Case Study: Sustainable Development Heineken N. V.

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5. Case study sustainable development Heineken N.V. On strategic level, Heineken states different business priorities, which are shown in Figure 8 (Heineken N.V., 2015) in Appendix H. One of these priorities is ‘Embed and integrate sustainability’, which is elaborated in yearly sustainability reports, different policies and case studies. In 2010 Heineken started a long term sustainability approach ‘Brewing a Better Future’ (adapted in 2015 to ‘Brewing a Better Future’). The focus in this approach is on four areas: protecting water resources, reducing CO2 emissions, sourcing sustainably and advocating responsible consumption (Heineken N.V.), this focus and the different values of Heineken towards sustainability are given in Figure 9: Sustainability…show more content…
4) in appendix H. As stated under the explanation of CSV, a company should be valued based on the environmental, societal and financial values. This is being contradicted by this strategic focus. This is also motivated by the management structure of Heineken. Sustainability should be horizontally and vertically integrated in this structure to be able to implement the environmental, societal values on the same magnitude as the economic values. The organizational position of responsibilities towards sustainable development are shown in Figure 11: Governance model sustainability (Heineken N.V., 2015) in appendix H. The Corporate Affairs Committee is located in the Executive Committee and is represented by the Chief Executive Officer, Chief Corporate Relations Officer, Chief Supply Chain Officer, President Western Europe, Chief Marketing Officer and President Americas (Heineken N.V.). The manager global sustainable development is hierarchical under this committee located. If the company would be valued based on its environmental, societal and economic values, it would be expected that the manager for global sustainable development would be located in the corporate affairs committee. This can result in a sustainable development which is mostly focused on improving the public relationships instead of improving the environment and society, an issue which is…show more content…
However Heineken states only once that it is using LCA for calculating the environmental impact of packages on the environment (Heineken N.V., 2015), which resulted in 134 new packaging types to the tool. This indicates the missed opportunity of Heineken to not use LCA on a broader basis, in which the whole process is assessed, as well from Heineken as from its suppliers. It seems Heineken does not efficiently counter environmental issues in the whole supply chain. This is also driven because the CO2 emissions reduction is based on scope 1 and scope 2 of the GHG protocol, which says it is calculated for ‘the direct emissions and indirect emissions, such as extraction and production of electricity, heat or steam’. However it does not take into account scope 3, which are the ‘other indirect emissions such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles, not owned or controlled by the reporting entity’ (Greenhouse Gas
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