report 2013 - Heineken USA

SUSTAINABILITY

REPORT 2013 HEINEKEN USA Brewing a Better Future

HEINEKEN USA 1 Sustainability Report 2013

Welcome

CEO Foreword

Our Sustainability Report 2013 HEINEKEN USA is part of HEINEKEN NV, the world’s most international brewer, with brands available in 178 countries. Sustainability is a core business priority, and Brewing a Better Future is our strategic focus. We are A proud, independent importer committed to surprising and exciting consumers throughout the U.S.

We value A passion for quality, enjoyment of life and respect for people and our planet.

We want To win in the upscale U.S. market with Heineken® and the rest of our full portfolio of brands.

HEINEKEN USA

ESTABLISHED

8

OFFICES

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1995

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1880S

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LES STAR SA

D TE

U.S.

HEINEKEN USA AT A GLANCE

491

EMPLOYEES

OUR PORTFOLIO

20+

BEERS AND CIDERS

$3.7B

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IMPORTING

FROM 5 BREWERIES 3 COUNTRIES

DIRECT

ECONOMIC

IMPACT

(2012 VERSUS 2013)

FLEET EMISSIONS REDUCTION

6%

SINCE 2012

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IN ACTIVATIONS

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122% INCREASE

28K+ VIEWS WEBPAGE

EMPLOYEE

ON TIPS FOR PARENTS

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SUSTAINABILITY 2013

ZERO

EMPLOYEE

DUIs

PHILANTHROPIC

EFFORTS IN THE

LAST TWO

YEARS

100%

COMPLIANCE WITH

SUPPLIER

CODE GOVERNANCE

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NEARLY $1M RAISED FOR

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160 VOLUNTEERED EMPLOYEES

AT 2 DAYS OF GIVING

We have the responsibility to drive the best and most innovative programs to leave a lasting and positive impact today and tomorrow. I believe quality is at the core of everything we do, from the people we hire to our upscale portfolio to the initiatives we implement for our communities. We have the responsibility to drive the best and most innovative programs to leave a lasting and positive impact today and tomorrow. That’s why I’m incredibly proud to share our 2013 HEINEKEN USA Sustainability Report with you. In these pages, you will read about the impact we’re having on our environment, our society and our employees. You will learn about our global sustainability agenda, called Brewing a Better Future. Long-term, becoming more sustainable is a key operational priority for our business. And you’ll read about our progress and investments we’re making to ensure that we deliver on that promise and about some of our accomplishments in 2013. A year ago, we worked together with stakeholders to refine Brewing a Better Future and develop a deeper agenda, focusing on four key areas where we as a global company can make the biggest impact:

• Protecting water resources • Reducing CO2 emissions • Sourcing sustainably • Advocating responsible consumption At the global level, our brewers made great strides in 2013 by lowering our water usage per unit of finished product by nearly 5 percent, as well as again reducing CO2 emissions, achieving a 26 percent reduction since 2008. Here in the U.S., we celebrated our second LEED certification from the U.S. Green Building Council for our New York City office, where we were able to reduce our water consumption by 20 percent with new water efficient fixtures and use 25 percent less watts per square foot than allowed by code, mostly thanks to new efficient lighting and our open office design. As we continue to look for new and innovative ways to reduce our carbon footprint, we turned to our ocean freight carrier partners, and made sustainability a top point during our tender meetings for 2014. In the years to come, we will work even closer together to determine how we can optimize our efforts for a greener output. Advocating responsible consumption remains a critical priority, to me personally and for the company as a whole. In 2013 we took our commitment to the next level. We changed the game on our safe-transportation partnership with Taxi Magic with the launch of Cabbie, a limited-edition seasonal of Newcastle Brown Ale. What makes this brand so special is that it was the first HEINEKEN brew to integrate a responsible consumption message directly into its core brand identity. Internally, we presented a new way to look at moderation through Alcohoot, an innovative lifestyle device

that provides unique insights on one’s alcohol consumption. In 2013 we launched a small employee program with the start-up technology, and our people loved it. Alcohoot has received awards for best-in-class innovation, product design and quality, and we are incredibly excited to explore future endeavors with them. At the end of the day, I think what I’m most personally proud of is the strength and dedication of our HEINEKEN USA people. Our senior leaders continue to set the tone by personally committing to sustainability-related targets in their performance plans. And in 2013, every leader achieved or surpassed his or her sustainability goal. In our communities, employees are bringing Brewing a Better Future to life, notably through our Days of Giving program. Nearly a third of our employees took the time to transform their local communities through our urban greening initiatives. Certainly, none of this great work could have been accomplished without the input and help from you, our stakeholders. Thank you for your continued support as we continue to make progress on the priorities you helped us identify through our reputation research. Please enjoy our 2013 Sustainability Report and, as always, feel free to share your opinions on how we’re doing and where we can do more. Dolf van den Brink President & CEO

2 HEINEKEN USA Sustainability Report 2013


The big picture

Brewing a Better Future

From Barley to Bar

Brewing a Better Future is HEINEKEN’s long-term approach to creating shared, sustainable value for the environment, our employees and society. Each of the four key focus areas is underpinned by clear global commitments toward our 2020 vision. We will report on our three-year milestones in 2015.

To make ourselves more sustainable, HEINEKEN is making improvements to every stage in the life cycle of our beers and ciders around the world. Agriculture

Malting

Brewing

Packaging

Distribution

Customer

Consumer

Focus areas

Our business priority

Water

Embed and integrate sustainability

CO2

Our strategy

Sourcing

Responsible consumption

Protecting water resources

• Reduce specific water consumption in the breweries by 25%1 to 3.7 hl/hl • Aim for significant water compensation/balancing by our production units in water-scarce and distressed areas

Reducing CO2 emissions Our focus

Values and behaviors

Agriculture

• In production by 40%1 • Of our fridges by 50%2 • Of distribution by 20%3 in Europe and the Americas

HEINEKEN is an active member of the Sustainable Agriculture Initiative Platform, which addresses sustainable farming. And sourcing our barley, hops and apples locally is a major priority, one that reduces transport costs and empowers local communities.

Sourcing sustainably

• Aim for at least 50% of our main raw materials from sustainable sources • Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent • Ongoing compliance with our Supplier Code procedure

Advocating responsible consumption

• Make responsible consumption aspirational through Heineken® • Every market in scope has and reports publicly on a measurable partnership aimed at addressing alcohol abuse • Deliver global industry commitments

Our ways of working

Ways of working

Values and Behaviors

1 Baseline 2008 2 Baseline 2010 3

Baseline 2011

Packaging material

We reduce the impact of packaging by optimizing production. And every year we seek changes in packaging designs and opportunities to increase recycling and reuse.

Distribution

HEINEKEN implements energy and water reduction programs in our own malteries and we encourage suppliers to do the same. Whenever feasible, we move away from transporting by truck, and ship by waterway instead.

Transporting by road is less efficient than by rail or inland barges. And none of these are as efficient as ocean freight. We optimize by changing the form of transport, training drivers, using more efficient engines, improving the design of vehicles and reassessing distribution networks.

Brewing and cider-making

Customers

Malting

HEINEKEN saves energy and reduces water waste by optimizing its production processes. We set targets for each brewery and cider mill and use technology to allow our engineers to share best practices.

It takes energy to cool our beers and ciders. HEINEKEN sets higher green standards for its new coolers every year. And we continue to develop greener draught equipment such as the David XL Green.

Consumers

We have a clear set of standards and rules for responsible commercial communication, covering both offline and online. We promote responsible drinking, often through ads that make it aspirational for consumers — for example, Heineken’s “Sunrise” and new “Dance More, Drink Slow” (in partnership with world-famous DJ Armin van Buuren) ads or Newcastle’s Cabbie Black Ale’s brand identity. We also actively engage other companies, NGOs and governments to help us boost the message.



Our focus areas

Environment

Shrinking CO2 Emissions

HEINEKEN USA seeks opportunities to save fuel, emit less carbon dioxide and encourage our partners to do the same.

Reducing the release of greenhouse gases throughout HEINEKEN USA’s value chain starts with identifying hotspots and areas most suitable for improvement.

Carbon footprint breakdown of HEINEKEN Carbon footprint breakdown ofUSA HEINEKEN USA Carbon footprint breakdown of HEINEKEN USA From barley to bar From barley to bar to bar From barley

• Agriculture

Q&A Jose Martins Sr. Director of Supply Chain Planning and Optimization

Q: How does HEINEKEN USA, which doesn’t have any breweries in the U.S., reduce its carbon footprint?

JM: All of our products come from our breweries in other countries, so we have to consider our footprint as it relates to the transportation of our products to distributors, retailers and eventually consumers. Ocean freight is the most sustainable and efficient mode of transportation because it carries the greatest amount of products with the least amount of fuel consumption per unit. In recent years, we increased our U.S. ports of entry from six to nine to help us get our beers and ciders closer to key markets and reduce costly over-the-road transportation miles. Q: Where exactly do your products come from?

JM: More than half of our products come from the Netherlands, the rest from Mexico and the U.K. We import because brand heritage and authenticity are important to us — and what our consumers have come to expect. That’s why we work to do what we can to minimize our carbon footprint. In Europe, we provided counsel to our supply chain counterparts on leveraging inland waterways via barge transportation, reducing CO2 emissions by more than 3.7 million truck miles per year. On our Mexican supply chain, we’re exploring ways to introduce ocean transit to improve our CO2 efficiency.

Q: What did you do in 2013 to contribute to CO2 reduction in your supply chain?

JM: In 2013 we saw the results of our network changes originally implemented the year prior. By setting up two new warehouses closer to our large Northeast markets, we were able to reduce on-the-road transit by 950,000 miles and diesel consumption by 175,000 gallons as compared to the products’ original source point. We also continued our SmartWay Transport Partnership, a collaboration with the U.S. EPA to improve fuel efficiency and reduce environmental impact from the transportation supply chain. We worked with Coyote Logistics to maximize our truck shipments and reduce empty miles on the road — trucks that are just returning to their original destinations empty. Lastly, we included our HEINEKEN USA Sustainability Manager in our ocean freight negotiations to demonstrate our commitment to sustainability. Q: Do the ocean freight carriers even care about sustainability?

JM: Absolutely, and historically, we’ve always requested CO2 impact as part of the tenders. In 2013, we asked for more details on their specific initiatives and plans to explore where we could work together to reduce environmental impact. We were really impressed by the strides our carriers have made over the years. Some have been modifying ship designs to carry the same or more cargo with less fuel consumption. Others are working with ports to “plug in” so they could keep their onboard electronics working without their engines. As part of our decision-making, we take preference toward carriers that are more CO2 efficient because it simply makes good business sense for everyone involved to be more environmentally responsible. Our carriers are doing great things, and were excited for the opportunity to share their sustainability stories with us.

Why is Reducing Greenhouse Gas Important to Us? Global warming is a serious long-term threat. As an importer, we have a number of opportunities to reduce harmful CO2 emissions from our transportation supply chain. And we’ve made serious commitments to reducing those emissions by 2020. In order to identify areas for improvement throughout its global value chain, HEINEKEN developed a comprehensive model that calculated the carbon footprint for HEINEKEN USA and 23 of its other large operating companies as a baseline in 2012. Our data has shown we’ve reduced our carbon footprint on distribution by 1.7 percent since 2011. While not as much as we would have hoped for, we are focusing our efforts to make a greater impact next year.

• Agriculture • Malting and adjuncts Agriculture and adjuncts 26% •• Malting production • Beverage 26% Beverage production • Packaging material • production Malting and adjuncts •• Packaging material Distribution production

•• • material •• Packaging production

• Beverage production

Cooling Distribution

Cooling

15%

7%

7%

4%

4%

7%

10%

10%

USA

USA 26%

15%

38%

38%

• •

USA

Distribution Part of our efforts includes engaging our suppliers in our standards for environmental sensitivity as well as integrity and Cooling 15% human rights. We ask our suppliers to sign a code supporting and respecting these values in their own business practices. By the end of 2013, 100 percent of applicable HEINEKEN USA suppliers were in full compliance with our supplier code guidelines.

DISTRIBUTION

Saving Trees… 150 Million Packages at a Time

Forests are powerful absorbers of greenhouse gas. In early 2013 HEINEKEN Netherlands took a significant step to protect them, converting production of over 150 million corrugated cardboard boxes and trays into FSC-certified cardboard. FSC, or the Forest Stewardship Council, sets high environmental standards for forest products. FSC certification means those standards have been met. HEINEKEN USA imports its full Dutch portfolio from this brewery, and consumers in the U.S. can expect to see the FSC logo on all Heineken cardboard packaging by mid-2015.

38



Our focus areas

Conserving Water Resources HEINEKEN USA monitors efforts by the breweries that supply our imported beers and ciders to reduce their impact on nearby watersheds. Water Usage Water Usage

Wastewater Wastewater

(gallons per gallon beer) (gallons per gallon beer)

(billion gallons per year) (billion gallons per year)

Specific Water Usage Specific Water Usage

4.4 4.3 4.1 4.4 4.3 4.1 3.9 3.9 2011 2012 2013 2010 2011 2012 2010 2013

Why is Water So Important to a Beer Importer? Each pint of beer you enjoy can require several pints of water to create. The average glass of beer is 93 percent water, and it hardly stops there. Water is essential to the cultivation of barley and hops. Water is used by breweries for cleaning. It’s a key material for manufacturers of our recyclable packaging, too. Though the planet is covered in essential, life-giving water, just 1 percent of it is accessible and drinkable. And unfortunately, supplies of clean, safe drinking water worldwide are under pressure, including in some areas of the U.S. That’s why we pay attention. The majority of our beer is imported from the Netherlands, a place blessed with tremendous stores of water. And yet our Dutch breweries have focused intensely on reducing the amount

While most people enjoy our beers and ciders responsibly, there are still too many people who don’t. Through the strength of our partners, we can help reduce the incidence and impact of harmful drinking.

Total WastewaterTotal Wastewater

1.53 1.54 1.53 1.54 1.40 1.40

2011 2012 2013 2011 2012 2013

of water that they and their suppliers use. In 2013, they made progress again by slashing water use per gallon of finished product by nearly 5 percent, to just 3.9. How significant is this? The amount of water the Netherlands breweries are saving each year now versus 2011 could serve the needs of 1,700 two-person households there for an entire year.4 And going forward, each additional 0.1 gallons of water they manage to save per gallon of beer they brew will equate to nearly 200 million gallons of water savings per year — enough to fill 280 Olympic swimming pools.5 4

(Source: Dutch National Institute for Family Finance Information, 2014) For the calculation, we assume an Olympic swimming pool of 50 meters long , 25 meters wide and 2 meters deep. 5

20% REDUCTION IN WATER CONSUMPTION SINCE 2008

Society

2015

3.9hl

2008

5.0hl

water

water

2013

4.1hl water

2020

3.7hl water

Thinking About Advertising in a Responsible Way The 2013 Collegiate Effies Awards’ “HEINEKEN USA PSA Challenge” asked students 21+ to develop an innovative campaign that supports Heineken’s position as the upscale leader in responsible consumption. The program encourages students to think differently about marketing in the alcohol industry. The top teams presented their campaigns to a panel of HEINEKEN USA marketing executives, and this year’s winners from Iowa State University received a $3,000 scholarship prize.

Q&A Lianne Visser Sustainability and Alcohol Policy Manager

Q: Why does HEINEKEN USA care about responsible consumption?

LV: Our company has believed moderation is key to the best experiences since its founding in 1864. We’re proud of our premium beers and ciders, yet consumers should drink them safely and responsibly — or not at all, such as in the case of minors. Being still family-owned, we set the highest standards for responsible consumption globally. Q: What are the key issues you see in society that concern your products?

LV: Drunk driving and underage drinking are among the key social issues we address, and we remain steadfast in our approach. Through multiple efforts of the health sector, NGOs and our industry, we’ve seen some great progress in reducing some dire statistics. While every fatality is still one too many, the National Highway Traffic Safety Administration’s latest available data shows the percentage of drunk driving fatalities has dropped from 48 percent in 1982 to 31 percent in 2012. We’ve also seen that since 1975, underage drinking has declined dramatically, hitting new record lows in 2013.

Another important topic is overconsumption in society. We believe that moderate consumption of beer and cider can be part of a healthy and balanced lifestyle, and we strive for moderate consumption to become the social norm. Q: How are you part of the solution?

LV: These are complex issues, and by pooling our resources and expertise with diverse organizations, we can make a greater impact. Successful partnerships are between organizations that have different things to offer. For example, through our Health Alliance on Alcohol collaboration, the NewYork-Presbyterian Hospital and White Plains Hospital provide their medical expertise and advice on preventing underage drinking. In turn, we take their advice, which we can then publish in e-books, infographics and websites to help reach more people. Taxi Magic provides an innovative service that helps consumers find safe rides home and we provide our national marketing and sales outreach through our HEINEKEN USA network. Q: What are you particularly proud of in 2013?

LV: In 2013 we partnered with our brand teams to help launch Cabbie, a Newcastle Brown Ale U.S. winter limited edition. This was the first product in the HEINEKEN portfolio to embed a responsible consumption message directly in its brand identity. During the busy holiday season, Cabbie encouraged consumers to drink in moderation — and find a safe ride home with Taxi Magic by using the beer’s $5 promotional code. Thousands of people chose the safe rides, and our stakeholders highly praised this innovative and forward-thinking program. Responsibility is in our DNA, and we will continue building these partnerships locally as well as leverage HEINEKEN NV global campaigns like “Sunrise Belongs to Moderate Drinkers” and “Dance More, Drink Slow.”



Giving Back to Our Communities

Partnerships for Progress

We can’t build a more sustainable world on our own, so we seek out opportunities to empower our employees and communities together.

By working with partners, HEINEKEN USA can amplify its positive efforts and impact on society.

Why Do We Approach Philanthropy the Way We Do? HEINEKEN USA has always preferred to pursue good works in a way that is as meaningful for our employees and customers as it is for the charities we hope to benefit. In 2013, we continued our annual Day of Giving program, where we gather our employees to dedicate one day to come out in force for a local urban greening non-profits. In April, 80 employee volunteers gathered to help beautify the Desert Garden in San Diego’s Balboa Park. They landscaped, raked, pruned and even fired up chain saws to get the garden looking sharp for spring — accomplishing four days’ worth of work in just a few hours. On the other side of the country, a second Day of Giving event was held with GrowNYC in October to renovate the La Finca del Sur Community Garden in the Bronx, N.Y. From every level of the organization, another 80 volunteers from our Northeast offices transformed the community garden from the ground up. In one day, the team built 10 raised gardening beds, moved 16 tons of

soil, mulched 15 walkways and constructed several new benches and picnic tables. Certainly these projects were a lift for San Diego and the South Bronx. But they also gave our employees a reason to talk about community development and contribute to urban greening in a way that resonates with our Brewing a Better Future agenda. We also continued our Heineken With a Heart program in 2013. The program harnesses the generosity of our consumers through a retail program which ran in partnership with Outback Steakhouse. We held two large events in 2013, one in Lowell, Mass., benefiting victims of the Boston Marathon bombings and a second in Merrick, N.Y., for the Nassau County Autism Foundation. Through Heineken With a Heart and dozens of other philanthropic endeavors, HEINEKEN USA and its people have raised nearly $1 million over the past two years for worthy causes both locally and nationally.

Our efforts against drunk driving and underage drinking

In 2013 HEINEKEN USA continued its partnership with Taxi Magic, a free nationwide mobile app that connects people to a safe ride home with the tap of a button. We integrated Taxi Magic into more events in 2013 than ever, an increase of 122 percent over last year. In November we raised the stakes through a revolutionary program to promote Taxi Magic with our new limited-edition Newcastle Cabbie. This was the first time HEINEKEN has ever woven a responsible consumption message into the core brand identity of one of our beers. Cabbie packaging and point-of-sale promoted a $5 coupon code off a ride booked on Taxi Magic — plus another $5 credit for a friend. Thousands of consumers participated in the program and got a safe ride home.

ALCOHOL & THE TEENAGE BODY

Saving a Life: HEINEKEN USA Employees Receive CPR/AED Training

HEINEKEN USA is deeply committed to the safety of its employees as well as our distributors, retailers, customers and families. The key to safety is preparedness. In September 2013, more than 50 HEINEKEN USA employees received CPR/AED training during our Employee Meeting in Atlantic City. CPR/AED techniques can make a critical difference during an emergency, and employees across the company are now equipped with the skills to help save a life.

The Heart

The Brain

• During intoxication, adolescents may experience low heart rate and blood pressure.

• Alcohol slows all brain function. Since adolescent brains are still developing, this can lead to a decrease in thinking ability.

• Long-term chronic use may result in cardiomyopathy, a weakness of the heart muscles, and hypertension.

The Blood • Chronic alcohol use may result in anemia, or low blood count, due to blood loss from bleeding and inflammation of the stomach lining, as well as nutrient and vitamin deficiency. • Low platelets from alcohol’s toxic effect on the bone marrow can result in easy bruising and bleeding.

• Learning disabilities can result from damage to the hippocampus – the part of the brain responsible for learning and memory. • Excessive alcohol use has also been linked to short and long term memory problems, loss of balance, peripheral neuropathy (nerve problems causing numbness and pain) and dementia.

The Stomach • Overconsumption of alcohol is dangerous to the stomach lining, and may result in inflammation or severe ulcers.

The Liver • Alcohol is broken down in the liver. Excessive alcohol abuse has been linked to alcoholic hepatitis, fatty liver and cirrhosis, or scarring of the liver.

• Long-term abuse is associated with cancer of the esophagus.

• Symptoms include abdominal pain, jaundice (yellow skin and eyes), bloated stomach and vomiting of blood.

The Reproductive System • Alcohol use has been related to inability to have an erection and decrease in sperm count.

The Pancreas • Chronic alcohol use can result in pancreatitis, a toxic inflammation of the pancreas, which can lead to weight loss and malnutrition. Symptoms of pancreatitis include nausea, vomiting and pain when eating.

• Some studies suggest that breast and prostate cancer may be associated with chronic alcohol use. • Women who drink excessively while pregnant have a risk of bearing a child with a congenital problem called “fetal alcohol syndrome.”

In our hometown we partnered with the City of White Plains and the White Plains Business Improvement District to provide free rides home for New Year’s Eve revelers. As the 10th anniversary of the program — and biggest year yet — 30 luxury vehicles provided more than 400 consumers of legal drinking age with hand warmers, bottled water and safe rides home after their celebrations. We also continued our Health Alliance on Alcohol collaboration with NewYork-Presbyterian Hospital and White Plains Hospital to address underage drinking. In April 2013, the program was overhauled with brand-new books, infographics, and digital outlets to help parents talk with teens about alcohol, preventative strategies and safety tips. The new resources received accolades from our stakeholders, and the website saw an increased flow of visitors and downloads after its relaunch.



Stakeholder groups with which HEINEKEN NV engaged at a global level in 2013

Stakeholder Dialogues

Governments

Industry associations

Stakeholders play a crucial guiding role on our business strategy and sustainability journey. They encourage our progress and keep us accountable to our commitments. Engaging with stakeholders

HEINEKEN USA is committed to reaching local communities across the country — a pretty tall order for less than 500 employees in a country of more than 310 million people. To help, we rely on strong relationships with an extended network of stakeholders. We depend on them to keep us apprised of what’s happening in circles beyond our immediate reach. In 2013 we completed our largest global reputation research cycle ever, talking to more than 7,000 stakeholders across 31 markets. We especially look forward to these opportunities to receive anonymous and unfiltered feedback from our influencers in the media, government and beer industry. Our U.S. results found that these groups rated us overall positive, yet we found areas where we still had room for improvement. We focused our efforts to identify ways to make our stakeholder dialogues more meaningful. For example, we streamlined our distributor outreach by launching The Haystack, a monthly newsletter that provides thought leadership in categories such as sales, digital, marketing and responsibility. We continued our engagement on Capitol Hill. Our CEO, Dolf van den Brink, joined other beer industry executives to meet with members of Congress during the annual Brewers’ Day. We maintained our

Suppliers

Stakeholder engagement Consumers

NGOs & international organizations

Employee representatives

Investors

Employees

long-standing partnerships with groups including the Congressional Black Caucus Foundation, the Congressional Hispanic Leadership Institute, and the Greater Harlem Chamber of Commerce. And we had more face-to-face interactions with our key influencers than ever before to further lines of trust and transparency. In 2013, we were particularly excited to celebrate the naming of the new king of the Netherlands, Willem-Alexander. To commemorate the event, HEINEKEN USA worked with the Netherlands America Foundation, the Netherlands Embassy and a local Washington, D.C., distributor partner to help assemble a crowd of hundreds to celebrate our new Dutch king, and build a stronger community of Dutch constituents in the U.S. By the end of the year, feedback showed that we are making progress in forging better relationships, establishing two-way dialogues and strengthening our shared knowledge.

Women’s Leadership Forum Reaches 90 Percent of Us

HEINEKEN USA’s Women’s Leadership Forum empowers our staff through interactive training, networking opportunities, and mentoring. With topics like speed mentoring, executive leadership, and self-awareness/self-defense, the employee-led initiative held at least one event in each of our company’s regions, touching 90 percent of the company. In 2013 they also secured a gold membership with the Network of Executive Women, the industry’s largest learning and leadership community for consumer products and retail practitioners.

Engaging Our Industry Together HEINEKEN USA proudly supports our industry trade organization, the Beer Institute, a group that shares our values in promoting moderate, responsible consumption of alcohol.

Why do we work with other leaders in the beer industry? In the free market, HEINEKEN USA competes aggressively with its beer industry rivals. But when it comes to promoting responsible consumption and other important societal issues related to beer, we come together. HEINEKEN USA is an active member of the Beer Institute, the U.S. beer industry trade organization. The Beer Institute promotes responsible consumption as a key priority and engages with a number of organizations on behalf of the industry. The Beer Institute uses research conducted by the Governors Highway Safety Administration and the Traffic Injury Research Foundation and partners with the Washington Regional Alcohol Program to help prevent impaired driving. It actively supports the Techniques for Effective Alcohol Management (TEAM) and its coalition of professional sports teams, concessionaires, alcohol suppliers, government organizations and traffic safety experts on responsible alcohol consumption in and around sports and entertainment facilities.

Commission and the Alcohol and Tobacco Tax and Trade Bureau, among others. Government engagement aims to build relationships beyond business. One example is the industry support of the FTC’s We Don’t Serve Teens program, which is a collaborative effort to positively encourage the sale of alcohol only to adults of legal drinking age. Finally, the Beer Institute puts forth a clear Advertising and Marketing Code that encourages responsible practices. Since 2006, the Beer Institute has maintained an independent review board to oversee any consumer complaint not satisfied by an individual company. HEINEKEN USA embeds the Beer Institute’s code into our responsible commercial communications training, and includes adherence to the code in key contracts.

Outside programming activation, the Beer Institute regularly engages on behalf of the industry on alcohol policy issues with organizations such as the National Institutes of Health, the Department of Health and Human Services, the Federal Trade

“Half a century ago, the US beer industry introduced self-regulatory codes that banned ads that might appeal to those under the legal drinking age. Today our standards have evolved into a set of far-reaching rules that guide the responsible advertising, marketing and commercial communications of our beer and cider to consumers.” Julie Kinch Senior Vice President, Legal



Our focus areas

Fostering Sustainable Behavior at Work

Employees Our employees are the ambassadors of our responsible consumption programs and help us innovate by putting our newest ideas, products and programs into practice.

Q&A Ben Biron Alcohoot Co-Founder Q. Where did the idea for Alcohoot come from?

BB: When my friend and now business partner Jonathan Ofir and I were in the Israeli military, we learned that more people died from drunk driving than in combat. It was devastating and we wanted to find a solution. When we moved to the U.S., mobile apps were growing quickly and it seemed like a natural connection. Yet there was nothing like Alcohoot on the market. We were fueled by knowing we could develop something that could make a difference. Q. Why HEINEKEN USA and Alcohoot?

BB: First of all, Heineken is one of my favorite beers. And when I think of Alcohoot and HEINEKEN, I see a lot of parallels. Alcohoot is a lifestyle and upscale device — much like Heineken’s brand. And Heineken has always been a leader in promoting responsible consumption. I remember after we finished our first promo video,

HEINEKEN USA’s employees are powerful ambassadors for its Brewing a Better Future mission. That’s why we involve them in our programs and training.

we found Heineken’s “Sunrise” ad, and it was incredible to see the overlaps! The industry is a lot about what is the limit. To us, it’s not about limits; it’s about finding your moderate to really have the best night. I felt a connection with Heineken’s messages — it’s really good. Q. Tell us about the work you’ve done together in 2013.

BB: In mid-2013, we met with HEINEKEN USA to discuss what we could do together to promote responsibility. HEINEKEN USA loved us right away, and they distributed Alcohoots to a small group of employees in a pilot program. People were excited about Alcohoot and thought the innovation was the right fit with HEINEKEN’s stance on responsible consumption. This was a great milestone in our relationship with HEINEKEN USA. Q. What did you learn from the 2013 employee rollout?

BB: The responses were overwhelming, they loved it. One thing we learned was that they didn’t always understand how alcohol was affecting them, and how it translated into their blood alcohol content (BAC) reading. Bodies are constantly metabolizing and eliminating alcohol, so BACs change accordingly. These insights strengthened our determination to provide something for lifestyle, safety as well as education. We want to take the guesswork out of the equation — that’s the reason we created Alcohoot.

Why do we engage our people? HEINEKEN USA’s people are at the core of our business. That’s why in 2013 we invested more than $2.1 million in training our employees. Last year more than 93 percent of employees received some level of advanced training beyond just basic requirements. Part of these trainings include our stance on responsible consumption. In July 2013 we issued a new HEINEKEN USA employee manual, which had much to say on our responsible consumption policy. We leveraged our new 2013 Star Academy learning management system to ensure the material reached every employee and we achieved 100 percent acknowledged completion. We also continued our Cool@Work program, our global alcohol policy aimed to improve safety and health at work, and generate responsible consumption awareness, commitment and ambassadorship among employees. Cool@Work information is included in our weekly employee newsletter, and our leaders reinforce these messages regularly with their teams through

emails and in-person meetings. In addition, every employee is required to complete Training for Intervention Procedures (TIPS), our industry educational standard on the facts and legal regulations of alcohol consumption and servicing. Our new hires also receive formal training on how to deal with matters of workplace harassment. HEINEKEN is committed to employee welfare, ensuring a safe, secure and harassment-free work experience. And we train our new employees on harassment matters even in states where such training is not required by law. In marketing our products to consumers, we set the highest standards on responsible commercial communications, often above and beyond industry guidelines. We insist that employees who work in commercial functions complete intensive responsible commercial communications training, and in 2013 nearly every identified employee attended a formal session. We also offered this training to more than 50 of our agency partners — it’s a compulsory part of our agency contracts.

“Our goal is to make moderation aspirational, and our brands are best positioned to drive this home with consumers. In 2013, we launched Heineken brand’s “Dance More, Drink Slow” campaign, a new global responsible drinking campaign with a simple message – stay in control so you can make the most of your entire night.”

“Our people are our number-one asset, and it’s important we keep them safe. In 2013 we made sure the entire organization understood our Cool@Work program through a robust internal communications strategy featuring quarterly activations and regular reminders. Coupled with the strong conviction of our people, not a single employee received a DUI or other alcohol-related offense.”

Stacey Tank Senior Vice President, Corporate Relations

Jose Luis Velasquez Senior Vice President, The People Department



More Sustainable Buildings and Cars

Benchmarks & Achievements

HEINEKEN USA is looking beyond the beer value chain for environmental and safety gains. We’ve found them in our workplaces, our cars and our employee practices.

HEINEKEN USA is mindful of how its sustainability efforts fit into the larger global campaign at HEINEKEN — and how outside organizations measure our progress.

LEED certification for our New York City office

How do we measure our sustainability progress?

In 2013, just over a year after the U.S. Green Building Council awarded LEED Gold certification to HEINEKEN USA’s headquarters in White Plains, N.Y., our beautifully renovated Manhattan office was awarded LEED Certified status.

Left to right: Chief Corporate Relations Officer Stacey Tank; Patricia Lee of CodeGreen Solutions, a sustainable building solutions consultancy that worked on our New York offices; Chief Executive Officer Dolf van den Brink; and Employee Engagement Manager Jacqueline Overton were among those who helped secure LEED certification for our New York offices.

The New York offices were set up a few years ago as open environments, with fewer solid walls to allow daylight to reach more desks. The space not only encouraged candor, accountability and collaboration among employees, it reduced overall energy consumption. LEED stands for Leadership in Energy and Environmental Design, and the certification acknowledges steps we have taken to reduce our offices’ environmental impact. In Manhattan, virtually all of our appliances and equipment meet Energy Star qualifications. Further, we used recycled materials during construction, installed water-saving fixtures to drive water usage rates 20 percent below required plumbing code and reduced electricity use by 25 percent below the levels set by local codes, thanks in part to our open-plan design.

A greener corporate vehicle fleet

In search of environmental gains, we went to work on our corporate automobile fleet a few years ago. We’ve been increasing the fuel efficiency of the fleet, and in 2013 the average

gas mileage of the fleet rose by another 5 percent to 20.9 miles per gallon. That helped us reduce the volume of our total gas purchases — and emission of greenhouse gases — by 6 percent. And while those are important gains, nothing matters more than the personal safety of employees. Our driver safety program requires all new HEINEKEN USA fleet drivers to participate in a carefully selected series of special driver safety training sessions. Topics covered include defensive strategies, failure to yield and intersection problems. HEINEKEN USA and its employees take safety and responsibility seriously, and not a single person on our team received an alcohol-related traffic offense in 2013.

“Sometimes simple changes can make a big impact. For example, we reduced our employee fleet vehicle choices to include only the most fuel-efficient options. As a result, we saw a six percent greenhouse gas reduction year-over-year.” Scott Blazek Senior Vice President, Sales

HEINEKEN USA is one of many companies around the globe that make up HEINEKEN. And globally, HEINEKEN is moving closer to its 2020 targets in each of four focus areas. Meanwhile, many objective external indicators also confirm that it is making progress. HEINEKEN’s sustainability results are tracked by a number of outsiders:

Our disclosure score improved to 96 points out of 100 (from 88 in 2012 and 59 in 2011). We maintained our B performance rating. Overall, this resulted in a ranking in the CDP Benelux Leadership Index. We lead the consumer staples category.

Dow Jones Sustainability Index

CDP Water Disclosure

HEINEKEN received its highest ever score in 2013. We qualified for inclusion in the 2014 Sustainability Yearbook and received the RobecoSAM Bronze Class award, which means our score is within the range of 5 percent to 10 percent of the industry leader.

FTSE4Good

For the 10th consecutive year, HEINEKEN maintained its place in the Index. For the Environmental, Social and Governance (ESG) rating, HEINEKEN achieved an absolute score of 4.1 out of 5, and a relative supersector score of 93 out of 100.

Investors Carbon Disclosure Project

We again participated in the Investors Carbon Disclosure Project (CDP) to measure and disclose our carbon-reduction activities.

HEINEKEN took part for the third time in the CDP Water Disclosure Global Survey, reporting on water usage, waterrelated risks and responses to these risks. More than 1,000 companies from around the world have been asked to report vital water-related information to CDP this year, with close to 60 percent responding. No rankings have yet been provided.

Dutch Transparency Benchmark

For the second consecutive year, HEINEKEN was mentioned as a “frontrunner” in the Dutch Transparency Benchmark with an overall score of 193 out of 200 points. HEINEKEN now ranks 10th out of 500 Dutch companies. The Dutch Transparency Benchmark is conducted by the Ministry of Economic Affairs and assesses the transparency of CSR reporting by the top 500 Dutch companies.

Let us know your thoughts What aspects of Brewing a Better Future are working well? What do you think we could do better? We’d love to hear from you, because your feedback helps us learn and improve!

Visit www.HEINEKENUSA.com http://www.sustainabilityreport.heineken.com/

Stacey Tank Senior Vice President Corporate Relations Lianne Visser Sustainability and Alcohol Policy Manager Email responsibly@ heinekenusa.com Post 360 Hamilton Ave. Ste 1103 White Plains, NY 10601