file heineken vietnam brewery sustainability report 2016

BREWINGA BETTERVIETNAM

PROTECTING WATER RESOURCES

REDUCING CO2 EM

ISSIONS

SOURCING SU

STAI

NABL

Y

ADVOCATING RESPONSIBLE CONSUMPTION

PROM

OTING HEALTH AND SAFETY

GROW

ING

WIT

H CO

MMUNIT

IES

DISTRIBUTION

COMMUNITY

Sustainability Report 2016

EMPLOYEES

PACKAGINGBREWING

CUSTOMERS

AGRICULTURE

Since 1991

HEINEKEN Vietnam

HEINEKEN VietnamSustainability report 20162 Content

Together we brewa better Vietnam

HEINEKEN Vietnamand our stakeholders

HEINEKEN Vietnamfor greater impact Appendices

Contents WE ARE HEINEKEN 3Together we brew a better Vietnam! 4 Managing Director foreword 4 Report scope 6 Reliability, Completeness and Methodology 7 “A Better Vietnam, A Better World” 8 HEINEKEN Global - “Brewing a Better World” 8 HEINEKEN Vietnam - “Brewing a Better Vietnam” 9 25 years of efforts and more to come … 10 What we have said and done in 25 years 14HEINEKEN Vietnam and our stakeholders 19 Spotlight on Stakeholder Dialogue 19 Our Material Issues in the Vietnamese Context 20 Mapping of sustainability issues 20HEINEKEN Vietnam for greater impact 22 Sustainability Governance 22 Values and Behaviours 23 Advocating responsible consumption 25 Protecting water resources 30 Reducing CO2 emissions 34 Promoting health and safety 42 Sourcing Sustainably 46 Growing with community 48Appendices 54 Our Key Stakeholders and How We Communicate 51 Definition of Parameters and Indicators 53 GRI Content Index 54

biomass

3 HEINEKEN VietnamSustainability report 2016 Content







HEINEKEN Vietnamfor greater impact AppendicesContent We are HEINEKEN

We build true human connections and break down barriers, because we believegreat moments of shared experiences are the best in life.

We are inspired by consumers to brew the best beers and extend that samepassion to all of our brands, products and activities.

We are proud of our entrepreneurial spirit, a Heineken heritage that takes us toevery corner of the Vietnam.

We are brand builders. The Heineken® brand defines and unites us while ourmany local, regional and global brands make our portfolio diverse and unique.

People are at the heart of our company. We see our strength in trust, diversityand progress.

We stand by our values: passion for quality, enjoyment of life, respect forpeople and for the planet.

We always advocate for responsible consumption. We are committed to ourcommunities and strive to consistently improve the impact we make on theplanet.

We work with our customers and partners to grow together and seek to winwith integrity and fairness.

And we are convinced that by staying true to these commitments, we createvalue for our shareholders.

We Are HEINEKEN.

WE ARE





2016 saw sustainability gaining more attention in Vietnam andaround the world than ever before. In conjunction with our25th Anniversary this year, we embarked on a journey to

further collaborate and share best practices across our operations inVietnam, including the new brewery at Vung Tau. In 2016 we areproud to have been ranked third most sustainable manufacturingcompany in Vietnam in the CSI 100 by the Vietnam Chamber ofCommerce and Industry (“VCCI”). It is a recognition of our 25 yearsof efforts in brewing a better Vietnam. Despite the great progress todate, there is still much to be done. The abuse of alcohol, and inparticular drinking and driving, remains a critical issue in Vietnam.Environmental issues are front of mind as Vietnam continues to growat a fast rate. However, with the strong foundation we have laid overthe 25 years, we will take on these challenges as opportunities tocreate even greater impact in Vietnam. With this, we present to youHEINEKEN Vietnam’s 2016 sustainability report that cover therelated developments, achievements and plans moving forward.

Brewing greater impact

In line with the HEINEKEN global sustainability strategy, wecontinue to work on our key focus areas, proactively engaging ourstakeholders in achieving our common goals. One of the majorconcerns of our key stakeholder, the Government, is on responsiblealcohol consumption. In addressing that, we have unified ourCorporate Affairs departments so as to represent HEINEKENVietnam as one consistent voice, and deliver nation-widepartnerships and programmes for responsible consumption. Buildingon our past efforts and brand influence to advocate responsibleconsumption, 2016 was also the year where we proactively reachedout to our distributors. In 2016 we engaged the partnership of morethan 250 distributors in our “Drink Responsibly” programme (seepage 25). We incorporated “Responsible Drinking training” in ourannual World Health and Safety day to create awareness on thehealth impacts of alcohol abuse among our employees.

Reducing CO2 emissions continues to be our key priority. Today, atfour of our six breweries, we brew our beer 100% from carbon-neutral, renewable energy sources (comprising biomass andbiogas). In 2016, we launched our first solar project, a positiveoutcome from investing USD 80,000 into 197 solar panels on theroof of our HEINEKEN Experience center at the Ho Chi Minh Citybrewery. As a result of our relentless efforts in reducing CO2emissions, our Da Nang, Ho Chi Minh City and Tien Giang breweriescontinue to retain their Top 5 energy performing positions acrossthe global HEINEKEN group, and have achieved the Vietnamesegovernment’s 2020 and 2025 targets ahead of time (see page 35).

Managing Director ForewordTogether we brew a better Vietnam!

Leo Evers, Managing Director

We will soon have all six breweries brewing 100% from renewablesfor our thermal energy needs, and going forward, we will next looktowards increasing our use of renewable electricity.

In protecting our water resources, we continue to make furtherreductions in our consumption despite having achieved the global2018 and 2020 commitments already back in 2014, a mark of oursuccess in replicating our state-of-the-art wastewater managementsystems, and water conservation technologies across our breweriesin Vietnam. We are resolute in protecting water resources for ourcommunities. This year, with the drought in Vietnam, we helped2,500 drought-affected households ease the situation by providinga total of 576,000 liters of freshwater.

Training and development of our people remain an important goal toachieve their maximum capability by putting in place variousprogrammes, such as our mentoring programme, the HEINEKEN AsiaPacific Graduate Programme (APGP) and the International GraduateProgramme (IGP). While empowering them to excel in the workplace,the safety and health of our people is our utmost priority. The launchof the Life Saving Rules (‘LSR”) – 12 rules – is an enhancement of our“Safety First” approach by enforcing disciplinary actions to non-compliances, to emphasize its importance.

Extending our socio-economic impact to our local communities, wesource 100% of our packaging materials locally. This increase to100% from 75% in 2015 is testimony to our commitment tosupport mutual growth with our partners wherever possible andcreate real jobs and wealth in Vietnam.

Looking forward

As we aspire to brew a better Vietnam, we recognize andunderstand the importance of collective efforts across ouroperations, business entities and stakeholder groups –demonstrated throughout the 25 years of operations. As such, Iwould like to take this opportunity to express our gratitude to allour stakeholders who have been providing constructive feedbackand comments since our first sustainability report in 2014, withoutwhich we could not have made HEINEKEN Vietnam what it is today.

Our impacts will not and should not stop at what we have achievedtoday; creating an even greater impact every year in Vietnam is ourgoal. We continue to seek the support and cooperation of ourstakeholders since together we brew a better Vietnam!




HEINEKEN Vietnamfor greater impact Appendices5

Highlights of2016

One consistent voice (UnifiedCorporate Affairs department inVietnam) to deliver nation-widepartnerships and programmesfor responsible consumption

Ranked by VCCI as the

3rd most sustainablemanufacturing company

4/6 breweries operate onbiomass & biogas for 100%thermal energy needs

Leo EversManaging Director, HeinekenVietnam BreweryJune 2017

Achieved Vietnamesegovernment’s 2020 and 2025 targets

9 years ahead of time





Report scopeHanoi Brewery

Da Nang Brewery

Quang Nam Brewery

Vung Tau Brewery

Distric 12, HCMC Brewery

Tien Giang Brewery

Peter SimonsManaging DirectorHEINEKEN Hanoi

This year, our report coversthe performance of all ourconsolidated OperatingCompanies in Vietnam from1 January 2016 to 31December 2016. Besidesexpanding our scope toinclude the HEINEKENoperations in Hanoi, we havealso included our newacquisition of a brewery inVung Tau. Environmentalperformance is evaluatedbased on the performance ofour breweries, wheresignificant impact isexpected.

Ownership: 100%

01 Brewery

400+ Employees

Products:

HEINEKEN HANOI BREWERY

60% 40%

HEINEKEN VIETNAM BREWERY

Ownership:

05 Breweries

2,000+ Employees

Products:

Operating Companies in Scope: • HEINEKEN Vietnam Brewery Limited Company • HEINEKEN Vietnam Brewery - Da Nang Limited Company• HEINEKEN Vietnam Brewery - Tien Giang Limited Company• HEINEKEN Vietnam Brewery - Quang Nam Limited Company• HEINEKEN Vietnam Brewery - Vung Tau Joint Stock Company• HEINEKEN Hanoi Brewery Limited Company • HEINEKEN Vietnam Beer and Beverages Limited Company

Breweries in scope for environmental reporting: • Brewery in Ho Chi Minh City, Vietnam • Brewery in Da Nang, Vietnam • Brewery in Quang Nam, Vietnam • Brewery in Tien Giang, Vietnam• Brewery in Hanoi, Vietnam• Brewery in Vung Tau, Vietnam

The list of Operating Companies (OpCos)and breweries in scope are:





Reliability, Completeness and MethodologyThis report has been prepared in accordancewith the Global Reporting Initiative (GRI) G4 –Core guidelines. Data is compiled usingHEINEKEN data collection systems and havebeen reported in compliance with the globalprocedures, in good faith and to the best ofour knowledge. Standard calculations in oursystems have been built in, wherever possible,to minimize any inconsistencies.

Our sustainability performance is alsoincluded in the “Sustainability Review” sectionof HEINEKEN N.V. 2016 Annual Report, whichhas been externally assured.

HEINEKEN Data collection systems:

• The Accident Reporting &Investigation Software (ARISO) system,for safety reporting. • The Business Comparison System(BCS), for environmental reporting.• The Green Gauge reporting system,for progress reporting on globalcommitments. • The EcoVadis Platform, for SupplierCode and performance information • The Annual Sustainability Survey, forall other sustainability-related reporting.





A better Vietnam,A better world

HEINEKEN Global – “Brewing a Better World”The HEINEKEN strategy is built around six business priorities designed to enable thecompany to drive productivity and achieve sustainable growth. As one of the sixbusiness priorities, “Brewing a Better World (BaBW)” focuses on six areas where weand our stakeholders can make the biggest difference to environmental and socialissues in the world.

With this in mind, we have set our 2020 commitments and we are on track toreaching the majority of our commitments. This inspires us to work harder and wecontinue to revisit our ambitions every year, moving in tandem with globaldevelopments such as the Paris Agreement on Climate Change (COP21), the UNSustainable Development Goals, and not forgetting, invaluable feedback from ourstakeholders.





HEINEKEN Vietnam - “Brewing a Better Vietnam”

6

1 4

6

3

3

ADVOCATING RESPONSIBLE CONSUMPTION

PROTECTING WATERRESOURCES

REDUCING CO2EMISSIONS

PROMOTING HEALTH AND SAFETY

SOURCING SUSTAINABLY

GROWING WITH COMMUNITIES

VALUES AND BEHAVIOURS

7 11 12

12

12

11

12

13

13

8

AGRICULTURE MAILTING BREWING PACKAGING DISTRIBUTION CUSTOMER CONSUMER

SDG FOCUS AREAS

Brewing a Better World starts from Brewing a Better Vietnam. Here in Vietnam, we align our strategieswith the global approach while customizing to the local communities and their challenges (read “OurMaterial Issues in the Vietnamese Context” section for key material challenges in Vietnam).

Along our value chain, “from Barley to Bar”, we are mindful of our social, environmental andeconomic impacts.

Strengtheningthe prevention of the harmfuluse of alcohol(including illicit

alcohol), by changingconsumer patterns.

Educating andpartnering localcommunities toprotect the qualityof water resources

and prevent water scarcity,achieving equitable access tosafe drinking water for all.

Substantiallyincreasing therenewable energy mix in our operations,

by investing in infrastructureand upgrading technologies

Growing beer consumption andthe looming alcohol law We Vietnamese love our beer.Amidst public concerns of thenegative consequences of ourdrinking culture, more regulationsare intended to be introduced in thenext two years to address the issues.

Formosa incident Stringent environmental laws havebeen enacted by the localgovernment, following the Formosacase of toxic discharge which led tomass fish deaths along Vietnam’scentral coast and a backlash fromthe Vietnamese public.

Vietnam’s commitment to theSDGs: A set of emission reduction targetshas been announced for each localindustry, as the Vietnamesegovernment begins action on theParis Agreement on ClimateChange.

DISTRIBUTION

COMMUNITY

EMPLOYEES

PACKAGINGBREWING

CUSTOMERS

AGRICULTURE

Since 1991









25 years of effortsand more to come...

HEINEKEN only uses high qualitymalted barley and hops from our pre-approved suppliers to brew your beer.

State-of-the-art brewing equipmentand packaging system and stringentquality control ensure conformance tohighest quality standards, whilerigorous cleaning using phosphorous-free chemicals ensures hygiene inoperations.

4 out of 6 breweries use renewablebiogas and biomass for 100% of ourthermal energy needs.

We acquired Vung Tau brewery when it was in a state of low activity, empowering around 100 young employees with best- in-class brewing technologies and skills, and transformingthe brewery toa productive brewery.

Our tampered-proof aluminum seal preserves beerfreshness and brand authenticity.

Our trusted distributors follow quality management in transportation andwarehousing.

We partner 250 distributors and train 750 successors to take on their familybusiness.

Training hours provided: 13,849

We deliver qualityproducts to our customersand consumers which aresafe for consumption,while advocatingresponsible consumption.

At HEINEKEN Vietnam we arecommitted to supporting theUN Sustainable DevelopmentGoals and supporting People,Planet and Prosperity inVietnam. By choosing toproduce our beers in Vietnam,and choosing localVietnamese supplierswherever possible, we createjobs and wealth for thecountry. By remainingcommitted to theEnvironment, we ensure we donot create this prosperity atthe cost of the planet. Byremaining committed toadvocating responsibleconsumption, we help guardagainst the societal harmcaused by alcohol abuse

We help guard against the societalharm caused by the abuse ofalcohol by remaining committed toadvocating responsible drinking.

We remain committed to theenvironment, and ensure we do notcreate prosperity at the cost of theplanet.

We create jobs and wealth inVietnam, by choosing to hire andwork with locals wherever possible.

PEOPLE

PLANET

PROSPERITY









Making sure people drink our products responsibly is important to us. Because ofthis, we lead with our brands to make responsible drinking cool and aspirational,such as running responsible drinking activations with Tiger at Tiger Remix eventsand making sure we push the need for moderation at all our major brand events.

In addition to leading with our brands, we also partnered with governmental unit todrive the message further, reaching 65 million viewers in 2016 as well as raninternal and external campaigns to encourage our own staff, partners, and thewider public, to drink responsibly. To find out more about these campaigns and ourcommitment go to page 25.

Training and development of our people is core to our success and who we are. In2016 we invested VND 16.2 billion in dedicated training hours, as well as trainingand development programmes for our distributors. To read more about ourapproach to training and people go to page 22.

Nothing is more important than the health and safety of our people. Ourcommitment has been translated into an approach – “Safety First” – that aims toimprove safety by first transforming the behaviours and habits of each individual.To read more about our safety programmes go to page 42.

We partner our community to Brew a Better Vietnam specifically in two priorityareas, which are in line with our business agenda – Water and Education. To readmore about our community investments go to page 48.

We directly employ around 2,500people and also create nearly125,000 jobs directly in our valuechain and a further nearly 65,000jobs through wage-spending.

These are jobs in packagingsupply such as glass, cans andcardboard; jobs in logistics andwarehousing; and the many otherindustries that our companysupports.

By fulfilling our promises to payour taxes, brew locally and uselocal suppliers whereverpossible, we contributed VND33.5 trillion to the Vietnameseeconomy in 2016. This amountsto 0.75% of Vietnam’s totalGDP. This staggering amount isdue to the scale of ouroperations in Vietnam and thedecision to support Vietnamesesuppliers wherever we can.

of the government’s total annual tax revenuecame from one group – HEINEKEN Vietnam.

Protecting the planet is our passion. As a user of energy and water to create ourworld-leading beers , our primary focus is on reducing our CO2 emissions andreducing our water consumption, as well as minimizing what we return to theenvironment in terms of waste.

Because of this, we are committed to using renewable energy wherever possible. Weare proud to say that four out of our six breweries now brew 100% from renewableenergy and we have plans to convert the remaining two in the coming years. We alsocommenced using solar energy as a source of electricity at our Ho Chi Minh Citybrewery in 2016, making this the third type of renewable energy we use, in additionto biomass and biogas. You can find more about our commitments to reducing CO2emissions at page 34 Our specific energy consumption is now at 63.6MJ/hl, wellbelow the National Government Standard for Breweries at 140MJ/hl.

In terms of water, our desire to continually reduce our water consumption has seenus reduce water use by a further 3% in 2016, despite acquiring a new brewery andextending our current operations. Once our new Vung Tau brewery is totallyupgraded with new water-efficient technology and our best practice, we expect tosee further reductions again in 2017. You can find more about our water-savinginitiatives at page 30.

Minimizing our impact on the environment also means ensuring that what wereturn to the environment is pure. Because of this, we have continued to investheavily in leading wastewater treatment facilities at all of our breweries. We alsofocus on reducing the amount of waste (from all sources) in the first place. Wecurrently reuse or recycle around 99% of our input materials as we strive for zero-waste breweries. You can read more about our waste-water treatment and wastereduction initiatives at pages 30 and 34.

People Planet

Prosperity

1job

2%52

other jobs in Vietnam

at HEINEKEN =





Focus Areas Our 2020 Global commitments Our 2018 Global milestones HEINEKEN Vietnam’sProgress in 2016

Indicator

Make responsibleconsumption aspirationalthrough Heineken®.

Invest a minimum of 10% of ourmedia spend for Heineken® insupporting our dedicatedresponsible consumptioncampaign in at least 50% of ourmarket volume.

We invested 8.2% of totalmedia spend. Wecontinue to improve onour local strategy onresponsible consumptioncampaigns in 2016.

Every market in scope1 has andreports publicly on a measurablepartnership aimed at addressingalcohol abuse.

Operating companiesrepresenting 90% of sales volumereport publicly on a measurablepartnership aimed at addressingalcohol abuse.

We had 2 partnershipsduring the year.

Deliver global industrycommitments by end of 2017and report in 2018, takingactions in five key areas: under-age drinking, marketing codesof practice, consumerinformation and productinnovation, drinking and driving,retailer support.

Deliver global industrycommitments by end of 2017 andreport in 2018, taking actions infive key areas: under-age drinking,marketing codes of practice,consumer information andproduct innovation, drinking anddriving, retailer support.

Work on thesecommitments iscoordinated on a globallevel.

n Reduce water consumption inour breweries to 3.5 hl/hln Reduce water consumption inour breweries to 3.3 hl/hl inwater-stressed areas.

Reduce water consumption in ourbreweries to 3.6 hl/hl.

We reduced our waterconsumption to 2.93 hl/hl

Aim for significant watercompensation / balancing byour production units in water-scarce and water distressedareas.

18 production units2 in water-scarce and water-distressed areashave started to implement actionplans for water balancing.

Not applicable toVietnamHowever, beginning 2017,Hanoi has been identifiedas a water-distressedarea. We will commenceour water vulnerabilityassessment in 2017.

All of our wastewater volumesare treated(by us or by a third party) beforebeing discharged into surfacewater.

No 2018 milestone was set forwastewater discharge.

All wastewater is treated

What we have said and done in 25 years

1 Out of scope are Islamic markets and markets where we have a Joint Venture and three minimal-volume markets for whom allocating resource is unrealistic (Laos,Solomon Islands and Sri Lanka).2 23 production units

Achieved Partlty achieved Not achieved





Focus Areas Our 2020 Global commitments Our 2018 Global milestones HEINEKEN Vietnam’sProgress in 2016

Indicator

Reduce CO2 emissions fromproduction by 40% to 6.4 kgCO2-eq/hl

Reduce CO2 emissions fromproduction by 37% to 6.7 kg CO2-eq/hl

Reduced CO2 emissionsby 38% to 3.3kg CO2-eq/hl

Reduce the CO2 emissions fromdistribution by 20% in Europeand the Americas

Reduce the CO2 emissions fromdistribution by 16%3 in Europeand 0% in the Americas.

Not applicable to AsiaPacific

Reduce the CO2 emissions ofour fridges by 50%4

100% green fridges purchased All our fridges are ‘green’,in compliance with theHEINEKEN Global policy

Reduce CO2 emissions of ourfridges by 47%4

Not applicable toVietnam

Life Saving Rules action plansfully implemented.

Operating companiesrepresenting 95% of employeeshave 80% of the actions comingfrom Life Saving Rules actionplans accomplished.

We have implementedLife Saving Rules andaction plans for all non-compliance to allbreweries.

Aim for at least 50% of our mainraw materials5 to come fromsustainable sources.

Aim for at least 25% of our mainraw materials to come fromsustainable sources

Not applicable to AsiaPacific, as agricultural rawmaterials are importedfrom HEINEKEN-approvedsuppliers from overseas,for consistent taste andquality.

Deliver 60% of agricultural rawmaterials in Africa via localsourcing within the continent

56% of agricultural raw materialsused in Africa to be locallysourced from within the continent.

Ongoing compliance with ourSupplier Code Procedure.

95% compliance with four-stepSupplier Code Procedure.

We have achieved 85%compliance with theSupplier Code Procedurefor all breweries and areworking hard to engagethe rest of our supplierson the Supplier Code.

No commitments have been setat the global level because thedecision to invest in thecommunity is based on differingneeds of the local communities.

What we have said and done in 25 years

3 Baseline 2010/2011, scope is WE, CEE and Americas, 24 of our largest operations: Belgium, Bulgaria, France, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK,Austria, Belarus, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Brazil, Mexico, and USA. 4 Baseline 20105 In scope are barley, hops, apples, sugar beet, sugar cane, rice, sorghum, wheat and maize





Awards andRecognition in 2016

Ranked third most sustainable manufacturingcompany in Vietnam in the CSI 100

Ranked Top 5most emotionalmarketingcampaigns forTet 2016 byBrands Vietnam

Received 2 bronzeawards for Brand

Awareness and CrossMedia/Cross MobileIntegration in 2016,

granted by MobileMarketing Association

Vietnam (MMA)

HEINEKEN TPM Silver &Bronze Award (2009, 2015,HCMC 2016) for our all-round efforts in achievingzero-losses in productivity,quality, safety, and theenvironment

Winner of theHEINEKEN Quality

Award (11 times)and Tiger Quality

Award (3 times) forbrewing and

packaging quality

Awarded Third class Labor Medal (2016) for our excellentbusiness performance and contributions over the past 25 years





HEINEKEN Vietnam and our stakeholders

Stakeholderengagement

GOVERNMENTSINDUST

RY ASSOCIATIONS

SUPPLIERS

EMPLOY

EE REPRE

SENT

ATIVES

CUSTOM

ERS A

ND CO

NSUM

ERS

NGOS & TERNATIONAL ORGANIZATIONS

MEDIA

EMPLOYEESINV

ESTOR

S

“We work with our customersand partners to grow togetherand seek to win with integrityand fairness.”

1. Employee Engagement: 2016 Climate Survey Results The annual HEINEKEN Climate Survey is an indication of our efforts in providing aninclusive working environment to our employees, and a way for us to identify areasof improvement.

2. Distributor Engagement

3.Sustainability forums with stakeholders

Our distributors are our partners in growing our business together. Beyond ourbusiness transactions, we care about their success and succession. Our distributorsuccession development programme helps to forge strong partnerships andmaintain business continuity, displaying our commitment in pursuing sustainablegrowth not just internally, but also together with our business partners. For the firsttime in 2016, we engaged of more than 250 distributors as partners our “DrinkResponsibly” programme. For more details, read our case study on “Advocatingresponsible consumption – partnership for progress”.

For more information on how we engage with each of our key stakeholders, pleaserefer to the Appendices: “Our Key Stakeholders and How We Communicate”.

87.3%

92.5%

89.5%

89.2%

Employee Engagement Index6

of staff feel proud to work for HEINEKEN Vietnam Brewery

staff will recommend HEINEKEN Vietnam Brewery to a friend as a good place to work

staff are extremely satisfied with this company as a place to work

6 Calculated by IBM as a combination of advocacy, commitment, satisfaction and pride. The dimensions surveyed include personal development, the relationshipbetween employees and their managers, as well as customer relationship.

Spotlight on Stakeholder DialogueEngaging with our stakeholders keeps us focusedon topics that are most important and relevantto both our stakeholders and us. During the year,these were our most notable channels ofdialogue with selected stakeholders:





S/N Material issue Definition GRI Aspect HEINEKEN Focus area

1 Regulatory Compliance Compliance to the local alcoholregulations and other core operationalregulations e.g. environment, labour,health and safety

• Compliance

2 Water management Efficient use of water • Water• Effluent and Waste

3 Energy and CarbonFootprint

Efficient use of energy to reduce carbonemissions

• Energy• Emissions

Our Material Issues in the Vietnamese Context

Mapping of sustainability issues

Material Issues

The unique customs, culture and trends in Vietnam shape the way we do our business, just as theyinfluence the social, environmental and economic issues that we have to address. Since 2015, wehave regularly conducted materiality assessment and reviews, involving both our people and ourexternal stakeholders, to identify and confirm the topics that HEINEKEN Vietnam needs to focus on.These are the material issues deemed relevant.

IMPO

RTAN

CE TO

EXT

ERNAL

STA

KEHOLD

ERS

IMPORTANCE TO INTERNAL STAKEHOLDERS

High

HighLow

10

5

12 81

911

24

13

14

7

63

1 Regulatory Compliance

8 Counterfeiting

2 Water Management

9 Product Safety, Quality and Hygiene

3 Energy and Carbon Footprint

10 Economic Impact

4 Waste Management

11 Community Investment & Development

5 Responsible Alcohol Consumption

12 Stakeholder Communications

6Responsibility

13 Occupational Health and Safety

7 Responsible Marketing

14 Sourcing Sustainably

High Priority

Low Priority but considered importantdue to HEINEKEN Focus Areas





S/N Material issue Definition GRI Aspect HEINEKEN Focus area

4 Waste Management Minimizing waste generation andreusing/recycling waste for beneficialuse

• Effluent and Waste

5 Responsible AlcoholConsumption

Actively promote the enjoyment ofbeer in moderation and collaboratewith partners to address alcohol abuse

• Local Communities

6 Staff Alcohol Responsibility Encourage employees to lead byexample on responsible alcoholconsumption

• Occupational Healthand Safety

7 Responsible Marketing Advertise brand and drinking in anaccountable and positive manner,including responsible product labelling

• Product and ServiceLabelling• MarketingCommunications

8 Counterfeiting Protection of brand value againstproduction of fake replicas

• Customer Health andSafety

9 Product Safety, Quality andHygiene

Pursuing high standards in productsafety and product quality

•Customer Health andSafety

10 Economic Impact Generating sustainable economicvalue in our communities we operatethrough our business

• Economic Performance• Indirect EconomicImpacts

11 Community Investment &Development

Contributions to the communities inwhich we operate

• Local Communities

12 StakeholderCommunications

Communicating with stakeholders tohighlight sustainability goals andaccomplishments/ challenges, build orstrengthen relationships, enhancecorporate reputation, build brand loyaltyand gather useful data and ideas

Not applicable Not applicable

S/N Other issue Definition GRI Aspect HEINEKEN Focus area

13 Occupational Health andSafety

Cultivate a strong culture andmanagement of Health and Safety toall employees from production, logisticsand distribution, commerce andbusiness services

• Occupational Healthand Safety

14 Sourcing Sustainably Encourage local and sustainablesourcing of raw materials, and managesuppliers for responsible businessconduct in areas of human rights,labour, anti-corruption, health andsafety and environment

•SupplierEnvironmentalAssessment•Supplier Assessmentfor Labor Practices•Supplier HumanRights Assessment•Supplier Assessmentfor Impacts on Society

Other issues not voted as high priority but considered important due to impact





HEINEKEN Vietnam for greater impact

SUSTAINABILITY GOVERNANCE

“We are convinced that by staying true to our commitments, we createvalue for our stakeholders.”

SUSTAINABILITY COMMITTEE

MANAGING DIRECTOR

SUPPLY CHAIN

ENVIRONMENT

PRODUCT QUALITY

OPERATIONAL SAFETY

SOURCING SUSTAINABILY

COMMERCIAL

RESPONSIBLE COMMERCIAL

HUMAN RESOURCES

OCCUPATIONAL HEALTH

EMPLOYMENT PRACTICES

VALUES & BEHAVIOURS

CORPORATE AFFAIRS

INDUSTRY PARTNERSHIP

RESPONSIBLE CONSUMPTION

COMMUNITY INVESTMENT & PHILANTHROPY

STAKEHOLDER ENGAGEMENT &

COMMUNICATION

FINANCE

SOCIAL ECONOMIC

IMPACT

SUSTAINABILITY COORDINATOR

Sustainability is integrated into our business, and embedded within our departments’ roles andfunctions. We set the tone at the top, with our Managing Directors setting the strategic direction ofBrewing a Better Vietnam. Our Supply Chain functions are key in driving environmental andresponsible sourcing efforts in our breweries, and together with Human Resources, spearhead ourHealth and Safety programme. Across HEINEKEN Vietnam, our breweries constantly share ideasand best practices for scalability of adoption.

In 2016, we furthered the idea of a centralized sustainability plan across all operations, by unifyingour Corporate Affairs departments.

Since September 2016, our new Corporate Affairs department, led by a newly appointed CorporateAffairs Director, will represent HEINEKEN Vietnam as one consistent voice, in delivering nation-widepartnerships and programme for responsible consumption, community investment and stakeholdercommunications.

On a quarterly basis, we keep track of our performance against our sustainability commitments, andreport our progress to our Global Sustainable Development Team.





VALUES AND BEHAVIOURS

Crisis Management In times of emergencies, our highly trained Crisis Management Team will address and handle thesesituations, in line with standard operating procedures and special measures detailed in our CrisisManuals. The main objectives of the Crisis Manuals, which are aligned with the HEINEKEN GlobalCrisis Manual, are:1. To protect and preserve human life, health and well-being. 2. To minimize damage to the natural environment. 3. To minimize loss, damage or disruption to the company’s reputation, facilities, resources and operations. 4. To manage immediate communications and information regarding emergency responseoperations and safety.

Our core values and key behaviors define and guide us in our actions towards achieving ourobjectives as a sustainable business. These values and behaviors are communicated to all ourpeople, so that we can work together to brew a better Vietnam.

79.6% 20.4%

99.4%

0.6%

Vietnamese Non-Vietnamese

2,360

72.8%

27.2%

Permanent Contract

100%

63.8% 36.2%

RESPECT FOR PEOPLE AND

PLANETENJOYMENT

PASSION FOR WINNINGQUALITY

PUT SAFETY FIRST!

ACT AS AN ENTREPRENEUR

COLLABORATE THROUGH TRUST

KEEP IT SIMPLE

LEARN, TO IMPROVE

OUR CORE VALUES OUR GREENPRINT TO WIN FIVE BEHAVIOURS

PROFILE OF THE WORKFORCE

The HEINEKEN Five Behaviours is an affirmation of our commitment toachieving high performance in areas such as safety, training, and zero-loss.The Five Behaviours are a simple guide for our people to follow andchallenge us to seek constant improvements in all aspects of our operations.





HEINEKEN Code of Business Conduct

HEINEKEN Rules SpeakUp

The HEINEKEN Code of Business Conduct indicates our commitment in managing the business with integrity, fairness and respect for the law and our values. The Code is a minimum expectation of our people’s behaviour and must be followed when they are representing the company.

The HEINEKEN Rules (HeiRules) is developed based on the HEINEKEN Standards and Procedures and details the way we conduct our daily business activities.

The SpeakUp framework allows employees and members of the public to raise any suspected breach of conduct anonymously and inconfidentiality. In 2016, 3 cases were reported, investigated and resolved. Appropriate actions have been taken to resolve them satisfactorily.

Communication and Training on the Code and Policies

Training and Development

Code of Business Conduct Training for allemployees (including HeiRules and SpeakUp)

Three-year Anti-Bribery E-learningTraining programme for Managers

74% completed in class training

90% managers completed e-learning

80% passed quiz assessment(managerial level)

Our people are at the heart of ourcompany. Their developmentdirectly affects HEINEKENVietnam’s future. In 2016, weinvested VND 16.2 billion intotraining and developing theirskills and competencies, whichincluded technical knowledge andsoft skills such as leadership,change management, andproblem solving. The case studiesbelow testify the effectiveness ofour programme in achieving thementioned objectives.

Annually, our people undergoindividual performance

appraisals to pinpoint areas ofimprovements and identify theirdevelopment goals for thecoming year. Through this, theyare able to improve, not just inwork performance but also intheir personal development.Besides the performanceappraisals, we have in place amentoring programme foridentified high potential talents,each of whom is assigned to amentor from another function.The mentor meets the menteeon a monthly basis to discussprogress, problems and share lifeexperiences.

Mentoringprogramme is a veryinteresting scheme.In this programme, Ican share with mymentor about anythought and concernat work and life. Ican feel that mymentor is naturallyempathetic anddoes well in the roleof helping, listeningand sharingexperiences with me.

“

”

We have a zero-tolerance policy towards bribery and corruption. Bilingual trainings are conducted inboth English and Vietnamese to ensure that our firm stand is conveyed and understood by ourpeople. As part of the training programme, a three-year Anti-bribery course consisting of 3 moduleswas launched in 2015, with Module 2 being rolled out this year, and Module 3 in 2017. Thisprogramme aims to strengthen our people’s mindset towards bribery and educate them on how toact when faced with bribery requests. The completion of this programme is required by allemployees and we aim to achieve 100% completion of this programme next year.





Spotlight on The first femalebrewery manager

Upon my graduationfrom the polytechnicuniversity, specializing

in food, I joined HEINEKENVietnam as a Lab Analyst. Asa fresh graduate, everythingin this industry was new tome and I was highlymotivated to find out moreand learn more about it. Iwas not so clear about mycareer path at that time, so Ihave just focussed onexcelling in every task thatwas allocated to me. Doingmy job well was a sense ofachievement for myself andwas a strong motivation forme to learn more about thebeer industry.

I was given the opportunityto take on a managementposition as the LaboratoryHead after 5 years. Thisallowed me to gain moreexposure and experiencethrough interactions withstaff and superiors, and awider job scope. Withcoaching from my superior, Iwas able to learn on the joband extend my knowledgeand skills, which inspire anddrive me to further mylearning in other areas.Following this, I was assignedto another function areawhich required me to

manage and control theprocess to ensure that qualityproducts are produced &sustained. My developmentwas greatly supported by thecompany through bothtechnical and leadershiptraining provided to me. Thestrong support given to mewas necessary for my growthin the company, which makesme step up to TechnologicalController position, and thefirst female Brewery Managerin HEINEKEN Vietnam.

Every new position I took onmeant that there were newchallenges that I had toovercome and learn from. Mysuperiors always gave me thefreedom to handle the job inmy own way, but also ensuredthat I was given adequatesupport in a timely fashion.

As a female BreweryManager in a largely male-dominated industry, I facechallenges in managing a bigteam and having a directimpact on the company’sbusiness results. At the end ofthe day, the challenge doesnot come from being afemale, and it has beenenjoyable working with myteam and having a beer withthem after work.

Ms. Trinh Thi Thanh BinhBrewery ManagerHoc Mon Brewery





Case study:HEINEKEN Asia Pacific GraduateProgramme (APGP) and InternationalGraduate Programme (IGP)Launched in 2016, the HEINEKEN APGP aims to nurture high-potential individuals, particularly asmanagement trainees for Operating Companies within the Asia Pacific region. The APGP wasadapted and localized from the IGP, where identified talents are deployed by HEINEKEN Global, andgiven the opportunity to work and learn in Operating Companies around the world. HEINEKENVietnam currently has on board 2 management trainees, who will be required to complete 3intensive assignments, each spanning 8 months.

The programme will be reviewed in 2017 aiming for greater success in honing talent for the futureleadership team.





Why is it important?While Nhậu, or informal socialdrinking, is a culture in Vietnamwhere alcohol is used tocelebrate events, to socialize, todrown sorrows and to facilitatebusiness – if consumedexcessively, alcoholconsumption is harmful topublic health and leads toserious social problems.

Globally, the 2015 UNSustainable Development Goals(SDGs) has set out a vision forstrengthening the prevention

and treatment of alcohol abusefor the promotion of publichealth and well-being by 2030.At a local level, to combat theproblem, the Vietnamesegovernment has taken action byproposing the implementationof a draft Alcohol law in thenear future.

As one of leading brewers in thecountry, we recognize our role inencouraging responsibleconsumption patterns, shapingthe consumer’s perceptiontowards responsible enjoymentof alcohol and mitigating the

alcohol abuse, while providingquality products which are safefor consumption. We aim toachieve this commitmentthrough our three-tieredstrategy: 1. Creating aspirationalresponsible consumptionmessages by leading with ourmost powerful tool – our brands.2. Building strategicpartnerships (including with thegovernment), and 3. Raising awareness amongstour own people, our businesspartners, and among the youthcommunity.

Advocating responsibleconsumption

7 SDG 3: Strengthen the prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol.

Preventing the harmful use of alcohol,by changing consumer behaviour7





12

3 Raising awareness of responsible consumption with our own people, our business partners, and the youth community

Building strategic partnerships with the government to address alcohol abuse

Advocating responsible consumption through leading with our brands, our most powerful tool

Our 2018 Global Milestone Our 2016 HEINEKEN Vietnam milestone Our progress in 2016 Indicator

We commit to invest a minimum of10% of our media spend forHeineken® (5% for HEINEKENVietnam) in supporting ourdedicated responsible consumptioncampaign in at least 50% of ourmarket volume The Heineken®consumption campaigns are largelyangled towards European clientele.

We commit to invest a minimum of 5%of our media spend for Heineken® insupporting our dedicated responsibleconsumption campaign.

We invested 8.2% of total mediaspend for Heineken®consumption campaigns.

Every market in scope 10 has apartnership to address alcohol-related harm.

We aim to have a local partnership toaddress alcohol- related harm.

We collaborated with universitiesto promote responsibleconsumption among studentsand partnered with the NationalTraffic Safety Committee duringTet 2016.

Achieved Partlty achieved Not achieved

8 Investments dedicated to responsible consumption messaging with regards to HEINEKEN® brand communication. This includes the ‘Dance More Drink Slow’ and ‘Sunrise’campaign, UEFA® Champions League-specific responsible consumption boarding and other specific activations at festivals and events.9 Market scope, covering in total at least 50% of HEINEKEN® global volume. We focus our efforts on the larger markets where we can make the biggest impact; out ofscope are those markets where we are unable to run our responsible consumption campaign due to local (legal and religious) restrictions on alcohol advertising. 10 Out of scope are Islamic markets and markets where we have a Joint Venture and three minimal-volume markets for whom allocating resource is unrealistic (Laos,Solomon Islands and Sri Lanka).




HEINEKEN Vietnamfor greater impact

HEforAppendices27

Our flagship brands areloved by millions ofVietnamese consumers.

Their extensive influence is ourmost powerful tool, and weleverage them to promoteresponsible drinking to ourconsumers with our campaignsand at our events. Every year, weset aside media spend (2016:8.2%) for Heineken®responsible consumptioncampaigns. This year, webrought to life the theme“Moderate Drinkers Wanted”, forthe first time placing women atthe heart of the message, withthe fresh idea that men who aremoderate drinkers are morepreferred than hard drinkers, bywomen.

At our biggest events, such asthe Heineken Green Room andTiger Remix, any message weput out has the potential toreach millions of people. We tap

Leading with our brands,our most powerful tool

this opportunity to convey the“Drink Responsibly” message atthese platforms to ourconsumers, through billboards,providing free water besidesbeer to attendees to pace theirdrinking, arrange freetransportation and overnightparking place to minimize drink-driving. Our “Drink Responsibly”messaging also appeared on thepackaging of millions of bottlesand cans that we sold in 2016.

We also reached out to our tech-savvy consumers using socialmedia, with our “DrinkResponsibly” fanpage gainingmore than 131,000 followers bythe end of 2016. To engage ourfollowers, we organized mini-games every month to get themto share the “Drink Responsibly”message to three other friendsin order to win prizes. The “DrinkResponsibly” message has beensuccessfully shared through

social media more than 3.6million times during period.

By whichever platform wechoose to deliver the message,we ensure we keep to the highstandards required from theHEINEKEN ResponsibleMarketing Code. This Code setsout eight principles to follow aspart of our brand identity in allof our communications,including packaging, events,sponsorships, or advertisements.This encompasses providinginformation on the alcoholcontent of our beers on all thepackaging of our products, andcommunicating responsibledrinking messages (18+,pregnancy and drink-driving) inall of our events. Since theimplementation of the Code in2015, 100% of our employeesand creative agencies havesigned on to a commitment tocomply with the guidelines. As aresult, there have been noreported cases of non-compliance relating tomarketing regulations, a recordwe continue to hold for the lastfour years.





We recognize the power ofcollective action, and since theearly years of our responsibledrinking programme, we havecollaborated with thegovernment and various NGOsto create greater impact whiletackling issues of alcoholabuse. Our partners throughthe years include the NationalTraffic Safety Committee, andthe International Centre onAlcohol Policies (ICAP)Vietnam. Building from ourpast efforts, we remain

actively engaged in dialoguewith the government aboutimplementing future jointprogramme to contribute to amore responsible drinkingculture. A significantmilestone in 2016 was to unifyour Corporate Affairsdepartments so as torepresent HEINEKEN Vietnamas one consistent voice,thereby increasing theeffectiveness of engaging andpartnering with thegovernment for future efforts.

Building strategic partnerships with the government to address alcohol abuse

11 Researchgate.net, “Alcohol Consumption Behaviors and Attitudes in Vietnam: An Exploratory Analysis”, July 2010

“Drink Responsibly” has always been part of HEINEKEN’s core marketing message, and this year webrought it to the direct attention of more people. Taking a step further from our static billboards, welaunched a 5-minute digital message which was played across massive screens during two of ourbiggest events, Heineken Green Room and Tiger Remix. The Tiger Remix event in particular was heldin five cities: Da Nang, Quy Nhon, Nha Trang, Ho Chi Minh City and Hai Phong, and the messagehas reached more than 1 million participants, mainly local youths. During the event, we also gaveaway Grab vouchers, provided free overnight parking place and free shuttles for attendees in aneffort to tackle drink-driving.

Case study: “Drink Responsibly” Digital Message at Heineken Events





Raising awareness of responsible consumption with our ownpeople, our business partners, and the youth communityAt HEINEKEN, we believe thatchange has to start with us -our people. Our employees areour responsible drinkingambassadors within theircommunities, and are expectedto demonstrate and activelypromote the responsibledrinking culture through theirwords and actions. Weconstantly emphasize to ourpeople the importance of theirrole in leading by example. Thiscomprises:

• Communicating andapplying the rule - “When wedrink, we never drive” -whenever possible. Thisincludes organizing motorbiketaxi service for oursalespersons, as well as freetaxi trips back home for 2,000of our employees who haddriven to our annual companyevent in 2016.

• Providing annual TrafficPolice Road Safety trainings forour 4,300 sale promoters,distributors and salesrepresentatives, whoaltogether clocked up to17,300 hours of training onthis crucial topic.

This year, we made particularefforts in driving the messagehome by strengthening ourpeople’s mindset towards theconnection betweenresponsible drinking and roadsafety. For the first time, the“Drink Responsibly” trainingwas incorporated with ourannual World Health andSafety day to create increased

awareness on the healthimpacts of alcohol abuse.

For the first time in 2016, wealso introduced our “DrinkResponsibly” programme tomore than 250 distributorsduring our annual DistributorsConference. As part of theprogramme, we invited adoctor to speak about healthand moderate drinking, andreceived much appreciationand positive responses fromour distributors.

We have gone the extra mile to raise awareness ofresponsible drinking amongmillennials. While a studysuggests that initiation ofalcohol use is rare amongVietnamese youths, it has alsobeen found that peer pressureis an important factor with theyoung as they try to “provetheir machoism” throughdrinking. 11Good habitsdevelop early, and we believe

in the effectiveness ofimparting the responsible drinking culture during a youth’s firstencounter with alcohol at hislegal age. In 2016 therefore,besides internal program, we extended our reach of the “Enjoy Responsibly Day”programme to two otheruniversities, the University of Technology Pedagogy and the University of Saigon.1,504 students and 1,200 staff attended the program.Conveying a positive messageof “Moderation for happy andhealthy life”, the event aims toeducate students on alcoholhealth literacy with aneducational talk by renowneddoctor and nutritionist Dr. Dao Thi Yen Phi. It is ourhope that these students willbecome our youthambassadors who will then inturn influence their peerstowards a responsibleconsumption culture.





12 SDG 6: By 2030, achieve universal and equitable access to safe and affordable drinking water for all; By 2030, improve water quality by reducing pollution, eliminatingdumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safereuse globally; By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcityand substantially reduce the number of people suffering from water scarcity; By 2030, expand international cooperation and capacity-building support to developingcountries in water- and sanitation-related activities and programmes, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reusetechnologies; Support and strengthen the participation of local communities in improving water and sanitation management

Protecting water resources

Educating and partnering localcommunities to protect the quality ofwater resources and prevent waterscarcity, achieving equitable access tosafe drinking water for all.12





13 The United Nations World Water Development Report 2016: http://unesdoc.unesco.org/images/0024/002439/243938e.pdf14 World Wildlife Fund – Greater Mekong: https://www.worldwildlife.org/projects?threat_id=water-scarcity15 “Vietnam blames toxic waste water from steel plant for mass fish deaths”: https://www.theguardian.com/environment/2016/jul/01/vietnam-blames-toxic-waste-water-fom-steel-plant-for-mass-fish-deaths16 “Why Vietnam Is Running Dry, Worst Drought In Nearly 100 Years”: https://www.forbes.com/sites/timdaiss/2016/05/25/why-vietnam-is-running-dry-worst-drought-in-nearly-100-years/#7af6ca1c74b317 We are working on improving the reliability of our Hanoi water data due to weaknesses in the recording process. We hope to report the accurate numbers in future reports.

Why is it important?


Reduce specific water consumptionin our breweries to 3.6hl/hl

Reduce specific water consumption inour breweries to 3.04hl/hl

Reduced specific waterconsumption in our breweries to2.93hl/hl17

2016 saw greater concerns over water resources across the globe – with The 2030 Agenda forSustainable Development, the United Nations World Water Development Report , and the WorldWildlife Fund For Nature (“WWF”)14 highlighting the need to preserve water for public health andfor sustained economic growth.

Closer to home, recent cases such as the marine life disaster in Central Vietnam15, and the worstdrought experienced in Mekong Delta in nearly 100 years16, have reinforced the importance ofuniting the government, businesses and communities in protecting the quality and availability ofour water resources.

While water is an essential part of our products and operations (beer contains 95% water), we areaware that the communities around our breweries are equally dependent on water for theirlivelihoods. Over our 25 years of business, we have made substantial leaps forward in achievingworld-class standards of water-use efficiency in our breweries, while ensuring the safety and qualityof our wastewater discharge.

We are proud to have already achieved the global 2018 milestone and 2020 commitment since2014. Yet, despite having met both targets ahead of time, we continue to make further reductionsin our water consumption by about 3% to below 2.93 hl/hl in 2016 (2015: 3.02 hl/hl) – lower thanour locally set target of 3.04hl/hl, as well as the group average performance of 3.6hl/hl.

While all the breweries continue to consume less water than in 2015, the Quang Nam Brewery inparticular made a remarkable reduction of approximately 13%. This is a result of establishing awater consumption reduction team, adopting best practices from other breweries, andimplementing strict housekeeping measures.

Reduce water consumption in our breweriesOur Progress in 2016

More than 118 thousand m3

in 2016, equivalent to filling an estimated 47 Olympic-sized

swimming pools

Around VND 295 millionin 2016

DA NANG BREWERY

within the Top 5water efficient brewery

across HEINEKEN Group worldwide

DIRECT COST SAVINGSDIRECT WATER SAVINGS





3 17

3 02

2 93

3 9

3 7

3 6

0 2 4 6

2014

2015

2016

3.4

4.6

3

2.9

4

3.1

4.9

3

2.7

3.34

2.8

4.3

2.8

2.7

3.7

TienGiang

QuangNam

HCMC

Da Nang

Hanoi

2016 2015 2014

Our Strategies and our Key Measures Rooted in the company’s values – respect for people and for the planet -- we are continuouslyinnovating and changing our mindset, behavior, and how we do things. Our strategies areimplemented across our breweries as we share and leverage on each other’s best practices.

a. Change behaviour • The Daily Control System (DCS): Promotes responsible water usage and encouragepeople across the breweries to be vigilant and timely in reporting any leakages. • “Zero loss initiatives”: A programme that encourages our people to come up withideas and reward them for these ideas.

b. Improving operationalprocedures

• Reuse of treated wastewater for cleaning by connecting residual hop water fromthe system to bottling line.• Rechanneling surplus hot water from brew house for use in the pasteurization andcleaning-in-place processes.• Modifications to the design dimensions of the water nozzle in the backwash waterrecovery system.• Fast and efficient housekeeping activities to reduce water usage.• Optimized the cycle of cleaning filler (e.g. once every 6 hours instead of once every4 hours).• Energy and water consumption audit at Quang Nam twice per month: 5 keyrepresentatives from sections identify abnormal points (e.g. leakages, improperusage of water for non-operational purposes) and check on the implementation ofthe corrective actions.• Optimize circulation time of hot water in sterilizing process at Tien Giang at thecanning line

c. Investing in waterefficient equipment

• Sludge washer in wastewater treatment plant to reuse the discharge of wastetreatment plant in cleaning the system.• Use of water-efficient tools for cleaning the cellar and the filtration systems.

d. Collaborating forchange

• Horizontal Expansion Good Practice Zero-Loss System: An excel system whichshows all the solutions to problems previously faced across breweries. This is used toshare the know-how and best practices within the group.

Specific Water Consumption Specific Water Consumption by Brewery17

hl/hl beer hl/hl beer





Wastewater management Protecting water resources isnot just about reducing theamount of water consumption;the quality of water dischargedis equally important.

In 2016, our breweries at TienGiang, Da Nang and Hanoihave cut the effluent organicload discharged by a notable11-28%, as a result ofdeploying technologies and

best practices such as themembrane filter. Conversely,our Quang Nam brewerytripled its COD discharged.During the year, we hadcompleted our new productionunit at the Quang Nambrewery, and had intended tofully switch our production overto the new unit. However, dueto business demand, we had tokeep the older production unit

running, which led to anovercapacity of our wastewatertreatment plant. Despite theincrease however, the CODdischarged remained wellwithin the limits of theindustrial zone. Themanagement at Quang Nambrewery is currently working toimprove the situation byincreasing the capacity of theirwastewater treatment plant.

Grade A+: Hanoi, Tien Giang

Grade A: Ho Chi Minh City

Grade B: Da Nang, QuangNam (currently upgradingour facilities at Da Nang andQuang Nam to Grade A)Our wastewater discharge atHanoi, Tien Giang, and HoChi Minh City are safeenough to sustain aquariumlife and vegetation in ourbrewery.

0 0201

0 0272

0 0102

0 0043

0 0074

0 0905

0 0226

0 0073

0 0048

0 0066

0 0 02 0 04 0 06 0 08 0 10

Qu ng Nam

N ng

Ti n Giang

H i 20162015

Our WastewaterTreatment Standards

Surpassing thegovernment’s basicrequirement of Grade B:

Effluent organic load discharged to surface water by brewery kg COD/hl

OUR STRATEGIES AND OUR KEY MEASURES a. Investing in wastewater treatment facilities• At Tien Giang, installed the online monitoring system of theWastewater Treatment Plant (“WWTP”) to track the quality andefficiency of the treatment, which also resulted in energy savings.• At Da Nang and Quang Nam breweries, replicating the moderntechnologies of the WWTPs which have already been implemented inour other Grade A+ breweries.b. Improving operational procedures:• Lower extract loss in our breweries indicates higher productionefficiency, which resulted in less extracts having to be treated for waste.





Reducing CO2emissions

Substantially increasing the renewableenergy mix in our operations, byinvesting in infrastructure andupgrading technologies18

18 SDG 7: By 2030, double the global rate of improvement in energy efficiency; By 2030, expand infrastructure and upgrade technology for supplying modern andsustainable energy services for all in developing countries, in particular least developed countries, small island developing States, and land-locked developing countries, inaccordance with their respective programmes of support





Why is it important?


Reduce CO2 emissions fromproduction by 37% to 6.7 kg CO2-eq/hl

Reduced CO2 emissions by 38%to 3.3kg CO2-eq/hl

100% green fridges purchased 100% green fridges purchased 100% green fridges purchased

Global climate changes and itsrelated consequences haveculminated in countriescommitting to the ParisAgreement to limit globalwarming to two degrees Celsius– and the SustainableDevelopment Goals (“SDGs”).

In support of the globalagenda, the Vietnamesegovernment has announced theintegration of the SDGs into itsnational policy and action plan,committing to reduce emission

intensity by 8% by 2030. Whilerecognizing that these targetsare ambitious, thegovernment19 seeks supportsfrom the private sectors andcivil society in achieving them.

HEINEKEN Vietnam fullysupports the national andglobal agenda. In fact, reducingCO2 emissions has always beenour focus since the beginning.Throughout our years ofoperation in Vietnam, we havebeen investing and re-

evaluating the best practicesand technologies across ourbreweries. Today, we brew 100%from carbon-neutral renewablesat four of our six breweries, andhave started using solar energyas an alternative to electricity atour HEINEKEN Experiencecenter. Our aim is for all sixbreweries to brew 100% fromrenewable energy by 2019. Aswe continue to expand ourreach in Vietnam, we will nextexplore increasing our use ofclean electricity.

Lower emissions in our production

4 Breweries operating onbiogas and biomass for 100%of their thermal energy needs

Our Progress in 2016From Barley to Bar, every bottle of beer produced and delivered to your door stepconsumes both thermal and electrical energy sources, which brings about CO2 emissions.

Achieved the Vietnamese government’s 2020(140-306 MJ/hl) and 2025

(129-286 MJ/hl) targets ahead of time(HEINEKEN Vietnam: 63-76MJ/hl)

19 Vietnam integrates Sustainable Development Goals in national policy: http://www.vn.undp.org/content/vietnam/en/home/presscenter/pressreleases/2016/11/10/viet-nam-integrates-sustainable-development-goals-in-national-policy.html





Less energy used to produce each bottle of beerThis year, our Da Nang, Ho ChiMinh City and Tien Giangbreweries continued to retaintheir positions among the Top 5performing breweries across theHEINEKEN group globally.

Despite our increase in totalbeverage production by 17-22%,we used around 16% less energyand emitted approximately 38%less CO2 emissions for everyhectoliter (hl) of beer produced

as compared to 2015. We haveperformed better than the 2016HEINEKEN group globalaverage and have alsosurpassed the group’s 2018milestones ahead of time.

0 2 4 6 8

2014

2015

2016

0 20 40 60 80

2014

2015

2016

0 5 10

2014

2015

2016

0 50 100 150

2014

2015

2016

Specific greenhouse gas emissions

Specific thermal energy consumption Specific electricity consumption

Total specific energy consumption kg CO2-eq/hl beer

MJ/hl beer kWh/hl

MJ/hl beer

HEINEKEN Vietnam PerformanceGroup Average

HEINEKEN Vietnam PerformanceGroup Average





Renewables in the energy mix Our 2015 global carbonfootprint study20 has shownthat our breweries producescope 1 (resulting from fuelcombustion and refrigerantlosses) and scope 2 emissions(resulting from heat importand purchased electricity) innearly equal measure. In response to the findings, wehave increasingly introducedcleaner and lower-emissionsources of energy to supportour value chain. The use of

biomass and biogas in ourbreweries has doubled ascompared to last year,contributing to more than halfof the thermal energy mix ascompared to one-third in 2015.Our success on usingrenewables began from the useof rice husk and wood chipspurchased from farmers in thelocal communities andharnessing wastewater asrenewable fuel in our Da Nangbrewery and Ho Chi Minh

brewery, respectively. Theirsuccess has subsequently beenreplicated across our otherbreweries. By the end of 2016,we were brewing 100% fromrenewable energy at four ofour six breweries, and plan tobrew 100% from renewableenergy at all six breweries by2019. We have also started toharness solar energy forelectricity generation in 2016and will increasingly explorerenewable electricity solutions.

20 This extensive carbon footprint model was based on a life cycle approach including greenhouse gases scope 1, 2 and 3 emissions, with reference to the WBCSD/WRI’sProduct Life Cycle Accounting and Reporting Standard; HEINEKEN participates in the EU Product Environmental Footprint Pilot (PEF) for the Beverage Industry and willupdate its carbon footprint calculation methodologies accordingly.

56%

4%

26%

15% 0% Renewable thermal (biogas, biomass)

Gaseous fuels

Liquid fuels

Importedheat

Coal

2016

28%

3%

56%

13%

2015

29%

71%

Country electricity mix (renewable)

Own non-renewable production

Country electricity mix (non-renewable)

29%

1%

70%

2015 2016

Electricity mix for beverage production

Thermal fuel mix for beverage production





a. Change behaviour • Energy Saving Initiative Campaign, “Zero loss initiatives” and brainstormingsessions twice per year that encourage our people to come up with innovative ideasof improvement and reward them for these ideas. • Adjusting air-conditioning at the breweries (e.g. at least 25 degrees Celsius)

b. Harnessing cleanenergy

• Harness steam from burning rice husk and wood chips in biomass boilers togenerate thermal energy for beer production. • Using biogas (essentially methane) produced by our wastewater treatment plants(WWTP) as a source of thermal energy to produce beer. • Installed solar panels at Ho Chi Minh City HEINEKEN Experience (please refer tocase study for more details).

c. Switching to lower-emission source

• Using natural gas instead of diesel to power our forklifts

d. Investing in energyefficient equipment

• Improve aeration frequency at the WWTP by replacing old and low-efficiencyequipment with a new equipment that has energy saving features.• Online monitoring system of the WWTP to track the quality and efficiency of thetreatment, resulting in lower energy consumption.• Insulation at the hot water system reduces the amount of energy needed forheating through limiting energy losses.• High efficiency boilers, as well as variable speed drives in all pumps and fans foroptimum control and reduced energy consumption. • Wort Stripper in the Heat Recovery System, which further reduces the thermalenergy required for boiling with a positive impact on the quality of beer• Use of energy-efficient LEDs at the packaging lines.• Equitherm technology at Ho Chi Minh City brewery extracts energy at hightemperature levels after the wort has been boiled. This energy is then reused inother processes such as the Cleaning-In-Process system, which are run at lowertemperatures than that required for boiling the wort.

e. Improving operationalprocedures

• Reduced the heating temperature of the bottle washers from 80°C to 75°C,without compromising on cleanliness. • Minimized the cooling and storage time of our beer and waste yeast at ourcooling plants.• Increase operating efficiency at the bottling and canning lines. • Energy and water consumption audit in Quang Nam brewery twice per month

f. Collaborating forchange (similar to theinitiatives for “Protectingwater resources”)

• Horizontal Expansion Good Practice Zero-Loss System: An excel system whichdocuments the solutions to problems previously faced across breweries. This is usedto share the know-how and best practices within the group. • Relocating or exchanging talent to share their know-how and implementprocesses.

Our Strategies and our Key Measures“Collaborate through trust” amongst our breweries is one of the five behaviours of the HEINEKENGreenprint to Win. By sharing key challenges and best practices, we are able to replicate successfulinitiatives in one brewery to the other breweries in the shortest time.





21 HEINEKEN Energy Efficiency Index is the energy consumption of the fridge divided by the average energy consumption of similar HEINEKEN fridges on the market in 2010,multiplied by 10022 Depending on size and local regulations, the four characteristics of green fridges are: 1. Use of hydrocarbon refrigerant, 2. LED illumination, 3. An energy managementsystem, 4. Energy-efficient fans.23 HEINEKEN global savings of average energy use as compared with baseline year 2010.

Our core values – Quality and Enjoyment, influence our business decisions such as supplying fridgesto our retailers in order to maintain the quality and market the branding of our beers. Whilestandard fridges consume a large amount of energy, our green fridges (aligned with the HEINEKENEnergy Efficiency Index (HEEI)21 and the four ‘green’ characteristics22) are able to save up to anaverage of 45%23 energy use. This results in a substantial reduction on the amount of the carbonfootprint from cooling.

Lower emissions in our fridges

It is our aim to recycle majority of our residualproducts (e.g. brewer’s spent grains, surplusyeast and materials like glass, cardboard,aluminum, plastic and paper) from the brewingprocess. Our global HEINEKEN Waste Hierarchysets out a methodology for prioritizing thetreatment and disposal of waste in the order ofcausing least impact to the environment (seeWaste Hierarchy below).

In 2016, 98.9% of our inputs were re-used orrecycled with only 1.1% lost or sent to landfill.Approximately 92% of our residual productswere recycled into animal feed and fertilizer dueto the high nutritional value of brewer’s grainsand yeast, while 5% were recycled into materialloops and 3% were incinerated or disposed atthe landfill or dump. We keep the amount ofwaste which is incinerated or dumped, low withthe use of a Beer Membrane Filter (BMF) in ourbreweries. The BMF helps to reduce the use ofkieselguhr powder, which is toxic to theenvironment and has to be treated beforedisposal. BMF was first pioneered in our Ho ChiMinh City brewery and implemented in our DaNang brewery in 2016.

There were no reported environmentalcomplaints and accidents related to our wastemanagement in 2016. Our overall non-recycledindustrial waste production in our breweries was0.17 kg/hl. In particular, our Hanoi brewery

charted a 55% decrease in the amount of non-recycled industrial waste generation, due toimprovement in waste management proceduressuch as draining the residual water fromkieselguhr before disposal.

Destination 2016 Quantity (ton)

% of total

Re-use – –

Human consumption – –

Animal feed 295,252

Materials 15,659

Compost/ soil improvement

9,263

Energy (biogas) 21

Combustion with energy recovery

5,731 2%

Combustion without heat recovery

1,575

Landfill 2,545

Dump 28

Unknown 404

Total co-products and waste

330,479

Recycling Recovery Disposal

Most p

referred

option

0.5%

0.1%

89%

3%

0.0%

5%

1%

0.0%

100%

Waste management andenvironmental compliance

Waste Hierarchy





24 Top 50 Solar Beer Breweries, Solar Plaza: http://www.solarplaza.com/channels/top-10s/11397/top-40-solar-beer-breweries/

Case study #1:Solar Energy, another milestone to increasing use of renewable energy mixInaugurated on 19 April2016, our first solar energyproject at the HEINEKENvisitor experience center(dubbed “HEINEKENExperience”) at Ho Chi MinhCity Brewery, generatedmore than 134kWh ofelectricity on its first day ofoperation. This is equivalentto 11 litres of oil, 16 cubicmeters of gas or 17 kilos ofcoal to generate the sameamount of energy, whichwould have resulted in 90kgof CO2 emissions.

A total of more than USD80,000 was invested in the

installation of 197 solarpanels on the roof ofHEINEKEN Experience. Sincethen, almost 100% of theelectricity needs ofHEINEKEN Experience issupplied by solar energy. Thishas led to a significantdecrease of electricityconsumption within less thana year of installation, with anestimated 56,000kWh lesselectricity being consumed ina year.

Besides advancing ourenergy performance andbottom line, this initiativehas served as a platform for

us to educate our communityon the benefits andimportance of harnessingrenewable energy. As at 31December 2016, nearly11,000 visitors have visitedthe HEINEKEN Experienceand expressed great interestin the installation of the solarpanels and our sustainabilitystrategy.

Along with HEINEKEN Global,we are proud to be one of thetop 5024 breweries across theworld that have harnessedthe power of the sun instriving towards a zerocarbon footprint.

52.205kWp Solar PV System at HEINEKEN Experience





Case study #2: The Fourth Brewery operating 100% onbiomass, another milestone to increasing useof renewable energy mixIn 2016, Hanoi embarked onthe journey of operating100% on biomass, a proudmilestone that testifies to ourcommitment in investinginfrastructure and upgradingtechnologies to substantiallyincrease the renewableenergy mix in our operations.

At the same time, this reflectsthe success of our strategies -

collaborate for change.Starting from Da Nang andextending to Ho Chi Minhand Tien Giang, Hanoi hasnow joined the bandwagon,earning HEINEKEN VIETNAMa spotlight amongst theglobal HEINEKEN breweries.

The Hanoi brewery hasattained significantachievement within a period

of one year:

• Reduction of 3,368 tons ofCO2 emitted to theenvironment, equivalent to40,9% reduction of CO2• Saved VND 2.7 billionequivalent to 13.7% reductionof energy consumption• Generated VND 6.3 billionworth of income to thecommunity

Case study #3: Empowering Vung Tau Since its acquisition into theHEINEKEN Vietnam family onJuly 2016, Vung Tau breweryhas charted an impressivereduction in its energyconsumption. Both thethermal and electricityenergy consumption hasdecreased by around 60%owing to close-knitcollaboration amongst thevarious breweries, withbrewery managers from othermore established breweries inVietnam being sent to VungTau to train and empower theapproximately 100production employees there.This included training on thefollowing areas:

• Change behaviour -

HEINEKEN core values andHEINEKEN Five behaviours• World-class brewingtechnologies and skills • Management system(including installation of themeasurement system andmonitoring the system)

Empowering Vung Taubrewery does not stop atachieving remarkableenvironmental performance.Through collaboration, within

a period of less than 6months, we have transformedthe lives of the 100production employees,equipping them with skillsand turning a brewery fromits previous state of lowactivity into a highlyproductive unit. With thecurrent commendableperformance, we look forwardto seeing the full year impactof our Vung Tau brewery nextyear.

KPI Unit Target Jul’16 Dec’16

Water consumption hl/hl <=5.0 13.6 4.3

Electricity consumption kWh/hl <=9.0 23.1 9.4

Thermal energy consumption MJ/hl <=100.0 205.1 80.8





Promoting healthand safety

People are at the heart of our company, and nothingis more important than the health and safety of ourpeople. Our commitment has been translated into anapproach – “Safety First” – that aims to improvesafety by first transforming the behaviours and habitsof each individual.





Safety Performance

Despite our best efforts toreport near misses, routinelyconduct safety trainings, andprovide safety equipment,amongst other measures, ourAccident Severity andAccident Frequency increasedin 2016. This increase wasdue to one fatal work-relatedtraffic accident in 2016involving a female employee

on her commute back homefrom work; the accident wascaused by avoiding anunexpected obstacle on theroad. We will continue to stepup our efforts to reinforce“Safety First” as afundamental behaviouralchange, in order to preventthe reoccurrence of similaraccidents. In fact we have

seen an increase in near missreporting (2016: Near miss2,138, 2015:855), which wethen promptly acted upon. Inaddition, getting everyemployee home safeeveryday remains our toppriority and we arecommitted to achieve thatthrough various activities andtrainings.

0 38

0 45

0 71

1 16

0 0 5 1 1 5

2015

2016

17

7 93

32

35

0 10 20 30 40

2015

2016

Accident Frequency

Our Progress in 2016

Accident SeverityCases/100 FTE Lost calendar days/FTE

Production Company-Wide

2015 2016 2015 2016

Fatalities 0 0 0 1

Fatalities of Company personnel 0 0 0 1

Fatalities of contractor personnel 0 0 0 0

Accidents 4 0 7 13

Accidents of Company personnel 4 0 7 9

Accidents of contractor personnel 0 0 0 4

Lost days of company personnel 76 151 124 542

Total workforce (FTE) 897 77 1,905 2,291





Our Strategies and our Key Measures Led by the Safety Committee and supported by 32 Safety Ambassadors, we address safety across HEINEKEN Vietnam in compliance with the HEINEKEN Global Standards and local legalrequirements. Our key initiatives are presented below:

Key initiatives at our production unit Key initiatives across the company

Safety pyramid• A way of thinking that promotes a safe working cultureby focusing on taking preventive actions (leadingindicators) rather than just corrective actions when anincident occurs (lagging indicators). • Filled up monthly on a cumulative basis so as to trackprogress to date

Accident Reporting and Investigation Softwareprogramme (ARISO)• A programme which ensures completeness andtimeliness of accident reporting and investigationacross all departments.• Integration of preventive and corrective actionsacross HEINEKEN Vietnam, which are then sharedthrough Safety Alerts

Safety Training Observation Programme (STOP) system• A system that promotes a high level of safetyawareness; coming from a position of care instead ofdisciplinary actions.• An employee who displays risky behaviours will beeducated by a team of patrolling observers at the point ofaction, so as to prevent future reoccurrence.

Near-Miss Reporting• Prompt reporting and analysis of the causes of near-misses, and implementation of preventive actionsagainst the actual occurrence of such accidents in thefuture.

Operational Risk Reduction (ORR)A six-step process that reduces the safety risks in ourworking environment through: • Data collection on the activities and workingenvironment of each brewery • Restoration of basic conditions to latest safetystandards • Identification of hazards and hazard controls through 5Whys analysis • Detailed safety risk assessment • Design and implementation of countermeasures • Standardization across the brewery through monitoringactivities and safety audits.

Road Safety Training and Motorbike Taxi Service• Training (approximately 17,300 hours) that instils theimportance of our people’s role in advocating “whenyou drink, never drive”• The Motorbike Taxi Service is a safe mode oftransport for our people (especially our salespersons) inorder to minimize cases of drink-driving.

World Health and Safety Day (“WHSD”)An annual event that rallies employees together to raise their awareness on safety and health. The highlight of theyear was the introduction of the Life Saving Rules (“LSR”), which is further elaborated in the case study below.

Healthcare and Wellbeing • Checkups for our workers and distributors: Following feedback from our people, we improved the medical standardsand accessibility of our free medical checkups for our employees, by engaging medical centers to perform thecheckups, as well as scheduling more time slots to ensure that all employees would be able to attend. This resulted ina remarkable 98% attendance from our employees. Finally, we also extended the health checkup service to ourdistributors.• Anti-smoking campaign: This campaign provides assistance to our employees to quit smoking, through a gradualprocess of providing them with nicotine patches, SMS reminders to reduce their level of smoking, and one-to-oneconsultations.





Case study: Success of Life SavingRules (LSR) at HEINEKEN VietnamLaunched in 2016, the LSR isan enhancement to our“Safety First” approach,providing clearer guidance toour people on ensuring theirsafety, and emphasizing theseriousness of the issue, byenforcing disciplinary actionsif our employees andcontractors do not adhere tothe set of 12 rules.

To date, we have effectivelyimplemented the LSR acrossour operations. In particular,Quang Nam brewery is asuccess story in adopting theLSR. Along with our existingstrategies, theimplementation of LSR hascontributed to our safetyperformance -- zero accidentsin 2016 – despite ongoingconstruction to build asecond production unit.

On a global level, HEINEKENVietnam is proud to berecognized for upholding ourcommitment to safety. In2016, we were awarded thetop prize in the Life SavingRules – General category ofthe 2016 HEINEKEN World

Safety and Health DayAward. This awardrecognized our organizationof the HEINEKEN VietnamWorld Safety & Health Day,for excellence in promotingthe LSR during our event, theparticipation of seniormanagement in our event,and the relevancy of ourbrewery health and safetystrategy with the activitiesheld during the event.

Employment Category Occurrence Penalty

Employee 3 levels ofoffences

Level 1: Written warningLevel 2: Delay pay raise,not exceeding 6 months orterminated Level 3: Terminated

Contractors Twice permonth

Forbidden from enteringthe company permanently





Sourcing Sustainably

We partner with our suppliers to achieve a sustainableand holistic growth as a community, while ensuring aconsistent supply to meet the growing demand of ourproducts. These goals are achieved by implementingthe right practices throughout our supply chain –through our local sourcing efforts and our SupplierCode of Procedures.





25 We do not source our agricultural raw materials (barley and hop) locally, as the climatic conditions are unsuitable for the growth of these ingredients.26 For full details of our Supplier Code and the four-step procedures, please refer to http://www.theHEINEKENcompany.com/sustainability/focus-areas/sourcing-sustainably..

Local Sourcing

Our Supplier code procedures26

Since 2015, we have increased our percentage of packaging materials25 which are sourced fromlocal suppliers, from 75% in 2015 to 100% in 2016. This performance is a testimony of ourcommitment to choose local Vietnamese suppliers and support mutual growth with our partnerswhenever possible. By doing so, we help to create jobs and wealth in Vietnam. Our 2016 economicimpact study shows that we have created an additional 123,500 jobs through our value chain as aresult of our policy of local sourcing.

The 4-step HEINEKEN Supplier Code Procedures is adopted in our operations and applies to all oursuppliers of materials and services. It serves as a guideline and defines the minimum standards ofcompliance pertaining to the areas of Integrity and Business Conduct, Human Rights, and theEnvironment. As at 2016, with all our suppliers having signed the Supplier Code of Conduct, we haveprogressed on to supplier monitoring (step 3) and audit (step 4). 400 suppliers have completed andpassed the supplier audits.

Step 1:

Signing• Supplier Definition• Signing of Supplier• Storage and monitoring progress in database

Step 2:

Supplier RiskAnalysis• Category Risk• Supplier Specific Risk• Identification of potential high risk suppliers

Step 3:

SupplierMonitoring• Supplier Monitoring• 3600 supporting evidence• Inter-industry benchmarking• Supplier scorecard

Step 4:

Audit• Audit Plan• Site Audit• Follow up on non-compliance

HEINEKEN Vietnam is currently at Step 3&4





We partner our community to Brew a Better Vietnamspecifically in two priority areas27, which are in line with our business agenda – Environment (water) and Education. We are committed to providing access to clean water andsupporting the participation of local communities inimproving water management.

27 We do not include our responsible drinking campaign, improvement of brand promoters’ welfare and investment in operational infrastructures as part of communityinvestment. This is because we consider these initiatives as basic building blocks which are essential for the responsible operation of our business

Growing withcommunity





Investing in our communities

78%

22%

201652%48%

2015

Community investment Philanthropy

21%

71%

8%

2016

SocialWelfare

Environment

Education

12%

40%48% 2015

2016

Cash68%

Cash60%

Management 25%

Time7%

2015

Management37%

Time2%

Contributions to communities by motive

Forms of direct contribution to Communities

Contributions to communities by cause

With the supportof more than

VND 25 Billionin cash and

in-kind…

…together with6,496 volunteer

hours from 1,624employees

We reached out to7,064 households

in Vietnam

Between March and June2016, Vietnam experienced aparticularly dry season, andto reach out to householdsaffected by the drought, welaunched our “Smiles Truck”as part of our yearly “1Minute Less for MillionSmiles” campaign. This is ourfifth year into our “1 MinuteLess for Million Smiles”campaign, a HEINEKENVietnam communityprogramme which aims to:

• Raise awareness in thecommunity about theimportance of freshwater• Communicate the necessityto jointly save and protectwater resources•Execute projects to supportcommunities’ access tofreshwater, with every100,000 pledges or gooddeeds made by members of

the public on saving water,funding one water project

In May 2016, we havedelivered 576,000 liters offreshwater from local watersupply plants to 2,500drought-affected householdsnationwide, improving theirday-to-day livelihoods. Thesehouseholds were in remote

and rural areas facing severedrought and sources ofincreasingly saline water inTien Giang, Kien Giang, BinhThuan, Ninh Thuan, andQuang Nam.





Case study: “1 Minute Less for Million Smiles” continues to solve immediate needs of our community

Case study: Nurturing the next generations of leadersThe launch of the scholarshipfor children of non-supervisoryemployees (JG50) since 2008demonstrates our commitmentto empower future generationswith knowledge for a moresustainable future

The scholarship aims to pavea brighter future for thechildren of our people, whilereducing the financial burdenof our people and their

family. Every child (rangingfrom primary to university)stands an equal opportunityto be awarded with thisscholarship upon meeting thefollowing assessment criteria:

n Academic results l Primary/Secondary/High school: Good academic result l University/college: GPA ofminimum 7.0 for the wholeacademic year

n Parents must haverendered at least one yearservice (as at 31 December2016) at HEINEKEN Vietnamn Maximum of only onescholarship per child (in theevent that both parents areemployees of HEINEKENVietnam)

As at 2016, a total of 138children have benefitted fromthe scholarships

“1 Minute Less for Million Smiles”campaign





Stakeholders Examples Purpose and Goals Methods ofEngagement

Frequency ofEngagement

CustomersandConsumers

• Distributors• Outlet owners• Consumers

• Strengthen and expanddistribution network• Maintain & increase brandloyalty• Promote sustainability awareness• Promote responsibleconsumption• Increase customer & consumersatisfaction

• DistributorConference

• Annually

• Market Visit • Monthly

• ReputationSurvey

• Bi-annually

• Media, PR andDigital

• sFrequently

Employees • Employees • Enhance and increase employeecommitment and loyalty• Promote sustainability awareness

• Town-hallmeeting

• Twice a year

• Executive Forum • Twice a year

• Flash news• Newsletter• Year-end dinner• Away-day

• On events • Quarterly• Annually• Annually

• EmployeeClimate Survey

• Yearly

Employeerepresentatives

• Vietnam GeneralConfederation of Labour• Vietnam Labor SafetyCommittee• Department of Labours,Invalids & Social Affairs• Trade Union

• Ensure business operation complieswith law & regulation• Laws & Regulation updates

• Conference • Frequently onevents

• Meeting andworkshops

• Frequently onevents

Governments • Prime Minister’s Office• National Assembly• Ministry of Health• Ministry of Industry andTrade• Ministry of Finance • General Department of Tax• Member of NationalAssembly in province• People’s committees (in-charge of the province andcities• DPI, DoH, DoC, DoF,DoNRE, DoPA, DoIT, DoIC,DoCS, DoIC, DoTax• Provinces’ Authorities

• Advocates alcohol relatedlaw/regulation development• Support for business operations i.e.extension projects, in-charge,advertisement, promotion,construction, land & housing• Support in promoting sustainabilitypractice amongst Vietnamesebusinesses

• Courtesy visits • Friendly events • Festive occasions(New year, TetAutumn, Biz.anniversary)• Industryworkshops • Business calls• Study trip• Sponsorship

• Frequently/Onevents

AppendicesOur Key Stakeholders and How We Communicate





Stakeholders Examples Purpose and Goals Methods ofEngagement

Frequency ofEngagement

Industryassociations

• International Center forAlcohol Policies• Vietnam Beer AlcoholBeverage Association

• Support for law/regulationdevelopment

• Industryworkshops

• Monthly/ onevents

• Study trip

• Supportingsponsorship

Investors • Bankers• Saigon Trading Group

• Maintain & increaseshareholders’ relationship• Exchange of shareholders’ viewsand perspectives

• Monthly/Quarterly Reports

•Monthly/quarterly

• Ad-hoc updates • Ad-hoc

• Year-end review • Hàng năm

• DailyTransaction

• Hàng ngày

Media • Thanh Nien• HTV• VNExpress

• Exchange of views and information • Media Meeting • Twice a year

• PressConference

• On events


• Bi-annually

NGOs &internationalorganizations

• Red Cross• Central Youth Union• Vietnam Chamber ofCommerce and Industry• Vietnam Business Councilfor Sustainable Development

• Partnership for impact• Information update and exchangeon best practices/expertise onsustainability development

• Tet Charity/Mid-Autumn Festival

• Annually

• WaterProgrammes

• Frequently


• Bi-annually

• ExpertMeetings/Forum

• On events

Suppliers • Crown Da Nang• Malaya Vietnam GlassLimited

• Ensure business performance andcompliance


• Bi-annually

• Expert Meetings • On events





Environmental parameters and indicators

Safety parameters and indicators

Parameters

Thermal energy consumption

Electricity consumption

Water consumption

Solid waste disposal

Number of complaints

Number of external environment-related incidents

Parameters

Fatal accidents

Accidents

Lost days

Workforce

Performance indicators

Specific thermal energy consumption

Specific electricity consumption

Specific total energy consumption

Specific CO2 emission

Specific water consumption

Performance indicators

Accident frequency

Accident severity

Definition

Consumption of thermal energy per unit produced in MJ (the corresponding CO2 emission is derived from this figure using the WBCSD Protocol)

Consumption of electrical energy in kWh

Water consumption in m3

Non-recycled waste in kg such as hazardous waste, wastewater treatment sludge and industrial waste

The chemical oxygen demand of treated or untreated wastewater leaving the production unit and discharged to surface water in kg

External complaints related to nuisance

Incidents related to environment and safety which had an impact outside the production unit

Definition

Expressed in Full-Time Equivalents (FTE)

Definition

Thermal energy consumption per unit produced in MJ/hl beer, cider, soft drinks and water

Electricity consumption per unit produced in kWh/hl beer, cider, soft drinks and water

Equals thermal energy consumption plus 3.6 times the electricity consumption per unit produced

Fossil CO2 emission (direct and indirect) respectively derived from thermal energy and electricity consumption, plus refrigerant losses expressed in CO2 equivalents per unit produced in kg/hl beer, cider, soft drinks and water

Water consumption per unit produced in hl/hl beer, cider, soft drinks and water

Definition

Community investment indicators

Parameters

Direct contributions

Cash

Time

Management

Leveraged contributions

Employees in their personal capacity

External partners

Definition

Contributions made by the company; the combined cash value of these contributions = the total cost ofour community investment project.

Total cash contributed. E.g. direct donations, social sponsorship, matching employee giving

Value of time contributed by employees during company time. E.g. employee volunteering, fundraising activities

Running costs and overheads. E.g. professional advice, research, communication to relevant audiences

Contributions from outside the company as a result of company’s initiative

Value of direct donations or funds raised by employees, including time contribution that are outside working hours

Value of donations contributed by partners to the project

Definition of Parameters and Indicators





Global Reporting Initiative (GRI) Table 4.0General Standard Disclosures

Profile Disclosure

G4-1

G4-3

G4-5

G4-7

G4-9

G4-11

G4-13

G4-4

G4-6

G4-8

G4-10

G4-12

G4-14

Strategy and analysis

Organizational Profile

Description

Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability

Name of the organization

Location of organization’s headquarters

Nature of ownership and legal form

Scale of the reporting organization

Percentage of employees covered by collective bargaining agreements

Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain

Primary brands, products, and/or services

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report

Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries)

Total workforce by employment type, gender, employment contract and region

Description of the organization’s supply chain

Explanation of whether and how the precautionary approach or principle is addressed by the organization

Managing Director foreword (Page 4)

Report scope (Page 6)







All our employees are covered by collective bargaining agreements.

Values and Behaviours (Page 21)

25 years of efforts and more to come (P. 10) Sustainability Governance (P. 20),Sourcing Sustainably (Page 46)

Cross-Reference/Direct Answer

Sustainability Governance:Crisis Management (Page 21)

Managing Director foreword (Page 4),Report scope (Page 6), SustainabilityGovernance (Page 20)

Appendices





General Standard Disclosures

Profile Disclosure

G4-18

G4-20

G4-19

G4-22

G4-23

G4-21

Description

Process for defining report content and the Aspect Boundaries and explain how the Reporting Principles has been implemented

The Aspect Boundary within the organization: Whether the Aspect is material within the organization; The list of entities included in G4-17 for which the Aspect is or is not material; Specific limitation regarding the Aspect Boundary within the organization

List all material Aspects identified

Significant changes from previous reporting periods in the Scope and Aspect Boundaries

The Aspect Boundary outside the organization: Whether the Aspect is material outside the organization; The list of entities for which the Aspect is material, relate to geographical location; Specific limitation regarding the Aspect Boundary outside the organization material, relate to geographical location; Specific limitation regarding the Aspect Boundary outside the organization

Report scope (Page 6), Our MaterialIssues in the Vietnamese Context (P. 18)

Report scope (Page 6), Our MaterialIssues in the VietnameseContext (Page 18)

Report scope (Page 6), Our MaterialIssues in the VietnameseContext (Page 18)

Our Material Issues in the VietnameseContext (Page 18)

No restatements in the reporting period

Cross-Reference/Direct Answer

G4-15

G4-16

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses

Memberships in associations (such as industry associations)

Advocating ResponsibleConsumption (Page 25)

Advocating ResponsibleConsumption (Page 25)



HEINEKEN is a signatory to the UN Global Compact (UNGC).

HEINEKEN endorses the principles enshrined within the Universal Declaration of Human Rights and the Core or Fundamental Conventions of the International Labour Organization (ILO) based on respect for the dignity of the individual without distinction of any kind.

G4-17

Identified material aspects and boundaries

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures (List all entities in the consolidated financial statements)

Global Reporting Initiative (GRI) Table 4.0





General Standard Disclosures

Profile Disclosure Description Cross-Reference/Direct Answer

G4-24

G4-25

G4-26

G4-27

G4-28

G4-34

G4-56

G4-30

G4-29

G4-31 Contact point for questions regarding the report or its contents Reference Information (Page 63)

G4-32 a. Report the ‘in accordance’ option the organization has chosen Reliability, Completeness and b. Report the GRI Content Index for the chosen option Methodology (Page 7)

G4-33 Policy and current practice with regard to seeking external assurance Reliability, Completeness and for the report Methodology (Page 7)

Stakeholder engagement

Report Profile

Governance

Ethics and Integrity

List of stakeholder groups engaged by the organization

Basis for identification and selection of stakeholders with whom to engage

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting; Report the stakeholder groups that raised each of the key topics and concerns

Reporting period

Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts

Describe the organization’s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics

Reporting cycle

Date of most recent previous report

Our Key Stakeholders and How WeCommunicate (Page 17)




Report Scope (Page 6)

Sustainability Governance (Page 20)

Values and Behaviours (Page 23)

Report Scope (Page 6)

31 December 2015






Specific Standard Disclosures: Disclosure on Management Approach (DMAs)

GRI Aspect HEINEKEN Focus Areas Cross-Reference

Economic Performance

Indirect Economic Impacts

Energy

Occupational Health and Safety

Emissions

Local Communities

Supplier Assessment for Impacts on Society

Customer Health and Safety

Product and Service Labelling

Marketing Communications

Compliance

Compliance

Supplier Human Rights Assessment

Environmental Compliance

Supplier Environmental Assessment

Water

Supplier Assessment for Labor Practices

Not a HEINEKEN focus area

Not a HEINEKEN focus area

Reducing CO2 emissions

Promoting health and safety


Growing with communities

Sourcing sustainably

Advocating responsible consumption




Values and Behaviours




Protecting water resources


Protecting water resources, Reducing CO2 emissions

HEINEKEN Annual Report 2016, Report of the Executive Board: Operational Review (Page 10-15), Regional Review (Page 20)

Growing with Communities (Page 48)

Reducing CO2 Emissions (Page 34)

Promoting Health and Safety (Page 42)

Reducing CO2 Emissions (Page 34)

Growing With Communities (Page 48)

Sourcing Sustainably (Page 46)

Advocating Responsible Consumption (Page 25)




Values and Behaviours (P. 23), ProtectingWater Resources: Waste management (P. 33),25 years of efforts and more to come (P. 10)


Reducing CO2 Emissions (Page 34), Protecting Water Resources (Page 30)


Protecting Water Resources (Page 30)


Wastewater Management (Page 33), Waste management and environmental compliance (Page 33)






Specific Standard Disclosures: Performance Indicators


G4-EC1

G4-EC7

G4-EN8

G4-EN10

G4-EC8

G4-EN15

G4-EN22

G4-EN16

G4-EN18

G4-EN3

G4-EN5

G4-EN6

ECONOMICEconomic Performance

ENVIRONMENTAL Energy

Indirect economic impacts

Water

Emissions

Direct economic value generated and distributed, including revenues, operating costs, employee wages and benefits, payments to providers of capital, payments to government (by country) and community investments; EVG&D separately at country, regional or market level

Development and impact of infrastructure investments and services supported

Total withdrawal by source

Percentage and total volume of water recycled and reused

Significant indirect economic impacts, including the extent of impacts

Direct greenhouse gas (GHG) emissions (Scope 1)

Total water discharge by quality and destination

Indirect greenhouse gas (GHG) emissions (Scope 2)

Greenhouse gas (GHG) emissions intensity

Energy consumption within the organization

Energy intensity

Reduction of energy consumption

25 years of efforts and more to come(Page 10)Growing With Communities (Page 48)



Protecting Water Sources (Page 30)



Reducing CO2 emissions (Page 34)













G4-EN29

G4-EN32

G4-LA14

G4-SO1

G4-SO2

G4-LA5

G4-HR10

G4-LA6

G4-LA7

SOCIALLABOUR PRACTICES AND DECENT WORKOccupational health and safety

HUMAN RIGHTSSupplier human rights assessment

Compliance

Supplier environmental assessment

Supplier assessment and labour practices

Local communities

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

Percentage of new suppliers that were screened using environmental criteria

Percentage of new suppliers that were screened using labour practices criteria

Percentage of Operating Companies with implemented local community engagement, impact assessments, and development programmes

Operating Companies with significant actual or potential negative impacts on local communities

Percentage of total workforce represented in formal joint management – worker health and safety committees that help monitor and advise on occupational health and safety programmes

Percentage of new suppliers that were screened using human rights criteria

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Workers with high incidence or high risk of diseases related to their occupation

Protecting Water Resources:Waste management (Page 33)




Advocating Responsible Consumption(Page 25)Growing with Communities (Page 48)

Advocating Responsible Consumption(Page 25)Growing with Communities (Page 48)











G4-SO8

G4-SO9

G4-PR3

G4-PR7

G4-PR9

G4-PR1

G4-PR2

PRODUCT RESPONSIBILITYCustomer health and safety

Compliance

Supplier assessment for impacts on society

Product and service labelling

Marketing communications

Compliance

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Percentage impacts of new suppliers that were screened using criteria for impacts on society

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

Protecting Water Resources: Wastemanagement (Page 33), 25 years ofefforts and more to come (Page 10)


Advocating Responsible Consumption(Page 25)



Managing Director foreword (Page 4),Advocating Responsible Consumption(Page 25)

Managing Director foreword (Page 4),Advocating Responsible Consumption(Page 25)





HEINEKEN Vietnamfor greater impact

ReferenceInformation

Reference InformationHEINEKEN Vietnam Brewery Company LimitedFloor 18-19, Vietcombank Tower, 05 Me Linh Square, District 1, HCMC, VietnamTel: +84 28 3 8 222 755http://heineken-vietnam.com.vn/

HEINEKEN Hanoi Brewery Company Limited8th Floor, Han Viet Tower,203 Minh Khai Street, Hai Ba Trung District, Hanoi, VietnamTel: +84 24 3 6 369 323http://heinekenhanoi.talentnetwork.vn/

Let us know your thoughtsWe are fully committed to listening to our stakeholders and we welcome your feedback on our sustainabilityreport and any aspect of our sustainability performance. Please address your views and suggestions to:

Matt Wilson Corporate Affairs Director [email protected]

Le Thi Ngoc My Head of Sustainability [email protected]

All brand names mentioned in this report, including – but not limited to – those not marked by an ®represent registered trademarks and are legally protected.

file heineken vietnam brewery sustainability report 2016

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