2022 Communication on Progress

Heineken N.V.

Published date

July 3, 2022

No. of questions

62

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    Respect for human rights means addressing potential human rights issues at an early stage and seeking adequate remedy in cases where human rights are violated. We actively encourage everyone to Speak Up about any concerns they may have about HEINEKEN’S operations, particularly in relation to suspected human rights violations and misconduct. Multiple Speak Up channels are available to enable employees and external parties to quickly and easily raise questions and concerns, in confidence and without fear of retaliation. They include Trusted Representatives and a Speak Up service (telephone and online), run by an independent third-party and available 24/7, 365 days a year. All human rights-related concerns shared through the Speak Up system are assessed and investigated where needed. Substantiated concerns are addressed through credible actions. The HEINEKEN Integrity Committee, chaired by the Chief Human Resources Officer, keeps oversight of all potential issues and provides guidance. HEINEKEN's Speak Up framework ranks #3 out of 68 Dutch companies in the Whistleblowing Frameworks 2019 report by Transparency International NL. Our overall score is 82,7%, with highest scores on Culture and Protection. Based on stakeholder feedback over the past two years, we have updated and improved our Speak Up Framework. This includes changes to the Speak Up Policy, Speak Up Investigation Manual, new guidance documents aimed at those involved in Speak Up and improvements to the case management system. We also made improvements in the area of Speak Up reporting. We will continue to review our Speak Up framework and improve where we can. In line with our Human Rights Policy commitment to seek adequate remedy in cases of human rights violations, we remain committed to collaborating with judicial or non-judicial mechanisms. We also encourage our suppliers to implement grievance mechanisms to identify and repair potential misconduct and similarly engage in judicial and non-judicial processes. We take access to remediation seriously which allows us to act quickly and proactively.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    In this interview, we discussed our approach to ensuring access to remediation and our grievance mechanism: https://www.imvoconvenanten.nl/en/food-products/convenant/stories/heineken

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    See for example our work around creating safe working conditions for brand promoters: https://www.theheinekencompany.com/newsroom/working-with-brand-promoters-latest-update/

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    In April 2022 the Annual Shareholders Meeting (AGM) has approved that 3 ESG metrics will be included in the long-term remuneration policy for Senior Management, representing 25% of the total mix. These metrics are directly related to the 2030 sustainability commitments in the areas of 1) water efficiency, 2) % of women in senior management positions, and 3) reducing CO2 emissions in production. The selection is based on having a long-term focus with clear – measurable - milestones in the medium term. By including ESG metrics in our Long-Term Incentive policy we align the executive remuneration with our EverGreen strategy and our ‘Green Diamond’, which now reflects sustainability and responsibility next to organic growth, profit, and efficient capital location. Overall, it will support the creation of sustainable long-term value. Furthermore, our Short-Term Incentive Policy also has an ‘individual component’ that is aligned to our Evergreen strategy, therefore also covering sustainability measures of performance.

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    10

    Male (%)

    60

    Female (%)

    40

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    0

    Above 50 years old (%)

    100

    From minority or vulnerable groups (%)

    0

    Executive (%)

    0

    Independent (%)

    60
    Optional comment
    The Supervisory Board has a diverse composition in terms of experience, gender, nationality and age. Four out of 10 members are women and eight out of 10 members are non-Dutch. There are six nationalities (American, British, Dutch, German, Indian and Mexican) and age ranges between 52 and 77. The Supervisory Board is of the opinion that a diversity of experience and skills is represented on its board. The elements of a diverse composition of the Supervisory Board are laid down in the Diversity Policy of the Supervisory Board, Executive Board and Executive Team as per best practice provision 2.1.5 of the Dutch Corporate Governance Code of 8 December 2016. Currently, 40% (i.e. four out of ten) of the Supervisory Board members are female. The Supervisory Board endorses the principle that the composition of the Supervisory Board shall be such that its members are able to act critically and independently of one another and of the Executive Board and any particular interests. Given the structure of the Heineken Group, the Company is of the opinion that, in the context of preserving the continuity of the Heineken Group and ensuring a focus on long-term value creation, it is in its best interest and that of its stakeholders that the Supervisory Board includes a fair and adequate representation of persons who are related by blood or affinity in the direct line of descent to the late Mr. A.H. Heineken (former Chairman of the Executive Board), or who are members of the Board of Directors of Heineken Holding N.V., even if those persons would not, formally speaking, be considered "independent" within the meaning of best practice provision 2.1.8 of the Code. Currently, the majority of the Supervisory Board (i.e. six of its ten members) qualify as "independent" as per best practice provision 2.1.8 of the Code. There are four members who in a strictly formal sense do not meet the applicable criteria for being "independent" as set out in the Code: Mr. de Carvalho (who is the spouse of Mrs. C.L. de Carvalho-Heineken, the daughter of the late Mr. A.H. Heineken, and who also is an executive director of Heineken Holding N.V.), Mr. Das (who is the Chairman of the Board of Directors of Heineken Holding N.V.), Mr. Fernández Carbajal (who is a non-executive director of Heineken Holding N.V. and a representative of FEMSA) and Mr. Astaburuaga Sanjinés (who also is a representative of FEMSA). However, the Supervisory Board has ascertained that Mr. de Carvalho, Mr. Das, Mr. Fernández Carbajal and Mr. Astaburuaga Sanjinés in fact act critically and independently.

    13. Do you produce sustainability reporting according to:

    1) World Economic Forum Stakeholder Capitalism Metrics (which includes metrics from existing standards like SASB and GRI), 2) CDP on Climate and Water, 3) The EU Taxonomy Regulation

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    See the Assurance Report of the Independent Auditor (of non-financial indicators), page 172 and 173 of the 2021 Annual Report

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Optional comment
    Our Human Rights Policy sets ten clear standards for human rights as a foundation to help us to understand, avoid and address human rights-related risks: 1) Health & safety 2) Non-discrimination 3) No harassment and violence 4) Child protection 5) Freedom of association and the right to collective bargaining 6) No forced labour 7) Rest and leisure 8) Fair wages and income 9) Access to water 10) Respect for human rights in high-risk contexts

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    We started conducting human rights risk assessments and action planning workshops in 2016. Following these workshops, operating companies develop practical action plans to address the potential human rights risks identified. We have now completed risk assessments and workshops in 16 operating companies: Brazil, Cambodia, Democratic Republic of Congo, Ethiopia, Haiti, Hungary, Indonesia, Jamaica, Mexico, Myanmar, New Zealand, Nigeria, Serbia, South Africa, Timor-Leste and the UK. In 2020, we developed online workshops and we continue to strengthen regional governance structures and human rights monitoring. Due to pandemic measures, we did not conduct in-person workshops in 2021. Instead, we worked with all 16 operating companies to follow up on their salient human rights risks. These risks differ by country and include topics such as discrimination, excessive working hours, harassment, road safety and working conditions of third-party employees and farm workers. Based on stakeholder feedback, we refreshed the workshop content to allow more time for developing action plans. We will conduct our next in-person human rights workshops in 2022, beginning with Croatia in Q2. Managing human rights risks across the entire value chain is an ongoing priority. We have enhanced our supplier screening and due diligence process. An automated supplier risk management tool allows us to identify elevated risks in our value chain and focus on actions to mitigate them. Following research by the African Studies Centre Leiden (ASCL) into the socio-economic and agronomic dynamics of the Sorghum value chain in Nigeria, we identified potential human and labour rights risks in this market. We are carrying out Human and Labour Rights risk assessments of sorghum farms and aggregators in Nigeria and Nigerian Breweries will develop action plans to address any issues identified. Multistakeholder engagement can influence our local decision-making. For example, in Brazil, we had plans to build a new brewery in the city of Pedro Leopoldo. Although it received huge support from the local community and obtained all relevant environmental permits, there was disagreement among stakeholders on the potential impact it could have on a nearby archaeological site. Our team in Brazil held a series of conversations with groups involved, to listen and learn. Based on the outcomes, we concluded that construction would only make sense if it had the support of all stakeholders. As a result, we have stopped the construction and will search for an alternative location in the same state. We may face human rights dilemmas in countries that are politically less stable. To manage such dilemmas, we constantly review whether we can continue to operate in such countries and, if so, how? Our Policy is that operating companies should never knowingly contribute to human rights violations by others. We will always protect the security of our employees, their families and our facilities and we work with security staff who are properly instructed and trained to respect human rights. In 2020 and 2021, we conducted workshops on doing business and respecting human rights in high-risk contexts with relevant operating companies. These workshops will continue in 2022. We have developed a framework that helps our operating companies maintain the safety and security of people and assets with respect for human rights. This includes new trainings for security staff on the Voluntary Principles on Security and Human rights, focused on operations in volatile environments. The training is designed to ensure that security personnel have the knowledge and understanding to conduct daily tasks in compliance with international standards on security and human rights and with our policies regarding human rights and ethical conduct.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2018

    Forced labour

    2018

    Child labour

    2018

    Non-discrimination in respect of employment and occupation

    2018

    Occupational safety and health

    2018

    Working conditions (wages, working hours)

    Optional comment
    Occupational safety and health are part of the Human Rights Policy, as well as a separate policy through the HEINEKEN Life Saving Rules.

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Our human rights standards also apply to our suppliers through the HEINEKEN Supplier Code. It is our responsibility to ensure that our Suppliers understand what is expected of them. The HEINEKEN Supplier Code helps Suppliers to understand HEINEKEN’s minimum standards. We expect our Suppliers to acquaint themselves with its contents. We expect our Suppliers to adhere to all applicable laws and regulations where they operate, as well as the minimum standards set out in this Supplier Code. These minimum standards should be incorporated into Suppliers’ own operations and communicated to all individuals employed by the Supplier, regardless of the type of contract or the location of their work, and individuals working for the Supplier through a third party contract. HEINEKEN also expects Suppliers to take appropriate steps to ensure that their own suppliers comply with the minimum standards of the Supplier Code. HEINEKEN reviews compliance with the Supplier Code and has the right to undertake an assessment with any Supplier. HEINEKEN expects Suppliers to undertake an assessment in its own operations and throughout its supply chain in this regard. In the event of non-compliance with the minimum standards, HEINEKEN will work together with Suppliers to take corrective action within an appropriate timeframe. If a Supplier is not able or fails to correct the noncompliance, HEINEKEN may end the relationship.

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    In 2021, we received over 1,700 reports of suspected misconduct through Speak Up (2020: 1,469). This upward trend might be the result of continuous efforts and campaigns to encourage employees to express their suspicions and concerns. Considering the continued extraordinary working and business conditions of 2021, it is complicated to reach any specific conclusions from this increase. Reports received concerned allegations of fraud (27%), discrimination and harassment (28%), conflicts of interest (8%) and other issues (37%). 81% of the cases reported in 2021 have been closed and 19% are pending closure. 68% of fraud cases, 49% of discrimination and harassment, 32% of conflicts of interest and 28% of other issues were fully or partly substantiated, which led to an overall substantiation rate of 45%. In most substantiated cases, appropriate corrective and preventive actions were taken. They included process and control improvements, awareness-raising, training and disciplinary measures. These ranged from verbal and written warnings to suspension or even termination of the employment where appropriate. We have not been subject to any criminal or regulatory investigations on the grounds of corruption including bribery, facilitation payments, extortion, money laundering and collusion.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    We have developed an operational framework that helps our operating companies to maintain the safety and security of people and assets with respect for human rights. We launched new trainings for security staff in line with the Voluntary Principles on Security and Human Rights, focusing on operations in volatile environments. This training is designed to ensure they have the knowledge and understanding to conduct daily tasks in compliance with international standards on security and human rights and with our policies regarding human rights and ethical conduct. In 47 operating companies, we employ security personnel, either directly or through a third party. In 2021, 84% of all security personnel (employed direct or through third parties) have received formal training in the organisation’s policies and/or procedures concerning Human Rights issues and their application to security. Our Good Governance platform in the Africa Middle East & Eastern Europe region addresses human rights related topics specific to the region. We set up initiatives with experts and NGOs where actions are needed – from conducting integrated socioeconomic impact assessments to improving the working conditions of brand promoters globally and embedding human rights in local sourcing initiatives. During the COVID-19 pandemic, we put a clear strategy in place with suppliers to support them where possible and to avoid adding additional pressures on their businesses. We reduced payment terms for small and medium suppliers and for some larger suppliers who needed our support. The majority of suppliers already had access to our Supplier Finance schemes which allow them to access early payments. When requested, we allowed early payments, prefunded orders and gave long term commitments through orders and shared access to our personal protective equipment. We are committed to conducting business with integrity and fairness, with respect for people, the law and our values. We expect and count on our suppliers to help us deliver on our values and commitment to responsible business conduct at all times even when ‘normal’ life was put on pause due to the COVID-19 crisis. We have continued to follow our Supplier Code Procedure across our global operating companies, but also included the continuous monitoring element for the supplier screening process step to get any risk alerts associated with any of our suppliers. The current four step Supplier Code Compliance Procedure allows us to identify and evaluate potential risks with our suppliers and execute mitigating actions to address the following issues: anti-bribery and anti-corruption, sanctions, political exposure, negative media coverage related to issues such as labour and human rights, health and safety, fraud, fair competition and money laundering. Our plan for the next year is to expand the scope of our Supplier Risk Management programme to include additional risk drivers (e.g. 'cyber security' and 'human trafficking & modern slavery') to improve consistency and oversight.

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Our external commitments: • Gender balance across senior management: 30% women by 2025, 40% by 2030 • Cultural diversity: across each region at least 65% of country leadership teams are regional nationals by 2023 • 100% of our managers trained in inclusive leadership by 2023 • Fair wage for employees: close any gaps by 2023 • Equal pay for equal work: assessments and action by 2023 • Ensure fair living and working standards for third party employees and brand promoters • Create leadership capacity to drive zero fatal accidents and serious injuries at work

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    62
    Optional comment
    48 operating companies have at least one collective bargaining agreement, covering more than 51,000 employees in total, meaning 62% of our employees (GRI 2021)

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    Optional comment
    This is managed at local level. Consolidated information is not available

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    25

    Non-executive board

    40

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    Optional comment
    AR 2021, Fair wages for employees, p 140 We recognise the importance of equal pay and take responsibility for driving this ambition both within and beyond our organisation. We are raising the bar by committing to equal pay for equal work (or work of equal value) between female and male colleagues. By 2023, assessments and actions will be in place to close any gaps. Action plans will focus on improving equal pay and also gender representation, the opportunity for promotion and gender balance in management teams. We have seen a lot of support for this commitment from our operating companies. At the end of 2021, 97% of operating companies have been assessed and 88% of detailed action plans are in place across 75 operating companies. Action plans include, for example, embedding structural checks and controls in all our processes involving pay decisions to ensure these decisions do not unfairly discriminate and are gender-neutral. For 2022, we are planning a new assessment for all operating companies to track and monitor improvements in the area of equal pay for equal work.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    Optional comment
    Our Lost Time Accident Frequency in 2021 was 0.8 per 100 FTE Company personnel (Annual report 2021 page 141). The main types of work-related injuries are, cuts by sharp objects (e.g. glass), injuries while lifting or carrying objects, slips or falls, hits by moving falling objects or vehicles (e.g. forklifts).

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0.8
    Optional comment
    Our Lost Time Accident Frequency in 2021 was 0.8 per 100 FTE Company personnel (Annual report 2021 page 141)

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    No material issues were identified.

    Forced labour

    No material issues were identified in our own operations. We consider suppliers that are producing goods or providing services in certain geographies as potentially high risk for incidents of child or forced labour based on indexes such as Fragile State Index, Global Resilience Index, Global Slavery Index and Child Labour Human Development Index. On top of that, we consider suppliers that are producing certain goods or providing certain services as potentially high risk for incidents of child or forced labour. For example, suppliers of merchandise materials or temporary labour. Our Supplier Risk Management logic would flag these suppliers for further screening and due diligence process. Our plan for 2022 is to expand the scope of our Supplier Risk Management programme to include additional risk drivers to improve consistency and oversight.

    Child labour

    No material issues were identified. See also explanation under 'forced labour'.

    Non-discrimination in respect of employment and occupation

    No material issues were identified, outside what has been reported in the 2022 Annual Report under the Speak Up Procedure.

    Occupational safety and health

    No material issues were identified, outside what has been reported in the 2022 Annual Report in the Health & Safety Paragraph.

    Working conditions (wages, working hours)

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    - See the human rights chapter on our website: https://www.theheinekencompany.com/our-sustainability-story/people-and-behaviours/respecting-human-rights - See the Social chapter of our 2021 Annual Report: page 139- 142 - See the Human Rights and Code of Business Conduct chapter of our 2021 AR: page 146-147

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2021

    Water

    2021

    Oceans

    Forests / Biodiversity / Land Use

    2021

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2021

    Energy & Resource Use

    2021
    Optional comment
    We use 2021 as year, as this was the year where we announced our 2030 Brew a Better World strategy, with 22 new commitments for our path to zero impact, our path to an inclusive, fair and equitable world,

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    In Brazil we had plans to build a new brewery in the city of Pedro Leopoldo. Although it received huge support by the local community, and obtained all relevant environmental permits, there was disagreement among stakeholders on the potential impact it could have on a nearby archaeological site. Our team in Brazil held a series of conversations with groups involved, to listen and learn. Based on the outcomes, we concluded that construction would only make sense if it had the support of all stakeholders. As a result, we have stopped the construction and will search for an alternative location in the same state. Our 2030 water strategy - Towards Healthy Watersheds - looks beyond traditional water metrics to prioritise the health of local watersheds, especially in water-stressed areas. We focus on holistic water impact, optimising internal actions to ensure responsible water usage, wastewater management and promoting water security beyond our brewery walls. Over the past decade we have worked hard to reduce our water use by almost a third and to treat our wastewater before we return it to nature. We have already replenished six billion litres of water through various projects and have a dozen sites in water-stressed areas that are fully water balanced. We collaborate with others through local and global alliances to increase our reach and scale our positive impact. We actively participate in local water funds and alliances around the world, like Monterrey Metropolitan Water Air Fund (FAAMM) and Indonesia Industry Water Coalition. We are a member of the UNGC’s CEO Water Mandate Water Resilience Coalition and the Beverage Industry Environmental Roundtable (BIER) which is working to advance environmental sustainability within the beverage sector.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

    Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)

    Climate Action

    - Net zero emissions in production by 2030 - Carbon neutral value chain by 2040, 30% absolute reduction by 2030 - 100% sustainable ingredients (hops, barley) by 2030

    Energy & Resource Use

    Towards healthy watersheds : Our progress by 2021: 32% of water-stressed sites are fully water balanced 3.1hl/hl average water usage in water-stressed areas and 3.4hl/hl globally 11 of 165 sites do not have wastewater treatment plants What we will do by 2023 : Treat 100% of wastewater of all breweries What we will do by 2030 : Reduce average water usage to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl globally Fully balance water used in our products in water-stressed areas Maximise reuse and recycling in waterstressed areas

    Water

    - Fully balance water used in our products in water-stressed areas by 2030 - Maximise reuse and recycling in water-stressed areas by 2030 - Treat 100% of wastewater of all breweries by 2023 - Reduce average water intake to 2.6 hl/hl in water-stressed areas, and 2.9 hl/hl worldwide by 2030

    Forests / Biodiversity / Land Use

    Towards healthy watersheds : Our progress by 2021: - 32% of water-stressed sites are fully water balanced - 3.1hl/hl average water usage in water-stressed areas and 3.4hl/hl globally - 11 of 165 sites do not have wastewater treatment plants What we will do by 2023 : - Treat 100% of wastewater of all breweries What we will do by 2030 : - Fully balance water used in our products in water-stressed areas - Maximise reuse and recycling in waterstressed areas - Reduce average water usage to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl globally

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    - Zero waste to landfill for all our production sites by 2025 - Turn waste into value and close material loops throughout the value chain – strategy & targets in development

    Oceans

    Optional comment
    2021 AR page 129

    4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

    Progress is reviewed against goals annually or more frequently

    Progress is reported internally to the most senior level

    Progress is reported externally

    Other (Please provide additional information)

    Climate Action

    Energy & Resource Use

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Oceans

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    1068351

    Scope 2 Emissions

    Emissions (tCO2e)

    462414

    Scope 3 Emissions

    Emissions (tCO2e)

    16151000
    Optional comment
    Net zero carbon emissions is one of key pillars of HEINEKEN Brew a Better World 2030 Strategy. For details of the programme and current results, see the section 'Reach net zero carbon emissions'. Scope 1 and 2 in CDP: 1,502 Ktonnes CO2 Scope 3 emissions: 16,151 Ktonnes CO2 Total emissions Scope 1, 2 and 3: 17,653 ktonnes CO2. The results are based on the 2020 performance. The results include other gases from fuel combustion and refrigerant losses. Refer to HEINEKEN CDP Climate 2021 report for further details on our carbon performance.

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    HEINEKEN concluded that the main revenue-generating activity of HEINEKEN (Brewing and selling of beer and cider) is not included in the current parts of the Taxonomy regulation. Other activities were excluded from the analysis as these are considered immaterial. Although we concluded that HEINEKEN is not in scope to report ‘CAPEX’ or ‘OPEX’ for non-eligible activities, we consider it relevant to explain the link of our net zero emission strategy with the Taxonomy regulation. Long term power purchase agreements (PPAs) and Energy certificates (EACs) are an important part of our sourcing strategy to contract renewable energy and make progress towards our net zero emissions commitment in production by 2030. In 2021, we signed several PPAs, e.g. in the Netherlands all our offices, breweries and the Heineken Experience will be powered by two wind farms and in Nigeria we opened our first solar plant in our breweries. In our Africa Middle East region, we sourced renewable electricity in four operating companies through energy certificates allowing Russia, South Africa, Democratic Republic of the Congo and Egypt to source 100% renewable electricity. While these PPAs and EACs contribute to decreasing our carbon emissions, they are out of scope of Taxonomy-related disclosures. In addition, the biggest part of our carbon footprint lies in our value chain beyond our owned production sites and therefore any measures taken to reduce the carbon footprint in our value chain are out of scope of the KPIs as reported under the Taxonomy.
    Optional comment
    To transition to clear solutions, our finance organization has developed a business case model to ensure we always look at investing by ourselves or subcontracting the assets to a 3rd party. This model includes future carbon price to justify long term investment and protection of our bottom lines. Examples : - In 2020 we opened our solar farm in Andalucia to power the 4 breweries of HEINEKEN Spain. This project was developed with Iberdrola under a power purchase agreement of 10 years. Iberdrola will be generating power from this solar farm and HEINEKEN will be offtaking power. This is the very first PPA done by HEINEKEN in Europe. In 2020, we signed a contract to develop a wind farm in Finland that will be in execution in 2023 - Through our TPM (Total Productive Maintenance) program, HEINEKEN Engineers continue to share best practices across our 160 sites. We operate in regions where energy is high in carbon intensity and our operations do not always have the most efficient equipment. In 2018, a center of excellence was built to share and apply best practices around the world. This has to led to natural energy efficiency programs, reuse wasted heated, investment in biogas from waste water treatment plant and piloting new solutions. One initiative was to adopt a sensor in our Schiltingheim brewery in France to get live energy consumption. With this information our engineering team was able to flag any inconsistency in the manufacturing process, adjust energy use between day and night time and deliver energy savings. In this project, 20% of energy efficiency were extracted.

    8. Has the organization acted to support climate change adaptation and resilience?

    Optional comment
    We support global efforts to improve the quality and consistency of disclosures on climate-related risks and have committed to implement the recommendations of the TCFD. This will enable us to better assess and improve our resilience and communicate the critical impacts of climate change on our business, as well as shaping our action plans to mitigate the risks and seize on opportunities. HEINEKEN has established clear processes for setting and monitoring climate-related targets. Risks related to climate change, water scarcity and their effects on our production, raw materials prices and availability, are among main Company risks. Establishing our risk appetite and review of principle risks and opportunities are among the key activities of the Audit Committee. Oversight of the risk management framework lies with the Risk Committee. We set our Net Zero strategy in line with the Paris Agreement goals. Our carbon reduction commitments have been approved by the Science Based Targets initiative (SBTi). We use KPIs to measure and manage climate-related risks and opportunities. Performance is reported along with a description of our strategy for areas such as water usage and our carbon footprint in production and along the value chain. We have conducted a gap analysis to assess the extent to which our existing processes and public disclosures on climate risks (in our annual report and CDP submission) align with the recommendations of the TCFD. Using the results, we developed a plan to progressively meet the TCFD requirements. We are working to align our risk management processes with the TCFD recommendations and to enhance our understanding of the quantitative impact of climate change by considering various climate scenarios. In essence, climate-related risks are already an integral part of our risk management and governance process. Climate risk has been for several years among our top Company risks: in particular, availability and pricing of raw materials used in our production due to climate change, as physical risk, and preparedness to accelerated changes in environmental legislation as transition risk. Other example is the water availability in our breweries in water-stressed areas – we are assessing water risks since 2010 and this will now be more formalised within the TCFD framework.

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    27
    Optional comment
    AR 2021 page 133

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Optional comment
    Expenses related to Research and Development in 2021, € million: Consumer research, Brand development and Business innovation => 32 million R&D in Digital & Technology => 71 million The Global Commerce innovation spend is driven by consumer and market research to inform on changing consumer preferences and market trends. This supports the direction of our brand and category development activities as well as communication efforts. Our business innovation includes exploration of how we serve beer is a core element of our innovation pipeline. Collectively all of these efforts are owned by dedicated teams within our commerce teams. The R&D expenditure in Digital & Technology is related to Cyber-Security, brewery IT infrastructure, commercial and sales-related information systems, warehouse management software, human resource applications and deployment, enterprise resource planning software, and data analytics.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    90200

    Groundwater:

    47800

    Surface water:

    13530

    Rainwater:

    The remaining water is coming from 3rd party services. Our aim is to 100% balance the water we use in water-stressed areas. This means we will return to the local watershed every litre of water that goes into our product. We do this through water balancing projects that replenish water in the watershed that supports our operation. Projects range from nature-based solutions like large-scale reforestation and rainwater harvesting to infrastructure improvement projects which reduces water leakages\.

    Wastewater:

    54900

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    25.9

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    25390

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    25.9
    Optional comment
    Water withdrawal: AR 2021, p.138. Graph water withdrawal, including sources Water consumption: = consumption that ends up in the product in production => 95% of beer is water, we produced 231.2 million hectoliters of beer in 2021 (AR 2021 page 5). Additional water consumed is related to evaporation during the production process and e.g. becoming part of byproducts like spent grains. Water intensity: AR 2021, p.138. Graphs Average water usage (global) and Average water usage (water-stressed areas)

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Sector-specific: Forest, biodiversity, and land use

    14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).

    Number

    Unknown

    Not applicable (Please provide additional information)

    Sites

    We are in the process of developing our biodiversity and land use programmes. Current actions are focused on water stewardship and agriculture playing a highly important role in our value chain. For the water stewardship programme, see the section 'Towards healthy watersheds' in AR 2021. Among focus areas of our sustainable agriculture strategy are: – Land use change impact, better accountability and related-CO2 reduction strategy. – A regenerative agriculture strategy that will progressively bring to the next level our starting Low carbon farming programme, by incorporating more holistic agriculture key performance indicators close to carbon, such as water and biodiversity.

    Hectares

    We are in process of developing our biodiversity and land use programmes. Current actions are focused on water stewardship and agriculture playing a highly important role in our value chain. For the water stewardship programme, see the section 'Towards healthy watersheds' in AR 2021. Among focus areas of our sustainable agriculture strategy are: – Land use change impact, better accountability and related-CO2 reduction strategy. – A regenerative agriculture strategy that will progressively bring to the next level our starting Low carbon farming programme, by incorporating more holistic agriculture key performance indicators close to carbon, such as water and biodiversity.

    15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?

    Conversion of natural resources (hectares)

    Optional comment
    See explanation in previous question

    16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?

    No

    No, but we plan to in the next 2 years

    Yes

    Forest ecosystem restoration

    We have many reforestation and ecosystem restoration projects going on as part of our water balancing programme, including in Mexico (Monterrey), Indonesia and Nigeria. E.g. in Monterrey, more than 1,400 hectares of land at the Cumbres de Monterrey National Park have been reforested, coupled with soil conservation activities such as fencing to avoid intrusion of livestock and terraces for new vegetation. In the Lerma-Chapala watershed, the Guadalajara and Toluca breweries have implemented reforestation of 325 ha at the Queretaro y Guanajuato, installed 8 infiltration wells and rainwater harvesting. Another project that we are proud of is the sustainable barley cultivation projects with the 80 local farmers on a 480 ha of land in collaboration with the International Maize and Wheat Improvement Center (CIMMYT) to implement agriculture best sustainable management practices in barley cultivation that increased production levels and decrease costs, while making sustainable use of inputs, especially water. HEINEKEN México is one of the founders of Cauce Bajio, Guanajuato Water Fund, launched November 2020

    Other ecosystem restoration

    We have several ecosystem restoration projects in Spain as part of our water balancing programme, including restoring lagoons in the Biodiversity rich area of the Donana Wetlands. By improving soil structure and water filtration in close collaboration with NGO Commonland and government agencies, we brought life back to these wetlands. The actions increased water retention, improved the hydrological function of the wetlands, and eventually brought the birds back which means an improvement in biodiversity. Wetland restoration is also being replicated at another site, which includes the removal of water intensive and alien species that was destabilising the river bank and impacting natural habitat. Mexico: In the Colorado River Delta, the Tecate brewery collaborates with Restauremos El Colorado, to secure instream flows for the Colorado River to restore critical riverbank and wetland habitats in Mexico and the USA. Restauremos El Colorado is in charge of programming, delivering, and monitoring all future deliveries of the water rights, in coordination with the different levels of water management in the Valley of Mexicali. A total of 53 ha of water rights were donated by HEINEKEN Mexico and collaboration will continue. In Ethiopia we are working with World Vision International Ethiopia for the Dabana and Hakim Gara Integrated Water Balancing and Livelihood Improvement programme in Bedele and Harar to reduce environmental degradation, which also will benefit local communities. To date, 140,000 trees have been planted, with the objective to reduce runoff and sedimentation into rivers.

    Reforestation

    We have several reforestation and ecosystem restoration projects going on as part of our water balancing programme, including in Mexico (Monterrey), Indonesia and Nigeria. E.g. in Monterrey, more than 1,400 hectares of land at the Cumbres de Monterrey National Park have been reforested, coupled with soil conservation activities such as fencing to avoid intrusion of livestock and terraces for new vegetation. In Brazil, the Atlantic Forest is one of the most important carbon sinks in the world, however, only 7.9% of its vegetation remains. Our brewery worked with the SOS Mata Atlantica Foundation since 2007 to reforest 386 hectares of degraded land area, with 720,000 native seedlings. Increased Biodiversity: the number of bird species inhabiting the restored area increased with more than 150%. It was also proven that the diversity of mammals in the area is similar to that of well-preserved regions, including the cougar, which adopted the place as a refugee.

    Natural regeneration

    In 2020 we launched a Low Carbon Farming programme that aims to reduce CO2 emissions and enhance carbon sequestration in the soil (which is one of the drivers of improving biodiversity). In 2021, we started phase one of the programme with our main suppliers and own malting plants, and to date we have already engaged 300 pilot farms in 15 countries (covering the Americas, Europe and Australia). Pilot farms are supported by our suppliers’ agronomists and HEINEKEN specialists to apply a ‘test and learn’ approach to explore the coming years which low carbon farming practices can effectively reduce carbon emissions, before scaling up. These regenerative agriculture practices - like cover cropping, organic matter use and minimisation of tillage - also have a positive impact on biodiversity, water and soil health. For example, in Mexico, collaboration with an external partner to promote conservation agriculture means crops are now sown directly, without removing waste of the previous crop. This improves soil recovery and reduces water use and CO2 emissions.

    Agroforestry

    Set-aside land

    Biodiversity offsetting

    Other (please specify in text box)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Climate change is a global threat to humanity which will shape the way we do business in the coming decades. HEINEKEN is committed to taking action to limit global warming to 1.5°C. Our strategy is aligned with the sixth report of the Intergovernmental Panel on Climate Change (IPPC) and translates the commitment into actions to reduce emissions and help restore healthy functioning ecosystems. In April 2021, we disclosed our Brew a Better World ambition to raise the bar by targeting net zero carbon emissions across our total carbon footprint by 2040. We also set an intermediate goal to reach net zero emissions in production by 2030 and reduce our absolute emissions in our value chain by 30%. We invite the rest of our industry to join us on this journey to reduce the unknowns. As we search for the answers, we will collaborate with a large number of external stakeholders including suppliers, peers and partners to create a pipeline of innovations and research projects. We will use our voice as a global company to influence public policy and help to drive the transition to a low-carbon future. We hold ourselves accountable by continuously reviewing our strategies and targets in light of the latest science. This includes measuring progress against verified science-based targets which determine how much and how quickly we need to reduce emissions to limit global warming to 1.5°C above pre-industrial levels. We joined the Science Based Target initiative (SBTi) in 2019 and committed to set science-based targets for our entire value chain. The SBTi has approved our 2030 near-term target to reach net zero emissions in production and reduce our total emissions by 30% by 2030. We are working to gain validation of our long term 2040 target to reach net zero emissions across our total value chain. AR 2021, Reach Net Zero Carbon Emissions, p.132-135 AR 2021, Risk Management p38 AR 2021, Our 2030 sustainability commitments, p.129-131 AR 2021, Reporting basis and governance of non-financial indicators > Reach Net Zero Carbon Emissions, p.157-159

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2018
    Optional comment
    Heineken Code of conduct

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Prevention

    3. Who receives training on anti-corruption and integrity?

    Optional comment
    Our anti-bribery and corruption e-learning equips employees to recognise and deal with potential bribery challenges they may encounter during the course of their work. In 2021, almost 18,000 employees completed the training. Our anticorruption policies (which not only cover bribery but also other topics such as conflicts of interest, fraud, money laundering and gifts, entertainment and hospitality) are also addressed in our annual Code of Business Conduct training. We also launched a new e-learning for third parties that may be exposed to corruption risks. This training reiterates our zero tolerance to corruption policy and explains how to recognise and resist bribery and to Speak Up where needed. In 2021, 200 third parties completed this training.

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    Optional comment
    CoBC training: Annual dilemma based e-learning covering the topics within the Code of Business Conduct. – ABAC training: Dilemma based e-learning aimed to recognise and resist bribery & corruption. – Pre-assigned target audience: the training is mandatory for employees in certain functions, such as Management teams, Sales and Distribution, Procurement, Finance, Corporate Affairs, Legal, Customer Service and Logistics and other employees who interact with public officials or manage relations with third parties who interact with public officials on our behalf. AR 2021 page 146

    4. Does the company monitor its anti-corruption compliance programme?

    As a multinational company operating in more than 70 countries, we pay special attention to potential exposure to bribery and corruption. Our principle is never to engage in bribery in any place, at any time. Our anti-bribery framework aims to prevent, detect and respond to bribery and corruption threats. The framework includes risk-based third-party due diligence and internal and external awareness and training. Robust internal controls ensure we keep reasonable and proportionate oversight of activities related to the implementation and effectiveness of our business conduct framework.
    Optional comment
    AR 2021 p147

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    Confirmed during the current year, and related to this year

    In 2021, we received over 1,700 reports of suspected misconduct through Speak Up (2020: 1,469). AR 2021, Foundation, p.146-147 approx. 2% of these were related to corruption and bribery, including allegations of kickbacks from suppliers to employees. We have not been subject to any criminal or regulatory investigations on the grounds of corruption including bribery, facilitation payments, extortion, money laundering and collusion.

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    Optional comment
    81% of all Speak Up cases reported in 2021 have been closed and 19% are pending closure. 68% of fraud cases, 49% of discrimination and harassment, 32% of conflicts of interest and 28% of other issues were fully or partly substantiated, which led to an overall substantiation rate of 45%. In most substantiated cases, appropriate corrective and preventive actions were taken. They included process and control improvements, awareness-raising, training and disciplinary measures. These ranged from verbal and written warnings to suspension or even termination of the employment where appropriate. We have not been subject to any criminal or regulatory investigations on the grounds of corruption including bribery, facilitation payments, extortion, money laundering and collusion. (AR 2021 p146)

    7. Does your company engage in Collective Action against corruption?

    Transparency International is a global movement working in over 100 countries to end the injustice of corruption. HEINEKEN is an institutional member of the Dutch chapter since 2021, and a participant of the Business Integrity Forum.

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    The HEINEKEN Code of Business Conduct sets out the basic principles every employee must observe when acting for, or on behalf of, HEINEKEN. Underlying policies (available in 40+ languages) give further guidance on specific topics outlined in the Code. We provide annual Code of Business Conduct training to all employees worldwide. The training uses practical dilemmas to encourage participants to explore a range of responsible business conduct topics. In 2021, almost 73,000 employees completed the training. We take every opportunity to raise awareness and keep our employees engaged through continuous communications on our responsible business conduct principles. In 2021, this included celebrating World Whistle Blower Day in June and launching a full-week campaign during the Week of Integrity in December. As a multinational company operating in more than 70 countries, we pay special attention to potential exposure to bribery and corruption. Our principle is never to engage in bribery in any place, at any time. Our anti-bribery framework aims to prevent, detect and respond to bribery and corruption threats. The framework includes risk-based third-party due diligence and internal and external awareness and training. Our anti-bribery and corruption e-learning equips employees to recognise and deal with potential bribery challenges they may encounter during the course of their work. In 2021, almost 18,000 employees completed the training. Our anticorruption policies (which not only cover bribery but also other topics such as conflicts of interest, fraud, money laundering and gifts, entertainment and hospitality) are also addressed in our annual Code of Business Conduct training. We also launched a new e-learning for third parties that may be exposed to corruption risks. This training reiterates our zero tolerance to corruption policy and explains how to recognise and resist bribery and to Speak Up where needed. In 2021, 200 third parties completed this training. Robust internal controls ensure we keep reasonable and proportionate oversight of activities related to the implementation and effectiveness of our business conduct framework. AR 2021 p 146