heineken việt nam - sustainability report 2019 · 2020. 6. 16. · at heineken, our ambition is...

Sustainability Report 2019


Protecting the Planet for a Better Vietnam

Performance in Figures Reporting Aspects UN’s SDGs and Vietnam’sNational Action Plan

GRI Content Index

HEINEKEN Vietnam Sustainability report 2019

We are HEINEKEN Managing DirectorForeword

Sustainability Highlights of 2019

Sustaining Prosperity for a Better Vietnam

Empowering People for a Better Vietnam


We build true human connections andbreak down barriers, because webelieve great moments of shared

experiences are the best in life.

We are inspired by consumers to brew the bestbeers and extend that same passion to all ofour brands, products and activities.

We are proud of our entrepreneurial spirit, a Heineken heritage that takes us to everycorner of Vietnam.

We are brand builders. The Heineken® branddefines and unites us while our many local,regional and global brands make our portfoliodiverse and unique.

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

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

We always advocate for responsibleconsumption. We are committed to ourcommunities and strive to consistently improvethe impact we make on the planet.

We work with our customers and partners togrow together and seek to win with integrityand fairness.

And we are convinced that by staying true tothese commitments, we create value for ourshareholders.

We Are HEINEKEN.

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Contents WE ARE HEINEKEN 3

Managing Director Foreword 4

Sustainability Highlights of 2019 6

HEINEKEN Global Sustainability Agenda Focus on what matters: Listening to our stakeholders

Sustaining Prosperity for a Better Vietnam 13

Empowering People for a Better Vietnam 20

Protecting the Planet for a Better Vietnam 30

Performance in Figures 36 People Planet

Reporting Aspects 40

About HEINEKEN Vietnam Our Brands Company Structure Awards Scope of Report Reporting Standards & Methodology Sustainability Leadership Stakeholder Engagement

Our Alignment with the United Nations’ Sustainable Development Goals and Vietnam’s National Action Plan 47

GRI Content Index 48






I am delighted to present HEINEKEN Vietnam’ssustainability report 2019 as the newManaging Director of HEINEKEN Vietnam.

With the world constantly changing around us,industries are now more than ever being calledon to re-evaluate their overall impact andapproach to doing business. Sustainability hasalways been at the forefront of our business and is even more important as the worldcontinues to face challenges brought forth bythe COVID-19 outbreak. In order to providesecurity for its employees, HEINEKEN N.V hasmade a commitment to not carry out anystructural layoffs as a consequence of COVID-19for the remainder of 2020. Globally, HEINEKENoperating companies and the HEINEKEN familyhave come together to donate 30 million Eurosto support relief efforts for the most vulnerableaffected by COVID-19, including 10 billion dong(c.a 400,000 Euros) by HEINEKEN Vietnam tosupport relief efforts in Vietnam.

In 2019, we reviewed our sustainability strategyand development and conducted a materialityassessment where we identify, refine, andassess numerous potential environmental,social and governance issues that could affectour business and/or stakeholders. Thisassessment was integrated with our annual riskassessment, to better define our businesscontinuity and sustainability agenda. Thisallowed us to analyse both HEINEKEN’s annualstrategy and the enterprise risk processtogether to ensure key risks and opportunitiesare reflected and prioritised for the organisationas a whole. This process gives us greater clarityon our top strategic priorities as well as thematerial issues that we need to address for ourbusiness to operate sustainably. Whilst wecontinue to have challenges that we need toaddress, I am very pleased with the continuedprogress in 2019.

Managing DirectorForeword

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We continue to lead in the practical applicationof circular economy, a system based on theprinciples of designing out waste and pollution,focused on trying to keep products andmaterials in continual or regenerative use,throughout our business operations. We areproud to be recognised as one of the mostsustainable companies in Vietnam for thefourth consecutive year by the VietnamChamber of Commerce and Industry. Wecreated virtually zero waste to landfill inproduction with 99% of waste or by-productsbeing recycled or reused. Our new Vung Taubrewery will be our first carbon neutral breweryand we have plans to expand renewableelectrical energy at all of our breweries by 2021.We are moving towards achieving 100%renewable thermal and electrical energy at allof our breweries by 2025. All of our wastewateris treated and reused in operations ordischarged safely and we are consistentlyranked the most water-efficient withinHEINEKEN Asia Pacific.

At HEINEKEN Vietnam, we also address socialissues and have always been a strong advocatefor Responsible Consumption as evidenced inour long term, strategic partnership with theNational Traffic Safety Committee (NTSC). Westepped up our efforts in 2019 with our “WhenYou Drive Never Drink” campaign and annuallyspend more than 10% of our committed mediabudget of Heineken® on this campaign, whichreached 10 million consumers in 2019. We alsorecently launched Heineken® 0.0 to provideconsumers with an alcohol free alternativewhich they can enjoy responsibly on anydrinking occasion.

None of these achievements would be possiblewithout our people upon which our company’ssuccess is built. We focus on developing anengaged and enthusiastic workforce and our

2019 Climate Survey showed that ouremployment engagement hit a record high of95%, putting us in the top five operatingcompanies globally within HEINEKEN. We werehonoured to be recognised as one of the bestplaces to work in Asia by Human Resource Asiamagazine for the second consecutive year.

Despite the success and progress in 2019, theseare extraordinary times, marked byunprecedented events that significantly affectthe operating environment of HEINEKENVietnam. In addition to the COVID-19situation, we face increasing challenges fromregulatory developments in Vietnam related tothe alcohol industry as well as ongoingenvironmental & social uncertainties. We mustcontinue to listen to our stakeholders, gaininginsight into the ever evolving society andcritically analyse the impacts of our business. Iam confident we will get through these timesand come out stronger than before with thesupport of our people and the strong base ofour sustainability work thus far. I look forwardto continuing HEINEKEN Vietnam’s strongcommitment to sustainability and to work withour people and stakeholders to lead HEINEKENVietnam forward.

5

Alexander Koch Managing DirectorHEINEKEN Vietnam BreweryJune 2020

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Sustainability highlights of 2019



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HEINEKEN Vietnam Sustainability report 2019 7

HEINEKEN Vietnam recognises its role to playin creating positive, long-lasting impacts forsustainable development in Vietnam, whileinspiring our stakeholders to join us on thisjourney to pursue sustainability.

Aligned with HEINEKEN’s Global Sustainabilityagenda, sustainability has always been at thecore of our business. Our sustainability strategyis inseparable from our business strategy, whereevery business decision is made with amandateto consider sustainability on equalfooting with market share and profit.

To ensure that our sustainability initiativescreate tangible value for people, planet andprosperity in Vietnam, we proactively aim to

create a sustainability culture among allemployees to think and act more sustainably.This includes:

► Building a simple decision-makingframework, which includes sustainability as acore component, guiding all decision making atHEINEKEN Vietnam;

► Constantly communicating and interactingwith employees to inspire and help them betterunderstand the impact of their daily activities;

► Promoting and sharing sustainabilitypractices with business partners andstakeholders to raise awareness and encourageaction.





HEINEKEN’s Global Sustainability Agenda At HEINEKEN, our ambition is to strive to always have a positive impact in the markets in which weoperate with sustainability embedded in every part of our business strategy.

Our sustainable development strategy, Brewing a Better World, includes 2020 targets across six keyfocus areas. Our focus areas are linked with specific UN Sustainable Development Goals (SDGs) andtheir targets, ensuring that we make a meaningful and transparent contribution to the global goalsto protect the planet, ensure prosperity and end poverty.


AT HEINEKEN VIETNAM, OUR PURPOSE IS TO BREW A BETTER VIETNAM

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Our sustainability strategy is guided by both HEINEKEN’s Global Sustainability agenda butdetermined by input of our various local stakeholders, as we work together to achieve sustainablegrowth for Vietnam. Since 2016, we have engaged our stakeholders through materialityassessments to prioritise and respond to issues that arise from the dynamicity of our businessenvironment.

We undertake a comprehensive materiality study every three years and then build on and validatethis more regularly such as bi-annual reputation survey and direct feedback as well as an annualvalidation process to ensure continuing relevance.

Focus on what matters: Listening to our stakeholders

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REPUTATION RESEARCH

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The bi-annual reputation survey, last conducted in 2019, provides us a platform for feedback fromthe general public as well as all our key stakeholder groups.

Through the survey, HEINEKEN Vietnam engages with stakeholders on their concerns andperceptions of HEINEKEN Vietnam’s products as well as trust in our company. This survey providesus valuable input for our combined materiality assessment process.

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Through this process, we determine our strategic priorities that are fundamental to creating long-term value.

Through a series of internal workshops with management and a reputation survey conducted in 2019, we prioritised the matters using 3 criteria:

Significance on HEINEKEN Vietnam; considering both the magnitude of the impact and the likelihood of its occurrence

HEINENKEN Vietnam's ability tomanage the matters

Level of stakeholders' concerns

landscape in which we opThe Heineken Risk GlossaStandards, SustainabilityAccounting Standards Bo(SASB) and Dow Jones Suability Indices (DJSI) servinputs to the list.






As part of our 2019 reporting exercise, we undertook a comprehensive materiality study through aface-to-face workshop with our internal leadership team that we aligned and mapped with feedbackfrom external stakeholders via the 2019 reputation research. This process ensures our sustainabilitypriorities are embedded into the business strategy as a whole and aligns our material issues withour enterprise risk assessment.

The process is guided by the following framework:

MATERIALITY ASSESSMENT

The resulting list of updated material issues isbroadly in-line with our 2016 materiality studyand annual validation exercise. This shows thatour major focus areas do not change too muchover the years. However, we also see some newmaterial matters coming through, which we add

RESPONSE AND ACTION

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to our reporting process and action agendamoving forward.

Combined, it provides a clear priority list to betranslated into different actions to createsustainable value for a Better Vietnam.






Sustainable Value Creation at HEINEKEN Vietnam

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At HEINEKEN Vietnam, we choose to use our business as apositive force for change. Through contributions to the localeconomy, the jobs we create and businesses we support, wewant to grow with our communities, create shared value forthe economy and support creation of an overall transparent,competitive business environment that promotes investmentin the country.

Change inregulations

Marketingstrategy andbrand relevance

jobs supported212,000

of GDP contributed0.95%

In 2019, Vietnam’s National Assembly passed a new Alcohol Law, comprehensively regulatingproduction, sales and marketing of alcohol beverages in Vietnam. HEINEKEN Vietnam contributedits views, as a relevant stakeholder, to the development of the law and is committed to upholding it.

Also in 2019, our parent company, Singapore-based HEINEKEN Asia Pacific transferred ownership ofHEINEKEN Hanoi to HEINEKEN Vietnam in order to create one national group under HEINEKENVietnam. While HEINEKEN Asia Pacific is still in the process of seeking clarifications on treatment oftax under the Vietnam-Singapore Double Taxation Treaty, HEINEKEN Vietnam has advanced thetax payable on behalf of HEINEKEN Asia Pacific in good faith in strict adherence to the initialassessment of the Vietnam tax authority.

MANAGING REGULATORY COMPLIANCE






DIVERSIFYING OUR BRAND PORTFOLIO

Heineken Silver Launch

Mainstream Brand Extension

A diverse portfolio helps HEINEKEN Vietnam remain resilient in an increasingly competitive landscape,grow the business in the face of regulatory changes and adapt to changing consumer preference.

For the first time in the history of theHeineken® brand, HEINEKEN Vietnam proudlyintroduced Heineken® Silver - an innovativeproduct that was brewed right here in Vietnam.With its key characteristics - “Nhẹ Êm Mà ĐậmChất”, Heineken® Silver is a smooth and easy-to-drink beer, which retains the signatureHeineken® full-bodied taste known around theworld since 1873, perfect for a wide range ofoccasions.

Strongbow Cider

Strongbow, a naturally fermented apple cider,continued offering consumers somethingunique and different to enjoy. In 2019,Strongbow’s Dark Fruit varietal was launched tooffer more choice of flavour to consumers. It isnow the 2nd most popular flavour amongconsumers after the original.

An innovative ritual serve, Upside Down, wasalso introduced, becoming a trendy drinkingexperiment that spread on social media during 2019.

With the objective to meet varying consumerdemands, HEINEKEN Vietnam significantlygrew in the Mainstream category with Larueand Bivina by focusing on strong brandbuilding, engaging consumption programs and distribution expansion. This resulted in animpressive +40% growth vs. 2018 andsignificantly improved the brand power score in both core and new markets. We also got ready in 2019 to launch our newmainstream brand, Bia Viet, in 2020. Given the COVID-19 crisis in 2020, it is even morerelevant that we accelerated our mainstreamportfolio in 2019.



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BUILDING PURPOSEFUL BRANDS Tiger brand diversified its strategic approach in 2019 to be a leading brand with a purpose.Tiger turned waste into Value in order tosustain its brand performance while at thesame time improve local infrastructure whichindirectly supports local economic growth. TheTiger cap collection campaign involves thecollection of tons of bottle caps which are thenrecycled and support to build bridges forcommunities. It demonstrates our belief thatinnovative brand building activities can createshared value for the economy and environmentwhile making meaningful contributions tosociety. The project began in 2018, anddoubled in scale this year, with twice the number of outlets participating and caps collected.

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EMBARKING ON DIGITAL TRANSFORMATIONThrough digitalization of our operation, we aim to deliver more value to consumers and customerswith various digital means such as applying new technologies, managing big data, data analytics andadapting to demands in e-commerce. By digitalizing our corporate purchase program for instance, weachieved +34% growth vs last year.

Integrated Data Driven Marketing (iDDM) & Data Driven Sales (DDS) Launch

Consumer behaviour is changing fast as newtechnologies are constantly emerging. Ourdigital transformation journey at HEINEKENVietnam has reframed how we develop ourbrand strategy. To make better informeddecisions, we use different sources of data andembrace new technologies such as machine

learning and AI. We saw that using integratedData Driven Marketing (iDDM) in ourHeineken® Silver campaign resulted incampaign effectiveness increasing by 2x versusthe normal. We have been piloting salesstrategies and using Data Driven Sales, whichhas changed our way of working and how weuse data to make decisions.

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Build up off-premise channels - E-commerce

Enhancing brand presence online in e-retail websitessuch as Lazada, Tiki, Shopee and Bach Hoa XanhOnline.

A B2C platform that brings Drinkies, our own e-commerce platform, to consumers in Ho Chi MinhCity, Hanoi and Da Nang, where consumers can enjoycold beer and cider in less than 60 minutes.

Partnering with food delivery platforms such as GrabFood and Delivery Now.

Collaborating closely with outlets to offer deals fortech-savvy consumers.

Establish digitalcommunication protocol

Digital media Cyber security and Data privacy

Digital Communication Ethics & Managing Cyber Security Risks

Digital transformation and the boom of social media have opened tremendous opportunities forbusinesses to improve their operational efficiency and enhance customer experience; at the sametime, they also present challenges such as breach of consumer data privacy and cyber-attacks.

HEINEKEN Vietnam focuses on practising and advocating for proper digital communication ethics.We also aim to build our internal capabilities to better identify and manage those emerging risksthrough established protocols and procedures to safeguard our brands, operations and ourconsumers as well as proper training programmes for our staff.

In addition to cyber securitytraining, all employees alsoreceived proper guidelines on theuse of social media as well asguidance on communicationprotocols such as appropriatecontent used on social media inorder to prevent any unintended ormisleading and negativemessages.

Robust monitoring processfor social media news

An established monitoring andincident response process foronline social platforms is in placeto detect, prevent and respond tothe spread of misinformation. Adigital dashboard is also regularlymaintained by our crisismanagement team. The processesimplemented aim to quicklyidentify and address fake news.

100% participation for Cyber SecurityTraining: Make Our Employees SAFEin booming digital age

A new three-year roadmap for cybersecurity capability has been developed withthe aim to build every single employee intoa security protector. Employees are trainedon the HEINEKEN Information SecurityPolicy and on potential cyber security riskssuch as phishing emails, third partysoftware and equipment. This ensures thatemployees are safe from cyber threatsregardless of the location.

HEINEKEN Vietnam reaches consumers across various digital touch points with E-commerce such as:






SUPPORTING LOCAL SUPPLIERS AND BUSINESS PARTNERSWe recognise that a significant portion of our impact occurs in our supply chain; hence, we continueenhancing our supplier screening and due diligence process, holding our suppliers to the same highstandard expected of ourselves.

We value our relationships with our supply chain partners and see great potential in developing oursuppliers to grow with us. We are committed as far as possible, to procure raw materials andpackaging from local vendors and manufacturers.

97% supplier compliance with our Supplier Code

Local Sourcing

We expect all our suppliers to adhere to theHEINEKEN Supplier Code which covers bothenvironmental and social criteria, including:

Integrity and Business ConductHuman RightsEnvironment Performance

The process is now more automatedthrough a supplier risk management tool.This allows us to identify elevated risks inour supply chain and focus on actions tomitigate the risks.

99% packaging sourced locally, creating 5,694 billion dongvalue for local suppliers annually.

Our expanded brewery in Vung Tau attracted 2 new suppliers who

Enhanced Supplier Code ProcedureWe developed with suppliers targeted actions to mitigate identi d risks.

will create an additional value of 750billion VND/year annually.

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In 2019, HEINEKEN Vietnam introduced an online ordering platform that could be used across the value chain. Through a mobile application, distributors can access aone-stop-solution for taking order, making

payments, communication and deliverycapabilities. It allows for seamlesscommunication for HEINEKEN Vietnam torespond to distribution requirements in atimely manner.

Digitalized services offered to Distributors

Our Distributor Development Programmedevelops distribution capabilities such asoptimising logistics operations, increasing trucksize, improving warehouse capability, amongothers.

After the programme, participants are assessedon their capabilities and collaboration. Throughthis multi-year programme, we have increasednumbers of High Performing Distributors from 65% in 2018 to 74% in 2019.

Improve local distributors’ capabilities

As we expand our distribution network, it isimportant that we ensure the success andsuccession of our distributors and sub-distributors. Training topics in 2019 includedtime management, HEINEKEN customer serviceexcellence and leadership, preparation for thedigital age, logistics and safety.

Next Generation of Distributors: 85 successors trained







Our robust stakeholder engagement efforts include key stakeholderidentification, appropriate response plans with dedicated relationshipmanagers as well as diverse engagement channels such as brewery toursand the interactive World of HEINEKEN Experience to connect first-handwith consumers. Engaging local communities and ensuring we grow withthem is another key part of this effort. Our people remain the core of ourbusiness, so we focus on developing them and keeping them safe. Finally,addressing social issues, such as drink driving, remains a key priority for us.

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COMMUNITY DEVELOPMENT

2water stations

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2disaster relief

donations for typhoonvictims in Ca Mau &

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All employees and partners of the Companybring joy to needy families to celebrate Tet.More than 16,000 needy households acrossVietnam have benefited from this long-termsupport programme from 2012 to now.

8th year anniversary of Warm Springprogramme

Part of our water stewardship initiative, wecontinue our efforts in improving access to safewater for communities that are vulnerable toclimate change. In 2019 we supported theconstruction of 2 domestic water systems in LaiChau and Quang Nam. This brings the totalwater stations supported by HEINEKEN Vietnam

Community Water Programme “1 Minute Less for Million Smiles”

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to 25, benefiting about 16,000 needyhouseholds in rural areas of Vietnam.

More importantly, we continued our intensiveupstream water stewardship project, aiming toraise local awareness on environmental andwater source protection and promotecommunity action to protect the water sourceswhile providing them water protection solutions

We have also partnered with The ConsultativeInstitute for Socio-Economic Development ofRural and Mountainous Areas in Vietnam(CISDOMA) for 3 years (2019-2021) to delivertraining on domestic & husbandry wastemanagement and circularity. In 2019, 4 trainingsessions were conducted for about 400households in Lai Chau & Quang Nam. Theprogramme also supports bio-filter compostingsystems to 16 households in Lai Chau whosigned up to the program.

Direct contribution of 5.6 billion VND to support needy communities, including:






PUT SAFETY FIRST!

ACT AS AN ENTREPRENEUR

COLLABORATE THROUGH TRUST

KEEP IT SIMPLE

LEARN, TO IMPROVE

ESTABLISHING RELATIONSHIPS BUILT ON TRUST WITH STAKEHOLDERS

The HEINEKEN Behaviours framework andCore Values guide all employees on how to act and foster a culture of achievement,collaboration and growth. Together with the HEINEKEN Code of Business Conduct

and HEINEKEN Rules, they translate ourbusiness objectives into clear instructions onhow to conduct our business with fairness,integrity, respect for our values and strongbusiness ethics.

Upholding high standards of governance to maintain trust

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Compulsory Code ofBusiness Conduct and anti-bribery e-learning for 100% of employees

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We recognize that employee satisfaction andengagement is a key measure of companyperformance. Through platforms such asquarterly Town Hall company meetings and theannual employee climate survey, HEINEKENVietnam encourages employees to sharefeedback in order to hear directly fromemployees so that we can create a betterworking environment for employees. Resultsfrom the latest 2019 climate survey showedthat HEINEKEN Vietnam has improved in alldimensions from 2018 (Direction & Alignment,Innovation & Inclusion).

We achieved one of the highest employee engagement scores within HEINEKEN globally

This bi-annual survey provides a platform to getfeedback from the general public as well as keystakeholder groups. Our Reputation Survey2019 results show that HEINEKEN Vietnam ispositively perceived and trusted by almost allrespondents; especially on product quality,which is also a top priority for stakeholders.HEINEKEN Vietnam will continue to invest inand promote environmental responsibility andmaking positive economic contributionsthrough community support and job creation,as other key areas of concern to stakeholders.

High Trust Score in Reputation Survey

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94% Trust Score (on approach toresponsible drinking, marketing content andethical conduct, as well as product quality)

96% Score on Sustainability andResponsibility (including positive impact onlocal communities, environmentresponsibility, responsible consumption etc.)

Seen as leading the category in promotingresponsible consumption

Rated as most innovative brewer

95%

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ENGAGE AND DEVELOP OUR PEOPLE

Our people defineour organization andhave been the keydifferentiators indriving ourcontinued success.Our employeeengagement andtalent developmentstrategy seeks toattract, develop andretain performingpeople.

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89% HEINEKEN Vietnam’s various programmes aimto build leadership skillsets at different pointsin their career:

• HEINEKEN Asia-Pacific LeadershipDevelopment Program: inspire juniors/emerging leaders to step up as true leaders byequipping them with core leadership tools.

• HEI Impact Leadership (HILP) Program:designed to develop leadership skills in middlemanagement to help them practice leadershipskills and create a tangible leadership plan.

• Leadership Excellence in Action Program(LEAP): helps managers understand how toeffectively manage business and peoplecomplexities in a senior leadership role.

• HEINEKEN International ManagementCourse (HIMAC): further develop leadershipskills and understanding of dynamic businessenvironment.

Develop great business-driven leadersSupervisors participated inleadership training programs



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HEINEKEN Vietnam is constantly investing in its employees to build new capabilities. In order toequip employees with the right skills in this new digital age, a 4-day intensive data analytics andArtificial Intelligence workshop was held for 10 commercial managers. The key objective was tobuild a fundamental understanding of programming languages, AI, advanced analytics andmachine learning as well as the potential impact of data analytics to our everyday business. Uponcompletion of the course, all participants received internationally-accredited certificates.

Build critical capabilities and strengthen functional excellence

With the aim to develop our young leaders, including:• Short-term Assignment (STA) to other countries• Management Trainee Program• HEINEKEN Vietnam Graduate Program and regionalinitiative, Asia Pacific Graduate Program (APGP)• Accelerate Your Talents (AYT) Program• Coaching, Mentoring and Buddy Program

Grow our talent pipeline at all levels

With the belief that ‘diverse views make the best brews’, we continue to organise a series of trainingprogrammes such as Generation Gap for young employees and their line managers to discuss howthey can work more collaboratively, and a Women Leadership Programme that takes the time torecognise equal opportunity for both genders and empower women.

Leverage diversity and our culture

Sent8AYT trainees on ShortTerm Assignments to Mexico,Singapore, Malaysia, Laos,Myanmar and Cambodia

13high-potential youngtalents nurtured as Asia PacificGraduates






STRENGTHENING SAFETY FIRST CULTURE

At HEINEKEN Vietnam, the safety and wellbeing of our employees as well as our contractors issomething that should never be compromised. This includes developing robust safety proceduresand a strong safety culture. In addition to providing a safe workplace, we promote health andwellbeing initiatives and address potential alcohol abuse.

Heath and Safety

Established Heineken Life Saving Rules (LSRs) These rules are dedicated to improving safety across our entire supply chain. In 2019, we achieved100% compliance inside production and 93.3% outside production.

Foster the change of mindsetfrom a REACTIVE safety culture toan INDEPENDENT safety culture

Instil culture of care “I CARE formyself, my colleagues, mymachine and my process”

“Put Safety First” training hoursfor employees and contractors

104 Safety training courses

175 improvements made toeliminate workplace safety risks

Introduced an A-B-Cbased smartphoneapplication (Antecedent -Behaviour - Consequence)to record safetyobservations that allowsa more timely responseand improvement

20,568

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Road Safety Campaign for Brand Promoters (BPs)

Almost VND 500 million investment on road safety campaignto train 95% of our Brand Promoters in 2019

of sales staff havereceived helmetsfrom the Company

100% first-aid kits weredistributed to all salesstaff nationwide

4,000 of all sales regionsreceived safety auditand risk assessment

90% reduction in BrandPromoter’s trafficaccidents in 2019

45%



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SHAPING RESPONSIBLE BEHAVIORS AND ATTITUDES

We see ourselves as having a big role to play in advocating responsible consumption and addressingdrink driving in Vietnam. We want our consumers to be able to enjoy beer, but at the same time, todo so responsibly.

Responsibleconsumption

Road safety is a key issue to address in Vietnam.Training programmes on road safety are notonly provided for our Sales Representatives butare also extended to our contracted BrandPromoters & distributors. Specifically for BrandPromoters, from August to December 2019, aRoad Safety Campaign was executed with theaim to train and reinforce road safety activitiesfor all our Brand Promoters nationwide.

Through a train-the-trainer concept, BrandPromoters and safety officers were shownpreventative measures that can be taken toprevent road accidents, mental preparation tipsfor road participation and general principles forroad safety.

We are also progressively using telematics inour vehicles to monitor and improve safedriving behaviours.

of media budget spent for responsibleconsumptioncampaigns

>10% reaches for “Peer-ventions” TVC/video

10 million

in Hanoi and HCMC in3 months

9 outlets

consumers made“When You DriveNever Drink” pledge

5,000 Grab codes redeemedby consumers to gohome safely afterdrinking

6,600

27





Since 2017, HEINEKEN Vietnam has partneredwith the National Traffic Safety Committee(NTSC) to deliver our When You Drive NeverDrink (WYDND) campaign with the aim ofchanging drink driving behaviour.

In 2019, we launched a television commercial(TVC)/ video incorporating key insights ofbehavioural norms around the issue of drinkdriving in Vietnam. The key message of thevideo conveys that there is no perfectinvention to get home safely after drinkingand therefore the best thing to do is just notdrink if you need to drive. The main action weshould take is to always support our friends by

not pressure them to drink. We also created aFacebook campaign to get people to publiclycommit not to drink and drive by changingtheir Facebook avatar and to spread the trendon social media and encourage their followersto take the pledge.

We brought the Peer support spirit to life byredesigning the environment at bars andrestaurants with various touch points to’nudge’ consumers to change their behaviouras well as provide practical solutions tosupport them to get home safely such as: freeovernight parking and round trip Grabvouchers.

2019 When You Drive Never Drink (WYDND) campaign with the National Traffic SafetyCommittee (NTSC) – “Peer-vention”, a new nudging approach

28 HEINEKEN Vietnam Sustainability report 2019



GRI Content Index

A global partner and one of major sponsors of F1Vietnam Grand Prix, we were delighted to welcomemore than 70,000 consumers for the first Official F1Vietnam Grand Prix kick-off event held in Hanoi in2019. The F1 platform serves as a powerfulopportunity for HEINEKEN Vietnam to raise greaterawareness about our When You Drive Never Drinkcampaign and drive behavioural change around theissue of drinking and driving.

Both Tiger Street Football and Tiger Remixcontinue to draw very large crowds that serveas one of the most effective platforms forcommunicating about Responsible Drinking. Over 46 million people were reached via online & offline activations at Tiger mega events.

Leveraging events as a powerful platform for responsible messaging






Vietnam is among the most vulnerable nations to climate change impactsaccording to the 2018 International Panel on Climate Change report. ToBrew a Better Vietnam, we are committed to reducing our carbon footprintacross the entire value chain, from production to packaging, distribution andcooling, through our approach to apply the circular economy model.

Climate change also poses a threat to water resources, increasing the risks ofwater stress and scarcity. Hence, reducing water use, practising watercircularity and promoting water stewardship plays a critical role inHEINEKEN’s climate change strategy.

Taking action on climate change

Climate change/Climate strategy

30 HEINEKEN Vietnam Sustainability report 2019

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GRI Content Index


Drop the C Our target is for all of our breweries to be carbon-neutral by 2025, with the use of 100% renewableelectrical and thermal energy and applying RESOLVE (Regenerate - Share - Optimize - Loop -Virtualize - Exchange) circular economy model across our value chain.

GREEN PRODUCTION: INCREASE RENEWABLE ENERGY AT BREWERIES

Thermal energy at our breweries is generated fromburning agricultural waste, or biomass, such as woodchipsand rice husks. In 2019, we sourced 40,000 MTagricultural waste, which generated 52.6 billion VND forlocal farmers. 5 out of 6 of our breweries are now brewing100% by biomass with plans for the sixth brewery alreadyunderway. We expect to be able to use 100% renewablethermal energy at all six breweries in the near future.

To also achieve 100% renewable electricity by 2025, 3rooftop solar projects have been contracted and we willuse biomass to generate electricity at our Vung Taubrewery. Together with our commitment to join the pilotedDirect Power Purchase Agreement, when approved by theGovernment, we are set to become the industry leadingexample of carbon neutral operations in Vietnam.

Vung Tau Brewery: The First carbon neutral breweryin HEINEKEN Asia Pacific Regionthat will run on 100% renewableelectrical and thermal energy.

Da Nang Brewery: Recyclingsludge to fertiliser for the fruitand vegetable garden on-site,resulting in 20kgs of vegetablesper day for employee meals

renewable thermalenergy at 5 out of 6 breweries

3 contracts for rooftopsolar projects

Committed to Direct PowerPurchase Agreement (DPPA)

Biomass electricity at VungTau Brewery in progress

100%

CHAMPIONING CARBON-NEUTRALITYTHROUGH FLAGSHIP PROJECTS IN VIETNAM






Usually, liquid CO2 (CO2 gas that ishighly compressed and cooledinto a liquid form) is obtained byburning fossil fuel. By optimizingthe CO2 recovery process duringfermentation, CO2 can berecovered and turned into liquidCO2 which is then reused onsiteor sold for other industrial use.The recovered CO2 helps reduceHEINEKEN’s emissions from thefermentation process, while alsoenabling other companies toavoid emissions caused from theliquid CO2 production process.Liquid CO2 is used widely invarious industries. Examples ofvarious uses are in the productionof life jackets, in theentertainment industry to achievespecial effects such as fogs andhazes or for refrigeration,preservation, storage andsoftening in the food industry.Since October 2019, 866,000 kgof CO2 has been recovered(equivalent to the emission from burning of approximately323,000 litter of diesel)generating 110,000 EURrevenue within 5 months at one of our breweries.

Ho Chi Minh Brewery: Pilots liquid carbon dioxide (CO2) recovery from fermentationprocess to be used for other industrial processes

Green Packaging: Switching from B-Flute to T-flute carton improves efficiency and benefits environment

T-flute carton is made of 100% recycled fibre.

Thinner T-flute carton saves 273 tonnes of paper packagingper year and improves transport efficiency by 17% .



GRI Content Index


We reduced carbon emissions intransportation by optimising routes and trucksizes, switching to electric transportation as faras possible and using telematics and fuelmanagement system to further improve truckefficiency.

The fuel management project aims atchanging drivers’ behaviours, leading to saferand more economically, environmentallyfriendly driving skills. In the pilot phase of theproject, we installed 16 telematics systems tohelp our transporters better manage their fuelconsumption. The data returned implies theopportunity to save a further 10% of CO2

emissions from transportation activities. Forthe next phase, we intend to roll out a series oftrainings to the drivers, bringing addedbenefits not only to their fuel managementbut also to their safety.

Green Distribution: Driving operational transport efficiencies

Reduced 2,000 tons of carbonemissions in transportation in 2019

Pilot the usage of telematics and fuelmanagement system to reduce 10%emissions from transportation activities

Eco-driving training courses fordrivers with added benefits ofenhancing drivers’ safety

In 2019, we added more than10,000 new green fridges tothe market, with 65%reduction in CO2 emissioncompared to normal fridges.

Green Cooling:

100% of our fridges areenvironmentally-friendly






Managing Every DropOur business depends on freshwater andproducing high-quality beer requires high-quality water. Climate change will present anevery-growing threat to water scarcity. Ourwater strategy – Every Drop – seeks to reducewater use, promote water stewardship andpractise water circularity.

34

OUR TARGET, BY 2025

Our Vung Tau Brewery is

100% water balanced(*)

We have Tripledour water efficiency comparedto first operation in 1993

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GRI Content Index


OUR GOLDEN TRIANGLE

(*) Water Balancing means we return the water that goes into our product or evaporates to the watershed

water stationssponsored since theprogram started

25

water stationssponsored in 2019

2

reduction in waterconsumption vs 2018

6%for water-efficiency inHEINEKEN Asia Pacific

#1

more water efficientthan HEINEKENglobal average

19%

wastewater safelytreated, partly usedfor general purposein the breweries

100%

more water-efficientthan global beerindustry average

11%

hl/hl beer

2.74

ACHIVEMENT






Performance in Figures



GRI Content Index


Number of employees by employment contract by gender in 2019

Number of employees by age group in 2019 Average training hours by gender 2019

Number of employees by employment category in 2019

0 500 1,000 1,500 2,000

1,848

717

253

234

262

111

Non-Management

Middle Management

Senior Management

1,599

1,220

402

204

Indefinite contract

Definite contract

0 500 1,000 1,500 2,000

16.7

34.5

0 10 20 30 40

Male Female281

1,670

867

32

417

158

Over 50 years old

30-50 years old

Under 30 years old

0 500 1,000 1,500 2,000

1 It is with regret that there was a fatal accident with one of our sub-contracted workers in 2019 while operating a boom lift at ourVung Tau Brewery. Although the exact impact of the accident is unknown, the probable root cause was lack of experience inoperating machinery, operating the machinery alone without adequate supervision and not properly following site permitrequirements.

Key lessons learned and actions taken by HEINEKEN Vietnam are to ensure all operators meet a minimum required hours ofoperating machinery, ensure supervision is always in place, ensure work permits are signed and fully understood by all operators,ensure specific rescue plans are in place and ensure all site safety regulations are followed, to ensure this never happens again.

2Injury rate is calculated as: Number of work-related injury cases, per million hours worked.

3 High-consequence injury is defined by Global Reporting Initiative (GRI) Standards 403 as an injury from which a worker cannot,does not or is not expected to recover fully to pre-injury status within 6 months.

Work-related fatalityfrom contractor1

1High-consequenceinjuries2

0Injury rate3

3.6

PEOPLE WORKFORCE PROFILE AND HUMAN DEVELOPMENT

PEOPLE HEALTH AND SAFETY






TOTAL ENERGY CONSUMPTION (MJ/hl beer)

TOTAL CARBON EMISSIONS (kg CO2 eq/hl beer)

YEARLY DROP OF CO2 EMISSION FROM BIOMASS THERMAL (Ton.e/Yr)

7.30

6.70

5.20

3.20

4.00

3.49

3.59

2013

0 1 2 3 4 5 6 7 8

2014

2015

2016

2017

2018

2019

14,629

10,066

7,433

8,442

15,871

26,957

33,935

33,703

35,458

34,152

22,792

10,980

1,

0

087

10,0000 20,000 30,000 40,000 50,000 60,000

2013

2014

2015

2016

2017

2018

2019

58.08

48.35

44.87

40.69

41.51

39.03

38.16 22.75

23.48

24.74

24.41

24.98

22.77

25.742013

2014

2015

2016

2017

2018

2019

0 10 20 30 40 50 60 70 80 90

Thermal

Electrical

Actual CO2 emission

Yearly CO2 drop by used biomass fuel

Total specific energy consumption and carbon emissions refers to energy and carbon emissions consolidatedfrom all breweries normalised against beer production. Scope 1 emissions covers the use of diesel oil, fuel oiland liquefied petroleum gas. Default emission factors from 2006 IPCC Guidelines were used. Scope 2 coversemissions from purchased electricity. Market-based Scope 2 emissions are based mainly on energy supplierspecific emission factors. Scope 2 emissions are based on Vietnam specific emission factors.

PLANET ENERGY AND CLIMATE

38



GRI Content Index


PLANET WATER CONSUMPTION

PLANET WASTE

0 1 2 3 4 5 6

3.34

3.70

3.97

3.87

3.62

4.90

4.30

5.35

3.73

3.31

2.70

2.70

2.66

2.70

2.69

4.47

3.83

3.52

2.75

3.10

2.80

2.71

2.51

2.55

3.00

2.80

2.78

2.81

2.63

2015

2016

2017

2018

2019

SPECIFIC WATER CONSUMPTION BY BREWERY hl/hl beer

3.32

3.15

3.03

2.88

3

2.92

2.74

2013

2014

2015

2016

2017

2018

2019

SPECIFIC WATER CONSUMPTIONhl/hl beer

DestinationQuantity

2019(ton)

% oftotal2019

Re-use 1,681.9 0.6

Human consumption - -

Animal feed 276,503.8 92

Materials 9,441.6 3

Compost/soil improvement

4,941.3 1.7

Energy (biogas) 1,573.5 0.5

Combustion withenergy recovery 5,028.5 1.6

Combustion withoutheat recovery 144.1 <0.1

Landfill 1,676.4 0.6

Dump - -

Unknown - -

Total co-products and waste 299,309.1 100

MostpreferredoptionDestination

WASTE BY METHOD OF DISPOSAL

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

Landfill

Virtually

waste to landfill

39






Reporting Aspects



GRI Content Index


OUR OPERATINGCOMPANIES

HEINEKEN Vietnam Brewery Limited Company

HEINEKEN Vietnam Beer and Beverages Limited Company

HEINEKEN Vietnam Brewery - Hanoi Limited Company

HEINEKEN Vietnam Brewery - Da Nang Limited Company

HEINEKEN Vietnam Brewery - Quang Nam Limited Company

HEINEKEN Vietnam Brewery - Vung Tau Limited Company

HEINEKEN Vietnam Brewery - Tien Giang Limited Company

Hanoi Brewery

Da Nang Brewery

Quang Nam Brewery

Vung Tau Brewery

District 12, HCMC Brewery

Tien Giang Brewery

With the full integration of HEINEKEN Vietnam Brewery Limited Company and HEINEKEN HanoiBrewery Limited Company, HEINEKEN Vietnam is a unified company in Vietnam operating 6breweries and 10 sales offices across Vietnam.

41

ABOUT HEINEKEN VIETNAM

OUR BRANDS






Heineken Vietnam Brewery Limited Company (HVN)

99.987% 100% 100% 100% 100%

HEINEKEN Vietnam Brewery -

Ha Noi Limited Company

HEINEKEN Vietnam Brewery -

Quang Nam Limited Company

HEINEKENVietnam Brewery -

Da Nang Limited Company


Tien Giang Limited Company


Vung Tau Limited Company

Heineken Asia Pacific Pte Ltd (HAP) Saigon Trading Group

%04%06

COMPANY STRUCTURE

SCOPE OF REPORT

This is HEINEKEN Vietnam’s sixth sustainabilityreport. This report has been prepared inaccordance with the Global Reporting Initiative(GRI) Standards: Core option. It encompassesthe performance of our consolidated OperatingCompanies and six breweries in Vietnam from 1January 2019 to 31 December 2019.

The environmental performance is evaluated onthe performance of our breweries, from whichthe most significant impacts on People, Planet& Prosperity has been created.

The data presented in this report has beencompiled with the aid of HEINEKEN datacollection systems, which are listed below. Allthe data in this publication has been reported

REPORTING STANDARDS &METHODOLOGY

in accordance with our global procedures, ingood faith and to the best of our knowledge.Standard calculations in our systems have beenbuilt in, wherever possible, to minimise anyinconsistencies.

HEINEKEN data collection systems consist of:

• The Accident Reporting & InvestigationSoftware (ARISO) system, for safety reporting• The Business Comparison System (BCS), forenvironmental reporting• The Sharepoint reporting system, forcommunity, local sourcing, partnership andprogress reporting on global commitments• The EcoVadis Platform, for Supplier Code andperformance information• The Annual Sustainability Survey, for all othersustainability-related reporting

Our sustainability performance is also includedin the “Sustainability Review” section ofHEINEKEN N.V. Annual Report 2019 which hasbeen reviewed and confirmed externally.



GRI Content Index


SUSTAINABILITY LEADERSHIP

Our Managing Director sets the tone and together with the Management Team, our leadershipdrives the sustainability agenda through all levels of our organization and encourages a culture ofcollaboration and innovation for sustainability at HEINEKEN Vietnam. Our Corporate Affairs teamcoordinates HEINEKEN Vietnam’s sustainability process and works closely with the heads offunctions to measure, monitor and report their sustainability stories.

On a quarterly basis, we keep track of our performance against our sustainability commitmentsand report our progress to the HEINEKEN Global Sustainable Development team.

STAKEHOLDER ENGAGEMENT

Our stakeholders are crucial to our journey of Brewing a Better Vietnam and we engage with themto grow together. Through such interactions, we gain valuable inputs that enable us to assess ourmaterial issues, identify gaps in our approach and shape our action plan.

CA Director

Supply Chain Procurement Commerce CA HR/Legal Finance

MD

DROP THE CProduction Logitics

DROP THE CPackaging

Reuse/Rethink

10% media spend

DROP THE C

EVERY DROP

SAFETY FIRSTPROPERITY

Risk assessment & preventionVALUES AND

BEHAVIORSSOURCE

SUSTAINABLYRESPONSIBLECONSUMPTION

Partnership/Labelling

RESPONSIBLECONSUMPTION

PackagingReuse/Rethink

DROP THE CCooling

PackagingReduce/Renew

Stakeholder Goals How we engage

• Enhance and increase employee loyalty• Employee satisfaction• Promote sustainability awareness

• Annual Climate Survey• 95% Engagement Score

7% from FY2018

• Strengthen and expand distribution network• Ensure success and succession of distributors and sub-distributors• Promote sustainability awareness• Maintain and increase brand loyalty• Increase customer satisfaction• Promote responsible consumption

• Distributor Conference, annual• Market visits, regular• Outlet activation, on campaign-basis• Media, PR, digital platforms and events, on events basis

Employees

Customers(distributors,outlet owners)and Consumers






Stakeholder Goals How we engage

• Promote company brands• Exchange views and information

• Media meetings, twice a year• Press conference, on events basis• Reputation survey, bi-annual

• Support for laws and regulations• Industry workshops and regular meetings• Bi-annual reputation survey

• Participate in discussions and support alcohol law• Share practices in alcohol advertising• Support in promoting sustainability awareness andpractices among Vietnamese businesses

• Conferences• Meetings and workshops• Bi-annual reputation survey

• Ensure business performance and compliance • Regular meetings• Bi-annual reputation survey

• Partnership for impact• Information update and exchange on bestpractices/expertise on sustainable development

• Annual Tet charity/mid-autumn festival• Regular water programmes• Bi-annual reputation survey• Expert meetings/forums as needed

• Maintain and increase relationship with shareholders• Exchange views and perspectives

• Monthly/quarterly reports• Quarterly meeting• Year-end review

• Ensure business operations comply with law & regulation• Updates on laws & regulations

• Regular meetings and workshops as needed

Government

Suppliers

NGOs andinternationalorganisations

Investors

Employeerepresentatives(e.g. TradeUnions)

IndustryAssociations(e.g. internationalcentre for alcoholpolicies, VietnamBeer AlcoholBeverageAssociation)

Media



GRI Content Index


HEINEKENSTRATEGICPRIORITIES

• Extremelysignificantimpact onachievement of key financialand operationalobjectives

• Extremeconcernsexpressed by key stakeholders

• Severe andimmediateimpact onbrand/reputation

SustainabilityPillar

MaterialIssues Actions Relevance to

Stakeholders

SustainingPROSPERITY for a BetterVietnam

Change inregulations

Manage theuncertainty inbusiness operationsarising fromregulatory changes,such as alcoholrestrictions and taxregulations

Direct and indirect economiccontribution through job creationand GDP contribution

Better service and engagementwith consumers and customers byfast responding to market demand,diversifying consumer choices andensuring credibility

Marketing strategy and brandrelevance

Ensure theeffectiveness of brandportfolio strategy,amidst intensifiedcompetition to growmarket share andprevent valuedestruction

Digital media Manage the risksarising from digitalmedia and ensuretimely reaction toreputation threats

Supply ChainManagement

Support for localsuppliers, supplierenvironmental andsocial assessment aswell as managingsupply chain risk

Enhancement of competitiveadvantage for suppliers, especiallySmall and Medium Enterprise(SMEs) in the FMCG industry

EmpoweringPEOPLE for a Better Vietnam

Stakeholderengagement

Develop and maintainrelationships withstakeholders (e.g.employees, customers,media, government,community partners,distributors,shareholders)

Transparent and trustworthyengagement and conversation

MATERIALITY FOR BUSINESS PRIORITIES

1






FUNDAMENTALFOR BUSINESS

• Moderate tomajor impact on achievementof key financialand operationalobjectives andwell controlled by HEINEKENVietnam

• High level of concernexpressed by keystakeholders

• Mid to long-term impact onbrand/reputation

SustainabilityPillar

MaterialIssues Actions Relevance to

Stakeholders

SustainingPROSPERITY for aBetter Vietnam

Counterfeiting Guarantee high qualityof product andmanage thecompetition fromcounterfeited (cheaper,lower quality) productspotentially damagingthe brand's reputationand market share

Direct and indirect economiccontribution through job creationand GDP contribution

High quality product

High protection of personal data

Cyber securityandData privacy

Strengthencapabilities to protectand recover fromcyber-attacks andprotect consumersdata privacy

EmpoweringPEOPLE for aBetter Vietnam

Talentdevelopment

Develop our peoplethrough training andskills upgrading,performance andcareer developmentreviews

Efficient and inclusive workingenvironment for the VietnameseSkilled and talented labour force

Health and safety Protect and promotehealth, safety andwellbeing ofemployees andworkers throughoutsupply chain

Strengthen SafetyFirst culture amongstHEINEKEN’semployees andbusiness partners

Safe culture & behaviour

Health and wellbeing for internal &external stakeholders

Responsibleconsumption

Promote responsibleconsumption forconsumer and staff toenjoy beer inmoderation and leadby example

Health and enjoyment ofconsumers

Protecting thePLANET for aBetter Vietnam

Climatechange/Climatestrategy

Reduce carbonemissions, protectwater resource andminimize wastethrough operationalefficiency, circularityand prepare forclimate-relatedimpacts

Impacts of environmental issues andclimate change related consequences:air pollution, water pollution & scarcity,extreme weather, etc…

2



GRI Content Index


HEINEKEN Vietnam supporting the UN SDGs

HEINEKEN Vietnam supporting Vietnam’s National Action Plan Targets

HEINEKEN Vietnam’s Focus Areas

End hunger, achievefood security andimproved nutrition andpromote sustainableagriculture

2.4 By 2030, ensure sustainable food/foodstuff production and applyresilient agricultural production modalities, increasing productivity andoutput that help maintain eco-systems, and strengthen the capacityfor adaptation to climate change and other disasters and progressivelyimprove land and soil quality.

Ensure healthy lives andpromote well-being forall at all ages

3.4 Increase efforts in preventing and treating the abuse of addictivesubstances, including narcotic drug abuse and harmful use of alcohol.

3.5 By 2030, continue to control and annually reduce traffic accidents basedon three criteria: the number of accidents, the number of deaths and thenumber of injuries.

3.8 By 2030, substantially reduce the number of deaths and illnesses fromhazardous chemicals and air, water, soil pollution and contamination.

Ensure availability andsustainablemanagement of waterand sanitation for all

6.3 By 2030, improve water quality and successfully control sources ofpollution; end the use of hazardous chemicals in agricultural, industrialand aquatic production that pollutes water sources and degradesbiodiversity; treat 100% of hazardous waste water; halve untreatedurban waste water; increase the safe reuse of water.

6.4 By 2030, substantially increase water use efficiency across allfields/sectors and ensure a sustainable supply of clean water in orderto address water scarcity, and substantially reduce the number ofpeople suffering from water scarcity. Ensure that water exploitationdoes not exceed the exploitation thresholds for rivers and exploitablereserves of water layers.

Ensure access toaffordable, reliable,sustainable and modernenergy for all

7.3 By 2030, double the national rate of improvement in energy useefficiency. Reduce the rate of power utilization by 10% compared tothe baseline scenario.

Promote sustained,inclusive andsustainable economicgrowth, full andproductive

8.1 Sustain per capita GDP growth rate of 4-4.5%/year and annual GDPgrowth rate of 5-6% on average

8.4 By 2030, increase the efficiency of resource use in production andconsumption, minimize the impacts of economic growth onenvironmental degradation, in accordance with the 10-year frameworkof programmes on sustainable production and consumption of Vietnam

8.5 By 2030, achieve full and productive employment and decent work forall men and women, including for young people and persons withdisabilities, and ensure equal pay for work of equal value

8.6 By 2030, substantially reduce the proportion of young people not inemployment, education or training; make proactive efforts ineffectively implementing ILO’s Global Jobs Pact

8.8 Protect labour rights and promote safe and secure workingenvironments for all workers, particularly female migrant workers andworkers in the informal sector

Ensure sustainableconsumption andproduction patterns

12.1 Implement a 10-year framework of programmes on sustainableproduction and consumption in accordance with internationalcommitments

12.2 By 2030, achieve the sustainable management and efficient use ofnatural resources; reasonably exploit and economically, sustainablyutilize mineral resources.

12.4 By 2020, adopt and implement a lifecycle management approach tochemicals and wastes in accordance with international commitmentsthat Vietnam has signed, in order to reduce soil, water, air pollution andtheir adverse impacts on human health and the environment.

12.5 By 2030, substantially reduce waste generation and increase theeconomic value of waste resources through prevention, reduction,recycling, reuse and recovery of energies from waste treatment.

12.6 Encourage the business community to adopt sustainable practices,including the use of cleaner production technologies, effective use ofnatural resources and environmental protection; implement socialaccountabilities with regards to the poor and the vulnerable; andintegrate sustainability information into periodical reports.

Our Alignment with the United Nations’ SustainableDevelopment Goals and Vietnam’s National Action Plan






Disclosure Reference(s) or Reasons for Omission

General DisclosuresOrganizational Profile102-1 Name of the organization About HEINEKEN Vietnam (page 41)102-2 Activities, brands, products, and services About HEINEKEN Vietnam (page 41)102-3 Location of headquarters About HEINEKEN Vietnam (page 41)102-4 Location of operations About HEINEKEN Vietnam (page 41)102-5 Ownership and legal form About HEINEKEN Vietnam (page 42)102-6 Markets served About HEINEKEN Vietnam (page 41)102-7 Scale of the organization About HEINEKEN Vietnam (page 41) 102-8 Information on employee and other workers Performance in Figures (page 36)102-9 Supply chain N/A102-10 Significant changes to the organization and its supply chain N/A102-11 Precautionary principle and approach HEINEKEN Vietnam does not specifically refer to

the precautionary approach when managing risks,however, we adopt a risk-based approach in ouroperations.

102-12 External initiatives Stakeholder Engagement (page 43)102-13 Membership of associations Stakeholder Engagement (page 43)Strategy102-14 Statement from senior decision-maker Managing Director Foreword (page 4)Ethics and Integrity102-16 Values, principles, standards, and norms of behavior Our Values and Behaviours (page 22)102-17 Mechanisms for advice and concerns about ethics Our Values and Behaviours (page 22)Governance102-18 Governance structure Sustainability leadership (page 43)102-22 Composition of the highest governance body and its committees Sustainability leadership (page 43)102-23 Chair of the highest governance body Sustainability leadership (page 43)Stakeholder Engagement102-40 List of stakeholder groups Stakeholder Engagement (page 43)102-41 Collective bargaining agreements All OpCos have at least 1 collective agreement.

All employees are covered by collective bargaining agreements.

102-42 Identifying and selecting stakeholders Stakeholder Engagement (page 43)102-43 Approach to stakeholder engagement Stakeholder Engagement (page 43)102-44 Key topics and concerns raised Stakeholder Engagement (page 43)Reporting Practice102-45 Entities included in the consolidated financial statements Omitted since this report only covers the

sustainability performance of HEINEKEN Vietnam102-46 Defining report content and topic boundaries Reporting Aspects (page 40)102-47 List of material topics Materiality assessment (page 10)102-48 Restatements of information N/A102-49 Changes in reporting N/A102-50 Reporting period 1 January 2019 to 31 December 2019102-51 Date of most recent report (if any) HEINEKEN Vietnam Sustainability Report 2018102-52 Reporting cycle Annual102-53 Contact point for questions regarding the report Reference Information 102-54 Claims of reporting in accordance with the GRI Standards Reporting Aspects (page 40)102-55 GRI content index GRI Content Index (page 48)102-56 External assurance Reporting Aspects (page 40)

GRI Standards Content Index



GRI Content Index


Topic-specific DisclosureManagement Approach103-1 Explanation of the material topic and its Boundary Included under each section 103-2 Activities, brands, products, and services Included under each section 104-3 Evaluation of the management approach Included under each section GRI 201: Economic Performance201-1 Direct economic value generated and distributed Sustaining Prosperity for a Better Vietnam (page 13)GRI 203: Indirect Economic Impacts203-2 Significant indirect economic impacts Sustaining Prosperity for a Better Vietnam (page 13)GRI 204: Procurement Practices204-1 Proportion of spending on local suppliers Supporting local Suppliers and Business Partners

(page 18)GRI 302: Energy 302-3 Energy intensity Performance in Figures (page 36)GRI 305: Emissions305-4 GHG Emissions Intensity Performance in Figures (page 36)GRI 303: Water and Effluents (2018) Management Approach303-1 Interactions with water as a shared resource Managing Every Drop (page 36)303-2 Management of water discharge-related impacts Managing Every Drop (page 36)GRI 306: Effluents and Waste306-1 Water discharge by quality and destination Performance in Figures (page 36)306-2 Mechanisms for advice and concerns about ethics Performance in Figures (page 36)GRI 307: Environmental Compliance307-1 Non-compliance with environmental laws and regulation Zero incidences of non-complianceGRI 308: Supplier Environmental Assessment308-1 New suppliers that were screened using environmental criteria Supporting local Suppliers and Business Partners

(page 18)GRI 403: Occupational Health and SafetyManagement Approach403-1 Occupational health and safety management system Strengthening Safety First Culture (page 26)403-2 Hazard identification, risk assessment and incident investigation Strengthening Safety First Culture (page 26)403-3 Occupational health services Strengthening Safety First Culture (page 26)403-4 Worker participation, consultation and communication on

health and safetyStrengthening Safety First Culture (page 26)

403-5 Worker training on occupational health and safety Strengthening Safety First Culture (page 26)403-6 Promotion of worker health Strengthening Safety First Culture (page 26)403-7 Prevention and mitigation of occupational health and safety

impacts directly linked by business relationshipsStrengthening Safety First Culture (page 26)

Topic-Specific Disclosures403-9 Work-related injuries Performance in figures (page 37)GRI 404: Training and Education

Average hours of training per year per employee Performance in figures (page 37)GRI 413: Local Communities413-1 Operations with local community engagement, impact

assessments, and development programsCommunity development (page 21)

GRI 414: Supplier Social Assessment414-1 New suppliers that were screened using social criteria Supporting local Suppliers and Business Partners

(page 18)GRI 416: Customer Health and Safety416-1 Assessment of the health and safety impacts of product and

service categoriesShaping responsible behaviours and attitudes(page 27)

GRI 417: Marketing and Labeling 417-1 Requirements for product and service information and labeling Shaping responsible behaviours and attitudes

(page 27)


ADVOCATIN

G RESPO

NSIBLE CO

NSU

MPTIO

NPRO

MO

TING

HEALTH

AND

SAFETY

SOURCIN

G SU

STAINABLY

EVERY DRO

P: PROTECTING

WATER RESO

URCES

GRO

WIN

G W

ITH CO

MMUN

ITIESDRO

P THE C: RED

UCIN

G CO

EMISSIO

NS

INVESTED

REACHES VIA

REPSONSIBLE

CONSU

MPTIO

NPRO

GRAM

Growing w

ithcom

munities

Drop the C

– reducing CO2 em

issions

Promoting health

and safetyAdvocating responsible

consumption

Sourcing

sustainablyEvery D

rop – protecting

water resources

People

Planet

Prosperity

Vietnam

CONSU

MERS

PLEDGED

NO

T DRIVIN

G

AFTER DRIN

K

GRAB CO

DES

REDEEM

ED

6,600

5,000

COMPLIAN

CE

HEIN

EKENLife Saving

Rules

100%

EMPLO

YEETRAIN

ED ON

CYBER

SECURITY

100%

BRAND

PROMO

TERS CO

VERED UNDER

ROAD

SAFETY CAM

PAIGN

95%

ROAD

ACCIDEN

T TO

BRAND

PRO

MO

TERS

-45%

CDE

SUPPLIER

SUPPLIERS

COMPLIAN

CEW

ITH SU

PPLIERCO

DE

97%

PACKAGIN

GMATERIALS

LOCALLY SO

URCED

99%

CREATED FO

R LO

CAL PACKAGIN

GSU

PPLIERS

5,695

billion VND

14m

illion VND

10m

illion

CREATED FO

R 2 N

EW SU

PPLIERS FRO

M VU

NG

TAUBREW

ERY EXPANDED

PROJECT

750billion VN

D

HL W

ATER/HL BEER

VS 3.4 HL/H

L OF H

EINEKEN

GLO

BAL AVERAGE

2.74VS 2018

-6%

EFFICIENCY IN

ASIA PACIFIC

#1

JOBS SU

PPORTED

212,000

IN D

ISTRIBUTIO

N

TONS CO

2 DRO

PPED

IN D

ISTRIBUTIO

N

2,000

BIOMASS TH

ERMAL

TONS CO

2 DRO

PPED

SINCE 2014

138,000GDP CO

NTRIBU

TED

0.95

%SU

PPORTED

TO CU

MMUN

ITY

INVESTED

TRAININ

G HOURS

124,000

RECYCLED

& REU

SED

99%

RECYCLING

TONE PAPER/ YEAR

TRANSPO

RTATION

EFFICIENCY

THIN

NER PACKAG

ING

FIBER T-FLUTE CARTO

N100

%

-273

+17%

5.6billion VN

D

28billion VN

D



GRI Content Index


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

Let us know your thoughts

We are fully committed to listening to our stakeholders and we welcome your feedback onour sustainability report and any aspect of our sustainability performance. Please address your views and suggestions to:

Holly Bostock 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 markedby an ® represent registered trademarks and are legally protected.

OUR 2025 CO

MM

ITMEN

TS

(*) Water Balancing m

eans we return the w

ater that goes into our product or evaporates to the watershed

Wasted to landfill

Water Balance

(* )Renew

able Energy

heineken việt nam - sustainability report 2019 · 2020. 6. 16. · at heineken, our ambition is...

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