Our business model - From barley to bar

We generate value by brewing and selling premium beers, ciders and more, bringing people together for moments of joy, sociability and connectedness.

Agriculture

HEINEKEN sources key ingredients like barley, hops, corn and bittersweet apples (for cider) from farmers, working closely with suppliers to improve crop yields and quality.

As one of the world's top three users of malted barley, our sourcing strategy is designed to bring flexibility to the supply chain. We obtain barley from across the world, including Western and Central Europe, the UK, Scandinavia, Egypt, Ethiopia, Australia, the US, Argentina, Mexico and Brazil.

In Africa, where barley is scarce, we primarily import malt and rely on local ingredients like cassava, sorghum and rice, sourced from over 150,000 smallholder farmers.

~300 low carbon farming projects underway.

Packaging

Most of our beer and cider is served in bottles, cans and kegs, with glass and aluminium as primary packaging materials and plastic and paper for secondary packaging. Packaging plays a vital role in protecting our products through preserving freshness and in enhancing our marketing and branding with distinctive designs that convey their premium nature.

In most cases our packaging is sourced from suppliers, who compete in a competitive market on price, capacity, volume and quality. Driving efficiencies along our end-to-end supply chain is a key success factor: we are unifying, digitalising and streamlining operations across all our breweries.

98% of packaging recyclable by design at the end of 2024

Brewing

We operate 181 breweries, cider plants and other production facilities worldwide. Currently, 90 breweries are connected to our Connected Brewery programme, enabling them to utilise Smart Brewery technology. This integration helps reduce waste and maximise output. Additionally, our connected worker apps empower over 20,000 operators with smart instructions and support, further enhancing efficiency.

Elsewhere, Total Productivity Maintenance streamlines performance reporting and enhances equipment reliability, and robotics are increasingly used to automate and improve safety, maintenance and other critical tasks. By connecting thousands of machines generating billions of data points, we optimise productivity and quality while delivering recurring cost savings.

~90 breweries where our Connected Brewery programme is live

Logistics

Most of our products are produced in the countries where they're consumed. We manage profitability by enhancing productivity in our warehouses, carefully selecting third-party carriers and optimising our transport network.

This is supported by our digital transformation programme and the ongoing replacement of existing fragmented technologies with a modern, modular architecture and standardised cloud-based platforms. This helps us improve ways of working, transport planning, and warehouse management. Scaling these capabilities across our operations helps us improve customer experience, drive end-to-end efficiencies, reduce emissions and save costs.

~4,700 logistics service providers used across our operations

Customers

Our customers include retailers, wholesalers and distributors, bars, restaurants and clubs where consumers enjoy moments of connection and celebration. In some countries, such as the UK, Mexico and Egypt, we also own and operate bars and retail outlets.

Our scale combined with new artificial intelligence (AI) solutions helps us continuously improve customer experiences and grow revenues. Digital innovation is providing insight that transforms sales representatives into strategic business advisors and delivers personalised recommendations to customers, boosting sales on our eB2B platform. Elsewhere, increasingly connected outlets are helping customers automate stock replenishment and optimise inventory.

190 countries where our brands can be enjoyed

Consumers

Every day, millions of consumers across 190 countries enjoy one of our more than 500 brands. Our premium portfolio approach offers consumers choice while strengthening pricing power and driving revenues.

Innovation, particularly in low and no-alcohol categories, caters for evolving tastes. HEINEKEN's global scale allows us to sponsor major events like Formula 1 and the UEFA Champions League, enhancing brand visibility. We use digital tools and apps to enrich the experiences of existing consumers and win new ones, simultaneously delivering valuable data that informs ongoing marketing optimisation and boosts revenue.

500+ brands across our portfolio

Carbon emissions

34% reduction of Scope 1 and 2 emissions vs. 2022

Making steady progress on the path to net zero

Our Net Zero strategy focuses on achieving net zero across our value chain (Scope 1, 2 and 3) by 2040¹. We are driving towards net zero Scope 1 and 2 emissions by 2030² alongside reducing Scope 3 emissions by 26%. We aim to reduce Scope 3 by decreasing forest, land and agriculture (FLAG) emissions by 30% and energy-based emissions (non-FLAG) by 25%. These goals were validated by the Science Based Targets initiative (SBTi) in 2023. All performance on carbon is now measured against a 2022 baseline.

Accelerating a reduction in Scope 1 and 2

We have reduced Scope 1 and 2 emissions by 34% compared to the 2022 baseline (2023: 19%). We cannot use a one size fits all approach, and decarbonisation requires precise planning and tailored solutions. We are developing custom strategies for each location which account for geographical, socio-political, technological and economic variations.

Establishing the foundations to scale Scope 3 reductions

We aim to reduce Scope 3 emissions by collaborating with strategic suppliers to facilitate the transition to renewable energy, low-carbon technologies, circular packaging and sustainable agricultural practices. Our updated Scope 3 strategy focuses on our largest emissions sources – agriculture and packaging – alongside enhancing supplier capabilities and fostering partnerships.

In 2024, we reduced Scope 3 emissions by 14% with a contribution from both agricultural and energy-based emissions (FLAG 23% and non-FLAG 11%) compared to the 2022 baseline.

¹ Net zero is defined by SBTi as reducing a minimum of 90% of emissions across Scope 1, 2 and 3. The residual emissions (maximum of 10%) must be neutralised with permanent carbon removal solutions. ² Based on the SBTi definition, we have defined our 2030 goal as a 90% emissions reductions across Scope 1 and 2. A maximum of 10% residual emissions that cannot be eliminated otherwise must be covered with permanent carbon removal and storage solutions.

Water consumption

Average water usage (hl/hl)

11% improvement compared to 2018

Reducing water use in production

Our goal for 2030 is to reduce average water intake in our breweries to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl globally. In 2024, our average water usage was 3.0 hl/hl (2023: 3.0) in water-stressed areas and 3.1 hl/hl (2023: 3.2) across all our breweries achieving an 11% reduction (12% adjusted for acquisitions and divestitures) versus the 2018 baseline.

We expanded our water efficiency acceleration programme in collaboration with cleaning and disinfection suppliers. The programme is active at 56 sites spanning all regions and is delivering results, such as in Italy and Brazil, where water use per hectolitre of beer is down by 13% and 9%, respectively. We shared best practices from the programme on our global platform, enabling production sites to learn, share and reapply them within the Company. Advanced technologies and water treatment optimisation are also delivering results across many sites, including in Mexico and Ethiopia. In Myanmar, a shift in water treatment saved around 1.0 hl/hl, and in Cambodia adjusting the source of water withdrawal delivered a 0.4 hl/hl reduction in water use.

Resource Inflows (ESRS E5-4)

HEINEKEN reports key resource inflow materials including biological materials such as product ingredients (malt, hops, sweeteners, etc.) and technical materials such as packaging (cans, kegs, glass bottles, etc.). Water is also a key raw material in the production process but is covered separately in the Water section.

Total Inflow Material

Sustainable Sourcing

HEINEKEN measures biological materials that are sustainably sourced:

In addition to hops and barley, HEINEKEN measures other product ingredients that are sustainably sourced, such as maize, wheat and sugar cane. This metric reflects other crop-related materials as well as hops and barley. In 2024, new methodology was applied to all crop-related raw materials. Instead of determining sustainably sourced ingredients based on contracted future volumes, HEINEKEN obtained confirmation directly from suppliers of sustainable volumes delivered in 2024.

Currently, HEINEKEN does not classify any paper or cardboard as sustainably sourced, as it has not yet published a sustainable sourcing strategy for paper-based materials. The company is working to develop this strategy that will address its FLAG targets and upcoming EU Deforestation Regulation (EUDR). Effective measurement of sustainably sourced paper-based materials will require extensive engagement with suppliers and compliance with appropriate credible standards and certifications.

Packaging - Reused and Recycled Input Material

Reused input materials were purchased during the year to facilitate the growth of the reusable portfolio and replace reusable bottles lost in the market. This metric does not incorporate the management of reusable packaging that is currently in use in the market. HEINEKEN internally tracks rotation times and losses to improve the efficiency of its reusable packaging portfolio. Improving this efficiency will reduce costs, waste and carbon emissions.

Recycled input material weights are obtained from suppliers through questionnaires or contracts. In addition to this, HEINEKEN asks suppliers for strategy roadmaps which allow it to refine its strategy towards the goal of 50% recycled content in bottles and cans.

The packaging table reflects reused and recycled input rates based on the total inflow of packaging materials. The share of reused and recycled input material as a % of the total weight of products and technical and biological materials is 18%.

Resource outflows

Recyclable packaging design

• 98% of packaging was recyclable by design by the end of 2024 (target: 99% by 2030)

Recycled content

• 44% recycled content in bottles and cans in 2024 (target: 50% by 2030)
• One of the challenges in increasing recycled content is the lack of infrastructure for efficient collection and high-quality recycling

Reusable packaging

• 39% of volumes were sold in reusable format in 2024 (target: 43% by 2030)
• Most of the beer sold in Africa & Middle East is in returnable glass bottles
• In 2024, launched the innovative Heineken® Returnable STAR bottle in South Africa - a 650 ml returnable bottle unique in design, featuring the brand's iconic star embossed on its body
• Returnable packaging materials classified as property, plant and equipment include €1,128 million (2023: €1,103 million)

Circularity strategy

Launched circularity strategy in 2024, prioritising three areas to embed a closed loop approach in packaging development:

• Reuse
• Recycled content
• Recyclable by design

Expanding reusable portfolio requires ensuring reusable packaging is appealing and convenient for consumers, featuring efficient and attractive design. Many projects support co-creating efficient return infrastructures.

Waste

Waste management information in this report focuses on production operations and packaging circularity rather than comprehensive waste data.

Inventory write-downs

• Inventories written down to net realisable value amounted to €10 million in 2024 (2023: €11 million)

Circular economy approach for waste

HEINEKEN is transitioning to a circular economy to reduce emissions, manage input costs and prevent waste. The circularity strategy prioritises:

• Reuse of packaging materials
• Increased recycled content
• Recyclable by design principles

Post-consumer packaging

Value chain exemption applied for quantitative disclosure on post-consumer packaging waste during the first three reporting years.

By-products reuse

Innovating in reusing by-products in production enhances resource efficiency and minimises waste.

Brazil glass recycling initiative

Developing a circular system with Ambipar to recycle more glass bottles than introduced into the Brazilian market. Purpose-built centres will collect, sort and process glass in areas that currently lack infrastructure.

Note: Comprehensive waste generation and disposal data (total waste, hazardous/non-hazardous split, diversion from disposal) not disclosed in the sections provided.

Gender balance

30% of our senior management positions were held by women

Embracing diversity, equity and inclusion

Embracing diversity, equity and inclusion fosters true togetherness and drives meaningful connections with our employees, consumers and customers. A diverse and inclusive workforce is good for our people and business as it sparks innovation and leads to better performance.

We believe everyone plays a role in championing a culture of belonging at HEINEKEN. Inclusion starts with courageous leadership, and we continue to foster an inclusive environment through training for leaders and colleagues on inclusive practices and a comprehensive engagement calendar. Employee resource groups like HEINEKEN Open and Proud (HOP), inclusion councils and ambassadors play key roles. They conduct listening and dialogue sessions with colleagues and help to fully embed our strategy across our operating companies. In 2024, 88% of HEINEKEN's operating companies had an inclusion council in place.

We achieved our 2025 goal a year early by having 30% of women in senior management in 2024. While we celebrate this important milestone, we still have work to do to achieve 40% by 2030 on the path to gender balance. We are strengthening our pipeline of women talent below senior management levels and ensuring performance based fair and equal opportunities in attracting, developing and promoting talent. Our global leadership development programme – Women Interactive Network or WIN – in partnership with IMD, has seen 290 women participate to date. In 2024, we launched the Women Summit, a leadership development programme for senior female talent in collaboration with WeQual.

Our operating companies play a key role in developing the female talent pipeline towards senior leadership. For example, UBL India has been on a journey from having zero women in senior management in 2021 to 27% in 2024. The Queenfisher campaign was initiated for female employees, recognising their talent, empowering them and even launching a limited edition of beer brewed and designed by women. In Mexico, the Inspirame programme is supporting women returning to work after a career break.

Fair wage

A fair and safe workplace

We are dedicated to maintaining a fair and safe workplace for our employees and those of third parties. In 2023, we achieved our goal of having 100% of employees earning a fair wage, according to the Fair Wage Network. Ensuring a fair wage is a dynamic and ongoing process, as the cost of living and other economic factors can change. We therefore assess wages across all operating companies against the Fair Wage Network annually.

In 2024, we assessed 99.2% of our employees against the Fair Wage Network benchmark. Our findings indicated that 99.7% of the assessed employees earned at least a fair wage, with the remaining 0.3% being located in Singapore.

Our investigation revealed that the wage increase proposed by the Fair Wage Network for Singapore in 2024 significantly surpassed changes in the consumer price index and other relevant indicators. Consequently, some HEINEKEN employees who had earned above the Fair Wage Network amount in 2023 fell below it in 2024. To ensure fair compensation, we conducted an additional benchmark analysis using Singapore's Progressive Wage Model, which was developed by a tripartite committee consisting of unions, employers and the Singapore government. This confirmed that 100% of our employees earn a fair wage according to this model.

Moving forward, our goal remains to continue assessing our entire workforce and ensure all our employees worldwide earn a fair wage.

Health and safety metrics

Health and Safety strategy

Our Health and Safety strategy is focused on shaping a proactive safety culture. We are committed to doing the utmost to ensure that every one of our colleagues and contractors returns home safely every day. We deeply regret that two people lost their lives while working for us in 2024 (2023: 3). An independent investigation team thoroughly investigates every fatality to identify and understand the root cause. We take action to prevent recurrence and share learnings, with corrective and improvement actions followed up until closure.

Several activities were carried out to shape a leading health and safety culture in 2024. We launched and implemented the Hearts and Minds programme, aiming to enable operating companies to assess their current safety cultural level, identify gaps and develop improvement plans to close them. We also continued with the regional turnaround programme, launched in 2023, as an immediate call to action to improve safety performance where it is needed most. The measures we took helped improve our Total Recordable injury Rate (TRR) for employees and temporary workers from 1.2 per 200,000 hours worked in 2023 to 0.9 in 2024.

Equal pay

We work to ensure equal pay for equal work (or work of equal value) between female and male colleagues. We first achieved our goal of having 100% of our operating companies assessed and 100% action plans in place in 2023. In 2024, we continued to assess all operating companies and to track action plans to close any pay gaps. We also focused on ensuring equal representation, addressing new hires and opportunities for promotion. Actions included embedding structural checks and controls in processes to drive gender-neutral pay decisions. These efforts resulted in a pay gap of 2.3% in favour of men at the global level in 2024. This figure is significantly lower than the 5% threshold established by the EU Pay Transparency Directive and is in line with other industry leaders in the fast-moving consumer goods (FMCG) sector.