Sustainability
We strongly believe that by fully integrating sustainability into the way we do business, we are best placed to make a meaningful impact on the world around us.
BREWING A BETTER WORLD
We pursue an increasingly holistic approach to sustainability, focusing on the entire value chain From Barley to Bar. Under our global sustainability strategy, Brewing a Better World (BaBW), there are six focus areas where we believe we can make significant difference for our people, planet and performance.
Through the Brewing a Better World sustainability strategy, we support the United Nations Sustainable Development Goals (SDGs) mainly Good Health & Well-being, Quality Education, Clean Water & Sanitation, Affordable & Clean Energy, Decent Work & Economic Growth, Responsible Consumption & Production, Climate Action, Life Below Water, Life on Land, Zero Hunger and Partnerships for the Goals. Our focus areas are linked with specific SDGs and their targets, to make a meaningful and transparent contribution to protect the planet, ensure prosperity and end poverty.
OUR VALUE CHAIN
We are committed to embedding sustainability at the core of our business. This means looking at Brewing a Better World in every one of our activities – from sourcing, producing, marketing and selling our products all the way to how they are consumed, and how we can reuse and recycle waste.
Agriculture
We brew beer and make cider from natural ingredients. We support the sustainable cultivation of agricultural raw materials to brew our drinks. Our suppliers comply with the HEINEKEN Supplier Code, which details our commitment and enforcement of ethical business conduct, human rights, and environment.
Brewing
At our Sungei Way Brewery in Petaling Jaya, Selangor, the highest quality and safety standards are adhered to in the brewing process. We are committed to improving energy and water efficiencies, including increasing our use of renewables.
Employees
We employ over 600 fulltime employees and we are committed to developing our people. At HEINEKEN Malaysia, we always aim to dream big and uncage our courage to inspire with our world class brands, guided by a purpose to brew a sustainable future for our people, business and planet.
Packaging
Our beers and ciders are served in bottles, cans and kegs. We aim for our packaging design to stand out from the crowd while we also strive to reduce its environmental footprint by innovating the materials we use as well as improve recycling and reusing.
Distribution
We work to optimise efficiencies throughout our distribution networks across Malaysia. Put Safety First is our number one behaviour and we continually engage our employees and distributors to stay safe on the road.
Customers
Thousands of businesses rely on selling our products for a source of revenue. We promote awareness of responsible serving with the aim of ensuring our products are enjoyed responsibly. Through our quality programmes, we also improve product knowledge and empower our customers to promote appreciation of brand heritage, product taste, and service etiquette.
Consumers
Millions of consumers enjoy the great tasting beers and ciders brewed by HEINEKEN Malaysia. We strictly market our products to those who are non-Muslims and aged 21 and above only. We are committed to advocate responsible consumption and dedicate 10% of the Heineken® brand’s media spend annually to promote responsible consumption.
Communities
We believe in growing with our surrounding communities. Through our corporate social responsibility arm, SPARK Foundation, we reach out to communities with projects that focus on three key areas – Environment, Education and Partnerships.
OUR PROGRESS
At HEINEKEN Malaysia, we believe in the long-term sustainability of our business and in creating value for our key stakeholders. We believe that business growth and sustainability go hand in hand with our focus on people, planet and performance.
People
Total Employees
596
Board of Director
Middle to senior Management
Employee Engagement score
82%
(+1% vs 2019)
My Manager score
83%
(+7% vs 2019)
COVID-19 Response score
88%
Supporting Our Stakeholders Through Covid-19:
Tiger Save Our Street Food pledged
RM1.5 million
for restaurants. coffee shops and street food vendors
Sabah Flood Refief Effort brought
Food aid
for 1,000 flood victims
Raise Our Bars donated
RM1 million
to help bars and pubs during the pandemic
80,000 meals
for 3,600 families during the MCO
Planet
15.5%
reduction in water consumption since 2014
Balanced more than
100%
of water used in our products
15.2%
reduction in co2 emissions since 2014
92%
increase in renewable bio gas usage since 2014
Zero Waste
to landfill
Performance
Contributed
RM1.05 billion
in taxes to the Gorvernment
FY20 Dividend
51 sen
per stock unit
Revenue
-24%
vs 2019
Profit Before Taz
-52%
vs 2019
WHAT WE SAID AND WHAT WE HAVE DONE
| Focus Areas | 2019 Achievement | 2020 Achievement | Indicator | 2020 Global Commitments | Materiality |
|---|---|---|---|---|---|
Protecting Water Resources |
Water efficiency: Water circularity: Water stewardship: |
Water efficiency: Water circularity: Water stewardship: |
Partially achieved Ongoing initiatives to improve efficiency and circularity |
Reduce specific water consumption to 3.5 hl/hl |
Regulatory compliance Water management Community investment and development |
Reducing CO2 Emission |
Carbon emissions of 11.42 kg CO2 eq/hl. Zero waste to landfill. |
Carbon emissions of 11.87 kg CO2 eq/hl representing a reduction of 15.2% since 2014. Maintained zero waste to landfill. |
Partially achieved Compared with 2019, the rate of CO2 emissions in 2020 due to closure of brewery for 46 days impacting on efficiencies |
Reduce CO₂ emissions by 40% in production compared to 2008 |
Regulatory compliance Waste management Energy and carbon management |
|
Purchased 284 fridges in compliance with HEINEKEN policy. |
Zero fridges were purchased in year 2020. |
Ongoing |
All new fridges must be environmentally friendly as defined by Global standards |
Energy and carbon management |
|
Sourcing Sustainably |
100% of suppliers compliant with HEINEKEN Supplier Code. |
100% of suppliers compliant with HEINEKEN Supplier Code . |
Achieved |
100% compliance with HEINEKEN Supplier Code |
Supply Chain management |
Advocating Responsible Consumption |
Partnered with GRAB Malaysia (ride hailing service) and with 2 influencers. 10% Heineken media budget committed to advocate responsible consumption. Ongoing education on responsible consumption to more than 18,000 consumers on Drink Sensibly Facebook page. 100% transparency on nutritional information for all brands available on brand and corporate websites. |
More than 10% Heineken media budget committed to advocate responsible consumption. 100% transparency on nutritional information for all brands available on brand and corporate websites. Partnership on ride-hailing service was put on hold due to Covid-19 restrictions. |
Achieved |
Reports publicly on a measurable partnership aimed at addressing alcohol abuse |
Responsible marketing and consumption Regulatory compliance |
Promoting Health and Safety |
Ongoing implementations of Life Saving Rules action plan. |
Ongoing implementations off Life Saving Rules action plan. Covid-19 pre-cautionary measures are taken such as health screening, social distancing, increased sanitization measures at the workplace and working from home. |
Achieved |
Life Saving Rules action plans fully implemented |
Product safety, quality and hygiene Occupational health and safety |
Growing with Communities |
Contributed RM1.26 billion through taxes to the Malaysian Government. Reached out to 46,000 Malaysians. Built 19 alternative water supply solutions in Selangor and Sabah since 2017. English Enrichment Programme: Reached out to 70 teachers from underprivileged schools across 7 states. |
Contributed RM1.05 billion through taxes to Malaysia Government. Reached out to 54,000 Malaysians. Maintained 22 alternative water systems in Selangor and Sabah. Built a 305-meter clay dyke. Reforested 1 hectare of degraded peatland. Donated 80,000 meals over 30 days to 3,120 B40 families through HEINEKEN Malaysia Food Aid programme Save Our Street Food Raise Our Bars |
Achieved |
Global commitments to be decided in the coming years |
Economic impact and tax Community investment and development |
Focus Areas
Protecting Water Resources
2019 Achievement
Water efficiency: 3.67 hl/hl Reduced by 15% since 2014.
Water circularity: All wastewater treated beyond the standards of the Department of Environment.
Water stewardship: Year 2 implementation of strategy. A science based method to quantify water stewardship programme identified.
2020 Achievement
Water efficiency: 3.65hl/hl Reduced by 15.5% since 2014.
Water circularity: All wastewater treated beyond the standards of the Department of Environment.
Water stewardship: Year 3 implementation of high impact initiatives. Balanced more than 100% of water used in our products.
Indicator
Partially achieved
Ongoing initiatives to improve efficiency and circularity
2020 Global Commitments
Reduce specific water consumption to 3.5 hl/hl
Materiality
Regulatory compliance
Water management
Community investment and development
Focus Areas
Reducing CO2 Emission
2019 Achievement
Carbon emissions of 11.42 kg CO2 eq/hl.
Zero waste to landfill.
Purchased 284 fridges in compliance with HEINEKEN policy.
2020 Achievement
Carbon emissions of 11.87 kg CO2 eq/hl representing a reduction of 15.2% since 2014.
Maintained zero waste to landfill.
Zero fridges were purchased in year 2020.
Indicator
Partially achieved
Compared with 2019, the rate of CO2 emissions in 2020 due to closure of brewery for 46 days impacting on efficiencies
Ongoing
2020 Global Commitments
Reduce CO₂ emissions by 40% in production compared to 2008
All new fridges must be environmentally friendly as defined by Global standards
Materiality
Regulatory compliance
Waste management
Energy and carbon management
Focus Areas
Sourcing Sustainably
2019 Achievement
100% of suppliers compliant with HEINEKEN Supplier Code.
2020 Achievement
100% of suppliers compliant with HEINEKEN Supplier Code .
Indicator
Achieved
2020 Global Commitments
100% compliance with HEINEKEN Supplier Code
Materiality
Supply Chain management
Focus Areas
Advocating Responsible Consumption
2019 Achievement
Partnered with GRAB Malaysia (ride hailing service) and with 2 influencers.
10% Heineken media budget committed to advocate responsible consumption.
Ongoing education on responsible consumption to more than 18,000 consumers on Drink Sensibly Facebook page.
100% transparency on nutritional information for all brands available on brand and corporate websites.
2020 Achievement
More than 10% Heineken media budget committed to advocate responsible consumption
100% transparency on nutritional information for all brands available on brand and corporate websites.
Partnership on ride-hailing service was put on hold due to Covid-19 restrictions.
Indicator
Achieved
2020 Global Commitments
Reports publicly on a measurable partnership aimed at addressing alcohol abuse
Materiality
Responsible marketing and consumption
Regulatory compliance
Focus Areas
Promoting Health and Safety
2019 Achievement
Ongoing implementations of Life Saving Rules action plan.
2020 Achievement
Ongoing implementations off Life Saving Rules action plan.
Covid-19 pre-cautionary measures are taken such as health screening, social distancing, increased sanitization measures at the workplace and working from home.
Indicator
Achieved
2020 Global Commitments
Life Saving Rules action plans fully implemented
Materiality
Product safety, quality and hygiene
Occupational health and safety
Focus Areas
Growing with Communities
2019 Achievement
Contributed RM1.26 billion through taxes to the Malaysian Government.
Reached out to 46,000 Malaysians.
Built 19 alternative water supply solutions in Selangor and Sabah since 2017.
English Enrichment Programme: Reached out to 70 teachers from underprivileged schools across 7 states.
2020 Achievement
Contributed RM1.05 billion through taxes to Malaysia Government.
Reached out to 54,000 Malaysians.
Maintained 22 alternative water systems in Selangor and Sabah.
Built a 305-meter clay dyke.
Reforested 1 hectare of degraded peatland.
Donated 80,000 meals over 30 days to 3,120 B40 families through HEINEKEN Malaysia Food Aid programme.
Save Our Street Food Pledged RM1.5 million to support 1,200 street food vendors, coffee shops and food courts nationwide.
Raise Our Bars Committed RM1 million in supporting bars and pubs through Covid-19.
Indicator
Achieved
2020 Global Commitments
Global commitments to be decided in the coming years
Materiality
Economic impact and tax
Community investment and development
WATER STEWARDSHIP
Find out more about HEINEKEN Malaysia and SPARK Foundation’s Water Stewardship initiatives.
