Conference Presentation at Profiting from Sustainability in York (UK) Dec 2014

1. David Paterson
Head of Public Affairs & CSR
HEINEKEN UK
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4. Brewing BBBrrreeewwwiiinnnggg aaaa BBBBeeeetttttttteeeerrrr WWWWoooorrrrlllldddd – AAAA bbbbuuuussssiiiinnnneeeessssssss pppprrrriiiioooorrrriiiittttyyyy
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SSSSoooouuuurrrrcccciiiinnnngggg
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HHHHeeeeaaaalllltttthhhh &&&& SSSSaaaaffffeeeettttyyyy

5. Doing
Good
Boost
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Save
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Retain
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Licence–
to-
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beers to
mmmmoooorrrreeee
consumers
SSSSuuuussssttttaaaaiiiinnnnaaaabbbbiiiilllliiiittttyyyy ==== VVVVaaaalllluuuueeee CCCCrrrreeeeaaaattttiiiioooonnnn

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We know the impact of WWWeee kkknnnooowww ttthhheee iiimmmpppaaacccttt ooofff aaaaggggrrrriiiiccccuuuullllttttuuuurrrreeee hhhhaaaassss aaaa
ssssiiiiggggnnnniiiiffffiiiiccccaaaannnntttt iiiimmmmppppaaaacccctttt oooonnnn oooouuuurrrr ccccaaaarrrrbbbboooonnnn ffffoooooooottttpppprrrriiiinnnntttt
Source: Carbon Footprint Baseline Model – 2011 data, 23 OpCos, , weighted average, data per 15.10.2012
Legend
Agriculture 8%
Malting 6%
Brewing 17%
Packaging + end of life 31%
Distribution 9%
Cooling 29%

7. Sustainability is integrated SSSuuussstttaaaiiinnnaaabbbiiillliiitttyyy iiisss iiinnnttteeegggrrraaattteeeddd aaaaccccrrrroooossssssss oooouuuurrrr ssssuuuuppppppppllllyyyy
cccchhhhaaaaiiiinnnn,,,, ffffrrrroooommmm bbbbaaaarrrrlllleeeeyyyy ttttoooo bbbbaaaarrrr
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8. PPPPrrrrooootttteeeeccccttttiiiinnnngggg
wwwwaaaatttteeeerrrr
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9. SSSSmmmmaaaarrrrttttDDDDiiiissssppppeeeennnnsssseeee:::: lllleeeessssssss wwwwaaaasssstttteeee,,,, lllleeeessssssss eeeennnneeeerrrrggggyyyy &&&& tttthhhheeee
ppppeeeerrrrffffeeeecccctttt cccchhhhiiiilllllllleeeedddd ppppiiiinnnntttt iiiinnnn aaaa GGGGrrrreeeeaaaatttt BBBBrrrriiiittttiiiisssshhhh PPPPuuuubbbb
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• Revolutionised draught dispense
• Engineering innovation unique to HEINEKEN UK
• Identified dual waste & quality issue:
– Up to 90% of energy to cool the cellar is waste,
and 75% of water
– Poor hygiene and cleaning standards & lack of
expertise
• SmartDispense: the solution:
– Less frequent line cleaning saves the average
pub around 12,000 pints of water
– Reduces energy use by up to 90%

10. Sustainability: a commercial SSSuuussstttaaaiiinnnaaabbbiiillliiitttyyy::: aaa cccooommmmmmeeerrrccciiiaaalll ooooppppppppoooorrrrttttuuuunnnniiiittttyyyy
• Critical that we work together with our
customers and lessees across our entire supply
chain
• Paid-for line cleaning service introduces new
revenue stream for HEINEKEN
• Critical to sell in cost-saving for publicans as
well as environmental and quality benefits
• Differentiator for HEINEKEN in the marketplace:
passion for quality
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12. Tadcaster now home TTTaaadddcccaaasssttteeerrr nnnooowww hhhooommmeee ttttoooo llllaaaarrrrggggeeeesssstttt ssssoooollllaaaarrrr
iiiinnnnssssttttaaaallllllllaaaattttiiiioooonnnn aaaatttt aaaannnnyyyy UUUUKKKK bbbbrrrreeeewwwweeeerrrryyyy
• Investing in renewable energy key to achieving our 2020 target:
reducing C02 emissions in production by 40% worldwide
• 4,000 solar panels generating 876 megawatt hours (“MWh”)
each year, enough to power 185 homes
• Combined with biogas on site, 8% of site’s energy use will now
come from renewable sources
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ssssuuuussssttttaaaaiiiinnnnaaaabbbbllllyyyy
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14. BBBBaaaaBBBBFFFF CCCCoooommmmmmmmiiiittttmmmmeeeennnntttt |||| RRRRaaaaiiiissssiiiinnnngggg FFFFaaaarrrrmmmmiiiinnnngggg SSSSttttaaaannnnddddaaaarrrrddddssss
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Aim for sustainable sourcing of
• 20% of barley
• 40% of hops
• 60% of apples
Minimum
50% of main
raw materials
supplied
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15. Our global commitment: OOOuuurrr ggglllooobbbaaalll cccooommmmmmiiitttmmmeeennnttt::: 55550000%%%% ooooffff rrrraaaawwww
mmmmaaaatttteeeerrrriiiiaaaallllssss ssssoooouuuurrrrcccceeeedddd ssssuuuussssttttaaaaiiiinnnnaaaabbbbllllyyyy bbbbyyyy 2222000022220000
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16. Our Sustainable OOOuuurrr SSSuuussstttaaaiiinnnaaabbbllleee SSSSoooouuuurrrrcccciiiinnnngggg ssssttttrrrraaaatttteeeeggggyyyy
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- Generally accepted standard for non-segregated supply chains
- Retain flexibility for appropriate quality blends
- Keep input cost stable
- Raise bar for overall farming rather than stimulate development
of niche market
RRRRaaaattttiiiioooonnnnaaaalllleeee
HHHHEEEEIIIINNNNEEEEKKKKEEEENNNN CCCCllllaaaaiiiimmmm::::

18. DDDDeeeeffffiiiinnnniiiittttiiiioooonnnn |||| SSSSuuuussssttttaaaaiiiinnnnaaaabbbblllleeee VVVVoooolllluuuummmmeeee
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“Any agricultural product in scope of the Sustainable Agriculture program, that has
been: (1) cultivated in accordance with an approved Code of Practice and (2) has
been allocated to HNK by our supplier, in accordance with the mass balance
approach”
Approved Codes of Practice
SAI Principles & Practices -FSA Code of Practice
3rd party benchmark
Volume contractually allocated to
HNK in acc with mass balance
approach

19. SAI Principles SSSAAAIII PPPrrriiinnnccciiipppllleeesss &&&& PPPPrrrraaaaccccttttiiiicccceeeessss ((((PPPP&&&&PPPP)))) |||| FFFFaaaarrrrmmmmeeeerrrr SSSSeeeellllffff AAAAsssssssseeeessssssssmmmmeeeennnntttt
SOCIETY (PEOPLE)
•Food Quality & Safety
•Rural, Social,
Economic conditions
•Working Conditions
•Training
ENVIRONMENT
(PLANET)
•Soil treatment
•Water usage and
depletion avoidance
•Biodiversity
•Energy
ECONOMY
(PROFIT)
•Farmers Income
•Food Supply
•Optimisation of
Benefits
•Diversification
FARMING SYSTEMS
•Site Selection and
Management
•Yield, Variety,
Fertiliser
•Planting Material
•Crop Management
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“Efficient production of safe, high quality agricultural products, in a way
that protects and improves the natural environment, the social and
economic conditions of farmers, their employees and local communities,
and safeguards the health and welfare of all farmed species.”

20. • All of the barley we use for the beers we
brew in the UK is grown in the UK
• As of 2014, 100% of they barley we buy
from the UK is now Red Tractor certified
• In the UK, working with our partners, we
want to take this commitment to
sustainable supply chain to the next level
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• We use around 30% of the UK’s apples in our ciders
• Worked with many of our apple farmers in
Herefordshire for up to three generations

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• Orchard Management Programme provides farmers with
platform to share best practice, advice and guidance
amongst the apple farmer community, including on
sustainability issues
• Annual Golden Apple awards to celebrate examples of
best practice
• In 2014, we’ve trialled a self-assessment questionnaire
based on SAI principles for our farmers to complete
• Will be rolled out to meet our target to source 60% of
bittersweet apples sustainably by crop year 2015

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The Proof of TTThhheee PPPrrroooooofff ooofff tttthhhheeee PPPPuuuuddddddddiiiinnnngggg............ |||| BBBBeeeesssstttt PPPPrrrraaaaccccttttiiiicccceeee
Improved soil fertility prevents erosion, i.e. less
risk of decreasing yield
French Coopération (Arvalis affiliate): wildflower
meadows stimulate biodiversity less risk of diseases
12% yield
increase,
£200/acre
benefit as a
result of
compost as
natural
fertilizer
SAI standards
inspired the
German hop
farmers to
define a
common
code for
sustainable
agriculture.

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