.

• Our ORR teams examine safety risks and set measures to prevent accidents at specific organizational functions.

• In 2015, our ORR team has reduced the occurrence of accidents at our export loading bay through the implementation of safety platforms and training.

At APB Singapore, safety is our utmost priority. Driven by HEINEKEN’s Greenprint Behaviour to “Put Safety First!”, we take pride in our commitment towards providing a safe and healthy environment for all employees, contractors and visitors.



Our business brings us into close contact with millions of consumers and stakeholders daily. Where we have the opportunity to help communities prosper, we do so.It’s good business and it can support us in the long-term.

Growing with communitiesActions and results



Growing with communitiesAs a responsible corporate citizen, we strive to build an inclusive society by helping to improve the well-being of the community. To achieve this, we organised and implemented various initiatives such as cash contribution, in-kind donation and staff volunteerism. Examples of the initiatives are listed below.

In keeping with our annual “Charity for Chinese New Year (“CNY”)” tradition, we hosted a charity meal for our elderly beneficiaries in 2014 and 2015. Forty-seven APB Singapore employees volunteered to serve 200 senior citizens for a CNY dinner in 2014; the company contributed almost S$32,000 that year. In 2015, a similar CNY lunch was hosted by 30 APB Singapore employees for 160 senior citizens. The lunch was held at Kimly Live Seafood, one of our key customers, and in partnership with South West Community Development Council. In total, we contributed 120 staff volunteering hours and approximately S$35,000 for this event.

“Charity for Chinese New Year” meals (2015 and 2014)

Chinese New Year spring cleaning (2014)In addition to hosting a CNY meal, 109 APB Singapore employees volunteered to spring clean the homes of 46 elderly residents living at Jalan Kukoh. To extend the same spirit of charity, we invited 12 of our business partners to participate in this initiative.

Chingay parade (2014)The Chingay Parade is an annual cultural event held during the Chinese New Year period in Singapore. We were delighted to sponsor 1,500 tickets to various beneficiaries to enjoy this celebration of local and international cultures through Chingay’s “Chair for a Cause” initiative.



Serving the elderly at Willing Hearts (2014) In 2014, 141 APB Singapore employees volunteered together with HEINEKEN Asia Pacific’s employees at the Willing Hearts Meal Kitchen, a non-profit organisation which seeks to improve the lives of the underprivileged in Singapore. Through this initiative, we served a hot meal to 2,250 beneficiaries.


GRI Index & AppendixContents

Values and behaviours Profile of our workforceOur workforce comprises an almost equal proportion of permanent and contract employees. In 2015, APB Singapore saw insignificant variation in the number and gender proportion of employees per employment category from the previous year. One female employee was hired into senior management, thereby improving our gender proportion.

Our hire and turnover rates remained relatively stable over the past two years, with turnover rates consistently below the national average24 . In 2014, our turnover rate stood at 17.9% as compared to the national average of 31.8% for the Food, Beverages and Tobacco industry. Our turnover rate improved further to 16.9% in 2015, lower than the national average of 33.6%.

24The national industry turnover rate is obtained from Labour Market Report issued by the Ministry of Manpower.

57%43%2015

50%50%2014 752

886

57%33%2015

83%17%2014 6

6

71%29%2015

69%31%

31%

2014 36

35

73%27%2015

69%2014 344

338

57%33%2015

83%17%2014 6

6

71%29%2015

69%31%

31%

2014 36

35

73%27%2015

69%2014 344

338

57%33%2015

83%17%2014 6

6

71%29%2015

69%31%

31%

2014 36

35

73%27%2015

69%2014 344

338

Figure 20: APB Singapore's workforce by employment contract

Figure 21: APB Singapore's workforce by employment category and gender

Senior management Middle management Executive

Female Male

Permanent Employee Contract Employee

Figure 22: APB Singapore's annual employee recruitment and turnover by gender

70%30%2015

75%25%2014 63

67

Recruitment

64%36%2015

68%32%2014 69

64

Turnover

Female Male

Figure 23: APB Singapore's annual employment recruitment and turnover by age group

2015 hires

67 hires 48%

25%

16%

3%

8%

28%

35%

14%

17%

6%

2015 turnover

64 turnovers

2014 hires

63 hires 38%

38%

10%

3%11%

2014 turnover

12%

46%

23%

13%

6%

69 turnovers

20 – 30 years old 31– 40 years old 41 – 50 years old 51 – 60 years old

Above 60 years old

20 – 30 years old 31– 40 years old 41 – 50 years old 51 – 60 years old

Above 60 years old

http://stats.mom.gov.sg/iMAS_PdfLibrary/mrsd_qtlmr154.pdf#page=30



Business conduct and employment practices At APB Singapore, fairness and integrity underpins all of our business conduct and employment practices. Our decisions and actions are always guided by our long-standing values of Enjoyment, Respect and Passion, as well as the HEINEKEN Code of Business Conduct (“HeiCode”). We have communicated our stance towards ethical business conduct and fair employment practices by requiring our employees to sign and comply with the HeiCode at all times. The HeiCode serves as a comprehensive guide on various issues including human rights, anti-corruption,

fair competition, among others. Our commitment towards ethical business conduct resulted in zero cases of non-compliance against regulatory requirements, corruption, and anti-competitive behaviour.

With the vision to be an Employer of Choice, we have referred the principles of Singapore’s Tripartite Alliance for Fair Employment when developing our employment practices. For instance, we have established a progressive and structured salary model, as well as a minimum hiring age of 18 years old.

Speak Up policy

HEINEKEN continues to be guided by the Code of Business Conduct to deliver sustainable growth with integrity. To complement our efforts towards an ethical business conduct, we adopted the Speak Up policy, which is established by HEINEKEN. The Speak Up policy enables our employees and business partners to communicate any observed incident which contravenes the HeiCode. The policy guarantees that these concerns are raised confidentially and without fear of retaliation. Multiple avenues are available to Speak Up, including access to APB Singapore’s representatives, HEINEKEN’s Business Conduct Office or the externally managed Speak Up platform. To encourage more active participation, we plan to increase our employees’ awareness about Speak Up platform in the coming year. For instance, the Speak Up manual is prominently displayed on its online portal and we plan to publicise Speak Up during key staff events.

Figure 24: Speak Up process

In addition, we provide parental leave to our employees. In 2015, all employees who took parental leave returned to work and remained in employment for the subsequent 12 months.



Employee learning and developmentAt APB Singapore, we believe in investing in our employees and developing them to their highest potential. We adhere to HEINEKEN’s 70:20:10 learning model where 70% of the learning is done through on-the-job experience, 20% from relationships and feedback, and the remaining 10% from formal training.

To ensure the holistic development of our employees, we continuously assess their performance to identify gaps so we can develop staff competencies critical to their job function,

Employee engagement

We recognise that superior business performance requires a competent and engaged workforce. We value our employees and seek dialogue to obtain candid views of the organisation. As part of employee engagement, we conduct HEINEKEN's Climate Survey annually to obtain feedback from our employees.

In 2015, 77% of our employees participated in the survey, which showed 70% Employee Engagement Index (“EEI”) – or an employee’s commitment and willingness to apply discretionary effort at work, as well as 78% Performance Enablement Index (“PEI”) – or an employee’s views of the effectiveness of APB Singapore in supporting its employees to perform. APB Singapore’s PEI was both

2% higher than HEINEKEN’s global average and externally benchmarked norm. Notably, we performed exceptionally well in the area of innovation, where 78% of our employees felt they were encouraged to innovate. This result was 4% higher than the HEINEKEN global average and 20% higher than the externally benchmarked norm.

The results of the survey were shared across the organisation at our quarterly town hall meetings and at department-level, to address specific areas for improvements, such as in the areas of employee recognition and personal development. Following the survey, we developed a set of action plans to facilitate cross-functional work exchanges, focus group discussions to discuss matters raised during the Climate Survey.

as well as their personal growth and well-being. This is achieved through the development and adaptation of the HEINEKEN staff competency framework, where we closely track the behaviours and competencies of each employee. We require our employees to identify a personal development roadmap where they articulate their aspirations and needs together with their supervisors. These roadmaps are subsequently monitored and assessed at critical milestones to identify employees’ potential development areas and competency gaps.


GRI Index & AppendixContents Values and behaviours

General standard disclosures

Profiledisclosure

Description Section

G4-1 Provide a statement from the most senior decision-maker of the organisation (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisation and the organisation’s strategy for addressing sustainability.

Managing Director’s Foreword (page 4)

Organizational profile

G4-3 Name of the organisation. About Asia Pacific Breweries Singapore (page 5)

G4-4 Primary brands, products, and services. About Asia Pacific Breweries Singapore (page 5)

G4-5 Location of organisation’s headquarters. About Asia Pacific Breweries Singapore (page 5)

G4-6 Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

Reporting Scope and Period (page 5)

G4-7 Nature of ownership and legal form. About Asia Pacific Breweries Singapore (page 5)

G4-8 Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries) APB Singapore produces beer for consumption in Singapore and for export by HEINEKEN Asia Pacific Export

G4-9 Scale of the organisation About Asia Pacific Breweries Singapore (page 5)

Profile of our Workforce (page 32)

G4-10 Total workforce by employment type, gender, employment contract and region Profile of our Workforce (page 32)

G4-11 Percentage of total employees covered by collective bargaining agreements. 18% of our employees are covered by collective bargaining agreements.

G4-12 Describe the organisation’s supply chain. Sourcing Sustainably (page 20)

G4-13 Significant changes during the reporting period regarding the organisation’s size, structure, ownership, or its supply chain

Not applicable

G4-14 Explanation of whether and how the precautionary approach or principle is addressed by the organisation Crisis Management (page 7)

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organisation subscribes or endorses.

• Taking reference from Tripartite Alliance for Fair and Progressive Employment Practices

• Signatory of Singapore Packaging Agreement

GRI content index for ‘in accordance’ – Core



G4-16 Memberships in associations (such as industry associations) Our Managing Director, Samson Wong, is a Council Member of Singapore Manufacturer Federation

Identified material aspects and boundaries

G4-17 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures (List all entities in the consolidated financial statements)

Reporting Scope and Period (page 5)

G4-18 Process for defining report content and the Aspect Boundaries and explain how the Reporting Principles has been implemented

Reliability, Completeness and Methodology (page 5)

Materiality Assessment (page 9)

G4-19 List all the material Aspects identified Materiality Assessment (page 9)

G4-20 The Aspect Boundary within the organisation: Whether the Aspect is material within the organisation; The list of entities included in G4-17 for which the Aspect is or is not material; Specific limitation regarding the Aspect Boundary within the organisation


G4-21 The Aspect Boundary outside the organisation: Whether the Aspect is material outside the organisation; The list of entities for which the Aspect is material, relate to geographical location; Specific limitation regarding the Aspect Boundary outside the organisation


G4-22 Explanation of the effect of any restatements Not applicable as this is our inaugural sustainability report

G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries Not applicable as this is our inaugural sustainability report

Stakeholder engagement

G4-24 List of stakeholder groups engaged by the organisation. Stakeholder Engagement and Dialogue (page 8)

G4-25 Basis for identification and selection of stakeholders with whom to engage. Stakeholder Engagement and Dialogue (page 8)

G4-26 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Stakeholder Engagement and Dialogue (page 8)

G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting; Report the stakeholder groups that raised each of the key topics and concerns

Stakeholder Engagement and Dialogue (page 8)

Report profile

G4-28 Reporting period Reporting Scope and Period (page 5)

G4-29 Date of most recent previous report Not applicable as this is our inaugural sustainability report

G4-30 Reporting cycle Reporting Scope and Period (page 5)

G4-31 Contact point for questions regarding the report or its contents. Reference Information (page 41)

G4-32 a. Report the ‘in accordance’ option the organisation has chosen. b. Report the GRI Content Index for the chosen option

Reliability, Completeness and Methodology (page 5)

G4-33 Policy and current practice with regard to seeking external assurance for the report Reliability, Completeness and Methodology (page 5)



Governance

G4-34 Report the governance structure of the organisation, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts

Sustainability Governance (page 7)

Ethics and integrity

G4-56 Describe the organisation’s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics.

Business Conduct and Employment Practices (page 33)

G4-57 Internal and external mechanism for seeking advice on ethical and lawful behaviour, and matters related to organisational integrity, such as helplines or advice lines

Speak Up (page 33)

G4-58 Internal and external mechanism for seeking advice on ethical and lawful behaviour, and matters related to organisational integrity, such as escalation through line management, whistleblowing mechanism or hotlines

Speak Up (page 33)

Specific standard disclosures

Profiledisclosure

Description Section

Environmental

EN2 Percentage of materials used that are recycled input materials Waste and Compliance (page 17)

Case Study: Recovery of beer bottles at APB Singapore (page 18)

EN3 Energy consumption within the organisation Reducing CO2 Emissions in Production (page 16)

EN5 Energy intensity Reducing CO2 Emissions in Production (page 16)

EN6 Reduction of energy consumption Reducing CO2 Emissions in Production (page 16)

Reducing CO2 Emissions from Fridges (page 17)

EN7 Reductions in energy requirements of products and services Reducing CO2 Emissions in Production (page 17)


EN8 Total water withdrawal by source Protecting Water Resources (page 13)

EN10 Percentage and total volume of water recycled and reused Protecting Water Resources (page 13)

EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Reducing CO2 Emissions in Production (page 16)

EN16 Indirect greenhouse gas (GHG) emissions (Scope 2) Reducing CO2 Emissions in Production (page 16)

EN18 Greenhouse Gas (GHG) emissions intensity Reducing CO2 Emissions in Production (page 16)

EN19 Reduction of Greenhouse Gas (GHG) emissions Reducing CO2 Emissions in Production (page 16)




EN22 Total water discharge by quantity and destination Wastewater Management (page 13)

EN24 Total weight of waste by type and disposal method Waste and Compliance (page 17)

EN28 Percentage of products sold and their packaging materials that are reclaimed by category Waste and Compliance (page 17)

EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Waste and Compliance (page 17)

EN32 Percentage of new suppliers that were screened using environmental criteria Sourcing Sustainably (page 20)

Social

Sub-category: Labour practices and decent work

LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region Profile of our Workforce (page 32)

LA3 Return to work and retention rates after parental leave, by gender Business Conduct and Employment Practices (page 33)

LA6 Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities, by region and by gender

Accidents and Safety Performance (page 28)

LA7 Workers with high incidence or high risk of diseases related to their occupation Self-Regulation (page 23)

LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

Employee Learning and Development (page 34)

LA14 Percentage of new suppliers that were screened using labour practices criteria Sourcing Sustainably (page 20)

Sub-category: Society

SO1 Percentage of operations with implemented local community engagement, impact assessments and development programmes

Growing with Communities (page 30)

SO2 Operations with significant actual and potential negative impacts on local communities Advocating Responsible Consumption (page 22)

SO4 Communication and training on anti-corruption policies and procedures Business Conduct and Employment Practices (page 33)

SO5 Confirmed incidents of corruption and actions taken Business Conduct and Employment Practices (page 33)

SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes


SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations


SO9 Percentage of new suppliers that were screened using criteria for impacts on society Sourcing Sustainably (page 20)



Sub-category: Product responsibility

PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

Ensuring Product Safety, Quality and Hygiene (page 8)

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes


PR3 Type of product and service information required by the organisation’s procedures for product and service information and labelling, and percentage of significant product and service categories subject to such information requirements

Responsible Marketing Communications (page 24)

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes


PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes


PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services


Sub-category: Human rights

HR10 Percentage of new suppliers that were screened using human rights criteria Sourcing Sustainably (page 20)



AppendixDefinition of parameters and indicatorsEnvironmental parameters and indicators

Safety parameters and indicators

Parameter Definition

Thermal energy consumption Consumption of thermal energy in MJ (the corresponding CO2 emission is derived from this figure using the WBCSD Protocol)

Electricity consumption Consumption of electrical energy in kWh

Water consumption Water consumption in m3

Solid waste disposal Non-recycled waste in kg such as hazardous waste, wastewater treatment sludge and industrial waste

COD load of effluent The chemical oxygen demand of treated or untreated wastewater leaving the production unit and discharged to surface water in tonnes

Performance indicator Definition

Specific thermal energy consumption Thermal energy consumption per unit produced in MJ/hl beer

Specific electricity consumption Electricity consumption per unit produced in kWh/hl beer

Specific total energy consumption Equals thermal energy consumption plus 3.6 times the electricity consumption per unit produced

Specific CO2 emission Fossil CO2 emission (direct and indirect) respectively derived from thermal energy and electricity consumption, plus refrigerant losses expressed in kg CO2-eq/hl beer.

Specific water consumption Water consumption per unit produced in hl/hl beer

Non-recycled industrial waste The amount of non-recycled waste per unit produced in tonnes, consisting of packaging waste, industrial waste and non-recycled co-products

Parameter Definition

Fatal accidents Fatalities of production unit staff and contractor personnel

Accidents Accidents of production unit staff and contractor personnel

Workforce Expressed in Full-Time Equivalents (FTE)

Performance indicator Definition

Accident frequency Number of accidents resulting in absence from work per 100 FTE

Accident severity Lost days from work per 100 FTE



Reference informationAsia Pacific Breweries (Singapore) Pte Ltd 459 Jalan Ahmad Ibrahim Singapore 639934 Main Line: (65) 6861 6200 Customer Service Hotline: (65) 6860 3272

http://www.apbsingapore.com.sg/

Let us know your thoughtsWe are fully committed to listening to our stakeholders and we welcome your valuable feedback on our sustainability report and our “Brewing a Better World” commitment.

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For the global Sustainability Report 2015, please visit: www.theheinekencompany.com/sustainability

http://www.apbsingapore.com.sg/

www.theheinekencompany.com/sustainability