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David Paterson from Heineken PLC - Profiting from Sustainability Feedback Session, York, April 2015


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

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David Paterson from Heineken PLC - Profiting from Sustainability Feedback Session, York, April 2015

  1. 1. Sustainable Sourcing
  2. 2. About HEINEKEN UK 2
  3. 3. Our Strategic Priorities 3
  4. 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. 5. Our Strategic Priorities 5
  6. 6. BaBF Commitment | Raising Farming Standards 6 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
  7. 7. Sustainable Sourcing strategy
  8. 8. 9 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:
  9. 9. Definition of sustainable volume 10 “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
  10. 10. 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 11 , considering membership AFFILIATE MEMBERS
  11. 11. 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 12 “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.”
  12. 12. 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 13 VVAKkerbouw, UK-cider apples, S.C.A.R.A Société Coopérative Agricole de la Région d'Arcis 14 schemes currently approved by HEINEKEN
  13. 13. Reference for Sustainable Agriculture is SAI-FSA2.0; threshold is Bronze 14
  14. 14. Sustainable Sourcing Overview
  15. 15. 16 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.
  16. 16. Legendary Seven Farmers 17
  18. 18. 21