Presentation by David Paterson from HEINEKEN at the Profiting from Sustainability Feedback Session in York during April 2015 organised by Future Food Solutions Ltd

1. Sustainable Sourcing

2. About HEINEKEN UK
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3. Our Strategic Priorities
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4. 4
Source: Carbon Footprint Baseline Model – 2011 data, 23 OpCos, , weighted average, data per 15.10.2012
Agriculture 8%
Malting 6%
Brewing 17%
Packaging + end of life 31%
Distribution 9%
Cooling 29%
Legend
The LCA impact of Agriculture

5. Our Strategic Priorities
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6. BaBF Commitment | Raising Farming Standards
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Aim for sustainable sourcing of
2015 2020
• 20% of barley
• 40% of hops
• 60% of apples
Minimum
50% of main
raw materials
supplied
Based on Mass Balance Principle

8. Sustainable Sourcing strategy

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Mass Balance | Malt Not Necessarily Delivered
- Generally accepted standard for non-segregated supply chains
- Retain flexibility for appropriate quality blends
- Keep input cost stable
- Raise bar for overall farming rather than stimulate development
of niche market
Rationale
HEINEKEN Claim:

10. Definition of sustainable volume
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“Any agricultural product in scope of the Sustainable Agriculture program, that has
been: (1) cultivated in accordance with an approved Code of Practice and (2) has
been allocated to HNK by our supplier, in accordance with the mass balance
approach”
Volume contractually allocated to
HNK in acc with mass balance
approach
Approved Codes of Practice
SAI Principles & Practices -FSA Code of Practice
3rd party benchmark

11. Make it Happen | Sustainable Agriculture Initiative
 Food & Drinks initiative (est. 2002), 44 members
 Common approach: sharing and building solutions to create Supply
Chain security
 Benchmarking of local and supplier schemes against SAI standards
 5 Working Groups: Beef, Coffee, Fruit, Dairy, Arable & Vegetable Crops
 4 Committees: Biodiversity, Farmer Self Assessment, Farmer & Supplier
Engagement, Water
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, considering membership
AFFILIATE MEMBERS

12. SAI Principles & Practices (P&P) | Farmer Self Assessment
SOCIETY (PEOPLE)
•Food Quality & Safety
•Rural, Social,
Economic conditions
•Working Conditions
•Training
ENVIRONMENT
(PLANET)
•Soil treatment
•Water usage and
depletion avoidance
•Biodiversity
•Energy
ECONOMY
(PROFIT)
•Farmers Income
•Food Supply
•Optimisation of
Benefits
•Diversification
FARMING SYSTEMS
•Site Selection and
Management
•Yield, Variety,
Fertiliser
•Planting Material
•Crop Management
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“Efficient production of safe, high quality agricultural products, in a way
that protects and improves the natural environment, the social and
economic conditions of farmers, their employees and local communities,
and safeguards the health and welfare of all farmed species.”

13. Alignment | Assessing Existing Schemes
200+ agricultural schemes worldwide
Benchmark exercise: thorough
comparison with SAI P&P
Assessment by independent expert
either on behalf of business
(frontrunners) or SAI
Valid alternative: SAI P&P is a certified
system in itself
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VVAKkerbouw, UK-cider apples, S.C.A.R.A
Société Coopérative Agricole de la Région d'Arcis
14 schemes currently approved by HEINEKEN

14. Reference for Sustainable Agriculture is
SAI-FSA2.0; threshold is Bronze
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15. Sustainable Sourcing
Overview

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Improved soil fertility prevents erosion, i.e. less
risk of decreasing yield
French Coopération (Arvalis affiliate): wildflower
meadows stimulate biodiversity  less risk of diseases
12% yield
increase,
£200/acre
benefit as a
result of
compost as
natural
fertilizer
The Proof of the Pudding... | Best Practice
SAI standards
inspired the
German hop
farmers to
define a
common
code for
sustainable
agriculture.

17. Legendary Seven Farmers
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18. GROUP PORTRAITTHE FINAL SEVEN

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