The role of the administrative, management and supervisory bodies

Composition of the Executive Board and Supervisory Board

Executive Board

The Executive Board consists of two members: Mr. Dolf van den Brink (Chair and CEO) and Mr. Harold van den Broek (CFO). Both are in their second and first four-year term as members of the Executive Board, being reappointed in 2024 and appointed in 2021 respectively. A proposal for the re-appointment of Mr. Van den Broek for a second four-year term as member of the Executive Board was decided by the Supervisory Board on 1 October 2024 and will be submitted to the AGM in 2025 for approval.

Gender composition:

• Both members are male (100%)
• Age: 51 (Van den Brink) and 57 (Van den Broek)
• Nationality: Both Dutch

The Executive Board composition is impacted by its limited size. The aim is that the Executive Board comprises of at least 30% male and at least 30% female members, as set out in the Diversity Policy. The current composition leaves room for improvement on gender diversity. In the event of succession planning, the company will continue to look for opportunities to strengthen the gender diversity in the Executive Board.

Supervisory Board

The Supervisory Board started 2024 with 9 members and consists of ten members since the AGM in 2024: Jean-Marc Huët (Chair), Maarten Das, Michel de Carvalho, Pamela Mars Wright, Marion Helmes, Rosemary Ripley, Nitin Paranjpe, Beatriz Pardo, Lodewijk Hijmans van den Bergh and Peter Wennink (Vice-Chair).

Composition statistics:

Four out of ten members are women and six out of ten members are non-Dutch. There are six nationalities (American, British, Dutch, German, Indian and Spanish) and the age of the members ranges between 55 and 80.

Independence:

Currently, the majority of the Supervisory Board (i.e., eight of its ten members) qualify as 'independent' as per best practice provision 2.1.8 of the Code. There are two members who in a strictly formal sense do not meet the applicable criteria for being 'independent': Mr. de Carvalho (who is the spouse of Mrs. C.L. de Carvalho-Heineken, the daughter of the late Mr. A.H. Heineken, and who also is an executive director of Heineken Holding N.V.) and Mr. Das (who is the Chair of the Board of Directors of Heineken Holding N.V.). However, the Supervisory Board has ascertained that Mr. de Carvalho and Mr. Das in fact act critically and independently.

Committees with sustainability oversight

Supervisory Board level:

The Supervisory Board has installed five committees: the Preparatory Committee; the Audit Committee; the Remuneration Committee; the Selection and Appointment Committee; and the Sustainability and Responsibility Committee.

Sustainability and Responsibility Committee

This committee is responsible for supervising the activities of the Executive Board with respect to environmental, social and responsible consumption matters. The duties include:

a. A periodic review and evaluation of the Company's sustainability and responsibility strategy and related objectives and the performance on these objectives, including in the areas of the environment, social and responsible consumption;

b. The relationships of the Company with its stakeholders on sustainability and responsibility matters;

c. External sustainability and responsibility-related developments relevant for the Company; and

d. Such other matters concerning the Company's sustainability and responsibility matters as the committee shall see fit and proper or as shall be referred by the Executive Board or Supervisory Board from time to time.

The current Chair of the Sustainability and Responsibility Committee is Mr. Paranjpe.

The committee is entitled to investigate any matters belonging to the domain entrusted to the committee and is authorised to request all necessary information from the Executive Board and to seek external advice or assistance from one or more experts appointed by the committee. The committee meets at least three times per year.

In 2024, the committee discussed:

• An update on sustainability performance and progress toward the Company's sustainability ambitions, as well as an overview of key sustainability developments
• An update of the operationalisation and progress made in the execution of the Brew a Better World strategy
• The update of the Brew a Better World goals, triggered by the fact that various goals were set for 2023, including the principles guiding this update

Other committees with sustainability aspects:

• Selection and Appointment Committee: Skills and experience in the field of sustainability are considered as a factor when an individual is discussed
• Remuneration Committee: Makes recommendations to the Supervisory Board on remuneration target setting and tracks performance under the set targets. The targets linked to remuneration of the Executive Board include performance measures in the field of sustainability
• Audit Committee: Supervises the activities of the Executive Board with respect to the publication of financial information and areas including governance, financial and sustainability reporting, risk management and compliance
• Preparatory Committee: Prepares the Supervisory Board decision-making on matters not already handled by any of the other committees, such as in relation to acquisitions and investments including sustainability-related considerations

More than half of the members of each committee were independent within the meaning of best practice provision 2.1.8 of the Code in 2024.

Executive Board level:

Sustainability and Responsibility Steering Committee

Chaired by the CEO, this committee plays a central role in managing sustainability-related impacts, risks and opportunities across the organisation. This committee oversees the implementation of the Company's sustainability strategy, which includes environmental, social, and responsible consumption initiatives. It is involved in setting and monitoring sustainability-related ambitions and goals identified by the Company, responding to identified impacts, risks and opportunities, and executing agreed funding. Each meeting begins with an update on the progress of relevant ambitions and goals.

The committee benefits from the extensive sustainability knowledge of several key members. Discussions are led by deep subject matter experts with 10-20 years of experience in areas such as climate change, water, circularity, social issues within our workforce and value chain, and responsible consumption. The Sustainability and Responsibility Steering Committee meets at least six times per year, and the CFO has a standing invitation to join the meetings.

Other executive-level committees:

• Risk Committee: A cross-functional platform chaired by the CFO. Regularly reviews the Company's risk profile and key risks, associated mitigating actions and monitoring activities, including with respect to sustainability matters. Meets at least three times per year
• Environmental Steering Committee: Streamlines and contributes to achieving the Company's ambitions and goals in the field of carbon reduction, circularity, water usage and nature
• Responsible Consumption Steering Committee: Periodically reviews and evaluates the Company's performance and progress against its ambitions and goals in the field of promoting responsible alcohol consumption
• Disclosure Committee: Chaired by the CFO, reviews and advises on material public disclosures, which includes public disclosures in the field of sustainability. Meets at least five times per year

Sustainability-related expertise

Supervisory Board:

Sustainability is identified as one of the core fields of skills and experience for Supervisory Board members. Five members of the Supervisory Board are currently identified as having elevated skills and experience in the field of sustainability. The Supervisory Board composition and skills matrix shows which members have skills and experience in sustainability.

To safeguard understanding and capabilities, the Supervisory Board is provided with regular deep dives on sustainability topics by internal and external experts.

The profile of the Supervisory Board deals with aspects of diversity in the composition that are relevant to the Company. Experience and competence with respect to sustainability and the experience relevant to the sectors, products and geographic locations of the Company is included in the profiles of the Supervisory Board.

Executive Board:

Experience and competence with respect to sustainability and the experience relevant to the sectors, products and geographic locations of the Company is included in the profiles of the Executive Board.

Induction and training:

After appointment to the Supervisory Board, members receive an induction programme drawn up by the Company in consultation with the Chair of the Supervisory Board. Mr. Wennink followed the introduction programme in 2024. The programme included:

• A general information package in respect of the Company and its corporate governance
• Various meetings with members of the Executive Team and other senior management leaders
• Attending the Supervisory Board meetings including the strategy meeting and the visit to Brazil
• A visit to the breweries in Zoeterwoude and Den Bosch

Frequency of sustainability discussions at board level

Supervisory Board:

In 2024, the Supervisory Board held six meetings with the Executive Board (five in person, one virtually). The Sustainability and Responsibility Committee met three times in 2024.

The agenda for the Supervisory Board regularly included:

• An update of the operationalisation and progress made in the execution of the Brew a Better World strategy
• The Company's people strategy and priorities, including employee engagement, retention and talent management, succession planning, inclusion and diversity strategy
• The internal risk management and control system

Several representatives of senior management and the Executive Team were invited to give presentations to the Supervisory Board. The Supervisory Board also had a two-day meeting with the Executive Team in Ermelo, the Netherlands, to discuss the Company's strategic priorities. Additionally, each Regional President provided an overview of the performance, growth, productivity and sustainability developments in their regions and key markets.

The Supervisory Board furthermore visited Brazil to gain firsthand insights into local business operations, meet with local management teams, and deepen their understanding of the market challenges and opportunities.

The committees present the main topics discussed in their meetings to the entire Supervisory Board, including the key sustainability-related matters, to ensure that the full Supervisory Board is aware of, and can discuss, the key developments.

Executive Board:

Both the Executive Board and Executive Team are regularly provided with deep dives on sustainability-related topics. The Sustainability and Responsibility Steering Committee meets at least six times per year.

Specific roles assigned

Supervisory Board:

• Chair of the Supervisory Board: Jean-Marc Huët
• Vice-Chair of the Supervisory Board: Peter Wennink
• Delegated Member: Maarten Das (appointed by the AGM)
• Chair of the Sustainability and Responsibility Committee: Nitin Paranjpe
• Chair of the Audit Committee: Marion Helmes
• Chair of the Remuneration Committee: Lodewijk Hijmans van den Bergh
• Chair of the Selection and Appointment Committee: Jean-Marc Huët
• Chair of the Preparatory Committee: Jean-Marc Huët

Executive Board:

• Chair and CEO: Dolf van den Brink
• CFO: Harold van den Broek
• Chair of the Sustainability and Responsibility Steering Committee: CEO
• Chair of the Risk Committee: CFO
• Chair of the Disclosure Committee: CFO

Integration of sustainability-related performance in incentive schemes

The Remuneration Policy of the Executive Board is aligned to the Company's EverGreen strategy and its Brew a Better World (BaBW) ambitions.

The Executive Board's long-term variable remuneration is tied to:

• Two environmental targets: carbon emissions reduction and water efficiency improvement
• One social target: gender balance

The 2024 Short-term incentive achieved an overall payout of 157% of target, with substantial progress made in cost savings and the acceleration of the EverGreen strategy.

The overall achievement for the 2022-2024 Long-term Incentive was 161% of target. This Long-term Incentive incorporated the ESG metrics introduced to the Executive Board remuneration policy in 2021. These metrics are aligned with the Brew a Better World strategy, reflecting commitment to achieving net-zero emissions and promoting an inclusive, fair, and equitable world. Targets were surpassed for carbon emissions reduction, water efficiency improvement, and the representation of women at the Senior Manager level.

Effectiveness arrangements

Attendance:

The Supervisory Board confirms that all Supervisory Board members have adequate time available to give sufficient attention to the concerns of the Company. In 2024, the attendance rate was 100% for the Supervisory Board meetings and 97.6% for the committee meetings.

Evaluation:

The Supervisory Board evaluates at least once a year the corporate strategy and main risks to the business, the result of the assessment by the Executive Board of the design and effectiveness of the internal risk management and control system, and any significant changes thereto.

The Selection and Appointment Committee focuses on periodically assessing the size and composition of the Supervisory Board and the Executive Board, and periodically assessing the functioning of individual Supervisory Board members and Executive Board members.

Risk management and internal controls over sustainability reporting:

The Company maintains a robust framework for risk management and internal controls to ensure the accuracy, completeness, and reliability of its sustainability reporting. Key elements include:

• Risk identification and assessment: Continuous evaluation of potential sustainability-related reporting risks and their financial materiality
• Control framework design: Establishment of controls aligned with identified risks, adapted to the unique context of sustainability reporting
• Governance structures: Clear allocation of ownership for sustainability-related data and controls to regional and functional management
• Internal controls implementation: Internal controls are deployed across operating companies and global functions, promoting a culture of accountability and precision
• Regular reviews: Annual reviews of risk profile and internal control frameworks for sustainability reporting

Internal control findings identified through the S&R monitoring process are systematically documented as issues and actively addressed by management. Action plans are developed and implemented to resolve these issues and enhance control effectiveness.

Periodic reporting:

Periodic reporting on the effectiveness of S&R internal controls is designed to ensure transparency and accountability. A formal bi-annual Letter of Representation process requires management from operating companies, regions and global functions to take responsibility for accurate and complete sustainability reporting, including the communication of any open issues identified through control monitoring activities.

Information provision:

The Executive Board provides regular updates to the Supervisory Board on the Company's operations, results, legal matters, corporate governance, accounting, sustainability and compliance. This takes place in the scheduled Supervisory Board meetings as well as via email in case of ad hoc material developments.

The Company Secretary is responsible for ensuring that due procedures are followed and that the Supervisory Board acts in accordance with its statutory obligations as well as its obligations under the Articles of Association. All members of the Supervisory Board have access to the advice and services of the Company Secretary.

Conflict of Interest:

The Articles of Association and the Code prescribe how to deal with (apparent) conflicts of interest between the Company and members of the Executive Board and Supervisory Board.

A member shall not take part in any discussion or decision-making that involves a subject or transaction in relation to which he/she has a personal conflict of interest with the Company. Decisions to enter into transactions under which members have conflicts of interest that are of material significance to the Company require the approval of the Supervisory Board.

In 2024, no transactions were reported under which a member of the Executive Board or Supervisory Board had a conflict of interest that was of material significance.

Integration of sustainability-related performance in incentive schemes

Overview

Recognising the societal sensitivity surrounding executive remuneration, the Supervisory Board is committed to setting remuneration levels that fairly reflect market practice and company performance. Through this approach, we aim to foster maximum support within society for our remuneration practices.

Roles covered

The Executive Board remuneration policy covers:

• CEO
• CFO (Chief Financial Officer)
• Senior Manager level

The Executive Board's long-term variable remuneration is tied to sustainability targets. These targets are also cascaded to the senior management community.

Short-term incentive (STI)

The Short-term incentive:

• Is based on achievements of annual measures, of which 75% relate to financial and operational measures for Heineken N.V. and 25% to individual leadership measures
• Aims, at target level, for the median of the labour market peer group
• Is partly paid in cash, and partly in investment shares with a holding period of five calendar years:
  • The part paid in shares is between 25% and 50% of the full before-tax Short-term incentive amount, depending on the individual's choice whether, and to what extent, to exceed the mandatory 25% share investment
  • The part paid in cash is paid net of taxes (i.e., after deduction of withholding tax due on the full before-tax Short-term incentive amount)
• Investment shares are matched on a 1:1 basis after the holding period

Long-term incentive (LTI)

The Long-term incentive:

• Is based on achievements of three-year targets for Heineken N.V., of which 75% relate to financial measures and 25% relate to ESG measures
• Aims, at target level, for the median of the labour market peer group
• Is awarded through the vesting of shares, net of taxes (i.e., after deduction of withholding tax due on the full before-tax Long-term incentive amount)
• Vested shares are blocked for another two years, to arrive at a five-year holding restriction after the date of the conditional performance grant

Specific sustainability KPIs

The Executive Board's long-term variable remuneration is tied to:

Environmental targets:

• Carbon emissions reduction
• Water efficiency improvement

Social target:

• Representation of women at the Senior Manager level (gender balance)

These metrics are aligned with our Brew a Better World strategy, reflecting our commitment to achieving net-zero emissions and promoting an inclusive, fair, and equitable world.

Weighting

The sustainability-tied element of the Executive Board's Long-Term Incentive Plan (LTIP) accounts for 25% of the total LTIP.

When also taking into consideration the Executive Board's Short Term Incentive (STI) Plan, the sustainability-tied element of both the Executive Board's LTIP and STI Plan accounts for 13%.

Performance period

The Long-term Incentive is based on achievements of three-year targets.

2022-2024 LTI performance results

The overall achievement for the 2022-2024 Long-term Incentive was 161% of target. We exceeded the targets for all financial metrics. This Long-term Incentive is our first to incorporate the ESG metrics introduced to the Executive Board remuneration policy in 2021. We surpassed our targets for carbon emissions reduction, water efficiency improvement, and the representation of women at the Senior Manager level.

2024 STI performance results

The Supervisory Board conducted a thorough review of the performance of the CEO and CFO and their contributions to the Company's overall financial performance and the achievement of the Company's strategic objectives. The quality of progress made on the EverGreen strategy, the performance on the individual leadership objectives set for the CEO and CFO also exceeded the target level.

Governance and approval

The Supervisory Board determines the terms for any incentive plans for the Executive Board, which require subsequent approval from shareholders at the General Meeting.

In accordance with the Dutch Corporate Governance Code, the remuneration of Supervisory Board members is not dependent on the results of the Company and no incentive plans are in place for Supervisory Board members.

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

Interests and views of stakeholders

Overall approach of stakeholder engagement

Meaningful and sustained stakeholder engagement is essential to shaping and evolving our strategy and reporting. HEINEKEN's EverGreen business strategy and Brew a Better World sustainability priorities have been developed through open dialogue and engagement with both internal and external stakeholders. This approach ensures that we address the most critical issues and focus on where we potentially have the greatest impact – whether positive or negative.

Our stakeholder engagement is proactive, transparent and continuous; while listening and learning from others, we also leverage our voice, reach and influence to drive positive change.

Identification of key stakeholder groups

We recognise our stakeholders as those individuals, groups or organisations that have a direct or indirect interest in our business activities. We categorise and prioritise stakeholders based on their significance to our business and the potential impact of our actions on them.

Key stakeholders we actively engage with include, but are not limited to:

• Consumers, mostly through our brands
• Customers, including off- and on-trade partners
• Investors
• Employees and their representatives, like the HEINEKEN European Works Council
• Suppliers
• Peers within and outside the beverage industry
• Employer organisations and trade unions
• Non-governmental organisations
• International organisations, like the United Nations
• Governments and regulators, both global and local
• Communities and rightsholders, on a project-based approach

Engagement mechanisms

We continuously improve our stakeholder engagement processes, seeking ways to enhance the effectiveness of interactions and acting on stakeholder feedback when relevant.

We use various mechanisms and channels to foster effective stakeholder engagement, from listening and active involvement to joint projects and partnerships. Examples include:

• Employee engagement surveys: an annual survey of our employees to track engagement on a range of dimensions including personal development, direction and alignment, inclusion and diversity, and relations between employees and managers.
• Expert meetings and roundtables: meetings with experts from various fields including non-governmental organisations (NGOs), academic experts and representatives from peer organisations.
• Reputation research: conducted annually across 10+ top markets globally. The target audience of this custom research programme is influential consumers and it is designed to guide investment and track the impact of HEINEKEN programmes.
• Dialogue with academic institutions: collaboration with educational institutions to access cutting-edge research and insights relevant to our sustainability initiatives.
• Government engagement: engaging and partnering with government stakeholders regarding our investments, our business strategy and our determination to be a sustainable business.
• Industry platforms: working with peers in a wide range of industry platforms and roundtables – such as the Beverage Industry Environmental Roundtable – to drive systemic change and a sustainable transition.
• Global and local partnerships with NGOs and (social) enterprises to help address sustainability challenges and scale up positive impact.
• Engagements with international organisations like the United Nations Global Compact and related coalitions like the UN CEO Water Mandate and Water Resilience Coalition.
• Shareholder meetings: open and ongoing communication with investors to address concerns, gather feedback and share our sustainability progress.
• Local community engagement: engagement with local communities and rightsholders in areas where we operate to address their specific needs and concerns.

Integration of stakeholder views

This commitment to ongoing stakeholder engagement yields several benefits:

• Valuable input and feedback on our strategy and programmes
• Enhanced understanding of emerging risks and opportunities
• Strengthened reputation as a responsible and responsive organisation
• Fostering innovation and collaboration
• Alignment with industry trends and best practices

We use the insights and feedback received from stakeholders as a source of information for strategy development and decision-making. We also integrate the information into our sustainability performance assessments and reporting. This includes regularly conducting a materiality assessment to ensure our sustainability strategy and goals take into account the interests and concerns of our stakeholders.

We also have a Stakeholder Engagement Policy in place, which is available on our corporate website.

How we engaged with our stakeholders in 2024

During 2024, we held dedicated sustainability meetings with over 30 key investors including deep dives into topics like the net zero transition, watershed health and regenerative agriculture. We met with civil society and government officials and participated in open panels at the 2024 NY Climate Week, Stockholm's World Water Week and the Biodiversity COP16 in Colombia.

We participated in advocacy initiatives through the World Economic Forum (WEF), including the Alliance for CEO Climate Leaders, the UN Global Compact, the Water Resilience Coalition, RE100, the RE-Source Platform and the Dutch Sustainable Growth Coalition. We endorsed a joint letter from the Corporate Leaders Group Europe calling on the EU to set a greenhouse gas emissions reduction target of at least 90% by 2040.

We held meetings with NGOs such as Human Rights Watch and the World Wide Fund for Nature (WWF), and participated in a stakeholder roundtable on CSDDD organised by the Dutch Social Economic Council (SER). We also continued our engagement with our top suppliers in agriculture, packaging and cooling to help deliver our Brew a Better World ambitions. Additionally, we attended the UN Forum on Business and Human Rights to share our experience and challenges in operating in conflict-affected and high-risk areas with peers, civil society and other stakeholders.

We collaborated with industry peers through platforms like the Climate Pledge and the Beverage Industry Environmental Roundtable to address shared environmental issues. We also leveraged the Consumer Goods Forum, AIM-Progress, and Shift to drive collective progress in respecting human rights.

We participated in the Science Based Targets Network (SBTN) Corporate Engagement programme and the Taskforce on Nature-related Financial Disclosures (TNFD) forum, both tasked with developing methodologies for science-based targets and disclosures.

We strengthened our commitment to renewable energy by joining the Asian Clean Energy Coalition (ACEC) and the Clean Energy Buyers Association (CEBA) to enhance renewable energy access in Southeast Asia. Additionally, we became a member of the RE100/WBCSD renewable energy coalition in South Africa (RAiSE).

Important themes in 2024

Stakeholder meetings during 2024 highlighted several recurring themes. The table below summarises key questions raised by stakeholders and our corresponding responses. Stakeholder views and interests are regularly shared with relevant internal teams and steering committees to ensure alignment and informed decision-making.

Stakeholder Engagement Policy

We also have a Stakeholder Engagement Policy in place, which is available on our corporate website.

Material impacts, risks and opportunities and their interaction with strategy and business model

Double materiality assessment

HEINEKEN conducted its first double materiality assessment in 2023 to prepare for compliance with the ESRS. This comprehensive assessment will be conducted at least once every three years, with annual reviews in between. The outcome of the assessment remains valid for 2024 as no significant internal or external changes were identified that could affect the results.

A double materiality assessment has two dimensions:

• Impact materiality: sustainability topics that can significantly affect the economy, environment and people.
• Financial materiality: sustainability topics that can significantly influence HEINEKEN's development, performance or financial value.

These dimensions identify which sustainability topics are material for HEINEKEN to report on under the ESRS.

Material topics identified

The following sustainability topics were identified as material (above the threshold of 2.5 on a scale from 1 to 5 in impact and/or financial significance):

• Climate change
• Water security
• Responsible consumption
• Sustainable agriculture
• Resources and circularity
• Responsible marketing
• Labour practices and human rights
• Diversity, equity and inclusion (DEI)

Overview of material impacts, risks and opportunities

Interaction with strategy and business model

The aim of HEINEKEN's Brew a Better World (BaBW) 2030 strategy is to minimise negative impacts and risks and increase positive impacts and opportunities. The double materiality assessment concluded that the updated BaBW strategy addresses many of the same themes as identified in the assessment.

HEINEKEN's strategy prioritises three pillars:

• Environmental: Reach net zero carbon, Maximise circularity, Towards healthy watersheds and nature
• Social: Embrace diversity, equity and inclusion, A fair and safe workplace
• Responsible: Always a choice, Address harmful use, Make moderation cool

Reflecting on learnings over the past four years, HEINEKEN refined its approach and goals in June 2024. This means some goals were adjusted while others became 'business as usual' and new goals were added.

Current financial effects

The sustainability matters outlined have a financial impact on HEINEKEN's 2024 consolidated financial statements. HEINEKEN assessed sustainability-related impairments, liabilities and provisions, which are considered to be immaterial in 2024.

At the end of the reporting year, HEINEKEN has not identified any material risks and opportunities for which there is a significant risk of material adjustment to the carrying amounts of assets and liabilities in the next annual reporting period.

Resilience of the strategy and business model

HEINEKEN's strategy and business model are designed to be resilient and capable of addressing material impacts and risks while taking advantage of significant opportunities. Resilience is reflected in the comprehensive approach to managing climate-related risks and opportunities and recent assessments carried out to assess salient human rights and environmental risks throughout the value chain.

Key aspects of the resilience strategy include:

• Scenario analyses to evaluate potential effects of different future conditions
• Adaptation and mitigation efforts, including investment in sustainable brewing practices
• Reduction of carbon footprint through adoption of renewable energy sources and energy-efficient technologies
• Risk management framework incorporating climate-related risks
• Exploration of new product innovations and market opportunities aligned with consumer demand for sustainable products

Link to ESRS standards

The shortlist of material topics has been tailored specifically to HEINEKEN, with each topic linked to the ESRS framework:

Integration with EverGreen strategy

The Company launched its multi-year EverGreen strategy in 2021, aimed at delivering superior and balanced growth and future-proofing its business. Progress is measured through the 'Green Diamond' model, which aims to balance 'growth', 'capital efficiency', 'sustainability and responsibility' and 'profitability'.

Sustainability is included in the Green Diamond, as the Company believes it is important to define and realise its sustainability ambitions. Strong sustainability governance, which includes management oversight of sustainability-related impacts, risks and opportunities, is an important part of the success of the EverGreen strategy.

Description of the process to identify and assess material impacts, risks and opportunities

Overview of Double Materiality Assessment

HEINEKEN conducted its first double materiality assessment in 2023 to prepare for compliance with the ESRS. This comprehensive assessment will be conducted at least once every three years, with annual reviews in between. The outcome of the assessment remains valid for 2024 as we have not identified any significant internal or external changes that could affect the results.

A double materiality assessment has two dimensions:

• Impact materiality: sustainability topics that can significantly affect the economy, environment and people.
• Financial materiality: sustainability topics that can significantly influence HEINEKEN's development, performance or financial value.

These dimensions identify which sustainability topics are material for HEINEKEN to report on under the ESRS.

Step-by-Step Methodology

While the specific step-by-step methodology is not fully detailed in the excerpts, the process included the following elements:

1. Initial identification: The assessment involved identifying sustainability topics across the value chain.

2. Stakeholder engagement: The process included engaging stakeholders (specific details on stakeholder engagement methodology are referenced in the 'General information - Interests and views of stakeholders' section on pages 158-159).

3. Impact and risk assessment: Sustainability topics were evaluated based on impact materiality and financial materiality dimensions.

4. Scoring and prioritization: Topics were scored on a 5-point scale for both impact and financial significance.

5. Threshold application: A threshold of 2.5 (out of 5) was set for both impact and financial materiality as it represents the median value on the 5-point scoring table. Any topics scoring above 2.5 are considered to be material, while topics scoring below 2.5 are considered to be relevant, but not material for ESRS reporting purposes.

6. Confirming the results with the Executive Board: The outcomes of the double materiality assessment were presented to the Executive Board for discussion and validation. A management judgment was made to elevate two topics that were close to the materiality threshold – 'Labour practices and human rights' and 'Diversity, equity and inclusion' – into the materiality space, making them in scope of the ESRS reporting requirements.

Inputs to the Assessment

The excerpts indicate that the assessment used:

• Sector benchmarks and ESRS guidance (implied through compliance with ESRS)
• Internal experts (through the Sustainability and Responsibility Steering Committee oversight)
• Stakeholder consultation (referenced but detailed in separate section)

Material Topics Identified

The following material topics were identified (above the threshold of 2.5 on a scale from 1 to 5 in impact and/or financial significance):

Additional material topics identified include: Labour practices and human rights, Diversity equity and inclusion (elevated by management judgment).

Use of Value Chain Mapping

The assessment considered impacts across the value chain. The Company conducted an integrated salient human rights and environmental risk assessment across the value chain in 2023-2024 on the basis of the draft CSDDD and the OECD guidelines. For biodiversity, in 2024, HEINEKEN conducted a detailed nature assessment of its direct operations and supply chain to better understand the extent of nature-related impacts and dependencies, evaluating impacts on land, water and biodiversity at breweries and upstream supply chain locations.

Integration with Risk Management

The eight material topics identified through the DMA assessment have been mapped to the risks identified in HEINEKEN's overall risk management process. As part of this process, these risks—along with other relevant risks—are identified, mitigated, and monitored on an ongoing basis as part of routine business. Risk management is integrated into overall management processes.

The Executive Board of HEINEKEN is accountable for overseeing risk management, risk oversight, and the protection of the company's reputation, assets, and brands. The Board is supported by the Risk Committee, chaired by the CFO, in conducting regular reviews of the group's risk assessment cycle.

Governance Oversight

The annual reassessment of the DMA requires sign-off by the Executive Board. The Sustainability and Responsibility Steering Committee, chaired by the Chief Executive Officer (CEO), oversees the implementation of the Company's sustainability strategy. It is involved in setting and monitoring targets and responding to identified impacts, risks and opportunities.

Monitoring and Review

There is a clear governance process in place to review progress on each of the Brew a Better World ambitions and goals, including a dedicated S&R Steering Committee with senior leadership to review progress on a quarterly basis. This is supported by regional and operating company reviews, identifying areas of focus and facilitating decision making to (re)balance efforts to maximise progress. Forecasting and performance monitoring will be further embedded in 2025 to cover sustainability reported metrics beyond BaBW goals.

Annual Reassessment

The comprehensive double materiality assessment will be conducted at least once every three years, with annual reviews in between to identify any significant internal or external changes that could affect the results.

Transition plan for climate change mitigation

Scope of the plan

Our climate strategy aims to reach net zero across our value chain by 2040. The strategy covers:

• Own operations (Scope 1 and 2): Production sites, logistics operations, owned transportation, warehouses, owned offices and company-owned bars
• Value chain (Scope 3): Agriculture suppliers, packaging suppliers, other suppliers, and customers across upstream and downstream activities
• Geography: Global operations across nearly 181 sites, developed with strategic external partnerships including Siemens, Royal HaskoningDHV, NIRAS, Engie and Arcadis

The strategy requires precise planning and tailored solutions accounting for geographical, socio-political, technological and economic variations. We have developed 16 site archetypes, each representing a unique combination of renewable thermal solutions.

Target years and milestones

2030 Near-term targets:

• Scope 1 and 2: 90% CO2 reduction (net zero) compared to 2022 baseline
• Scope 3: 26% CO2 reduction compared to 2022 baseline
  • FLAG (forest, land and agriculture) emissions: 30% reduction
  • Energy-based emissions (non-FLAG): 25% reduction

2040 Long-term target:

• Net zero across Scope 1, 2 and 3

Baseline year: 2022 (all performance on carbon is now measured against a 2022 baseline)

2024 Progress:

• Scope 1 and 2: 34% reduction compared to 2022 baseline (2023: 19%)
• Scope 3: 14% reduction compared to 2022 baseline (FLAG 23%, non-FLAG 11%)

Paris alignment and SBTi validation

Our climate strategy aligns with the 1.5°C global temperature limit in the Paris Agreement. All targets were validated by the Science Based Targets initiative (SBTi) in 2023.

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.

HEINEKEN is not excluded from EU Paris-aligned Benchmarks.

Decarbonization levers and key actions

Four Rs strategy:

• Reduce: Minimize energy demand through process optimization
• Replace: Replace with renewable thermal, moving away from fossil energy to renewable and low-carbon technology
• Remove: Access high-integrity carbon removals to neutralize residual emissions
• Report: Maintain robust governance and reduction roadmaps

Scope 1 and 2 decarbonization pillars:

Energy efficiency and renewable electricity:

• Achieved 84% renewable electricity across global operations in 2024
• Secured strategic PPAs in Nigeria
• Implemented renewable electricity solutions in smaller markets (Suriname, DRC, Peru)
• Deployed first cross-border electric freight journey powered by renewable electricity with Einride

Renewable thermal energy:

• Developing custom strategies for each location
• Exploring solutions including heat pumps, sustainable biomass, renewable biogas and biomethane, and solar thermal boilers
• Partnered with Siemens, Royal HaskoningDHV, NIRAS, Engie and Arcadis
• Examples: Ethiopia invested in electric boilers; Vietnam deployed biomass boilers fuelled by rice husks

Technology and infrastructure:

• Developed financial model to evaluate projects and prioritise investments
• Reviewed technology portfolio and deprioritised solutions where cost trends remain too high

Scope 3 decarbonization pillars:

Supplier engagement:

• Supplier Leadership on Climate Transition (Supplier LOCT): 56 suppliers have established Science-Based Targets, with an additional 18 suppliers joining in 2024
• REfresh Alliance: launched with 10 beverage companies to support suppliers in accelerating adoption of renewable electricity
• Joined Asian Clean Energy Coalition (ACEC), Clean Energy Buyers Association (CEBA), and RE100/WBCSD renewable energy coalition in South Africa (RAiSE)
• Conducted six decarbonisation workshops with strategic glass suppliers and mapped over 100 initiatives across Europe, Americas and Africa and the Middle East

Agriculture (FLAG emissions):

• Low-carbon farming programme: Almost 300 projects underway trialling sustainable practices around cover cropping, no-tillage, organic matter use, and seed and fertiliser application
• Project TRANSITIONS: First large-scale regenerative agriculture programme in France with Malteurop Vivescia, supplying first barley to French market in 2025. Reached 200 farmers in 2024, aiming for 1,000 farmers by 2026 (up to 100,000 ha of land)
• Provided strategic guidance to FertigHy for upcoming low-carbon fertiliser plant in France
• Zero deforestation goal for key commodities by 2025 (barley in Mexico, sugarcane and maize in Brazil, rice in Cambodia)

Packaging and circularity (non-FLAG emissions):

• Circularity strategy focusing on: reuse, recycled content, recyclable by design
• Goal: increase recycled content in bottles and cans to 50% by 2030 (achieved 44% in 2024)
• Goal: increase volumes sold in reusable format to 43% by 2030 (achieved 39% in 2024)
• Goal: 99% of packaging recyclable by design by 2030 (achieved 98% in 2024)
• Developing circular system in Brazil with Ambipar to recycle more glass bottles than introduced into market

Logistics:

• Coolition initiative to advance refrigeration standards and promote energy efficiency

CapEx and investment commitments

With hundreds of projects to develop, we must invest strategically in the most cost-efficient and impactful initiatives. We have developed a financial model to evaluate projects and prioritise investments, strengthening cost management and helping us define future investments.

Our approach combines in-house expertise with strategic external partnerships. We are collaborating with Siemens, Royal HaskoningDHV, NIRAS, Engie and Arcadis to drive decarbonisation efforts across nearly 181 sites globally.

Specific CapEx amounts are not disclosed in the transition plan, though the company notes that 'carbon economics' vary significantly and evolve rapidly, requiring detailed investment reviews. Poorly executed investments in renewable thermal solutions could inflate energy costs for some operating companies by 15–20 times.

Locked-in emissions and stranded asset analysis

Locked-in GHG emissions are probable future emissions that would be unavoidable due to existing infrastructure and assets. HEINEKEN is working to manage assets so they do not jeopardize progress against climate ambitions.

Mergers and acquisitions of non-efficient entities may bring assets into scope that are inherently energy inefficient, necessitating robust due diligence.

Use of carbon credits and removals

Achieving net zero will require access to high-integrity carbon removals. These solutions take carbon directly out of the atmosphere and store it in a durable way, addressing residual emissions we cannot otherwise eliminate.

Current status (2024):

• Did not purchase carbon removals in 2024
• Focused on assessing opportunities on our own land, with agricultural suppliers and third-parties
• Will continue to evaluate emerging standards and implement consistent practices across the business
• Will secure carbon removals through a mix of insetting projects and external carbon credits

Market assessment: The carbon removal market is still emerging but projected to grow substantially. Options remain limited, measurement and traceability need to be improved, and prices for high-quality removal projects can be prohibitive, reflecting the early stage of this market.

Timeline: Carbon removal strategy targets 2040 for securing permanent carbon removals to address the maximum 10% residual emissions that cannot be eliminated through decarbonisation.

Delivery risks and challenges

Technology and infrastructure:

• Access to renewable thermal energy remains a significant challenge
• Barriers vary globally from fragmented energy infrastructure to gaps in regulation and policy
• These obstacles limit available solutions and make some financially unviable
• Wide variation in energy grid structures leads to significant cost differences across markets

Affordability:

• Cost diversity requires thorough cost analysis and careful assessment of financial impact
• 'Carbon economics' vary significantly and evolve rapidly

Non-linear progress:

• Future carbon reductions will not be linear
• It is too early to determine the impact of challenges on our ability to achieve our goals
• Despite this, we remain steadfast in our ambitions

Evolving standards: The GHG Protocol accounting standards for Scope 1, 2, and 3 will continue to evolve, and SBTi is expected to release new Net Zero standard 2.0 in 2025.

Internal carbon pricing

In 2024, we introduced an Internal Carbon Pricing Policy as a tool to evaluate investment decisions and drive decarbonisation. The policy is designed to internalize the cost of carbon emissions, helping us prioritize projects that deliver the greatest climate impact.

Governance and incentives

The Executive Board has approved and adopted the net zero strategy. Senior management is rewarded for reduced emissions to incentivize delivery.

Our CEO chairs the Sustainability and Responsibility Steering Committee, which oversees progress and addresses challenges. The Supervisory Board and its Sustainability and Responsibility Committee monitor the strategy, provide advice on objectives, and review performance.

Industry collaboration and advocacy

We engage in industry initiatives including:

• The Climate Pledge
• Beverage Industry Environmental Roundtable (BIER)
• Consumer Goods Forum
• World Economic Forum Alliance for CEO Climate Leaders
• UN Global Compact
• Water Resilience Coalition
• RE100 and RE-Source Platform
• Dutch Sustainable Growth Coalition

We endorsed a joint letter from the Corporate Leaders Group Europe calling on the EU to set a greenhouse gas emissions reduction target of at least 90% by 2040.

Recognition

In 2024, we were included for the third consecutive year in CDP's 'A list' for Climate Change.

Policies related to climate change mitigation and adaptation

Heineken references policies related to climate change mitigation and adaptation on page 173 of their sustainability statements. However, the provided excerpts do not contain the actual content from this page.

Internal Carbon Pricing Policy

Key content / principles:

• Heineken updated its Internal Carbon Pricing Policy in 2024
• The policy mandates operating companies to apply a shadow price for carbon for potential Scope 1 and 2 carbon emissions from investments
• Uses differentiated shadow pricing based on the International Energy Agency's (IEA) regional classifications, considering factors such as economic status, UN climate pledges, and the strength of climate policy in each country
• Carbon prices follow the IEA's Global Energy and Climate Model guidelines and are reviewed annually

Scope:

• Operating companies in all geographies must apply region-specific shadow pricing to business cases for all potential Scope 1 and 2 carbon emissions from investments, regardless of current carbon taxes in each country

Key pricing assumptions:

• Advanced economies with net zero emission pledges (e.g., EU, UK, New Zealand): €130/tCO2eq (2024-2030), €191/tCO2eq (2031-2040)
• Emerging market and developing economies with net zero pledges (e.g., South Africa, India, Singapore): €84/tCO2eq (2024-2030), €149/tCO2eq (2031-2040)
• Selected emerging market and developing economies (e.g., Brazil, Mexico, Nigeria): €23/tCO2eq (2024-2030), €79/tCO2eq (2031-2040)
• Other emerging market and developing economies (e.g., Cambodia, Egypt, Jamaica): €14/tCO2eq (2024-2030), €33/tCO2eq (2031-2040)

Monitoring implementation:

• The inclusion of internal carbon pricing in business cases was limited in 2024
• With the policy update, the company anticipates a more consistent integration of shadow pricing moving forward

Deforestation Policy

Key content / principles:

• Heineken aims for zero deforestation in key deforestation-linked commodities by 2025

Scope:

• Includes barley in Mexico, sugarcane and maize in Brazil, and rice in Cambodia

Actions and resources in relation to climate change policies

Actions to achieve Scope 1 and 2 net zero by 2030

Scope: Own operations Time horizon: Medium-term (by 2030) What it does: Meeting the Scope 1 and 2 net zero goal requires optimising processes, reducing energy demand and replacing fossil fuels with renewable energy across all sites globally. Solutions will be mixed between on-site engineering solutions and off-site procurement agreements. Expected outcomes: 90% reduction in absolute Scope 1 and 2 emissions compared to 2022 baseline, with high-quality carbon removals neutralising a maximum of 10% of residual emissions. Recent investments:

• Electric boiler investments in Ethiopia
• Heat pump investment in Hungary
• Thermal storage investment in Portugal

Actions to reduce Scope 3 emissions

Scope: Upstream and downstream value chain What it does: Strategy emphasises collaboration with suppliers to promote:

• Sustainable agricultural practices, including regenerative agriculture
• Use of low-carbon fertilisers
• Adoption of renewable energy and low-carbon technologies
• Circular packaging

Partnerships and support:

• Provide climate-focused training to suppliers
• Work with industry coalitions to enable supplier access to renewable energy projects
• Capacity-building initiatives under competitive terms

Zero deforestation commitment

Scope: Upstream value chain Time horizon: Short-term (by 2025) What it does: Aim for zero deforestation in key deforestation-linked commodities:

• Barley in Mexico
• Sugarcane and maize in Brazil
• Rice in Cambodia

Carbon removal portfolio

Scope: Own operations What it does: Adopt a portfolio of high-quality carbon removal projects to neutralise the 10% residual emissions, in line with SBTi requirements.

Internal Carbon Pricing Policy (2024)

Scope: Own operations (all geographies) What it does: Apply shadow pricing for carbon for potential Scope 1 and 2 carbon emissions from investments to support planning and evaluating investments such as renewable energy projects.

Pricing structure (€/tCO2eq):

Note: The inclusion of internal carbon pricing in business cases was limited in 2024. More consistent integration anticipated moving forward.

Resources allocated

Financial resources: Sustainability investments underlying the sustainability strategy are embedded in business operations and processes. Climate change investments relate to building breweries in net zero setup, transitioning to renewable thermal and procuring renewable electricity. These investments form part of larger investments with multiple objectives. The company notes that current ESRS guidance provides insufficient detail to identify incremental financial investment associated with specific sustainability objectives.

Uncertainties: Future spend is subject to business, regulatory, government or other developments. The full implementation of certain long-term projects (e.g., large-scale on-site renewable energy installations) is contingent upon continued financial support and strategic resource allocation. Ambitions have been integrated into strategic and annual budgeting plans.

Alignment: See EU Taxonomy section on pages 199-205 for proportion of CapEx eligible and aligned with climate change mitigation objective.

Targets related to climate change mitigation and adaptation

Heineken has established science-based climate targets validated by the Science Based Targets initiative (SBTi) as part of its net zero strategy.

Net Zero Across Value Chain (Scope 1, 2 and 3)

Net Zero in Scope 1 and 2 by 2030

Renewable Electricity Target

Scope 3 Reduction by 2030

Scope 3 FLAG (Forest, Land and Agriculture) Reduction

Scope 3 Non-FLAG (Energy-based) Reduction

Adaptation Measures

While Heineken does not have a dedicated climate adaptation policy, adaptation considerations are embedded in water management targets:

• Fully balance water used in products in water-stressed areas by 2030 (41 sites identified as water-stressed; 29% fully balanced in 2024)
• Reduce average water usage to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl worldwide by 2030 (2024: 3.0 hl/hl in water-stressed areas, 3.1 hl/hl globally vs 2018 baseline of 3.5 hl/hl)

Climate-Related Financial Integration

• Internal carbon pricing: Shadow prices applied to investments based on IEA regional classifications (€14-€191/tCO2eq depending on region and timeframe 2024-2040)
• Climate scenarios used: 1.5°C and 3-4°C pathways aligned with IPCC, IEA and NGFS models

Energy consumption and mix

Heineken reports total energy consumption and mix for 2024 in accordance with ESRS E1-5 (now E1-7).

Total energy consumption and mix

Energy intensity

• Total energy consumption per net revenue: 261 MWh/million EUR (2024)

Renewable electricity share

In 2024, 84% of electricity used in Heineken's operations came from renewable sources (2023: 77%). The market-based method is used for Scope 2 emissions accounting.

Renewable electricity contractual instruments (2024):

• Physical power purchase agreement (PPA): 42%
• Virtual power purchase agreement (vPPA): 8%
• Energy attribute certificates (EACs): 21%
• Other (e.g. retail contracts, specific projects): 29%

Scope and methodology

The energy consumption data covers Heineken's own operations across 181 sites in 60 countries. Thermal heat represents two-thirds of total energy consumption. Biogenic emissions from combustion of biogenic materials from sustainable sources totalled 525 ktonnes CO2eq in Scope 1 and 2 (reported separately from the main emissions inventory).

Gross Scopes 1, 2, 3 and Total GHG emissions

Overview

Heineken has defined a 2022 baseline for its carbon emissions. The company reports progress against Science Based Targets initiative (SBTi) validated targets, aiming for net zero across Scopes 1, 2 and 3 by 2040. Scope 1 and 2 emissions targets aim for a 90% reduction by 2030. Scope 3 is split into FLAG (forest, land and agriculture) and non-FLAG (energy-based) emissions, with respective reduction targets of 30% and 25% by 2030.

Scope 1 and 2 Emissions

Performance vs. 2022 baseline:

Note: The report states that Scope 1 and 2 emissions have been reduced by 34% compared to the 2022 baseline (2023: 19% reduction). The 2030 goal is a 90% reduction across Scope 1 and 2, with residual emissions (maximum 10%) to be covered with permanent carbon removal solutions.

Renewable electricity: 84% of electricity used in operations came from renewable sources in 2024.

Sub-breakdown: No detailed sub-breakdown by combustion type (stationary, mobile, process, fugitive) is provided in the excerpts.

Location-based vs. market-based: The report does not separately disclose location-based and market-based Scope 2 figures in the excerpts provided.

Scope 3 Emissions

Performance vs. 2022 baseline:

Note: The company reports a 14% reduction in total Scope 3 emissions vs. 2022 baseline in 2024, with contributions from both FLAG (23% reduction) and non-FLAG (11% reduction) categories. The integration of recent acquisitions in South Africa and India reshaped the raw material portfolio (more apples for cider, more rice), which has a lower carbon intensity contributing to FLAG reductions. However, integrating these businesses increased packaging emissions, affecting non-FLAG results. The packaging supplier decarbonisation programme has softened this impact.

Scope 3 category breakdown: The report does not provide a full GHG Protocol category-by-category (1-15) breakdown in absolute tCO2eq terms in the excerpts. It describes focus areas as agriculture (including purchased goods and services) and packaging, alongside logistics and refrigeration initiatives. No specific figures are given per category.

Supplier engagement: 56 suppliers have established Science-Based Targets, with an additional 18 joining in 2024. The REfresh Alliance was launched with 10 beverage companies to support suppliers in renewable electricity adoption.

Total GHG Emissions

The report does not provide a single aggregated figure for total GHG emissions (Scope 1 + 2 + 3) in absolute tCO2eq for 2024 in the excerpts provided.

GHG Intensity

No GHG intensity metric (e.g., tCO2eq per hectolitre or tCO2eq per million € revenue) is disclosed in the excerpts provided.

Biogenic CO2 Emissions

Not disclosed separately in the excerpts.

Regulated Emissions (e.g. EU ETS)

Not disclosed in the excerpts.

Methodology Notes

• Baseline year: 2022
• Target year: 2030 (interim targets for 90% Scope 1+2 reduction; 30% FLAG and 25% non-FLAG Scope 3 reductions); 2040 (net zero across all scopes)
• SBTi validation: Targets validated by Science Based Targets initiative in 2023
• FLAG definition: Forest, Land and Agriculture emissions, covering agricultural raw materials
• Non-FLAG definition: Energy-based emissions, covering packaging, logistics, and other non-agricultural sources
• Acquisitions impact: Integration of Distell and Namibian Breweries in South Africa and India acquisitions have been included in the reported figures, affecting the portfolio composition and emissions profile
• Hyperinflation accounting: Applied in Ethiopia and Haiti; related adjustments are recorded as exceptional items and excluded from organic growth calculations

Data Gaps

• No absolute tCO2eq figures for Scope 1, Scope 2 (market-based or location-based), or Scope 3 are provided in the excerpts
• No Scope 1 sub-breakdown by emission source type
• No Scope 3 breakdown by GHG Protocol categories (1-15)
• No total GHG emissions figure
• No GHG intensity metric
• No biogenic CO2 emissions
• No regulated emissions disclosure

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Phase-in exemption applied

Phased-in option applied for E1-9 (anticipated financial effects) in line with ESRS 1 Appendix C: List of phased-in Disclosure Requirements.

Specific datapoints subject to phase-in

According to the datapoint mapping table:

Policies related to water and marine resources

Heineken has confirmed that policies related to water and marine resources exist and are material to the company. The disclosure reference table (page 284) indicates that ESRS E3-1 "Policies related to water and marine resources" is addressed on page 184 of the Sustainability Statements.

However, the excerpts provided do not contain the actual content from page 184 that would detail the specific named policies, their scope, governance, content, public availability, links to international standards, or monitoring mechanisms.

The excerpts do provide context on water management approach and strategy:

• Water management in production focuses on three key areas: water efficiency, water reuse and recycling, and wastewater treatment
• All operating companies conduct annual local water security assessments to identify water risks locally, including high-water stress areas
• Every five years, a comprehensive Global Water Risk Screening is performed using the WRI Aqueduct tool
• The company has extended water risk screening to top agricultural suppliers and primary sourcing areas
• Water stewardship within the supply chain uses the Sustainable Agriculture Initiative (SAI) global principles
• 41 sites have been identified in water-stressed areas as priority until 2030
• The company employs Volumetric Water Benefit Accounting (VWBA) methodology developed by WRI

Regarding dedicated policies for water-stressed sites (ESRS E3-1 paragraph 13), the reference table indicates "N/A, all water-stressed sites are covered by a policy."

Regarding policies related to sustainable oceans and seas (ESRS E3-1 paragraph 14), the reference table confirms this is material and addressed on page 184, though the specific policy content is not included in the excerpts provided.

Without access to the actual page 184 content, the specific policy names, formal governance structures, approval processes, and detailed policy content cannot be extracted from these excerpts.

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.

Anticipated financial effects from material water and marine resources-related impacts, risks and opportunities

Phased-in option applied for E3-5 (anticipated financial effects) in line with ESRS 1 Appendix C: List of phased-in Disclosure Requirements.

Policies related to resource use and circular economy

The disclosure indicates that policies related to resource use and circular economy are addressed on page 190 of the sustainability statement. However, the excerpts provided do not contain the actual content from page 190, only the reference table mapping showing that E5-1 is reported under the section titled "Policies" on that page.

Without access to the actual page 190 content, the specific policies, their scope, governance, content, public availability, links to international standards, and monitoring mechanisms cannot be extracted from these excerpts.

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.

Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities

Phase-in exemption applied

Phased-in option applied for E5-6 (anticipated financial effects) in line with ESRS 1 Appendix C: List of phased-in Disclosure Requirements.

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.

Policies related to own workforce

HEINEKEN has established several internal policies to guide how the company addresses impacts, risks and opportunities relevant to its own workforce.

Code of Business Conduct

Policy name: Code of Business Conduct

Background: HEINEKEN aims to conduct business with integrity and fairness and respect for people, the law and company values. The Code provides a foundation for how the company works and does business, including in relation to labour practices and human rights.

Key content: The Code sets out key principles and expectations for employees. It covers a series of relevant topics including:

• Discrimination
• Harassment
• Human rights
• Fraud and corruption
• Speak Up programme

The Code defines how employees should act and behave in their daily work, towards people both inside and outside of the Company.

Scope: The Code is publicly available on the company website in more than 40 languages to ensure everyone working for or with the Company is able to read, understand and adhere to them. The Code is also supported by mandatory e-learning for employees.

Accountability: The Code of Business Conduct is overseen by the Director of Business Conduct. The company regularly evaluates the Code to ensure it still embodies company values and aligns with company strategy.

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Human Rights Policy

Policy name: Human Rights Policy

Background: Respecting people's dignity and human rights is a foundation of how HEINEKEN does business within its own operations and across the value chain. Taking action to prevent or remediate human rights issues requires multi-stakeholder collaboration and sharing expertise across HEINEKEN as well as within and beyond the industry.

International standards alignment: The Human Rights Policy is informed by international standards such as:

• Universal Declaration of Human Rights
• Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises
• United Nations Guiding Principles on Business and Human Rights

Key content: These frameworks provide the foundation of the 10 principles included in the policy:

1. Health and safety
2. Non-discrimination
3. No harassment and violence
4. Child protection
5. Freedom of association and the right to collective bargaining
6. No forced labour (including human trafficking)
7. Rest and leisure
8. Fair wages and income
9. Access to water
10. Respect for human rights in high-risk contexts

Scope: The company expects its employees, management, individuals working for HEINEKEN through third-party contracts, suppliers and business partners to respect human rights in line with this policy.

Accountability: Human rights is overseen by the Chief People Officer, who also chairs the Global Integrity Committee. As part of the governance structure, the Executive Board, S&R Steering Committee and Supervisory Board receive regular updates to align on strategy and report on progress and challenges. Where human rights audits have been conducted in operating companies, non-compliances are incorporated into the global issue management framework.

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Speak Up Policy

Policy name: Speak Up Policy

Background: HEINEKEN expects everyone to act responsibly and with integrity. If people experience, witness or suspect something that may violate the Code of Business Conduct, they are encouraged to speak up. This enables HEINEKEN to deal with the concern and helps to protect people, the Company and workplace.

Key content: The policy:

• Explains the importance of speaking up
• Provides specific information on when and how to speak up
• Explains what people can expect when they speak up, including the company's commitment to confidentiality and non-retaliation

Scope: Employees and all interested stakeholders can report concerns through the internal Speak Up service. The Speak Up Policy is available to all employees through the Business Code of Conduct communication.

Accountability: The Speak Up Policy is overseen by the Global Integrity Committee, which is chaired by the Chief People Officer. The company regularly evaluates the Speak Up Policy to ensure it still embodies company values and aligns with company strategy.

Monitoring: The Speak Up framework is managed and monitored by the Global Integrity Committee and a Global Speak Up Review Team. The Integrity Committee oversees the effective implementation and application of the HEINEKEN Speak Up framework and primarily ensures that (alleged) violations of the Code of Business Conduct and/or its policies are appropriately and consistently handled and investigated.

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Non-Discrimination Policy

Policy name: Non-Discrimination Policy

Background: HEINEKEN aims to foster a culture where diversity is embraced and celebrated. The company believes that diverse and inclusive teams ignite diversity of thoughts, greater innovation and better performance. Discrimination is not tolerated. Everyone is valued fairly and equally, so that every individual can reach their full potential.

Key content: Non-discrimination is covered under the Code of Conduct. Specifically, employees should:

• Treat everyone equally and fairly, without distinction according to but not limited to: race, colour, gender, sexual orientation, religion, national or social origin, age and disability
• Respect the individual identity and diversity of others and enable everyone to share without the fear of negative consequences
• Communicate inclusively and avoid coming across in a way that could hurt others
• Challenge and speak up about discriminatory, non-inclusive or unequitable behaviour

Scope: Own employees

Accountability: The Code of Business Conduct is overseen by the Director of Business Conduct, and diversity, equity and inclusion is overseen by the Chief People Officer through the Senior Director Global Talent and Leadership.

Monitoring: Monitoring of the Non-Discrimination Policy is embedded in the current risk management and internal control system.

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Heineken Life Saving Commitments

Policy name: Heineken Life Saving Commitments

Background: These commitments provide HEINEKEN employees and anyone working on behalf of HEINEKEN (employee or contractor) with the commitments and actions to follow and to guarantee safety at work, protecting physical integrity and, ultimately, life.

Key content: The 12 commitments are based on the operations' highest risk activities and are mandatory for anyone working on behalf of HEINEKEN (employee or contractor) on or off HEINEKEN's premises. The company wants to ensure that everyone is empowered to stop work and speak up when work can't be executed safely or it is not possible to adhere to the Life Saving Commitments.

Scope: Applies to all HEINEKEN operating companies

Accountability: The Chief People Officer is responsible for the approval of this policy.

Monitoring: Monitoring of the life saving commitments is embedded in the current risk management and internal control system.

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Brand Promoters Policy

Policy name: Brand Promoters Policy

Background: This policy establishes the principles and guidelines for the deployment of Brand Promoters. HEINEKEN commits to taking further steps to address and improve the working conditions of Brand Promoters with agencies, outlet owners and joint-venture partners as well as other companies in the industry. The company desires to increase Brand Promoters' opportunity to develop in their careers and to build more gender-diverse teams.

Key content: There are seven principles in the Brand Promoters Policy:

1. Brand Promoter safety comes first
2. Support is always available
3. Training is mandatory
4. There are no exceptions
5. Management is always responsible
6. Agencies must conform to our Policy and outlets must be informed of our Outlet/Brand Promoters Standards
7. We regularly monitor compliance

Scope: Brand Promoters working on behalf of a brand owned by or licensed to HEINEKEN, its subsidiaries or joint ventures

Accountability: The operating company Managing Director is accountable to ensure that the policy is fully applied.

Monitoring: Monitoring of the Brand Promoters Policy is embedded in the current risk management and internal control system.

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Diversity Policy

Policy name: Diversity Policy of the Supervisory Board, Executive Board and Executive Team

Background: Diversity is a key part of HEINEKEN's workforce strategy. The Policy was updated in December 2021 and is available on the corporate website.

Key content: The Policy considers the elements of a diverse composition in terms of nationality, gender, age and background, including expertise and experience. It is the aim of the Company to reflect this in the composition of the Supervisory Board, Executive Board and Executive Team.

Targets: For the Executive Board, the aim is that it comprises of at least 30% male and at least 30% female members. Currently, the Executive Board is composed of two male members. It is recognised that the current composition leaves room for improvement on gender diversity, however, the composition is also impacted by the limited size of the Executive Board.

Scope: Supervisory Board, Executive Board and Executive Team

Accountability: Appropriate weight is placed on diversity considerations in the selection and appointment process for the Executive Board, while taking into account the overall profile and selection criteria.

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Non-Retaliation Policy

Policy name: Non-Retaliation Policy

Scope and key content: HEINEKEN does not tolerate any form of retaliation against anyone for speaking up in line with the Non-Retaliation Policy. Retaliation is a violation of the Code of Business Conduct and will lead to disciplinary action.

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Additional implementation measures

HEINEKEN also has implementation guidelines and requirements for operating companies:

Child labour prevention:

• Operating companies are required to only employ individuals that meet the legal minimum working or legal purchasing age (whichever is highest)
• Operating companies are expected to have a system in place to check official documentation that proves an employee's age at the time of hiring
• Operating companies have been provided with a guideline on 'what to do if child labour is identified'

Forced labour prevention: Operating companies are expected to adhere to the following implementation standards to prevent forced labour:

• All work must be conducted on a voluntary basis, with no coercion of any employee through any means
• Government-issued identification, passports or work permits are not withheld from employees or kept on company premises for safekeeping. Copies can be taken, and originals returned to the employee
• Employees are not required to pay recruitment fees, or any form of deposit
• Every employee has freedom of movement (employees are not locked into the production facility or accommodation)
• Terms and conditions of employment are documented, meet local law and are made available in a language understood by employees
• Wages are paid directly to employees and all earned benefits and wages are paid to employees upon termination of employment

Freedom of association and collective bargaining: Operating companies must:

• Ensure that employees are made aware of their rights to freedom of association and collective bargaining
• In countries and/or situations where the legal system prohibits or severely restricts the right of freedom of association, support the establishment of alternative means to facilitate the effective representation of employee interests and communication between employees and management

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Due Diligence roadmap

As part of its value chain due diligence roadmap, HEINEKEN is working on further embedding due diligence in its policy framework, including:

• Development of a new Due Diligence Policy
• Updating the existing Human Rights Policy
• Updating the Supplier Code

Once available, the Due Diligence Policy will be made public.

Characteristics of the undertaking's employees

Headcount and FTE

Gender diversity

Heineken achieved its 2025 goal a year early by having 30% of women in senior management in 2024. The company continues to work towards 40% by 2030 on the path to gender balance.

Supervisory Board composition - Gender:

• Male: 59% (weighed average: 60%)
• Female: 41% (weighed average: 40%)

Gender pay gap: 2.3% in favour of men at the global level in 2024 (compared to a 5% threshold established by the EU Pay Transparency Directive).

Supervisory Board composition - Nationality

Supervisory Board composition - Tenure

Fair wages

In 2024, 99.2% of employees were assessed against the Fair Wage Network benchmark. 99.7% of assessed employees earned at least a fair wage, with the remaining 0.3% located in Singapore.

Employment contract and working conditions

Third-party employees and Brand Promoters: 43% of operating companies have been assessed for compliance with global standards for third-party employees and Brand Promoters (target: 100% by 2030).

Regional and operational presence

The Company operates globally with operations in Africa and Middle East, Americas, Asia Pacific, and Europe regions. Each Regional President provides oversight for performance, growth, productivity and sustainability developments in their regions.

Diversity composition of Supervisory Board

Current composition: 40% (four out of ten) of the Supervisory Board members are female. Six out of ten members are non-Dutch. Six nationalities represented (American, British, Dutch, German, Indian and Spanish). Age ranges between 55 and 80.

Notes on methodology

• Average FTE is reported for the financial year
• Fair wage assessments are conducted annually against Fair Wage Network benchmarks
• Gender diversity targets are aligned with the Diversity Policy and measured against senior management levels
• Supervisory Board composition percentages are based on ten members as of year-end 2024

Characteristics of non-employees in the undertaking's own workforce

Disclosure Status

Heineken has applied the phase-in exemption for ESRS S1-7 in accordance with ESRS 1 Appendix C: List of phased-in Disclosure Requirements.

As stated in the reference table (page 285): "Phased-in option applied for S1-7 in line with ESRS 1 Appendix C: List of phased-in Disclosure Requirements."

Partial Information Available

While comprehensive S1-7 metrics are not disclosed, the following information regarding non-employee workers is provided:

Contractor expenses (2024):

• Total contractor expenses: €167 million (2023: €176 million)
• These expenses are included within "Other personnel expenses" in note 6.4 Personnel expenses

Brand Promoters:

• Heineken has a dedicated Brand Promoters Policy covering "Brand Promoters working on behalf of a brand owned by or licensed to HEINEKEN, its subsidiaries or joint ventures"
• The policy establishes seven principles for deployment and working conditions
• Brand Promoters are mentioned as part of the workforce covered by safety and human rights commitments

Safety Data:

• Total recordable injuries of contractors: 193 (2023: 198)
• Fatalities of contractors: 1 (2023: 1)

Scope Definition: As stated on page 208: "Non-employees workers work for HEINEKEN entities, but are employed by an outsourced service provider (OSP) that has been directly contracted by HEINEKEN, and are therefore not on the payroll, nor are they contractually employed by a HEINEKEN entity."

The company notes: "Our ambition to ensure fair living and working conditions covers our employees and also certain non-employees workers. For 2024, we apply the ESRS phase-in exemption and do not report on non-employee workers."

Collective bargaining coverage and social dialogue

Coverage metrics

In 2024, 83% of employees in the European Economic Area were covered by a collective bargaining agreement.

All European operating companies are represented under the Heineken European Works Council Agreement (timeline 2022-2026).

Social dialogue framework

European Works Council (EWC) Agreement: Signed by the Executive Board, this agreement provides a framework for information and consultation on transnational matters affecting employees in the EU.

Responsibility: The Chief People Officer is responsible for the effective management of the EWC, with operational support provided to the EWC's Select Committee by the Global Director Social Sustainability.

Policies and processes

Globally, where employees are represented by a legally recognised union, HEINEKEN establishes constructive dialogue with freely chosen representatives and engages in good faith. In countries where the legal system prohibits or severely restricts freedom of association, the company supports the establishment of alternative means to facilitate effective representation of employee interests and communication between employees and management.

People Principles: In the European Economic Area (EEA), HEINEKEN has developed People Principles together with the European Works Council. These set minimum standards and expectations for employees potentially impacted by transnational change programmes, including those resulting from the transition to a climate-neutral economy. The principles cover information and consultation, roles and responsibilities, training, workload and dismissal arrangements.

Protection of employee representatives: People Directors in operating companies are responsible for ensuring no harassment, discrimination or violence against employee representatives and members, protecting their safety and rights. This equally applies to employees who choose not to affiliate with a trade union. People Directors ensure there is no interference with legal activities of employee representatives. Employees freely select their own representatives – representatives are not appointed by management.

Methodology

S1-8.60a.1: Actual headcount of HEINEKEN employees covered by collective bargaining agreement at the end of reporting period divided by the actual headcount of HEINEKEN employees, presented in %.

S1-8.63: Number of employees covered by workers' representatives (per country) divided by total number of employees (per country) x 100.

Collective bargaining agreements were assessed as per the third quarter of 2024.

Scope limitations

Phased-in option applied for DR60c and 61, and AR 66-68 and 70, with regards to employees based in non-EEA countries in line with ESRS 1 Appendix C: List of phased-in Disclosure Requirements.

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.

Adequate wages

Benchmark used

Heineken uses the Fair Wage Network (FWN) as its benchmark for adequate wages. The FWN is described as "an independent NGO that has developed an economically rigorous standard and methodology to assess, develop and optimise wage policies on multiple dimensions covering all wage indicators."

The company defines a fair wage (not minimum wage) as: "A wage that supports a decent standard of living for an employee and his/her family and is reasonable for the type of work done and sufficient to meet an employee's basic needs for food, shelter, education for their children and some discretionary income. Fair wages also take into account factors such as family size, number of individuals employed per family and hours worked. Fair wage is not structurally dependent on variable factors, such as working overtime or incentive pay."

Coverage

• 99.2% of employees were assessed against the Fair Wage Network benchmark in 2024
• 99.7% of the assessed employees earned at least a fair wage according to Fair Wage Network
• The remaining 0.3% below the fair wage threshold were located in Singapore

Geographic scope

Global assessment across all operating companies. The 2024 assessment expanded to include recently acquired entities.

Singapore case: For Singapore specifically, Heineken found that the Fair Wage Network's 2024 increase "significantly surpassed changes in the consumer price index and other relevant indicators." As a result, some employees who were above the threshold in 2023 fell below it in 2024. Heineken conducted an additional benchmark analysis using Singapore's Progressive Wage Model (developed by a tripartite committee of unions, employers and government), which confirmed that 100% of Singapore employees earn a fair wage according to this model.

Exclusions

• Consolidated entities with less than 50 FTEs are not included in the assessment
• Non-employee workers (third-party employees and Brand Promoters) are covered under a separate initiative

Targets and commitments

Goal: "Continue to confirm 100% of our employees earn at least a fair wage" (ongoing annual target)

Progress:

• 2023: Achieved 100% of employees earning at least a fair wage
• 2024: 99.7% of assessed employees earning a fair wage (99.2% of total workforce assessed)

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

Third-party workers: Separate goal to "create fair living and working standards for third-party employees and Brand Promoters by 2030." In 2024, 43% of operating companies were assessed for compliance (2023: 38%).

Methodology details

Assessment process:

• Annual fair wage assessments across all operating companies using Fair Wage Network tools and methodology
• Assessments started in 2021 with a step-by-step approach in developing countries
• Rolled out to all countries in 2022
• Expanded to recently acquired entities in 2024

Fair Wage Network methodology:

• Data source covers 200+ countries, updated annually
• Based on synthesis of available fair wage data, supplemented by FWN's own assessments
• FWN collects all possible and reliable living wage thresholds, complemented by legal minimum wage levels
• FWN harmonises methods to make thresholds more comparable and calculates an average mean of all thresholds
• Fair wage threshold defined per individual country using the FWN assessment tool

Dynamic process: Heineken states: "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."

Frequency: Annual reassessment

Contractors: Not included in the employee fair wage assessment; third-party employees and Brand Promoters are assessed separately under a different program (43% of operating companies assessed in 2024).

Social protection

We are dedicated to ensuring that our workforce is covered by social protection programmes to safeguard well-being.

We have assessed social protection coverage for major life events like sickness, unemployment, employment injury and acquired disability, parental leave and retirement for 72% of our own workforce. These assessments considered the statutory coverage in each country as well as the additional coverage offered by our operating companies.

Coverage by life event

Our findings indicate that all of the evaluated employees have access to social protection for the major life events of:

• Sickness
• Employment injury and acquired disability
• Parental leave
• Retirement

Provided they meet the standard local eligibility criteria, such as age or a minimum work history, in line with local regulations and market practices.

Unemployment protection - exceptions

For unemployment protection, we identified that Mexico and Nigeria are exceptions, as there are no general local provisions to safeguard against loss of income in these areas and unemployment protection is not a common market practice in these countries.

Methodology

Social protection coverage is assessed in two parts:

• Initial assessment and inventory of public programs providing social protection for each of the major life events defined by ESRS per country. This assessment was performed by third-party experts.
• If local regulation does not provide social protection, then an assessment of additional programs offered by HEINEKEN is performed.
• If neither statutory coverage nor additional programs provided by the Company are available, this is disclosed.
• The assessment was performed for the 15 countries with the highest employees number.

Assumptions and limitations

• Eligibility criteria, such as age and minimum work history, may apply according to local regulations and market practices. These criteria may exclude broadly defined groups such as temporary workers or seasonal workers.
• The extent to which HEINEKEN employees meet these criteria has not been assessed.

Health and safety metrics

Coverage of health and safety management system

100% of employees are covered by HEINEKEN's health and safety management system. The company operates under the HEINEKEN Life Saving Commitments (LSCs) which apply to all employees, temporary workers and contractors across all operations.

Fatalities

The company deeply regrets that two persons lost their lives while working for them in 2024. A sales team member in the Bahamas was involved in a head-on vehicle collision which resulted in his death. A contractor working in performing floor painting activities in the Ecuador brewery suffered an electric shock resulting in his death. An independent investigation team thoroughly investigates every fatality to identify and understand the root cause.

Recordable work-related injuries

There were 978 injuries (2023: 1,073) that resulted in 651 (2023: 735) injuries with lost time cases among employees and temporary workers. Of these injuries, 488 were in logistics and distribution, 134 in commerce, 314 in production and 42 in other functions. The main types of work-related injuries are slips or falls, injuries while lifting or carrying objects, cuts by sharp objects (e.g. glass) or collisions (e.g. forklifts).

Days lost

Not disclosed. ESRS S1-14.88(e) on number of days lost to injuries, accidents, fatalities or illness is noted in the datapoint disclosure table (page 249) as "No" for disclosure.

Scope and methodology

• Coverage includes production sites (breweries, plants and wineries) and owned logistics.
• All work-related accidents of permanent or temporary personnel occurred on premises owned or rented by HEINEKEN and in HORECA (hotels, restaurants and cafés), plus accidents occurring outside premises during outlet visits, business travel, participation in courses or visits to conferences and fairs.
• Accidents during commuting activities are excluded.
• Accidents as a result of physical assault and violence/intimidation are excluded.
• Professional (medical) judgement is applied in classifying incident type and severity.
• A conservative approach is followed for fatalities: in cases where there is insufficient information on causes or circumstances and the conclusion of local authorities is not clear, the case is considered work-related.

Work-life balance metrics

Employee entitlement to family-related leave

HEINEKEN assessed 72% of its own workforce for family-related leave coverage. The overall entitlement to all four types of family-related leave defined by ESRS is 68%.

Carer's leave is not offered to employees in Brazil, Egypt, India, and Nigeria, where this type of leave is not a common market practice. However, carer's leave is available to all other evaluated employees. 100% of assessed employees are entitled to maternity or paternity leave, as well as parental leave.

Usage of family-related leave (by gender)

Not disclosed. Heineken applied the phased-in option for DR 93b (usage of family-related leave) in line with ESRS 1 Appendix C.

Return-to-work rate after parental leave (by gender)

Not disclosed.

Methodology

Family-related leave coverage was assessed in two parts:

• Assessment and inventory of public programs offering family-related leave as defined by ESRS per country, performed by external party experts
• If statutory coverage is found to be insufficient, inventory and assessment of additional programs offered by HEINEKEN
• The assessment was performed for the 15 countries with the highest employee numbers
• Employees are counted as part of the total number reported for family-related leave only when all four types of family-related leave are available in the respective country
• Eligibility criteria, such as age and minimum work history, may apply according to local regulations and market practices. The extent to which HEINEKEN employees meet these criteria has not been assessed.

Compensation metrics

Pay gap

Heineken reports two distinct gender pay gap figures:

Total gender pay gap: 28.4% in favour of women (2024)

The total gender pay gap refers to the average difference in pay between men and women for all employees in the company. This figure primarily reflects the workforce profile of the Company and the industry in which it operates. Heineken has a significant number of male employees in brewery roles in developing countries, where pay levels are generally lower. Consequently, the average pay for male employees at the Company is less than that of their female counterparts, resulting in a total pay gap that favours women.

Equal pay for equal work gender pay gap: 2.3% in favour of men (2024)

This figure compares pay for female and male colleagues within similar roles within the same country. All operating companies globally are dedicated to delivering, monitoring and evaluating local action plans to close identified pay disparities between female and male colleagues. Action plans target gender representation, equal opportunities for promotion and gender balance in management teams.

The equal pay gap of 2.3% 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.

Remuneration ratio

Heineken discloses two remuneration ratios due to different regulatory requirements:

CSRD/ESRS ratio: The remuneration ratio of the highest-paid individual (CEO) to the median annual total remuneration for all employees (excluding the highest-paid individual) is 402 to 1 (2024).

SRD/DCGC ratio: The CEO pay ratio based on average employee remuneration is 186 to 1 (2024). For the CFO, this ratio was 103 to 1.

Methodology

Total gender pay gap: Calculated as the average difference in pay between men and women for all employees in the company.

Equal pay for equal work: Compares pay for female and male colleagues within similar roles within the same country. First, the difference in average Relative Salary Position (RSP) levels between female and male employees for each salary grade in each operating company is determined, expressed as a percentage of the average RSP level of female employees in that grade. Then, these differences are combined in a weighted manner to derive the overall, company-wide equal pay for equal work gender pay gap.

CSRD remuneration ratio:

• Highest-paid individual's annual total remuneration for 2024: €7,171,143 (includes base salary, 2024 short-term incentive, 2022-2024 long-term incentives, pension contributions and other emoluments)
• Median employee annual total remuneration: €17,854 (based on annual base salary, short-term and long-term bonuses and cash incentives payable for fiscal year 2024, and employee benefits)

Heineken has a wide geographical footprint, with the majority of its business and employees located in developing countries, where pay levels and structures differ widely from those generally observed in developed countries. The Company also has a large number of breweries and in-house sales forces across the world. As a result, the median total remuneration is notably different from the average total remuneration, explaining the significant variance between the CSRD ratio (402:1) and the SRD/DCGC ratio (186:1).

Scope: Consolidated entities with less than 50 FTEs are not included in the assessment. Total compensation factor is applied to employees' base salary to estimate the total compensation for each employee.

Incidents, complaints and severe human rights impacts

Work-related incidents and complaints

HEINEKEN reports incidents through its Speak Up framework. All incidents reported below were substantiated or partly substantiated after thorough investigation. Where appropriate, corrective and preventive actions were taken, including awareness-raising, training, coaching and disciplinary measures ranging from issuance of a warning to termination of employment.

Fines, penalties and compensation

There were no material fines, penalties and compensation damages for (severe) social and human rights incidents.

Definitions

Discrimination incidents: All cases reported and substantiated or partially substantiated via Speak Up with the following issue types: discrimination and harassment.

Social and human rights complaints: All cases reported and substantiated or partially substantiated via Speak Up with the following issue types: labour rights, other human rights, and retaliation.

Severe human rights issue: All cases reported and substantiated or partially substantiated via Speak Up with the following issue types: other human rights – labour rights – child protection, and other human rights – labour rights – no forced labour.

Methodologies

• Actual number of harassment and discrimination incidents that are substantiated or partially substantiated
• Actual number of substantiated or partially substantiated (i) child labour and (ii) forced labour cases
• Actual amount of fines, penalties and compensation paid for damages imposed by a third party related to 'social and human right incidents' and 'severe human rights incidents'
• The metrics only include incidents reported that are substantiated and partially substantiated
• Professional judgement applied in classifying incident type and severity

Workers in the value chain

No severe human rights cases were reported in 2024 for workers in the value chain.

Policies related to consumers and end-users

The excerpts reference that ESRS S4-1 disclosure on "Policies related to consumers and end-users" is reported on page 234 of Heineken's sustainability statements. However, the actual policy content from page 234 is not included in the provided excerpts.

The index table indicates:

• ESRS S4-1 (requirement 16): Policies related to consumers and end-users - marked as disclosed ("Yes") with reference to "Policies" on page 234
• ESRS S4-1 (requirement 17): Non-respect of UNGPs on Business and Human Rights and OECD guidelines - marked as disclosed ("Yes") with reference to "Human Rights Policy principles relevant to consumers" on page 234

This suggests that Heineken has policies addressing consumers and end-users, and that these policies incorporate Human Rights Policy principles aligned with the UN Guiding Principles on Business and Human Rights (UNGPs) and OECD guidelines. However, without access to page 234, the specific policy names, scope, governance, content, and implementation details cannot be extracted from the provided excerpts.

Taking action on material impacts on consumers

Digitalising route to consumer

Action: eazle eB2B platform

• Description: Brand name and identity for eB2B platforms aimed at making customers' business easy through an integrated, end-to-end platform across all key touchpoints to reimagine the customer experience
• Scope: Downstream value chain (customers and outlets)
• Status: Launched in four markets as of 2024
• Outcomes achieved in 2024:
  • Close to €13 billion in gross merchandise value
  • 670,867 active customers connected
  • 70% of fragmented trade revenue (up from 60% in 2023)
  • Customer NPS scores increased to 68 in 2024
• Resources: Not quantified in monetary terms; "continued investment" mentioned

Action: Connected outlets and smart solutions

• Description: Experiments with connected outlets to automate stock replenishment in bars; investment in shelf image recognition technology to help retailers optimize inventory
• Scope: Downstream value chain (retailers and bars)
• Resources: "Continued investment" mentioned (not quantified)

Consumer engagement applications

Action: Player 0.0 app

• Description: Consumer-facing application embedded in gaming community, leveraging ambassador Max Verstappen through Formula 1 campaign
• Scope: Downstream (consumers)
• Outcomes: Delivered brand growth and generated valuable first-party consumer data to optimize media spend and marketing activations

Action: Hei! app

• Description: Application helping consumers in cities organize social events effortlessly and discover new experiences and venues
• Scope: Downstream (consumers)
• Outcomes: Delivered brand growth and generated valuable first-party consumer data

Data privacy protection

Action: Privacy protection investments

• Description: Continued investment in providing necessary privacy protection around consumers and their data in all markets
• Scope: Own operations and downstream
• Resources: Not quantified

Product safety and quality assurance

Action: Company-wide Quality Assurance program

• Description: Comprehensive program addressing employee competencies, production standards, recipe management, supplier governance and production material risk management
• Scope: Own operations and upstream (suppliers)
• Components:
  • Food Safety Management System certified under GFSI standards: 97% of breweries certified as of 2024
  • Quality Management System certified under ISO9001: over 90% of breweries certified as of 2024
  • All raw, auxiliary and packaging materials sourced from approved suppliers meeting Production Material Specifications
  • Global recall and crisis procedures in place
  • Compliance ensured through self-assessments and Global Supply Chain compliance audits
  • Annual integrity surveys checking final products for known contaminants
• Resources: Not quantified

Action: Collaboration with external partners on emerging risks

• Description: Working closely with partners, suppliers and external scientific institutions to implement preventive measures and stay ahead of emerging legislation and risks
• Scope: Own operations and upstream
• Resources: Not quantified