Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia

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Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
Sustainability Report 2012 - HEINEKEN Serbia

Brewing a
Better Future

Improve                Empower                   Impact
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
HEINEKEN Serbia                                                                                                                                                                                                                                                              HEINEKEN Serbia 01
Sustainability Report 2012                                                                                                                                                                                                                                               Sustainability Report 2012

    Welcome                                                                                                                       MD’s Foreword

Welcome to our                                                                                                                Embracing
Sustainability Report 2012                                                                                                    change
We at HEINEKEN Serbia are committed to our                                                                                    Beer is at the heart of our business and the art
global initiative to become the world’s greenest                                                                              of brewing beer is similar today to when Gerard
international brewer. This report describes some                                                                              Adriaan Heineken started the HEINEKEN
of our key efforts in 2012, the third year of our                                                                             Company 149 years ago. He was driven by the                                                                                         ‘In the coming years, we
Brewing a Better Future journey.                                                                                              desire to create a successful, sustainable                                                                                          are committed to
                                                                                                                                                                                                                                                                  improving continuously
                                                                                                                              business that wasn’t just financially successful                                                                                    our initiatives related to
                                                                                                                              but which also made a positive contribution to                                                                                      sustainability. Let’s
                                                                                                                                                                                                                                                                  continue brewing a
                                                                                                                              society as a whole. The simple blueprint he                                                                                         better future together!
                                                                                                                              established was to hire passionate people, use
                                                                                                                              the freshest ingredients, constantly innovate,                                                                                      Alexandros Daniilidis
                                                                                                                                                                                                                                                                  Managing Director
                                                                                                                              never compromise on quality and then to
                                                                                                                              reinvest in society and the communities where
                                                                                                                              we operate. This is exactly the approach we still
                                                                                                                              maintain today.
Contents                                    Company profile
Foreword                              01   HEINEKEN Company in Serbia operates in two
Brewing a Better Future               02   breweries, one in Novi Sad and the other in                                       We believe that regular and transparent                 whereas the rest of 8,5% are international          Internally, we constantly develop our people and
Value chain                           04   Zajecar. The company was established in 2008                                      communication with the stakeholders we                  suppliers.                                          systems in order to have a motivated and skilled
What we said and what we’ve done      06                                                          THE ONLY SERBIAN BREWER    cooperate with and engagement of all the                                                                    team of people and a precise monitoring process
                                            when the world’s most international brewer,                                                                                               We support our communities either by direct
                                                                                                      OPERATING IN TWO        parties present a necessary prerequisite and a                                                              which allow us to do even better work on a daily
Green Brewer                          08
                                            HEINEKEN, entered the Serbian market. The core           BREWERIES IN SERBIA                                                              contributions made locally or by shared-value
                                            business of the company is production,                                            solid base for a sustainable development and                                                                basis.
                                                                                                                                                                                      projects which spread the benefits of commercial

                                                                                                         250
Green Commerce                        12                                                                                     relationship.
Engaging Employees                    13   distribution and sales of beer.                                                                                                           activities to the wider community:                  Every year, we measure our progress through two
Heineken Cares                        18
                                            The portfolio of brands comprises of the                                          HEINEKEN Company in Serbia is focused to                                                                    surveys – internal one - Climate Survey and
                                                                                                                                                                                      • Brewing a Better Future is our strategy which
Responsible Consumption               20                                                                                     development of a continuous positive trend of                                                               external and internal one - Reputation Research.
Partnerships for Progress             22
                                            following brands: Heineken, Amstel Premium                  EMPLOYEES             our business here, as well as to the further
                                                                                                                                                                                        focuses on performing a sustainable business
                                                                                                                                                                                                                                          The results we receive allow us to have a clear
                                            Pilsener, Zaječarsko, PilsPlus, Master and MB Pils.                                                                                         in the whole value chain: from the grain to the
                                                                                                      TURNOVER GROWTH         improvement of our export business and all the                                                              insight into thoughts and views of all our
Enabling our journey                  24   Transparency in our daily work and                                                                                                          point of consumption. We are dedicated to
                                                                                                        IS MORE THAN          environmental and safety initiatives that will                                                              stakeholders and to make action plans in order to
                                                                                                                                                                                        reductions and balanced usage of water, CO2

                                                                                                         20%
Stakeholder engagement and dialogue   25
                                            communication, respect for the individuals, local                                 positively contribute to the Serbian society, our                                                           develop successful relationships even further.
The years ahead		                      26
                                            community and society, passion for quality and                                                                                              and energy consumption which we decrease
Benchmarks and Achievements           28                                                                                     consumers and local economy.
                                            corporate social responsibility present the core                                                                                            year after year through various initiatives.      Our goals for the coming years remain indeed
Our Brand portfolio                   29                                                                                     HEINEKEN Company presents the only brewer in              Since the introduction of our ‘Brewing a Better   ambitious. However, we are convinced that in
                                            values of our company. As an integral part of the       AS OF THE BEGINNING OF
The story of beer                     30
                                            communities we operate in, our company                      OUR OPERATIONS        Serbia which actively operates in two breweries:          Future’ program (BABF) in 2010, HEINEKEN          achieving them, we can count on your support
GRI Reference Table                   32
                                                                                                                              in Novi Sad - technologically one of the most             Company in Serbia has made a considerable         and commitment. Only by our mutual actions, we

                                                                                                         30%
Social data table                     40   establishes, develops and maintains strong
                                            relationships with the towns of Novi Sad and                                      advanced breweries in Balkans and in Zajecar – a          progress in the various aspects of our BABF       can make sustainable future a reality.
                                            Zajecar through the mutual valuable cooperation                                   brewery with its long tradition of brewing                agenda. We feel that responsible actions
                                                                                                                                                                                                                                          We hope that you will find this report interesting
                                            aimed at the improvement of the quality and           TOTAL PRODUCTION INCREASE   expertize established in 1875, and in this way we         should be a part of our daily routine and we
                                                                                                                                                                                                                                          and, as always, we encourage you to share your
                                            standard of life for all the citizens.                  AS OF THE BEGINNING OF    strongly contribute to the Serbian economy.               are proud that sustainability presents the
                                                                                                                                                                                                                                          opinions on where you think we are performing
                                                                                                        OUR OPERATIONS        We directly employ 265 employees and,
                                                                                                                                                                                        cornerstone of our business operations.
                                                                                                                                                                                                                                          well and where we need to do more.

                                                                                                       Heineken       ®       additionally, we maintain a strong strategic
                                                                                                                              partnership with CCH Hellenic through which we
                                                                                                                                                                                      • Being a responsible citizen, we actively
                                                                                                                                                                                        promote the enjoyment of beer in moderation.
                                                                                                         ENJOYED IN           employ a sales and distribution force of 120              We implement a consistent, effective approach     Best regards,

                                                                                                          178
                                                                                                         COUNTRIES
                                                                                                                              people.
                                                                                                                              Due to our production footprint and excessive
                                                                                                                              capacity we are dedicated and focused on
                                                                                                                                                                                        to encourage responsible attitudes to alcohol
                                                                                                                                                                                        and discourage alcohol misuse.
                                                                                                                                                                                      • We support the Olympic Committee and
                                                                                                                                                                                                                                          Alexandros Daniilidis
                                                                                                                                                                                                                                          Managing Director

                                                                                                                              developing our business further, so HEINEKEN              Serbian National Olympic Team and we are
                                                                                                                              Company in Serbia exports to 10 different                 involved in many CR campaigns to fully
                                                                                                                              countries.                                                support the towns of Novi Sad and Zajecar
                                                                                                                                                                                        through different cultural, sport and musical
                                                                                                                              The local sourcing plays a significant role in
                                                                                                                                                                                        manifestations and events
                                                                                                                              economically and socially empowering
                                                                                                                              communities and local farmers. By prioritizing          • For New Year time we started an initiative of
                                                                                                                              local sourcing, all of our raw material suppliers are     donating our complete budget for corporate
                                                                                                                              from Serbia, except for hop which is imported as          NY gifts to charity and this year we donated
                                                                                                                              it is not available in Serbia. In percentage this         the funds to a daily health centre for the
                                                                                                                              means that 91,5% of our suppliers are domestic            children who live on the street.
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
02 HEINEKEN Serbia                                                                                                                                                                                                                                                          HEINEKEN Serbia 03
Sustainability Report 2012                                                                                                                                                                                                                                              Sustainability Report 2012

    Overview
                                                                                                                                Governance                                          Ambition and strategic imperatives                      Balancing business

Brewing a
                                                                                                                                Brewing a Better Future programme is governed       • HEINEKEN’s long-term ambition is to be the            with sustainability
                                                                                                                                locally by our Sustainability Team which meets        world’s greenest brewer. To realise our vision of a   HEINEKEN has grown significantly in recent years
                                                                                                                                regularly over a year. Core team is the company’s     more sustainable world, we make positive and          and we are increasingly leveraging our global

Better Future
                                                                                                                                Management Team and the supporting team is            long-term investment in the environment,              scale to drive both cost benefit and the impact of
                                                                                                                                covered by colleagues from different parts of the     communities, people and partnerships.                 our actions. Through our Supplier Code, for
                                                                                                                                organization: Supply Chain, Human Resources,          Additionally, to make sure we reach our               instance, which has been signed by almost all our
                                                                                                                                Sales, Marketing and Corporate Relations              destination, we have focused our actions,             suppliers we are embedding our sustainability
Brewing a Better Future is HEINEKEN’s long-term                                                                                 function. The Team is chaired by Corporate            commitments and programmes around three               values deep into our supply chain.
integrated approach to creating genuine shared                                                                                  Relations Manager.                                    strategic imperatives:
                                                                                                                                                                                                                                            We recognise, however, that we cannot grow
value for all our stakeholders. Sustainability is part                                                                          On a quarterly basis, our Sustainability Team
                                                                                                                                reports about the activities and current status
                                                                                                                                                                                    • To continuously IMPROVE the environmental
                                                                                                                                                                                      impact of our brands and business: this concerns
                                                                                                                                                                                                                                            without reference to and regard for society as
                                                                                                                                                                                                                                            well. That’s why the responsible consumption
of how we manage our business.                                                                                                  relating to Brewing a Better Future agenda            not only the production and transportation of         element of Brewing a Better Future is critical to
                                                                                                                                through Green Gauge system and the overall            our beers, but also energy-efficient cooling          our business priorities. Heineken®, our core
                                                                                                                                progress is regularly on the agenda of the            techniques.                                           brand, is at the heart of both our commercial and
                                                                                                                                Management Team meetings. Highlighting the                                                                  responsible consumption activities, but we always
                                                                                                                                                                                    • To EMPOWER our people and the communities
                                                                                                                                importance of our sustainability strategy,                                                                  address our consumers to enjoy all our brands in
                                                                                                                                                                                      in which we operate: key items here are the
                                                                                                                                Management team members have sustainability                                                                 moderation.
                                                                                                                                                                                      creation of a safe working environment and the
                                                                                                                                targets as part of their yearly incentive
                                                                                                                                                                                      provision of the necessary training programs.         Brewing a Better Future is integral to our business
                                                                                                                                programme.
                                                                                                                                                                                                                                            and ultimately to our success in becoming a
                                                                                                                                                                                    • To positively IMPACT the role of beer in society:
                             Brewing a Better Future was introduced in April                                                                                                          this area covers all the initiatives encouraging
                                                                                                                                                                                                                                            consumer-inspired, customer-oriented and
                             2010 and born out of close discussion with our                                                                                                           responsible alcohol consumption. We firmly
                                                                                                                                                                                                                                            brand-led organisation. That’s why in HEINEKEN
                                                                                                                                                                                                                                            integrated sustainability in the company’s
                             stakeholders. It has provided the Company with a                                                                                                         believe that beer, if consumed in moderation,
                                                                                                                                                                                                                                            strategy alongside the other commercial and
                             roadmap and reflects our ambition to become an                                                                                                           has its place in a healthy and well-balanced
                                                                                                                                                                                                                                            business imperatives.
                                                                                                                                                                                      lifestyle. Our employees are ambassadors of the
                             even greener business.                                                                                                                                   responsible consumption agenda and we work
                                                                                                                                                                                      with partners in society in addressing issues         Ambition and strategy
                                                                                                                                                                                      around alcohol-related harm.                          Always focusing on our consumers and
                                                                                                                                                                                                                                            community we operate in, we act sustainably and
                                                                                                                                                                                                                                            deliver a positive impact on our brand
                                                                                                                                                                                                                                            performance, our company reputation and the
                                                                                                                                                                                                                                            future of our business. Stakeholders are a vital
                                                                                                                                                                                                                                            part of our sustainability agenda. We encourage
                                                                    Brewing                                                                                                                                                                 all our stakeholders to give us feedback on how
                                                                                                                                                                                                                                            we are doing and how we can work together on
                                                                 a Better Future                                                                                                                                                            our journey to Brew a Better Future.

                                                                                                                                                                                                                                            ‘Integrating sustainability into the core business is
                                                                 To be the                                                                                                                                                                  not a one-time campaign, but a continuous
                                                                                                                                                                                                                                            improvement process which is possible only with
                                                          World’s Greenest Brewer                                                                                                                                                           the on-going dialogue with all our stakeholders.’
                                                                                                                                                                                                                                            Biljana Bobic Subin
                                                                                                                                                                                                                                            Corporate Relations Manager
                                                 Improve                Empower                Impact
                                              Continuously improve        Empower our        Positively impact
                                               the environmental         people and the       the role of beer
                                              impact of our brands       communities in          in society
                                                  and business          which we operate

                                     Green          Green            Engaging     HEINEKEN      Responsible      Partnerships
                                     Brewer       Commerce           Employees      Cares      Consumption       for Progress

                                                                                                                                                                                                 Looking ahead to Brewing a Better Future in 2013-2015, we
                                                  Governance, Senior management incentives,
                                  Reporting and transparency, Supplier Code, Communication and engagement
                                                                                                                                                                                                 have reviewed our priorities and created a more focused
                                                                                                                                                                                                 sustainability agenda. Read more on pages 26 and 27.
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
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Sustainability Report 2012                                                                                                                                                                                                                                                    Sustainability Report 2012

    Overview

Value
chain
From Barley to Bar, we are focused on
improving our environmental impact and we
target improvements throughout the total
value chain.                                                                                                     IJ   A
                                                                                                       ILUSTR AC

Agriculture                            Malting                              Brewing                              Packaging materials                      Distribution of beer                    Customers                            Consumers

Growing crops                          Malting barley                       Brewing beer                         Producing bottles, cans and kegs
                                                                                                                                                          Distribution                            Cooling and recycling                Responsible consumption
Our main raw materials are barley      HEINEKEN malts barley in its own     The brewing process also consumes    Beer is packed in cans, bottles and
                                                                                                                                                          After the beer is packaged, it is       Beer is consumed cold and thus       We have promoted the responsible
and hops. Out of all the grains that   malteries and in those of third      energy and water. Reducing energy    kegs or sold as cellar beer. Improving
                                                                                                                                                          distributed to a warehouse or           cooled at the point of consumption   consumption of beer for decades. In
are harvested globally, barley for     parties. The process consumes        consumption means increasing         the impact of packaging can be
                                                                                                                                                          customer using several forms of         via fridges or draught equipment.    the 1960s, HEINEKEN introduced
malting represents about 1.4%.         energy and water, so HEINEKEN        energy efficiency and switching to   achieved by optimising the
                                                                                                                                                          transport including truck, inland       For all new fridges purchased by     self-regulatory codes that banned
HEINEKEN is one of the world’s top     implements active energy and water   alternative energy sources. Water    production process, changing the
                                                                                                                                                          barge, sea freight and train.           HEINEKEN, green standards have       advertisements that might
three users of malting barley.         reduction programmes in its own      reduction is mainly achieved by      design and increasing the recycling
                                                                                                                                                          Distribution is optimised by            been defined with which they have    potentially have appealed to those
Internationally, we co-operate with    malteries.                           optimising the brewing process.      and reuse rate. HEINEKEN is working
                                                                                                                                                          changing the form of transport,         to comply. In addition, greener      under the legal drinking age. Today,
industry initiatives such as the                                            Every HEINEKEN brewery worldwide     to identify the opportunities to
                                                                                                                                                          training drivers, and using more        draught equipment like the David     our standards for Responsible
Sustainable Agriculture Initiative                                          has an improvement target.           improve packaging mix in its
                                                                                                                                                          efficient engines and a better design   (XL) Green are being developed.      Commercial Communication have
(SAI) to address all angles of                                                                                   operating companies worldwide.
                                                                                                                                                          of vehicles and networks.                                                    evolved from these first few steps
sustainable agriculture.
                                                                                                                                                                                                                                       into a far-reaching set of rules.
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
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Sustainability Report 2012                                                                                                                                                                                                                                                                  Sustainability Report 2012

    Overview

What we said and
what we’ve done
 What we said we will do by 2012                                        What we’ve done in 2012                                                       What we said we will do by 2012                                                What we’ve done in 2012

 Green Brewer                                                                                                                                         HEINEKEN Cares
 Reduce specific total energy consumption                               We achieved 198.8 MJ/hl.                                                      Active cooperation and support of local communities                            Achieved. Our company supports and cooperates with the towns of Novi Sad
 < 199.5 MJ/hl                                                                                                                                                                                                                       and Zajecar throught the various musical, sport and cultural activities and
                                                                                                                                                                                                                                     contributes to their economic development

 Reduce specific direct and indirect CO2 emission                       We achieved 15.5 kg CO2/hl.                                                   Prioritizing Local Sourcing.                                                   Achieved. All the raw material available at Serbia sourced locally
 < 15.6 kg CO2/hl.

 Reduce specific water consumption                                      We achieved 7.6 hl/hl                                                         Responsible Consumption
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
08 HEINEKEN Serbia                                                                                                                                                                                          HEINEKEN Serbia 09
Sustainability Report 2012                                                                                                                                                                              Sustainability Report 2012

    Improve
                                                                                    What we said and               Energy consumption

Green                                                                               what we’ve done                For the production of our beer both thermal and
                                                                                                                   electrical energy is needed. Thermal energy is
                                                                                       — Total specific energy     energy that comes from heat, and relates to the

Brewer
                                                                                       consumption < 155 MJ/hl     amount of fuel used on site for heat production
                                                                                       Total specific energy
                                                                                       consumption < 199.5 MJ/     as well as on-site logistics. Electrical energy
                                                                                       hl. We achieved 198.8 MJ/   relates to the amount of electricity used on site.
                                                                                       hl.
At HEINEKEN in Serbia, we are working hard to                                                                      The total energy needed to produce 1 hectoliter            Specific thermal energy consumption
increase the water and energy efficiency              It is our responsibility to      — Average greenhouse
                                                                                       gas emission < 8.5 kg
                                                                                                                   (hl) of beer decreased 6% in 2012 compared to
                                                                                                                   2011. This means that the specific total energy
                                                                                                                                                                              MJ/hl beer + soft drink + cider + water

                                                      ensure efficient use of          CO2-eq/hl for breweries
of our breweries, offices and warehouses. All                                                                      consumption decreased from 211.6 MJ/hl in 2011              2015                              42.5
                                                      energy and water in              in scope
                                                                                                                   to 198.8 MJ/hl in 2012, and the target of 199.5             2014                                95.0
the targets we set for 2012 were in line with         every step of the                Specific direct and
                                                                                       indirect CO2 emission <     MJ/hl was achieved. This decrease is the result of
                                                      brewing process through          15.6 kg CO2/hl. We
                                                                                                                                                                               2013                                    99.5

continuous improvement goals. We made a               constant improvements            achieved 15.5 kg CO2/hl.
                                                                                                                   both thermal and electrical energy savings at the
                                                                                                                   two sites. These savings are related to an
                                                                                                                                                                               2012                                    104.6

good progress and most of these targets were          and investments in our                                       increased production volume, but also technical
                                                                                                                                                                               2012                                     106.8
                                                      technology. Vesko                                                                                                        2011                                           112.9
achieved.                                             Perovic, Supply Chain
                                                                                       — Specific water
                                                                                       consumption < 4.3 hl/hl
                                                                                                                   and operational improvements, such as more
                                                                                                                   efficient production, investments in the                    2010                                                   128.5
                                                      Manager                          Specific water
                                                                                                                   equipment and the activities of TPM teams which              Target    Actual performance
                                                                                       consumption
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
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Sustainability Report 2012                                                                                                                                                                                                                                   Sustainability Report 2012

Direct and indirect CO2 emissions                      The specific direct and indirect CO2 emission of            Water consumption                                       Industrial waste                                        Environment and safety
Besides the total energy used mainly for               HEINEKEN Company in Serbia decreased from                   Water is our most important ingredient and              The specific non-recycled industrial waste              No environmental or safety complaints were filed
production and fermentation of beer, according         16.3 kg CO2/hl in 2011 to 15.5 kg CO2/hl in 2012,           essential for our operations. At the same time          production increased from 0.77 kg/hl in 2011 to         against HEINEKEN Company in Serbia in 2012,
to the HEINEKEN NV carbon footprint analysis,          and the target of 15.6 kg CO2/hl was achieved.              water is critical for the well-being of the             0.87 kg/hl in 2012, and the target of 0.62 kg/hl        nor in the previous two years. Additionally, no
the most part of energy is expended not at the         This 4.9% decrease is mainly due to reduced                 communities and ecosystems in which we                  was not achieved.                                       environmental and safety accidents with off-site
brewing stage but rather, when beer is                 direct CO2 emissions as a result of savings in              operate. The specific water consumption                                                                         effects were reported in 2012, nor in the previous
transported and stored as well as in the               specific thermal energy consumption.                        decreased from 8.3 hl/hl in 2011 to 7.6 hl/hl in        This 13% increase in specific non-recycled              two years.
production of the packaging material. Therefore                                                                    2012, and the target of 8.0 hl/hl was achieved. An      industrial waste is the result of recycling issues at
the most efficient way to save energy and reduce       In 2010 HEINEKEN Company in Serbia launched                 increase in production volume has resulted in a         both sites and the way of reporting that was
CO2 emissions throughout the full ‘barley to bar’      locally a global Energy Saving Programme (ESP)              8.4% decrease in specific water consumption.            changed in 2012. At Zajecar, glass waste could
beer production and sales cycle is by using            which was designed to calculate the optimal                                                                         only partially be handled by their recycling
environmentally- friendly packaging, ensuring          rates of energy consumption for both our                    Besides, in 2012 in Novi Sad, a new pipeline            contractor due to his capacity. These issues are
green chemical-free production of barley and           breweries, analyse the current losses and draw up           system was introduced. The previous system was          currently being solved and the intention is to
malt, and the introduction of energy saving            a plan for cutting them down. Energy audits                 a surface system and we were usually facing             improve the situation in 2013 to the highest
fridges at breweries, warehouses and, most             which are conducted at our breweries assess their           certain damages of the pipes which led to the           possible extent, especially in the segment of glass
importantly, retail outlets. This can be done either   fuel cost efficiency and propose a number of                unnecessary leakage of water. Then an under             recycling.
through reducing direct emissions (emissions of        energy saving measures. Within ESP programme,               surface system was made which allowed us to
fossil fuel burned on-site) or indirect emissions      HEIENEKEN Company in Serbia has managed to                  reduce water consumption there for two thirds of
(emissions from energy production upstream, for        significantly save energy in use.                           the consumption before.                                 Specific non-recycled industrial water production
instance in a third party power plant).                                                                                                                                    hl/hl beer + soft drink + cider + water
                                                                                                                   The brewery in Novi Sad has its own waste water
                                                       Direct and indirect CO2 emission                            treatment plant (WWTP) which is a separate               2015                       0.75

                                                       kg CO2/hl beer + soft drink + cider + water                 plant for industrial water purification and              2014                        0.78

                                                                                                                   presents the best technology for beer industries.        2013                         0.81
                                                        2015                        13.7                           Its function is to purify the industrial water before    2012                0.62
                                                        2014                            14.3                       releasing it into the environment. Waste Water           2012                              0.87
                                                        2013                             14.9                      Treatment Plant is planned to be installed in            2011                       0.77
                                                        2012                               15.6                    Zajecar brewery too and this would radically
                                                                                                                                                                            2010                                     1.22
                                                        2012                                         15.5
                                                                                                                   improve the total effluent COD released to
                                                                                                                                                                             Target     Actual performance
                                                                                                                   surface water by Zajecar which is now at quite a
                                                        2011                                           16.3
                                                                                                                   high level. The total effluent COD released to
                                                        2010                                                16.9
                                                                                                                   surface water in Novi Sad reduced by more than
                                                         Target    Actual performance
                                                                                                                   5% compared to 2011.

                                                                                                                   Specific water consumption
                                                                                                                   hl/hl beer + soft drink + cider + water

                                                                                                                    2015                        6.7
                                                                                                                    2014                             7.1
                                                                                                                    2013                              7.4

                                                                                                                    2012                                    8.0
                                                                                                                    2012                               7.6
                                                                                                                    2011                                     8.3

                                                                                                                    2010                                           11.2
                                                                                                                     Target     Actual performance

                                                                        Electrical energy reduction on high pressure compressor for PET line                                                 Environmental Compliance and the Highest Operational and Production
                                                                        As a part of the Energy Saving programme, the TPM team in charge of energy                                           Standards as an imperative
                                                                        reduction started the project for reduction of the electrical energy on HP                                           HEINEKEN Company in Serbia is dedicated to constant improvements and invests
                                                                        compressor for the PET line.                                                                                         a lot of effort into environmental and safety protection.
                                                                        The reduction was planned to be achieved by reducing the regime of work pressure.                                    In both our breweries, in Novi Sad and in Zaječar, HEINEKEN Company has
                                                                        It was necessary to implement the blower programme for 1l and 2l PET bottles                                         introduced the highest operational and production standards such as ISO 9001,
                                                                        with the lowest possible pressure but without any influence to the highest quality                                   ISO 14001, ISO 18001 (OHSAS), ISO 22 000, SAP (HeiCORE). These are the premier
                                                                        and appearance of the bottle.                                                                                        international quality, operations, production, organization, as well as environment
                                                                                                                                                                                             protection certificates. Besides ISO-based quality standards, the company also
                                                                        After careful observation and improvement steps taken, the conditions were made
                                                                                                                                                                                             employs a product safety management system based on Hazard Analysis and
                                                                        so as to reduce the pressure needed for the compressor to work. Minimum and
                                                                                                                                                                                             Critical Control Points.
                                                                        maximum working pressure was defined but taking care that the blower is
                                                                        constantly in a normal regime – without any side effect on the bottles.
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
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Sustainability Report 2012                                                                                                                                                                                                 Sustainability Report 2012

    Improve
                                                                                     What we said and                                    refrigerant, LED illumination and an energy           Moreover, the employees in logistic department

Green                                                                                what we’ve done                                     management system, wherever legally and               make timely efforts to ensure the products are
                                                                                                                                         technically possible.                                 delivered to the right place at the right time. This
                                                                                          — All new purchased                            With 552 ‘green’ fridges purchased in 2012, the       is achieved through strategic administration and

Commerce
                                                                                          refrigerators to be based                      energy consumption and environmental load             the alignment to scheduling at every link of the
                                                                                          on green technology
                                                                                          100% of our fridges                            became as low as possible. Moreover, we will          supply chain, from the moment of receiving an
                                                                                          bought in 2012 are green                       stimulate developments in the cooling industry        order until our brands are delivered. This results in
                                                                                                                                         towards further reduction of energy use and           a more efficient transport fleet.
We are firmly convinced that the best way to                                              — Achieve 20% decrease
                                                                                                                                         carbon footprint.                                     Additionally, an e-learning module for logistics
operate successfully and profitably is through                                            in the energy
                                                                                          consumption of cooling                         Green distribution
                                                                                                                                                                                               and distribution teams that helps them
                                                                                                                                                                                               understand how green distribution is embedded
the commitment and daily effort of making all                                             One or more green
                                                                                          measures in all of our new
                                                                                                                                         Distribution is essential to our business and we      in their day-to-day routine and how they can
our operations permanently sustainable.                                                   fridges resulted in more
                                                                                          than 20% energy saving
                                                                                                                                         strive continuously to reduce its environmental
                                                                                                                                         impact. Distribution of our products in Serbia is
                                                                                                                                                                                               contribute to the goals that have been set was
                                                                                                                                                                                               developed by HEINEKEN globally and all our
Through this, we seek benefits for our company,          Innovation plays a key
                                                                                                                                         done either via direct distribution or via Coca       employees in Logistic department passed it
the community and the environment, thereby               role in stimulating              — To begin to use the
                                                                                                                                         Cola Hellenic, our strategic partner. The focus is
                                                                                                                                         on the reduction of kilometers that a truck needs
                                                                                                                                                                                               successfully.

responding to growing consumer expectations              sustainability                   Heineken Sustainable
                                                                                          Event Toolkit. Partly                          to pass to reach its final destination and deliver    Green packaging policy
                                                         throughout our                   achieved
regarding the environmental friendliness of              commercial activities.           At this moment we use it
                                                                                                                                         the product. Every year our aim is to reduce the
                                                                                                                                         percentage of delivery through CCH for about
                                                                                                                                                                                               HEINEKEN new global packaging policy was
                                                                                                                                                                                               implemented in Serbia in the second quarter of
                                                                                          for Heineken brand events
products and their packaging.                            Damir Djordjevic
                                                                                          only.                                          10% in order to reduce the emission of CO2. In        2012. The policy aims to reduce the
                                                         Sales Manager                                                                   2008, the ration between direct delivery and          environmental impact of packaging throughout
                                                                                                                                         delivery via CCH was 50/50%. By increasing the        the product life cycle, without any loss of product
                                                                                                                                         direct distribution to 80% in 2012, the total         integrity or quality. It centres on weight, carbon
                                                                                                                                         amount of kilometers passed was reduced by 7%         footprint reduction, efficient sourcing and the
                                                                                                                                         in one year. This was just a first step towards       optimisation of new packaging during its design
                                                                                                                                         improving vehicle loading utilization.                phase.

                                                                                  Green cooling                                          Direct delivery is done by the contractor, an         A Packaging Champion in our company has been
                                                                                  ITo serve our consumers a refreshing beer,             outsourced company and fuel consumption is a          appointed and trained to perform quantitative
                                                                                  cooling is essential. Since cooling is a significant   part of the contract with the outsourced suppliers    Life Cycle Assessments on our packaging.
                                                                                  part of the total carbon footprint of brewing          so we manage in this way to also influence the        This eco-design methodology is fully embedded
                                                                                  companies, HEINEKEN Company was among the              eco driving. Additionally, Green Distribution         in our innovation and renovation process.
                                                                                  first brewers to commit to global introduction of      criteria is defined and is obligatory to be
                                                                                  eco-friendly fridges.                                  respected for all the contracts we have with the      In 2012, HEINEKEN in Serbia implemented the
                                                                                                                                         outsourced company for direct deliveries.             following green initiatives regarding packaging:
                                                                                  In 2011 and 2012 HEINEKEN Company in Serbia            To further reduce the carbon footprint of             crates for one of our brands, Zajecarsko, are
                                                                                  adopted HEINEKEN’s global standards for                distribution, we only transport full truckloads and   made from recycled material, we reduced weight
                                                                                  purchasing environmentally-friendly cooling            in this way all the transport operations are made     of preforms, stopped using card boxes and stared

                                                  100%
                                                                                  equipment. The company’s aim is to ensure that         even more efficient. At the beginning of our          using trays, reduced thickness of thermopholie to
                                                                                  when an old fridge is changed, it is replaced with     operations, we used to have more small trucks         60 microns, reduced colour numbers on crown
                                                                                  a ‘green’ fridge which results in an estimated 20%     but now we are using only the big ones (more          cork, stopped using neck label for one of our
                                                                                  energy saving. A ‘green’ fridge has three              than 25 tons).                                        brands and transferred from metallic labels to
                                                                                  characteristics: the use of hydrocarbon                                                                      normal ones.

                        WE HAVE                   OF OUR
                        IMPLEMENTED
                        HEINEKEN
                                                  FRIDGES
                                                  ARE “GREEN”
                        GLOBAL
                        PACKAGING
                        POLICY
                                                                                                                                                      Sustainable Events
                                                                                                                                                      HEINEKEN Company in Serbia puts a lot of effort into making its events greener.
                                                                                                                                                      The key areas that the company can impact at public events are the packaging
                        THAT    HAS
                        ENVIRONMENTAL
                                                                                                                                                      and cooling equipment.
                                                                                                                                                      When supporting any brand events, our company promotes consumption of
                        CONSIDERATIONS                                                                                                                draught beer in preference over bottles, or cans and PET as this packaging is
                        BUILT INTO THE                                                                                                                completely recyclable or reused. Beer is draughted in plastic cups or served in cans
                        PACKAGING                                                                                                                     at 100% of events. Switching on the cooling installations is done on time according
                        DEVELOPMENT                                                                                                                   to the specification requirements and not before needed.
                        PROCESS                                                                                                                       In addition to adopting more eco-friendly packaging, we also reduce the
                                                                                                                                                      environmental burden by encouraging initiatives to minimize waste and increase
                                                                                                                                                      recycling. The company strongly support separate waste collection on all the brand
                                                                                                                                                      supporting events where this is possible.
                                                                                                                                                      Every year as a part of Belgrade Beer Fest, one of the biggest music events in the
                                                                                                                                                      country, our company is involved in the campaign ‘I chose to recycle’. During the
                                                                                                                                                      festival, through constant communication and the various initiatives, the company
                                                                                                                                                      motivates all the visitors to collect empty beer cans and recycle them.
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
14 HEINEKEN Serbia                                                                                                                                                                                           HEINEKEN Serbia 15
Sustainability Report 2012                                                                                                                                                                               Sustainability Report 2012

    Empower
                                                                                          What we said and              Employees’ health & safety                            Based on the accidents per location, it appears

Engaging                                                                                  what we’ve done               Nothing is more important than ensuring that our      that most accidents happened in the bottling hall
                                                                                                                        employees and the people we work with are safe        (2) and in the warehouse (2), so accident
                                                                                             — Employees’ & Human       when they perform their duties. We are therefore      prevention is focused on these two locations.

Employees
                                                                                             Rights Policy              committed to ensuring a safe and healthy              Great attention is given to improving safety
                                                                                             implemented and
                                                                                             communicated to all        environment for all. We follow clear and strict       awareness amongst operators, the
                                                                                                                        rules about protective clothing and equipment         implementation of safety standards at
                                                                                                                        inside our production plants as well as on logistic   installations, and improving the quality of
As part of our Brewing a Better                                                                                         surfaces. Every outside visitor at the brewery’s      personal protective equipment.
Future approach, we focus on                                                                 — Decrease of accident
                                                                                             frequency. Not achieved.
                                                                                                                        entrance receives safety induction and a leaflet
                                                                                                                        with safety rules. Because of the traffic going       Through the TPM programme, the Safety pillar is
empowering our people and the                                                                The same number of
                                                                                             accidents to company
                                                                                                                        through the brewery area, pedestrians’ walking        developed and the focus is on the control of
communities in which we operate.                                                             personnel as in 2011 (4
                                                                                             accidents) was reported
                                                                                                                        paths are clearly marked.                             people’s behaviour with trained Safety experts. A
                                                                                                                                                                              Change Management system which is in
Our internal structures and policies                            Our employees are the
                                                                                                                        In 2012, the total number of personnel’s              development focuses also on the change of
safeguard employees’ and human                                  ambassadors of our           — Enhance HEINEKEN
                                                                                                                        accidents at HEINEKEN company in Serbia
                                                                                                                        remained unchanged as in 2011 (4 accidents).
                                                                                                                                                                              people’s behaviour with the aim of raising the
                                                                                                                                                                              awareness on safety topics. Regular safety and
rights, and help to ensure a safe,                              company. Thus their          Change Management.         The number of lost days has increased from 57         behaviour audits (once per week) are made to
                                                                satisfaction at work is      Achieved. The employees
healthy working environment for all.                            crucial for us.              were trained to handle
                                                                                             any changes smoothly
                                                                                                                        lost days in 2011 to 154 lost days in 2012.
                                                                                                                        Accident frequency remained unchanged at 2.4
                                                                                                                                                                              monitor the behaviour and protection equipment
                                                                                                                                                                              of the employees.
                                                                                                                        cases/100 FTE in 2012. While the production unit
                                                                Olivera Bakovic
                                                                HR Manager                                              in Zajecar reported no accidents this year, the       Every day in the morning, every meeting starts
                                                                                                                        number of accidents at the production unit in         with safety topic and all the potential issues from
                                                                                                                        Novi Sad doubled to 4 accidents.                      the previous day are revised, discussed and the
                                                                                                                                                                              solution is proposed. Standard policies and
                                                                                                                        Accident severity has increased from 34 lost          rulebooks are made with illustrations, and not
                                                                                                                        days/100 FTE in 2011 to 93 lost days/100 FTE in       only through text, and these are placed on all the
                                                                                                                        2012. The main contributor to this negative trend     visible locations in the breweries.
                                                                                                                        are two severe accidents that occurred at the
                                                                                                                        production unit in Novi Sad. One employee             Rulebook on risk estimation is made for both
                                                                                                                        suffered a hand injury when shelves fell on his       locations. The legal requirement in Serbia is to
                                                                                                                        hand (bruises). A second employee fell when           have this risk assessment per position held

                                       100%
                                                                                                                        crossing a conveyor, causing a leg injury (cuts and   whereas HEIENEKEN additionally requires risk
                                                                                                                        bruises). These two accidents resulted in 118 lost    assessment per machine. Therefore both our
                                                                                                                        days, which is 77% of the total number of lost        breweries perform risk assessment per position
                                                                                                                        days reported for 2012. All accidents have been       held as well as per machine and the combination
                                                                                                                        analysed using the 5W-method. Also,                   of these two ways present the safest option.
                                   OF OUR COMMERCIAL                                                                    countermeasures are taken to reduce the risk of

                                  EMPLOYEES                                                                             reoccurence.

                92%                COMPLETED THE
                                  TRAINING ON
         OF  ALL
         EMPLOYEES
                                  RESPONSIBLE
                                  COMMERCIAL
                                   COMMUNICATION
                                                            4.794                                                                    Climate Survey

         COMPLETED THE                                      TRAINING                                                                 Every year HEINEKEN Serbia conducts a Climate Survey, an internal questionnaire

                                                             HOURS
                                                                                                                                     about employees’ satisfaction with their working place, conditions and the

         CLIMATE
                                                                                                                                     company itself. The positive results of the 2012 Climate survey can be summarized
                                                                                                                                     in the feedback given by 92% of our employees who completed the survey:

                                                             IN 2012
         SURVEY
                                                                                                                                     “HEINEKEN Company is a good workplace”.
                                                                                                                                     According to the results of the survey, answered by almost all of our employees,
                                                                                                                                     they are increasingly satisfied with the work community and their job in general.
                                                                                                                                     The parameters in all dimensions measured showed an increase compared to last
                                                                                                                                     year and, although these results show a great achievement, the next goal of the
                                                                                                                                     company is to meet the global average scores of HEINEKEN Company.
                                                                                                                                     Additionally, all our employees are dedicated to work hard in order to reach a more
                                                                                                                                     visible improvements in every department specifically as well as as to increase the
                                                                                                                                     interdepartmental cooperation and sllignment.
                                                                                                                                     The overall results of Climate Survey are sent to employees. According to these
                                                                                                                                     results, the key areas are considered to be improved and an Action plan is made,
                                                                                                                                     according to the results and analyses of each separate Department. Department
                                                                                                                                     Managers play a key role in the realization of the priorities for action and
       OCCUPATIONAL                              EMPLOYEES &                                                                         contribute to the realization of previously defined actions. One of their major tasks
                                                                                                                                     is to actively communicate with all the colleagues and associates in order to share
       HEALTH AND SAFETY                         HUMAN RIGHTS POLICY                                                                 with them all important information about the Company’s priorities and to provide
       POLICY ADOPTED AND IMPLEMENTED            ADOPTED AND IMPLEMENTED                                                             better information flow. In this way our employees have a clearer picture about
                                                                                                                                     what is expected from them, they become more satisfied and motivated to be
                                                                                                                                     involved in the fulfilment of our Company’s goal.
Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
16 HEINEKEN Serbia                                                                                                                                                                                                                                                                                       HEINEKEN Serbia 17
Sustainability Report 2012                                                                                                                                                                                                                                                                           Sustainability Report 2012

Additional measures taken to prevent any         In addition to its employee safety, HEINEKEN          Employees’ & Human Rights Policy                   Code of Business Conduct                                The Code of Business Conduct is supported by a          Majority of trainings are internal and trainers are
potential accident are:                          Company in Serbia also highlights the                 The new HEINEKEN Employees’ & Human Rights         The most important document which is an                 numerous policies, which describe how to behave         our employees who are experts in their field or
                                                 importance of contractor safety. The number of        Policy, which endorses the principles enshrined    integral part of the company’s compliance               as HEINEKEN employees and what is expected              HEINEKEN Global trainers and consultants. In
• LockOutProcess (LOTO) – locking out the area   contractor accidents increased from 0 in 2011 to      within the Universal Declaration of Human Rights   framework to support and enhance good                   from each of us, individually and as a team. They       both our breweries there are sets of trainings that
  where potential dangerous machines and         1 in 2012 (Novi Sad) and there were no incidents      and the Core Conventions of the International      behaviour is the Code of Business Conduct and it        communicate the principles we must observe              are part of Heineken Supply Chain Global
  devices are in order to safeguard the secure   to contractor personnel. In the future, we will       Labour Organisation (ILO), came into effect in     is shared with all employees. The Code contains         when acting for or on behalf of our Company,            program - Total Production Management, and as
  access if needed                               work further to reduce contractor accidents and       2012.                                              rules which the employees should respect and it         such as Policy on conflicts of interest, Policy on      of 2013 World Class Brewing Organization.
• Early Warning and Safety Tag system –          incidents and further improve collaboration with                                                         focuses on five principles: legal guidelines, fraud     fair competition, Policy on bribery and improper
  corrective consequential act. All the          contractors regarding safety. All the contractors     The policy lays out 11 clear standards on          prevention, conflicts of interests, gifts in business   advantages, Policy on entertainment and                 There are also E- learning trainingmodules that
  malfunctions or defects that may be unsafe     are obliged to pass the training on safety and        Employees’ & Human Rights, including non-          dealings, and corruption.                               hospitality, Fraud Policy etc. Each employee is         are available for all employees and are covering a
  are marked, safety tags are placed on these    meet all the standards and potential risks which is   discrimination, forced labour and harassment, as                                                           obliged to familiarise themselves with the Policies     variety of different development topics in
  spots and the analysis are made in order to    held by Safety & Health Supervisor at location        well as detailing implementation and grievance     In line with the Code’s provisions, a Trusted           and act according to their provisions.                  different areas of work – for example Global
  reduce the number of potential defects and     and then they pass additional trainings held by       procedures.                                        Representative was appointed and this person                                                                    Commerce University, Sustainability Academy
  increase safety                                Supply Chain Line Managers. Additional trainings                                                         offers a confidential ear to employees wishing to       The company has signed collective agreements            etc.
                                                 and Safety Meetings with contractors are              A special e-learning module, as part of the        vent grievances and complaints without the fear         with Trade Unions and all employees are free to
In 2012, there were in total 8 new examples of   planned in order to react proactively and             Sustainability Academy, formed part of the         of losing their job. The information confided           join a trade union of their choice.                     English courses are done externally for those
Zero Loss improvements, 168 Safety Tags and 84   decrease the accidents.                               overall communication programme that helped        might be personal or general and, depending on                                                                  people that have the most urgent need to
Near miss Reports solved.                                                                              to introduce this new policy to our employees.     its nature, may or may not be reported to a             Investing in our employees                              develop their knowledge of English language.
                                                                                                       The plan is that all employees complete the        higher authority, the highest of which is the           HEINEKEN Company sees its employees as the              These trainings are organized in all of our three
                                                 Accident frequency                                    module.                                            Integrity Committee at the Head Office.                 best ambassadors of the company and its                 locations – Novi Sad, Zajecar and Belgrade.
                                                 cases/100 FTE for all sites                                                                              Should any of the employees ever suspects an            brands. Therefore, it is important to invest in their
                                                                                                                                                          infringement of the company’s Code of                   education and professional development.                 Our Company occasionally provides other local
                                                  2013      1.1                                                                                           Conduct or other codes or rules, they are                                                                       external trainings (when ad-hoc need arises), but
                                                  2012                    2.4
                                                                                                                                                          encouraged to discuss this first with their direct      HEINEKEN Serbia sets a yearly training plan that        in general, this is rare, since the possibility to
                                                                                                                                                          supervisor or with the Trusted Representative.          covers all the internal and external trainings for      strongly develop through Global programs and
                                                  2011                    2.4
                                                                                                                                                          Should the individual desire to remain                  all our employees. It covers obligatory trainings       trainings made by HEINEKEN is on a very high
                                                  2010                                 4.6                                                                anonymous, he or she can call a toll-free line.         (mandatory by Law for certain positions, for            level.
                                                   Target         Actual performance                                                                      This “whistle-blowing procedure” is designed to         example the topic of Health & Safety) as well as
                                                                                                                                                          promote transparency, to support the risk               expert training about various areas of business:        The development of expertise is done under the
                                                                                                                                                          management systems and to help protect the              production process, sales improvement and               current model of learning, where 70% of learning
                                                                                                                                                          reputation of the company. The Trusted                  negotiating, customers’ management, finance for         happens on the job, 20% from feedback and 10%
                                                                                                                                                          Representatives are key to a well-functioning           non-finance etc.                                        from training.
                                                                                                                                                          whistle-blowing procedure. In 2012 HEINEKEN in
                                                                                                                                                          Serbia received zero reports under the whistle-
                                                                                                                                                          blowing procedure.

                                                                                                                                                                                                                                Safery First
                                                                                                                                                                                                                                Total Productive Management is the strategic improvement programme at
                                                                                                                                                                                                                                HEINEKEN in Serbia. It is the continuous and consistent quest to eliminate losses
                                                                                                                                                                                                                                in all processes through active participation of all employees in an organization. It
                                                                                                                                                                                                                                requires the adoption of a working model focused on prevention rather than
                                                                                                                                                                                                                                correction and applies not only to production but to the whole organization.
                                                                                                                                                                                                                                A critical aspect of TPM programme is a ‘Safety Pillar’, designed to work alongside
                                                                                                                                                                                                                                all other improvement pillars, with the goal of achieving a safer working
                                                                                                                                                                                                                                environment. The aim is to continuously monitor and track accidents, incidents,
                                                                                                                                                                                                                                near misses, safety tags and all potential risks in the brewery, analyze them and
                                                                                                                                                                                                                                perform, respect and control corrective preventive measures. This should lead to
                                                                                                                                                                                                                                the elimination of the cause of injuries, reduction of risk situations, safe working
                                                                                                                                                                                                                                environment and secure and responsible behavior of all the brewery employees.
                                                                                                                                                                                                                                The vision is to establish a stable and structured system related to safety at work.
                                                                                                                                                                                                                                The final objective is to achieve the culture of ‘zero accident’, reduction of near
                                                                                                                                                                                                                                misses and incidents and provide safety and healthy working conditions applying
                                                                                                                                                                                                                                all the existing legislations and HEINEKEN standards (100% of Compliance Check).
                                                                                                                                                                                                                                In 2012, we reached 98,2% compliance with HEINEKEN standards in this respect.
18 HEINEKEN Serbia                                                                                                                                                        HEINEKEN Serbia 19
Sustainability Report 2012                                                                                                                                            Sustainability Report 2012

    Empower
                                                  What we said and                HEINEKEN Supplier Code                                  the classification of the goods/services that

HEINEKEN                                          what we’ve done                 Eager to pass its core principles of doing business,    suppliers offer to the company and also according
                                                                                  HEINEKEN Company has implemented the                    to the following parameters: subcontracting
                                                     — Active cooperation and     Supplier Code, holding requirements in the areas        practices, supplier country, turnover with

Cares
                                                     support of local             of integrity, human rights and environmental            HEINEKEN OpCo and usage of the Heineken
                                                     communities
                                                                                  management in our purchasing processes. This            brand. At this moment we are evaluating the
                                                                                  means that we invites our suppliers to confirm          whole vendor master database and we starting
                                                                                  their compliance with the provisions of our             with audits by the end of 2013.
Through our health programmes, local sourcing                                     Supplier Code in all contracts where we issue a
initiatives, employment opportunities and            — Prioritizing Local
                                                     Sourcing. Achieved. All
                                                                                  tender or where we believe there could be a risk of
                                                                                  non-compliance with the provisions of the
                                                                                                                                          Prioritizing local sourcing
                                                                                                                                           When producing beer, HEINEKEN Company uses
direct financial support we have a long history      the raw material available
                                                     at Serbia sourced locally
                                                                                  Supplier Code.                                          the highest quality raw materials. We aim to
of contributing to the communities in which we                                    The Supplier Code supports open, fair and
                                                                                                                                          purchase raw materials from local operators
                                                                                                                                          whenever economically and ecologically possible.
operate. By doing so, we ensure that we can                                       competitive business environment, respect for           We believe that this approach stimulates the
continue to make the highest quality products                                     the law and confidentiality of business
                                                                                  information. It strives to prevent conflicts of
                                                                                                                                          local economy which is, at this moment, in a very
                                                                                                                                          difficult situation. In 2012 91% of all the raw
from the highest quality ingredients while at                                     interests in business relations and stands up           material was sourced locally, except for hop which
the same time stimulating sustainable farming                                     against the use of gifts and encouragements to
                                                                                  influence business decisions taken.
                                                                                                                                          is not available in Serbia so we imported it from
                                                                                                                                          Poland, Czech Republic and USA.
and contributing positively to the environment.
                                                                                  The Code proclaims the priority of safety at work,      Corporate Social Investments
‘We believe that the best investments are those                                   fair pay for the staff, negotiations as the              WIn 2011, HEINEKEN has defined a standard
which have a shared benefit for our company                                       preferred way to reach collective agreements; it
                                                                                  also rejects any discrimination during recruitment
                                                                                                                                          way of measuring our Corporate Social
                                                                                                                                          Investment (CSI) using the London
and the community in which we operate.’                                           and the use of child labour.                            Benchmarking Group reporting model to
                                                                                                                                          calculate all operating companies’ contributions
                                                                                  Finally, the Supplier Code demands efficient use        and investments in the communities. In total, in
                                                                                  of natural resources in production in order to          2012, HEINEKEN Operating Companies invested
                                                                                  minimize damage for the environment. Signing            the equivalent of more than EUR13.5 million.
                                                                                  up to the Code, HEINEKEN’s suppliers agree to
                                                                                  follow its principles in the tenders they bid for and   HEIENKEN in Serbia is committed to generating
                                                                                  the contracts they conclude. The Code may be            positive, long-term social change. We contribute

                        91%
                                                                                  found at www.theheinekencompany.com                     to the community through various actions that
                                                                                                                                          allow us to Brew a Better Future. As an integral
                                                                                  By the end of 2012, 99,8% of applicable                 part of the communities we operate in, during
                                                                                  HEINEKEN Serbia suppliers signed the supplier           2012, our company maintained and strengthen

                    OF OUR
                                                                                  code.                                                   strong relationships with the towns of Novi Sad
                                                                                                                                          and Zajecar through the mutual valuable

                   RAW
                                                                                  We will monitor compliance with the Code                cooperation aimed at the improvement of the
                                                                                  through audits because we want to check                 quality and standard of life for all the citizens. We
                                                                                  whether the suppliers work according HEINEKEN’s         are committed to being a successful, sustainable
                                                                                  standards and specifications. Audits are                business in the society, and to conduct our

                   MATERIAL                                                       conducted for high risk suppliers according to a
                                                                                  supplier risk analysis. Risk is calculated based on
                                                                                                                                          business in a manner that contributes positively
                                                                                                                                          to that society.
                    IS SOURCED
                    LOCALLY

                   99.8%
                   OF ALL
                   OUR SUPPLIERS                                                               Corporate New Year Gift Budget Donation

                   SIGNED
                                                                                               HEINEKEN Company in Serbia donated our corporate budget dedicated for New
                                                                                               Year gifts for our business partners for reconstructing and reopening Day Care

                   SUPPLIER
                                                                                               Centre for children living on the street. Donated funds were used for: design

                  CODE
                                                                                               solution services for canter adaptation, full object adaptation by architect plan,
                                                                                               sewage reconstruction and new toilets installation, paint jobs in all rooms, joinery
                                                                                               and carpentry installation work, making shells, tables, purchasing new furniture,
                                                                                               buying all needed material for reconstruction, dismantling and assembling air
                                                                                               conditioning system and supporting transportation costs.
                                                                                               As a socially responsible company, we fully recognize our duty towards the society
                                                                                               and we sincerely believe that we should stand as an example to others by
                                                                                               everything we do.
20 HEINEKEN Serbia                                                                                                                                                                                                                HEINEKEN Serbia 21
Sustainability Report 2012                                                                                                                                                                                                    Sustainability Report 2012

    Impact
                                                                                      What we said and                                     The Enjoy Heineken Responsibly logo was                  the brewing sector in general. In 2012, no

Responsible                                                                           what we’ve done                                      integrated into all HEINEKEN Company’s                   complaint was upheld against HEINEKEN brands’
                                                                                                                                           packaging and POS material* in Serbia. Advice,           advertising in Serbia.
                                                                                           — Promote responsible                           instructions and answers to frequently asked

consumption
                                                                                           consumption of drinks and                       questions related to responsible consumption are         Recognising the need for more detailed guidance
                                                                                           prevent alcohol abuse
                                                                                           Adopted HEINEKEN’s                              also provided online on the www.                         in the digital environment, in June 2012
                                                                                           ‘Enjoy Responsibly’                             enjoyheinekenresponsibly.com website. The site is        HEINEKEN introduced new Rules on Digital
                                                                                           message into all our                            available in Serbian as well as other languages          Commercial Communication. These cover areas
The responsible consumption of beer and                                                    products and marketing
                                                                                                                                           and restricted to users over the legal drinking age.     such as video use, online privacy and security,
preventing its abuse is one of the cornerstones                                            — Conduct responsible
                                                                                           marketing
                                                                                                                                           A message promoting responsible consumption
                                                                                                                                           was also incorporated into the packaging and
                                                                                                                                                                                                    with a specific focus on age verification,
                                                                                                                                                                                                    particularly in social media.
of our sustainability strategy Brewing a Better                                            There were no injunctions
                                                                                           from the regulatory                             POSM* for all our brands.
Future.                                                                                    authority during 2012
                                                                                                                                           Responsible Commercial Communication
                                                                                                                                                                                                    Our employees as ambassadors for
                                                                                                                                                                                                    responsible consumption
                                                                                                                                           HEINEKEN Company in Serbia has adopted the               Internally, HEINEKEN Company in Serbia has
                                                                                                                                           rules of Responsible Commercial Communication            implemented Cool@Work - global workplace
                                                            All our employees are                                                          of its parent company HEINEKEN. The marketing            alcohol information, prevention and support
                                                            ambassadors of the                                                             of our products is fully compliant with Serbian          programme. We believe that our employees
                                                            responsible             Promoting moderation                                   legislation. All our marketing activities undergo a      should be ambassadors of responsible
                                                            consumption.            When consumed responsibly, beer and other mild         strict approval process.                                 consumption and therefore we help them
                                                                                    alcoholic beverages can be part of a balanced                                                                   understand what responsible consumption
                                                            Olivera Nikodijevic     lifestyle and the vast majority of people enjoy
                                                            Marketing Manager                                                              All the advertising information disseminated by          means. By educating our employees about our
                                                                                    alcoholic beverages responsibly. Nevertheless, it is   HEINEKEN must be ethical, lawful and truthful,           products and our commitment to reduce
                                                                                    a regrettable fact that a small minority consumes      corresponding to the established principles of fair      alcohol-related harm, we reinforce our Company
                                                                                    alcohol in a manner that is harmful to them or         competition and business practice. The                   values of Respect, Enjoyment and Passion for
                                                                                    their family and friends. As a producer of             company’s commercial communication may only              Quality. In doing so we brew a better future for
                                                                                    alcoholic beverages, HEINEKEN is committed to          feature people who are at least 25 years old and         our employees, as well as for consumers and
                                                                                    promoting the responsible consumption of beer          act and appear their age. It should never suggest        customers.
                                                                                    and preventing alcohol abuse both through its          that alcohol is the key to social or sexual success.
                                                                                    own operations and in partnerships with other          Adverts should not show or target people under           HEINEKEN pursues a zero tolerance policy
                                                                                    actors in the field.                                   legal drinking age, pregnant women or                    regarding the consumption of alcohol at the
                                                                                                                                           sportsmen. Any link between drinking alcohol and         workplace.
                                                                                    Heineken beer is a pioneer in promoting                driving or doing a job must be absolutely avoided
                                                                                    responsible consumption: the world’s most              Responsible self-regulation and an adequate
                                                                                    international beer has encouraged people around        communication policy help our company to
                                                                                    the globe to enjoy beer responsibly for several        protect its reputation and work for the benefit of
                                                                                    years.

                                                                                                                                                        Heineken Sunrise Campaign – Making responsible consumption aspirational
                                                                                                                                                        In December 2011 and beginning of 2012, HEINEKEN launched the latest phase of
                                                                                                                                                        Enjoy Heineken Responsibly - ‘Sunrise belongs to moderate drinkers’. The name of
                                                                                                                                                        the advert celebrates and encourages aspirational behaviour among adult
                                                                                                                                                        consumers.

                                                                                                                                                        ‘Sunrise’ reinforces the importance of staying in control and celebrates moderate

                                                  TRAINING
                                                                                                                                                        consumption. The idea is to show that enjoying Heineken® in moderation can be

                    ALL OUR                       PROGRAM
                                                                                                                                                        an integral part of connecting and engaging with friends, meeting new people and
                                                                                                                                                        exploring new experiences.

                    BRANDS                        ON RESPONSIBLE                                                                                        This new initiative demonstrates that there are no limits, when you know your own

                    CARRY       A
                                                                                                                                                        limits, and that those special moments in life, like a beautiful sunrise, belong to
                                                  COMMERCIAL                                                                                            moderate drinkers.

                    RESPONSIBILITY                COMMUNICATION
                                                  COMPLETED
                                                                                                                                                        As a continuation of the campaign, locally, in mid-2012 at the Belgrade Beer Fest,

                    MESSAGE                                                                                                                             the biggest musical and beer festival, we provided visitors with goggles which

                                                  BY    100%
                                                                                                                                                        simulate how you see when you are drunk and we asked them to perform the

                    ON THEIR                                                                                                                            simplest tasks – first without the goggles and then, with them in order to

                    LABELS
                                                                                                                                                        emphasize the difference. Our main message was passed through the supporting
                                                  OF THE EMPLOYEES                                                                                      Beer Fest resolutions we shared with all:

                                                  INVOLVED                                                                                              •
                                                                                                                                                        •
                                                                                                                                                            I’ll enjoy my beer responsibly
                                                                                                                                                            I’ll drink water after beer
                                                                                                                                                        •   I’ll not come by car
                                                                                                                                                        •   I’ll wait for sunrise in a great mood

                                                                                                                                                        In the end of 2012, during the festive season to maximize the relevance, attention
                                                                                                                                                        and impact of the message, we established a partnership with taxi transport
                                                                                                                                                        company and delivered vouchers for a free ride to the people who during
                                                                                                                                                        Christmas and New Year time enjoyed our beer.
22 HEINEKEN Serbia                                                                                                                                                                                   HEINEKEN Serbia 23
Sustainability Report 2012                                                                                                                                                                       Sustainability Report 2012

    Impact
                                                                              What we said and                 Partnership for progress                              HEINEKEN in Serbia is a member of the

Partnerships                                                                  what we’ve done                  Establishment of an active partnership is a           International Advertising Association (IAA
                                                                                                               required and essential approach to addressing         Serbian Chapter). The association is dedicated to
                                                                                 — Establish a partnership     the sensitive issue of harmful drinking. As an        promoting the freedom of commercial

for Progress
                                                                                 with a relevant stakeholder   industry leader with a global business, HEINEKEN      communications with respect to the ethical
                                                                                 to address alcohol abuse
                                                                                 Partnership with Taxi         has an active role to play in promoting               standards and consumers protection. The
                                                                                 Company established for       responsible consumption in all markets where          association presents interests of all the disciplines
                                                                                 Christmas and New Year        operating. Working together is more powerful          in the area of marketing communications –
The best way to influence the prevention of                                      Time
                                                                                                               than acting alone. Industry groups, governments,      advertisers, agencies and media.
alcohol abuse is by working together with other                                  — Raise the awareness of
                                                                                                               non‑government organisations, third parties,
                                                                                                               consumer groups, police forces, legislators,          At a conference organized by the International
players and partners with mutual long-term                                       recycling and taking care
                                                                                 about social aspect
                                                                                                               retailers, hotel, bar and restaurant owners and       Centre for Alcohol Policies in Washington D.C. in
goal.                                                                            Achieved.                     community groups – all have a valuable role to
                                                                                                               play in encouraging responsible consumption.
                                                                                                                                                                     October 2012, HEINEKEN joined 11 other global
                                                                                                                                                                     alcohol businesses to launch a wide-ranging set
                                                  Being an integral part of                                    Engaging the right partners across government,        of commitments aimed at reducing the harmful
                                                  the communities in                                           industry and community makes our projects             use of alcohol. These commitments cover five key
                                                  which we operate, we                                         smarter and the results stronger.                     areas, including underage drinking, drinking and
                                                  take our responsibilities                                                                                          driving, and responsible product innovations.
                                                  professionally and                                           HEINEKEN in Serbia is an active member of             They will be implemented throughout the
                                                  seriously                                                    Serbian brewers’ association which represents         HEINEKEN business over the next five years.
                                                                                                               brewers’ interests at local level. Our company
                                                  Alexandros Daniilidis
                                                  Managing Director                                            plays a valuable role in the promotion of the
                                                                                                               positive social, community and economic story of
                                                                                                               beer at a local level and the main pillars of joint
                                                                                                               work with the other parties in the industry are:

                                                                                                               • Increasing consumer knowledge of beer and
                                                                                                                 its responsible consumption
                                                                                                               • Ensuring responsible advertising and marketing
                                                                                                               • Addressing alcohol misuse

                                                                                                                            It’s New Year, let’s enjoy responsibly!

                             12
                                                                                                                            The main goal of our Partnership for Progress Programme is to find a relevant
                                                                                                                            partner in spreading the message on responsible behaviour. The idea is to educate
                                                                                                                            and inform our consumers and consumers on alcohol abuse, consequences of
                                                                                                                            drinking and driving and to encourage all of them to make the right choice.
                       COMPANIES                                                                                            During the New Year and Christmas Holiday season, when beer consumption is
                       JOINED TOGETHER                                                                                      increasing, we started the cooperation with a taxi organization that would drive all
                       AND LAUNCHED                                                                                         the people enjoying our beer safely to their home.

                       GLOBAL
                       COMMITMENTS
                                                                                                                            In an active and amusing way, Heineken promo team approached visitors at on
                                                                                                                            trade outlets with iPads talking to them about responsible drinking while they were
                                                                                                                            trying to pour the perfect glass of beer on the Ipeds. All of the participants who
                                                                                                                            consumed beer would be delivered a taxi voucher.
                       TO REDUCE                                                                                            We promoted responsible drinking while informing and educating all the visitors
                       HARMFUL USE OF                                                                                       about the aspects of alcohol abuse. Moreover, visitors were encouraged to enjoy

                       ALCOHOL                                                                                              beer in moderation as a part of a positive lifestyle. They were also advised to go to
                                                                                                                            enjoyheinekenresponsibly.com and upgrade their knowledge on beer consumption.

                                                                                                                             Hands Up, Return Your CAN!

                                                                                          HAND UP,
                                                                                                                            At Belgrade Beer Fest, the biggest music and beer event in the country, our
                                                                                                                            company initiated twofold corporate social activation which aimed to drive the
                                                                                                                            awareness of all the visitors about responsible enjoyment for Heineken brand and

                                                                                          RETURN                            to raise their awareness on sustainability topic related to waste management and
                                                                                                                            recycling system.

                                                                                          YOUR
                                                                                                                            Big waste can was placed on our stand with target (so visitors can throw an empty
                                                                                                                            can inside). The mechanism was to hit the target with empty can while wearing

                                                                                         CAN!
                                                                                                                            glasses which simulate how people see when they are drunk. The emphasize was
                                                                                                                            made in trying to throw the empty can without the glasses and then to try the
                                                                                                                            same but with the glasses and to see the difference how alcohol may dilute your
                                                                                                                            sight.
                                                                                                                            The goal was to raise the ecological awareness but also simultaneously to warn the
                                                                                                                            visitors about the negative effects of alcohol abuse.
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