Heineken

Sustainable development strategy
Heineken discloses its process for identifying and prioritising its most relevant sustainability topics. As part of its 2030 Brew a Better World business strategy, the company has set interim and final targets across nine focus areas, which are aligned with the Food and Agriculture Benchmark’s measurement areas. The strategy builds upon the company’s previous ambitions, which set targets to 2020, indicating a long-term commitment towards sustainability. Furthermore, the company consistently reports progress against its targets.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
Heineken discloses that ultimate responsibility for and oversight of its Brew a Better World strategy lies with the Sustainability and Responsibility Committee. This was set up in 2020, but the company had previously demonstrated good practices in this regard. Furthermore, the company discloses that, as part of its short-term incentive for Executive Committee members, a percentage of their variable remuneration is based on sustainability key performance indicators. However, the company could improve its disclosure by being more transparent about the elements considered for the performance appraisal.

Stakeholder engagement
While the company has conducted stakeholder engagement activities and discloses an overview of the issues raised via these activities, it has an opportunity to disclose updated information on how it identifies its most relevant stakeholders, along with information on how the outcomes of the engagement process are integrated into the company’s sustainable development strategy.

Scope 1 and 2 greenhouse gas emissions
The company has ambitions to reduce its GHG emissions per hectolitre produced in its breweries and has achieved a 51% reduction since 2008. Furthermore, it discloses that it will raise the bar on its ambitions to align with a 1.5-degree trajectory in 2021, by committing to a carbon neutral by 2040, with an interim target of 30% absolute reduction by 2030. The targets are still out for approval by the Science Based Targets initiative (SBTi), which will happen in the second half of 2021. The company also consistently discloses on progress, by sharing both qualitative and quantitative information.

Scope 3 greenhouse gas emissions
While the company has also set a scope 3 emissions target, the company has not yet disclosed its baseline or progress against it and its expected to do so in the next reporting exercise. Furthermore, it discloses that it will raise the bar on its ambitions to align with a 1.5-degree trajectory in 2021, by committing to a carbon neutral by 2040, with an interim target of 30% absolute reduction by 2030. The targets are still out for approval by the Science Based Targets initiative (SBTi), which will happen in the second half of 2021. The company also consistently discloses on progress, by sharing both qualitative and quantitative information.

Soil health and agrobiodiversity, and fertiliser and pesticide use
The company provides qualitative evidence towards improving soil health and agrobiodiversity and has set 2030 targets to ensure sustainable sourcing of barley and hops. The company can further strengthen its commitment by providing more disclosure regarding activities improving soil health and agrobiodiversity under its targets and reporting on quantifiable impact data such as increases in soil organic matter.

Water use
Heineken has surpassed its 2020 target to reduce its average water consumption in breweries located in water stressed areas. It discloses conducting regular mapping of water risks – in 2011, 2017 and 2021 – with guidance from the World Wildlife Fund and the World Resources Institute Aqueduct mapping tool across its breweries and production sites under its own operations. While the company discloses projects of working with farmers across Egypt and Mexico to reduce water use, it has an opportunity to strengthen its disclosure regarding its dependency on water stressed areas in its supply chain.

Availability of healthy foods
The company discloses that has introduced reformulated products such no-and-low-alcohol options to its portfolio and has set a target to reduce the level of alcohol in its products. Furthermore, the company has also disclosed qualitative information regarding reduction of sugar. However, it has an opportunity to disclose qualitative information and to set a target around sugar reduction.

Clear and transparent labelling
While the company has a commitment to clear and transparent labelling by providing information including calories, ingredients, alcohol by volume and allergens, it has an opportunity to disclose how it is adopting voluntary labelling initiatives to make responsible drinking messages more visible and accessible to consumers

Responsible marketing
Heineken has a responsible marketing code that is applicable to all media and references children and teens regarding legal purchase and/or drinking age (LPDA). The company’s focus is on preventing the promotion of its products, including low- and no-alcohol products, to underage individuals. Moreover, the company discloses a target to spend 10% of total marketing budget on responsible drinking marketing and reports progress against this target. However, this target was not achieved by 2020 following the COVID pandemic.

Food safety
The company does not disclose evidence of ensuring safe food for consumers through compliance with national regulations and/or the Codex General Principles of Food Hygiene, nor an effective food safety certification scheme.

Child labour
While the company commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a coordinated and consistent monitoring system for its for its own operations and supply chain.

Forced labour
The company does not disclose a commitment to prohibit forced labour in its operations and/or supply chain.

Living wage
The company discloses a 2023 target to pay all workers in its operations a living wage. This target is part of Heineken’s strategy towards 2030 and seeks to pay every employee a fair wage covering basic and discretionary needs for the employee and its family, and this also applies to situations where a minimum wage is already in place. Living wage calculations are obtained through the Fair Wage Network. While committing to ensure fair wages in its supply chain, the company has an opportunity to set a time-bound target or include living wage requirements in its contracts with suppliers.

Health and safety
Heineken has identified different groups of vulnerable workers, such as contractors, transport and logistic workers. Furthermore, it has particularly focused on its Brand Promoters, who are usually hired via agencies, as vulnerable group. It has set up a policy to protect them, which includes elements as accidents in the workplace, harassment and alcoholic ingestion during working hours. The company can improve its performance by conducting risk assessments around this matter and requiring its suppliers to do the same.

Heineken has a commitment to respect human rights and ILO core labour rights. Its due diligence process includes the identification and assessment of the salient human rights risks in its operations and supply chain and an action plan to address them. Furthermore, the company has grievance mechanisms that are accessible to employees and external stakeholders to raise human rights complaints or concerns. However, the company does not disclose detailed information nor specific examples regarding its engagement with stakeholders who might have been impacted by its operations.

Heineken commits to respect health and safety and ensure collective bargaining but fails to provide relevant data on implementation and monitoring, including in its supply chain. The company has set a target to pay a living wage across its own operations by 2023 and discloses it obtains living wage calculation through the Fair Wage Network. While the company has committed to ensuring living wages in its supply chain, it does not disclose a time-bound target. Related to gender equality and women’s empowerment, Heineken has set a target to increase women in senior management and demonstrates that 40% of supervisory board members are women. However, the company can improve disclosure on gender pay gaps per employee category. While disclosing some data on age and gender in its workforce, Heineken has an opportunity to disclose on markers of diversity for each employee category.

By disclosing policies on personal data protection, tax, and bribery and corruption, Heineken demonstrates a commitment to ethical business conduct. There is room for the company to further develop its disclosure on lobbying and political engagement by addressing third-party lobbyists as well lobbying expenditures and tax payments.