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. These enable us to support 10 out of 17 United Nations Sustainable Development Goals.
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
624
Employees
Board of Directors
57%
Male
43%
Female
Middle to Senior Management
50%
Male
50%
Female
Talent Development
International assignments to accelerate talent and Asia Pacific Graduate Programme
Growing with Communities:
Engaged 46,000 Malaysians and 158 communities through SPARK Foundation
Since 1994, RM355 million raised for schools through Tiger Sin Chew Chinese Education Charity Concert
Since 2017, built 19 alternative water supply solutions for needy communities
Planet
15%
reduction in water usage vs 2014
18.4%
reduction in CO2 emissions since 2014
Zero Waste
to landfill
Reforested
1 hectare of degraded peatland forest
with more than 600 trees to offset CO2
emissions of 1,400 cars annually
Built
305-metre
clay dyke in Raja Musa Forest Reserve to help store
150 million litres of water annually
Performance
+14%
Revenue growth vs 2018
+8%
Profit before tax growth vs 2018
Contributed
RM1.26 billion
in taxes to the Government
WHAT WE SAID AND WHAT WE HAVE DONE
| Focus Areas | 2018 Achievement | 2019 Achievement | Indicator | 2020 Global Commitments | Materiality |
|---|---|---|---|---|---|
Protecting Water Resources |
Water efficiency: 3.79 hl/hl Water circularity: All wastewater treated Water Stewardship: 3 year strategy launched RM2.5 million invested for projects in Sungei Way, Sungai Penchala and Sungai Selangor |
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. Results will be reported in the Annual Report 2020 |
Ongoing |
Reduce specific water consumption to 3.5 hl/hl |
Regulatory compliance Water management Community investment and development |
Reducing CO2 Emission |
15.4% reduction since 2014 Sustained zero byproduct waste status since September 2017 |
Reduced CO2 emission by 18.4% since 2014 resulting in 11.42 kg CO2eq/hl Zero waste to landfill. |
Ongoing |
Reduce CO₂ emissions from production by 40% as compared to 2008 |
Regulatory compliance Waste management Energy and carbon management |
|
Purchased 425 fridges in compliance with HEINEKEN policy |
Purchased 284 fridges in compliance with HEINEKEN policy |
Ongoing |
All new fridges must be environmentally friendly as defined by HEINEKEN Global standards |
Energy and carbon management |
|
Sourcing Sustainably |
100% of our suppliers have signed our HEINEKEN Supplier Code together with the HEINEKEN Malaysia Supplementary code |
100% of suppliers compliant HEINEKEN Supplier Code |
Achieved ahead of schedule. |
100% compliance with HEINEKEN Supplier Code |
Supply Chain management |
Advocating Responsible Consumption |
Partnered with GRAB Malaysia (ride hailing service) and 3 social media influencers 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 |
Partnered with GRAB Malaysia (ride hailing service) and 2 social media influencers 10% of the HEINEKEN® brand’s 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 |
Achieved |
Reports publicly on a measurable partnership aimed at addressing alcohol abuse |
Responsible marketing and consumption Regulatory compliance |
Promoting Health and Safety |
100% employees have been educated on HEINEKEN Life Saving Rules (LSR) Safety Council established. |
Ongoing implementations of LSR action plans |
Achieved |
Life Saving Rules action plans fully implemented |
Product safety, quality and hygiene Occupational health and safety |
Growing with Communities |
Contributed RM1.2 billion through taxes to the Malaysian government More than 8,300 people engaged through the W.A.T.E.R project. Built 6 alternative water supply solutions in Sabah benefitting more than 5,000 villagers since 2017 English Enrichment Programme: Reached out to 70 teachers from underprivileged schools across 7 states |
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 |
N/A |
Global commitments to be decided in the coming years |
Economic impact and tax Community investment and development |
Focus Areas
Protecting Water Resources
2018 Achievement
Water efficiency: 3.79 hl/hl
Water circularity: All wastewater treated
Water Stewardship: 3 year strategy launched RM2.5 million invested for projects in Sungei Way, Sungai Penchala and Sungai Selangor
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. Results will be reported in the Annual Report 2020
Indicator
Ongoing
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
2018 Achievement
15.4% reduction since 2014 Sustained zero byproduct waste status since September 2017
Purchased 425 fridges in compliance with HEINEKEN policy
2019 Achievement
Reduced CO2 emission by 18.4% since 2014 resulting in 11.42 kg CO2eq/hl
Zero waste to landfill.
Purchased 284 fridges in compliance with HEINEKEN policy
Indicator
Ongoing
2020 Global Commitments
Reduce CO₂ emissions from production by 40% as compared to 2008
All new fridges must be environmentally friendly as defined by HEINEKEN Global standards
Materiality
Regulatory compliance
Waste management
Energy and carbon management
Focus Areas
Sourcing Sustainably
2018 Achievement
100% of our suppliers have signed our HEINEKEN Supplier Code together with the HEINEKEN Malaysia Supplementary code
2019 Achievement
100% of suppliers compliant HEINEKEN Supplier Code
Indicator
Achieved ahead of schedule.
2020 Global Commitments
100% compliance with HEINEKEN Supplier Code
Materiality
Supply Chain management
Focus Areas
Advocating Responsible Consumption
2018 Achievement
Partnered with GRAB Malaysia (ride hailing service) and 3 social media influencers
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
2019 Achievement
Partnered with GRAB Malaysia (ride hailing service) and 2 social media influencers
10% of the HEINEKEN® brand’s 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
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
2018 Achievement
100% employees have been educated on HEINEKEN Life Saving Rules (LSR)
Safety Council established.
2019 Achievement
Ongoing implementations of LSR action plans
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
2018 Achievement
Contributed RM1.2 billion through taxes to the Malaysian government
More than 8,300 people engaged through the W.A.T.E.R project.
Built 6 alternative water supply solutions in Sabah benefitting more than 5,000 villagers since 2017
English Enrichment Programme: Reached out to 70 teachers from underprivileged schools across 7 states
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
Indicator
N/A
2020 Global Commitments
Global commitments to be decided in the coming years
Materiality
Economic impact and tax
Community investment and development
