Brewing a Better Future - Sustainability Report 2012 - HEINEKEN Serbia
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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.
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.
04 HEINEKEN Serbia HEINEKEN Serbia 05 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.
06 HEINEKEN Serbia HEINEKEN Serbia 07 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
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
10 HEINEKEN Serbia HEINEKEN Serbia 11 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.
12 HEINEKEN Serbia HEINEKEN Serbia 13 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.
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.
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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