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Generating economic and social valueWe set a new record this year with our best financial performance to date. For the year ended 30 september 2012, Group revenue increased 13% to s$3.35 billion and profit before interest, taxation and exceptional items (pbit) was 25% higher at s$768.7 million. attributable net profit before exceptional items (apbe) grew 30% to s$394.8 million, while attributable net profit after exceptional items increased 7% to s$366.2 million. net dividend yielded was s$1.15 per share, 14% higher than 2011.
We owe our good results to our extensive footprint in asia pacific and the Group’s portfolio of well-loved beer brands, underpinned by our focus on strategic organic growth, brand investments as well as excellence in brewing and market execution. our acquisition of a 51% stake in Mongolian beverages Company pte ltd in august also compounded our growth.
Foreword
Despite our strong regional presence, we recognise that our business is highly localised. We brew our beers locally and they are also sold and consumed in the same community. For apb to be successful, we need the societies in which we operate to do well and be stable. as such, we work to build strong local businesses that value-add to local economies, stimulate social development and be more resource efficient so that we do not compete unnecessarily with the local communities on scarce resources and compromise the well-being of future generations.
Leveraging a lineage of sustainable development We opened a new chapter on 15 november 2012 when Heineken international b.V. (Heineken) completed the acquisition of Fraser and neave limited’s direct and indirect interests in apb. this brings Heineken’s total shareholding in apb to 95.3%. Heineken has made a mandatory general offer for all apb’s shares that it does not already own and apb will then be delisted.
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With the change of ownership, i anticipate a stronger focus on operational and alcohol responsibility as we give the same emphasis as Heineken to address sustainability issues and report our progress in an annual sustainability report. Heineken’s sustainability programme, ‘brewing a better Future’, will be our impetus to become a greener and more responsible brewer. Moving forward, i foresee building on Heineken’s focused approach and systems to manage sustainable development while delivering on our promise to be more efficient in our water, energy and waste management as well as to maintain high product quality and promote alcohol responsibility. We also promise to develop staff, empower and invest in communities where we operate.
Making sustainable development inclusiveour business affects different people in many varied ways. to understand our impact on stakeholders better, we continue to give emphasis to our engagement with them so that we address critical concerns and issues inclusively and in turn, more effectively. this year, our engagements ranged from focus groups and on-line surveys with employees to one-on-one interviews with
ForeWorD (Cont’d)
government representatives as well as meetings with non-governmental organisations (nGos), trade associations and social aspects organisations (saos). each year, we map stakeholders’ concerns with the company’s priorities. this process allows us to identify areas that are most material to the company and helps us prioritise our resources to address them. this year our top 5 risks identified are product safety and hygiene, water management, responsible drinking, staff alcohol responsibility and energy saving. the report addresses each of these.
Brewing a better future is a business fundamentalWe have aligned our sustainability agenda to our corporate values as it makes sense for us to stay true to our business fundamentals as we pursue sustainable development. We also continue to harness Group-wide expertise across different business functions so that we work collectively as a company to pursue tangible benefits for our business and the societies in which we serve.
a clear priority for us in 2013 is to put in place systems and processes to ensure the successful
integration of apb and Heineken. stakeholder engagement, particularly with employees, will feature more prominently so that we stay focused on our sustainability roadmap while we address challenges that may arise during this period of transition. amongst them is the long-term economic strife in europe and america which we anticipate may dampen the business outlook for asia and add pressure to our business success.
this is our second year of formal sustainability reporting. While we celebrate our successes, we also acknowledge where we can do better. We welcome your comments on our performance so that we continue on our path to build inclusive growth and a sustainable future for ourselves and the communities in which we operate.
roland PirmezChief executive officer
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Headquartered in singapore, asia pacific breweries limited (apb) is one of the leading breweries in the asia pacific region and is listed on the singapore exchange1. the company was jointly owned by Fraser & neave limited (F&n) and Heineken international b.V. (Heineken). on 15 november 2012, Heineken completed the acquisition of F&n’s direct and indirect interests in apb, bringing Heineken’s total shareholding in apb to 95.3%. With the completion of this transaction, Heineken has made a mandatory general offer for all the shares of apb that Heineken does not already own, and apb will subsequently be delisted.
asia pacific breweries has a network of 30 breweries in 14 countries and markets our beer in
60 countries. the Group’s winning portfolio of over 40 beer brands and variants includes global brands such as tiger and Heineken as well as leading regional and local brews such as anchor, abC extra stout, baron’s strong brew, bintang, biere larue, bison super strong, Cheers, Monteith’s, namkhong, number one, sengur, solbrew, sp lager, south pacific export lager and tui.
tiger beer was first brewed in singapore in 1932 and is now available in 60 countries. asia pacific breweries represents Heineken in nine countries in asia pacific including singapore, China, indonesia, laos, Malaysia, new Caledonia, new Zealand, thailand and Vietnam. our diverse brand mix ensures that we cater to varied consumer needs for any occasion. asia pacific breweries also has 1 Statement is accurate at the time of publishing the report.
a majority shareholding in Mongolian beverages Company pte ltd.
For the year ended 30 september 2012, our Group revenue was s$3.35 billion with profit before interest, taxation and exceptional items (pbit) of s$768.7 million. attributable net profit before exceptional items (apbe) was s$394.8 million, while attributable net profit after exceptional items was s$366.2 million. net dividend yielded was s$1.15 per share.
More information on our financial performance and corporate governance practices can be found in our annual report 2012 which can be downloaded from our website, http://www.apb.com.sg.
Group revenue +13% 2012: S$3.35 billon2011: s$2.97 billion
PBIT +25% 2012: S$768.7 million2011: s$613.9 million
APBe +30% 2012: S$394.8 million2011: s$303.6 million
Attributable profit +7% 2012: S$366.2 million2011: s$341.7 million
Net dividend +14% 2012: S$1.150 per share2011: s$1.005 per share
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ABouT AsIA PAcIFIc BrewerIes
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in our 2011 sustainability report, we announced a number of targets to promote responsible drinking and to reduce water and energy consumption. the table below summarises those targets and the progress against them. Further details are available within this report.
energy consumption
Target Year Status 2012 Status
Reduce APB’s total specific energy consumption by 13% to 168.3 mega joule of energy per hl of beer (MJ/hl)
2014 On track (We have revised our target to reduce total specific energy consumption by 15.2% to 164.3MJ/hl by 2014.)
Reduce APB’s specific thermal energy consumption by 16% to 84.6MJ/hl
2014 On track(We have revised our target to reduce specific thermal energy consumption by 20% to 80.6MJ/hl by 2014.)
Reduce APB Group’s specific electricity consumption by 10% to 9.3 kilo-watt hour of electricity per hl beer (kWh/hl)
2014 On track(We have revised our target to reduce specific electricity consumption by 9.7% to 9.3 kWh/hl by 2014.)
responsible drinking (rd)
Target Year Status 2012 Status
To include RD information on primary packaging of corporate brands
mid 2013 On track
To include RD information on secondary packaging of corporate brands
end 2013 On track
use of water
Target Year Status 2012 Status
Reduce APB’s specific water consumption by 5% to 4.4 hectolitre of water per hl of beer (hl/hl)
2014 On track(We have revised our target to reduce specific water consumption by 8.7% to 4.2 hl/hl by 2014.)
community Investment
Target Year Status 2012 Status
Develop & launch APB Community Investment Policy 2012 Completed
whAT we sAId we wILL do
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to operate a successful and sustainable business, we need societies and the environment that supports them to thrive along with us. as such, we make it our priority to contribute to the economies where we operate by running profitable businesses lawfully and with integrity, producing high-quality products that consumers enjoy, provide jobs, pay taxes, create economic and social value while using scarce resources efficiently. We are also mindful that in areas like promoting alcohol responsibility and reducing alcohol-related harm as well as contributing to sustained social development, it is insufficient to focus only on our internal operations. in this regard, we believe in the efficiency of partnerships with local stakeholders so as to leverage the multiplier effect for inclusive growth and sustainable development.
whAT susTAINABILITy MeANs To us
shareholders
retail/consumers
Taxes
Brewing(be operational efficient to
conserve environment)
suppliers
cI programmes (focus on water
& education)
community benefits
$280 million in shareholder returns
uphold high product quality
$663 million in operating expenses (distribution, marketing
& administration)
$235 million in employee wages & benefits
Generate economic value
6,786 employees Group wide
Generate social value Generate social value
$232 million in tax contribution
(excludes excise tax)
over $2.3 million in community investments & philanthropy projects
Specific thermal energy: -17%Specific electricity consumption: -7%Specific CO2 emissions (direct & indirect): -14%Specific water consumption: -4%Effluent organic load to surface water: +50%Specific non-recycled industrial waste: -48%
Almost $1.1 million in alcohol responsibility programmes
Adhere to strict supply-chain standards
Commit to Code of Conduct for Vendors
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the asia pacific region is one of the most dynamic regions in the world and we know that to operate successfully, we must contribute to the economic and social well-being of the people in our markets and ensure that we help preserve and protect the physical environment. our vision and values are fundamental to how we do business and contribute to society.
Vision and Valuesour vision, to be a leading brewery group in the asia pacific region, is steadfast and our core values help us drive towards that vision.
Teamworkteamwork is about finding alignment by building strong relationships, supporting each other so that no one fails through open and forthright communication. in all our relationships, we seek to conduct ourselves responsibly, truthfully, with integrity and without discrimination.
Personal Growthby making the most of the present and being open to learning, we enhance our future capability and capacity for success. as individuals, we value integrity, trust, personal learning and maturity. We place the interests of the company ahead of any personal interest or gain. our Code of Conduct provides a comprehensive framework for behaviour.
Passion for winning our passion for winning guides our commitment
to be at our best constantly, taking pride in what we do and be results focused. this calls for a need to be customer-focused and entrepreneurial. We drive for excellence in results and are committed to quality. We will make investments and engage in best practices where we operate by aligning with our business code of conduct and to avoid anti-competitive practices.
respect and openness We value diversity, work-life balance and aim to
achieve this by good communication and having fun. We respect the rule of law, local cultures and norms and we will not compromise our corporate values or standards where we operate. We will be accountable for our actions and respond to appropriate scrutiny. those who report wrong-doing will be treated fairly and with respect.
our four core values are:
our APProAch To susTAINABILITy
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sustainability Governance at apb, the Csr steering Committee is the highest governance body to direct sustainability and review progress. our Chief executive officer (Ceo) chairs the committee which comprises the following business function heads.
our Csr Working Committee, which is made up of a representative from each business function, is responsible for the communication of our sustainability practices with our operating companies and stakeholders.
We are involving our operating companies to implement systems and processes to embed sustainability at the operational level. they engage stakeholders and are also guided by information flows from the Csr Working Committee.
director, Group commercialresponsible for product quality, innovation and responsible marketing
General Manager, Group corporate communicationsChampions responsible drinking and oversees stakeholder engagement and alcohol regulation, community investment, corporate philanthropy as well as sustainable development and reporting
director, Group Financeresponsible for managing and controlling financial resources, establishing guidelines, policies and procedures for reporting of financial results
director, Group human resourceChampions workplace excellence, manage employee code of conduct and training
director, Group Legaloversees all legal matters and operational/legal risk management, dispute resolution
director, Group supply chainresponsible for purchasing and supply chain management, environmental and safety targets as well as monitoring performance against these
General Manager, Group Management Information system
responsible for developing and reviewing information communication and technology direction, strategy planning and policy/guidelines
our approaCH to sustainability (Cont’d)
CSR SteeringCommittee
(headed by CEO)
CSR WorkingCommittee
OperatingCompaniesStakeholders
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sustainability roadmapthe apb sustainability roadmap has been developed as part of our desire to fully integrate sustainable development into all that we do. this roadmap enables a clear articulation of how we embed sustainability practices across business functions and operations.
the roadmap is underpinned by our vision to be a leading brewery group in asia pacific and our ambition to secure a sustainable licence to operate and grow. there are three imperatives where actions are required to ensure that our vision and ambition are achieved. these imperatives are to improve our environmental performance, empower our people and contribute to communities as well as establish a positive role of beer in society.
our Csr steering Committee, using the materiality matrix as a guide, is responsible for steering the direction and setting targets under the three imperatives. our Csr Working Committee is responsible for communicating and supporting the implementation of Group-wide initiatives and to help ensure action on material risks.
our approaCH to sustainability (Cont’d)
AMBITIoN:to secure sustainable license to operate and grow
VIsIoN:to be a leading brewery group in asia pacific
IMProVe our eNVIroNMeNTAL PerForMANce
Green brewer• Green production
eMPower our PeoPLe ANd coNTrIBuTe To coMMuNITIes
Engage employees• Health and safety• employee engagement and training
Community investment• Corporate social investment and philanthropy
esTABLIsh A PosITIVe roLe oF Beer IN socIeTy
Promote responsible consumption• through apb brands• alcohol responsibility initiatives• engage consumers on responsible drinking• responsible marketing
Partnerships for sustainability• With industry and governments• With nGos/ 3rd parties
GoVerNANce, rePorTING ANd TrANsPAreNcy, coMMuNIcATIoN ANd eNGAGeMeNT
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our approaCH to sustainability (Cont’d)
stakeholder engagement our stakeholders are the people who are interested in or are affected by our activities and the way we do business. We have a wide range of stakeholders and they include our employees, customers, consumers, suppliers, regulators, non-government agencies and the local communities. it is important that we build a good rapport with them and understand their priorities as it helps to further open up engagement opportunities and to manage risks.
in addition to regular and on-going stakeholder engagements that are part of our usual business activities, we are also committed to a three-year structured stakeholder engagement plan which
was established in 2011 as part of the sustainability reporting process. the aim is to provide us with information about emerging issues, and concerns to enable better business decision making.
in undertaking this three-year commitment, we also want to ensure that we manage all key issues, and where possible, work with stakeholders for positive results. We use the information in our stakeholder engagement to help determine material risks and opportunities for our business which, in turn, determine the content for this report.
We identified our stakeholders by a process of determining those with an impact on our business and who are in a position to engage with us. Following
the engagement with internal stakeholders in 2011, the intention was to engage regulatory authorities and shareholders in 2012. the plan for 2013 is to engage local communities and customers.
Consistent with leading practice in stakeholder engagement, we engaged an independent third party, Csr asia, to conduct interviews and other interactions with stakeholders. this encouraged stakeholders to express their opinions more openly and with confidence that comments would not be attributed to any specific individual.
at the heart of our engagements with stakeholders is a three-year structured engagement plan that enables us to identify emerging issues and concerns to facilitate better business decision making.
We want to ensure that we manage all key issues, and where possible, work with stakeholders for positive results.
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LeVerAGING The Power oF PArTNershIPs
We work with a diverse range of stakeholders and community partners to bring about change and inclusive progress in the societies that we operate.
the apex Club of singapore is a non-political and non-sectarian community service organisation with different branches in singapore. the City branch has been running, ‘Groceries with Heart’, a food distribution programme for the elderly destitute and needy families in singapore, partnering the asia pacific breweries Foundation, for close to four years now. While ad-hoc contributions are common, we do not very often have committed long-term sponsors. With the Foundation’s long-term support, we have been able to plan for the programme and cater to needs better. We have since increased the quality, range of selection and value of groceries and toiletry items to the beneficiaries. We have also tripled the number of beneficiaries, from 80 to 252. ‘Groceries with Heart’ now reaches out to three residential areas in singapore instead of one. We are strongly encouraged by apb Foundation’s commitment and we will continue to work hard for the cause and do it well.
dakshinamurthy Narasiman raghuraman president,apex Club of singapore (City)
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21+ is a joint initiative by Circle K and pt Multi bintang indonesia tbk (Mbi) to address and discourage underage drinking in indonesia. With this programme, Circle K and Mbi have developed and extended our retailer-producer relationship to one of close partnership to help achieve a common good in indonesia. We launched in-store point-of-sale items to raise public’s awareness that the legal drinking age in indonesia is 21 and over. More importantly, Mbi supported training programmes for Circle K staff to enhance their knowledge about the campaign and alcohol responsibility so that they are empowered to be credible and assertive when they are required to handle customers regarding responsible alcohol purchase and drinking. such skills, not only help raise the bar of Circle K’s customer-service standards but also our level of social responsibility. together with Mbi, we aim to achieve a more respectful environment for our community.
Gunawan Corporate affairs Director, Circle K indonesia
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our approaCH to sustainability (Cont’d)
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our approaCH to sustainability (Cont’d)
Chiang Mai is one of thailand’s most popular destinations for tourists and thais particularly during the songkran Festival. We are in-charge of road safety and are committed to prevent alcohol-related road accidents in Chiang Mai. to tackle drink-driving effectively, the involvement by all stakeholders is critical. While it is important that the traffic police carries out its enforcement work, it is also beneficial if members of the public has a high awareness of road safety and understands the negative consequences of drinking and driving. as such, we welcome thai asia pacific brewery’s partnership with us to set up campaign banners around the city, alcohol-level checking booths and rest stops at high-risk locations to reduce incidents of drinking and driving during the songkran Festival. Government statistics showed that during this period, the number of road accidents in Chiang Mai decreased by 5.4% compared to the same period last year. Fatal road accidents also fell by 18% this year.
Pol. Lt col. Vinitchai Pinitsakinspector of provincial traffic police, Chiang Mai
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on behalf of the Chief secretary, Mr Manasupe Zurenuoc and the Chair of the law and Justice sector’s Heads of law and Justice sector agencies, Dr peter Kora, we wish to express our appreciation to the support by sp brewery in addressing alcohol abuse in the country.
sp brewery supported the Government’s first alcohol abuse symposiums to address alcohol-related problems in papua new Guinea. the symposiums were held in four regions and attended by participants from all sectors of society. the objective of the symposiums was to gauge stakeholders’ views on alcohol abuse and related problems in the country and present them to the Government for appropriate policies to manage and control these issues.
the proactive approach by sp brewery underscores the importance that alcohol abuse and related problems need to be isolated and dealt with accordingly. We welcome the opportunity to address the problem together to achieve maximum result. our partnership with sp brewery ideally serves as an important benchmark under the public-private partnership pillar of Vision 2050, the Government’s blue-print to promote development in papua new Guinea.
the Government will announce key policy decisions in 2013 and we look forward to a sustained, coordinated and efficient partnership with sp brewery.
Joe r. KanekaneDirector, office of law & Justice sector Coordination, papua new Guinea
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our approaCH to sustainability (Cont’d)
the members of bsiC have agreed to:
1. provide employment contracts according to Cambodian labour law (1997);
2. Fix basic salary;
3. introduce clear supervision structures and grievance procedures;
4. provide decent, branded uniforms to bps;
5. provide transportation and driver polices;
6. train bps on selling beer safely and life skills;
7. enforce a zero-tolerance approach towards harassment;
8. adhere to a policy of no drinking of alcohol during working hours and to empower bps with the knowledge and skills to avoid it;
9. Conduct annual monitoring of member compliance and impact assessment by an independent party.
now, we are not working alone any more. bsiC is like our mother and she is here to protect her children!” said Ms. sok srey leak, a bp who has been with Cbl for six years.
“Care is happy to be a partner of bsiC and has respect for the contribution that the organisation has made in protecting the health and safety of bps in Cambodia. bsiC acknowledges and acts upon the responsibility that its members have as employers towards protecting the health and safety of their workers. Care hopes that the example set by bsiC is replicated not only by other breweries but other industries as well.” said Ms paula Gleeson, Chief of party, Care international Cambodia.
worKING ToGeTher To IMProVe The heALTh ANd sAFeTy oF Beer BrANd ProMoTers
since its inception in 2006, the beer selling industry Cambodia (bsiC) has empowered promoters from its member companies with training and information to protect their rights. Cambodia brewery limited (Cbl), apb’s subsidiary in Cambodia which produces and markets beer brands, tiger, abC stout, anchor and Gold Crown in Cambodia, is one of the founding members of bsiC.
based on the latest 2011 bsiC Monitoring report which was released in Dec 2011, bsiC beer brand promoters (bps) are now more aware of their entitlement regarding time off, paid leave including 90 days of paid maternity leave. the salary scale across bsiC member companies for bps has also increased. almost all promoters have received training on addressing sexual harassment and selling beer safely, including techniques to refuse drinking beer with customers.
“the bsiC activities to improve the workplace environment for bps are very good. they promote labour law enforcement and safety at the workplace.
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our approaCH to sustainability (Cont’d)
Focus for 2012: government regulators andemployeesowing to the critical stage of development of a national alcohol policy in Vietnam and a similar domestic debate in Cambodia, it became apparent that there was a high priority to engage with government officials of both countries. in Hanoi, we conducted one-on-one interviews with key representatives from the Ministry of Health, Ministry of industry and trade, the Government office and the national assembly.
similar interviews were also carried out in phnom penh with regulators from the Ministry of Health, Ministry of industry, Mines and energy, Ministry of state, Ministry of rural Development and Ministry of environment.
While the intention was to engage shareholders in 2012, we did not feel that it was timely or appropriate to conduct a detailed discussion with the board regarding sustainability issues in view of the discussions about apb’s change of ownership to Heineken. it was decided to undertake a focus group with senior employees and an on-line survey with junior employees at Vietnam brewery limited (Vbl), our subsidiary that represents our operation in Central and south Vietnam. the interviews were conducted in view of Vbl producing a standalone sustainability report in
the areas of environment and responsible drinking in end January 2013. as such, it was practical to get a sense of what sustainability means to Vbl staff, their take on apb’s sustainability performance to date and their understanding of material issues. the results of these discussions were presented in detail to the Csr Working Committee as input to assess the material risk issues for stakeholders and the business.
throughout the year, we also had interactions with other stakeholders such as trade associations, road safety authorities as well as non-governmental organisations
(nGos) and international think tanks on alcohol policy such as the international Centre for alcohol policy (iCap) and the Global alcohol producers Group (GapG). We engaged them in dialogues about social and alcohol responsibility via a variety of methods at both Group and local level throughout the year.
Materiality Matrixbuilding on the work undertaken in 2010 and 2011 as well as the issues raised by regulators and employees in 2012, a reassessment of material issues was undertaken by the Csr Working Committee.
Importance to business
safety in workplace
supply chain Innovation
energy savings
water Management
Product safety & hygiene
responsible Marketing
staff Alcohol responsilbility
responsible drinking
community Investment
Government regulation - environment
Talent Attraction & retention
Impo
rtan
ce to
sta
keho
lder
s
More Crucial
Mor
e C
ruci
alLe
ss C
ruci
al
Less Crucial
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the following material issues were identified as the most important to stakeholders and the business in 2012. these material issues were all given significant consideration and management time during the year and actions undertaken are detailed in this report. these issues will continue to influence our action plans within the sustainability roadmap going forward.
Product safety & hygieneDelivery of high quality and safe products to customers1
staff alcohol responsibilitytrain employees and ensure that they model responsible drinking behaviour
3energy managementimprove our total energy efficiency to combat climate change and to reduce operational cost
5responsible marketinguphold standards on responsible marketing in all our operations by implementing our Code of practices on Marketing our brands
7community investmentinvest in communities via initiatives related to water and education
9Talent attraction & retentionContinue to attract and retain highly skilled staff11
responsible drinkingencourage responsible beer consumption and contribute to the prevention of alcohol-related harm
2water managementincrease our efficiency to use water, a scarce resource4
Government regulation on environmentapb either meets or exceeds environmental standards in countries of operation
6supply chain innovationinnovate to deliver high quality products at affordable prices with efficient use of input resources
8safety in workplaceprovide a safe working environment to employees at all operations10
our approaCH to sustainability (Cont’d)
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ABouT ThIs rePorT
Mongolia
China
laos
thailand
sri lanka
VietnamCambodia
singapore
indonesia
papua new Guinea
solomon islands
new Caledonia
new Zealand
report Boundary the report includes all subsidiaries and their majority shareholding subsidiaries which are principally involved in brewing and/or distribution of beer. Majority shareholding joint-venture and minority shareholding companies whose principal activities are brewing and/or distribution of beer where apb’s key brands (tiger, Heineken, anchor, baron’s strong brew, abC extra stout and bintang) have significant market presence are also included in the report as these companies are considered to have significant sustainability impact on our business.
our operating companies included in this report consist of:
Cambodia • Cambodia brewery limited
China• Heineken-apb (China) Management services
Company limited• Heineken-apb (shanghai) Company limited• Heineken trading (shanghai) Company limited • Guangzhou asia pacific brewery Company
limited • Hainan asia pacific brewery Company limited
Indonesia • pt Multi bintang indonesia tbk • pt Multi bintang indonesia niaga
Laos • lao asia pacific breweries limited
Mongolia • MCs – asia pacific brewery llC
New Caledonia • Grande brasserie de nouvelle Caledonie
New Zealand • Db breweries limited (excludes barworks Group) • DbG (australia) pty limited
Papua New Guinea • south pacific brewery limited
Singapore • asia pacific breweries (singapore)
pte ltd • tiger export ptd ltd
Solomon Islands • solomon breweries limited
Sri Lanka • asia pacific brewery (lanka)
limited
Thailand • thai asia pacific brewery Co. ltd • tap trading Company limited
Vietnam • Vietnam brewery limited • Vbl Da nang limited• Vbl tien Giang limited• Vbl Quang nam limited • Vietnam beer and beverages limited• asia pacific brewery (Hanoi) limited• beer & beverages international limited
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about tHis report (Cont’d)
Guinness anchor berhad (Gab) in Malaysia (25.5% owned by apb) is excluded from the report as the company produces a sustainability report annually.
shanghai asia pacific brewery is also excluded from the report as it ceased operation when it was divested in June 2011 and has not been fully operational since February 2012 when the divestment fell through. the 2012 report also does not include Mongolian beverages Company pte ltd as its acquisition was only completed in august 2012. in contrast to last year’s report, solomon breweries limited is included in this report.
We have not made any restatements in reference to the 2011 report.
Assurance ernst and young llp has provided limited assurance for this report. the assurance process involved conducting testing at both corporate and site level. ernst and young conducted three site visits to verify the process for collection, aggregation and reporting of information and data as well as the associated risks and controls. their assurance statement can be found on page 70.
Feedbackthis report is part of our commitment to on-going engagement with our wide range of stakeholders. We welcome your comments or questions. please send comments or feedback to shannen Fong, Corporate affairs Manager, Group Corporate Communications at [email protected] or write to us at Asia Pacific Breweries Limited, 438 Alexandra road, Alexandra Point, #15-01 singapore 119958.
reporting Period, cycle and standardsthis report covers the reporting period 1 october 2011 to 30 september 2012 (fiscal year 2012). the previous sustainability report was published in January 2012 for fiscal year 2011 (1 october 2010 to 30 september 2011.) Where we refer to 2012 or 2011, we are referring to the fiscal year unless otherwise stated. all dollar values are expressed in singapore dollars.
We have reported against the Global reporting initiative (G3.1) at application level b+. the Gri index is found on page 58.
reliability, completeness and MethodologyWe have sought to provide complete information on our operations within the defined boundary. We have included all relevant data for all companies listed above.
We have established data collection systems for ensuring the consistency of reporting, recording and management of our data and performance. our environmental and safety reporting systems have been in place longer than the system for reporting other data so we are more confident of the robustness of that data.
moredoing
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more for the environment
doing
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the global population is projected to grow to nine billion by 2050 and as a result, the world will be facing the challenge of meeting the demand for increasingly scarce resources such as water, food and energy. We are well aware of this challenge as we brew our beers locally leveraging indigenous resources where available. We are aware of our operational impact on the environments where we operate and make it our priority to make our
Performance indicator
2011 performance (baseline)
2012 performance
2014 target (% as indicated in 2011 report)
2014 specific target (as indicated in 2011 reoprt)
revised 2014 target (%)
revised 2014 specific target
Thermal energy (MJ/hl) 100.7 83.4 -16% 84.6 -20.0% 80.6
Electricity (kWh/hl) 10.3 9.7 -10% 9.3 -9.7% 9.3
Total energy (MJ/hl) 193.8 170.4 -13% 168.3 -15.2% 164.3
Water (hl/hl) 4.6 4.4 -5% 4.4 -8.7% 4.2
* Performance data of each year relates to companies that were part of the reporting scope in that year. The 2014 targets are set by APB management for the breweries within the Group.
** Total energy is calculated by converting the electricity consumption to the primary energy used. This is done by multiplying the electricity consumption by 9 to convert to kWh to MJ, while accounting for 40% efficiency conversion. The unit is therefore MJ/hl.
breweries more resource efficient so that we do not compromise the well-being of future generations.
in view of our improvements this year, we have revised our water and energy efficiency targets to be more ambitious. across our breweries, we aim to become 8.7% and 15.2% more water and energy efficient respectively by 2014. this means an improvement of 3.7% and 2.2% respectively
over our initial 2014 targets for water and energy efficiency.
We will continue to track carbon emissions, monitor waste water discharge, residual and non-recycled industrial waste to better manage our environmental footprint. We have also begun to monitor the use of water and fuel by source to understand our operational impact better.
PursuING resource eFFIcIeNcy AT our BrewerIes
22
the following breweries are included in this aggregation and analysis and are aligned to the boundary and scope of the sustainability report this year.
pursuinG resourCe eFFiCienCy at our breWeries (Cont’d)
Guangzhou Asia Pacific BreweryGuangzhou, China
Hainan Asia Pacific Brewery Hainan, China
Lao Asia Pacific BreweriesVientiane, Laos
MCS-Asia Pacific BreweryUlaanbaatar, Mongolia
PT Multi Bintang IndonesiaSampang Agung, IndonesiaTangerang, Indonesia
Solomon BreweriesHoniara, Solomon Islands
South Pacific BreweryLae, Papua New GuineaPort Moresby, Papua New Guinea
Thai Asia Pacific BreweryBangkok, Thailand
Asia Pacific Breweries (Singapore)Singapore
Asia Pacific Brewery (Hanoi)Hanoi, Vietnam
Vietnam Brewery Limited (VBL)Ho Chi Min City, VietnamDa Nang, VietnamQuang Nam, VietnamTien Giang, Vietnam
Asia Pacific Breweries (Lanka)Mawathegama, Sri Lanka
Cambodia BreweryPhnom Penh, Cambodia
DB BreweriesAuckland, New ZealandMangatainoka, New ZealandTimaru, New Zealand
Grande Brasserie de Nouvelle CaledonieNoumea, New Caledonia
Guangzhou
Vientiane
bangkok
Mawathegama
Ho Chi Minh Cityphnom penh
singapore
sampang agung
laeHoniara
noumea
aucklandMangatainoka
timaru
port Moresbytangerang
Hanoi
tien Giang
Da nangQuang nam
Hainan
ulaanbaatar
23
water consumptionthis year, we decreased our specific water consumption by 4% to 4.4 hectolitre of water per hectolitre of beverage (hl/hl) compared to 4.6 hl/hl in 2011 but did not meet our 2012 target of 4.3hl/hl. However, we are well on track to fulfil our revised 2014 target of 4.2 hl/hl for specific water consumption. although we used 2% more water this year (6.77 Mm3 compared to 6.61 Mm3 in 2011) to produce beer and soft drink, we are in fact using less water to produce the beverages as total beverage production increased by 9% compared to 2011.
We improved our specific water consumption in 17 breweries, of which the ones in auckland, Guangzhou, sampang agung and tangerang improved their performance by over 5%. the largest improvements were made by our breweries in Guangzhou, noumea and tangerang with a reduction of 33%, 21% and 18% in specific water consumption respectively.
two of the three breweries (Guangzhou and noumea) which consumed water higher than 7 hl/hl last year reported improvements. our Guangzhou brewery exceeded its target of 6.1hl/hl by lowering its specific water consumption to 5.3hl/hl via greater efficiency at the canning line and bottling line washer, optimisation of the cleaning system as well as improved production volume.
our brewery in noumea also met its target to reduce specific water consumption to 5.8 hl/hl by making improvements to the can pasteuriser.
sources of waterWe brew our beer using primarily groundwater (55%) while municipal water supply accounts for 43% of the water consumed. surface water accounts only for 2% of our usage Group-wide. this is the first year
IMProVING our wATer eFFIcIeNcy
that we are reporting on water sources and we are tracking the information to better understand how we are impacting water use in the communities that we serve. We stay committed to use scarce water efficiently and to invest in water-related projects that target to benefit the local communities in a sustainable way.
water sources
43%
55%
2%
surface water
municipal water supply
ground water
specific water consumption @ breweries & soft drink plantshl water/hl beer + soft drink
6.0
5.0
4.0
3.0
2.0
1.0
02010 2011 2012 2013 2014
actual target
4.84.6 4.4 4.3 4.2
24
iMproVinG our Water eFFiCienCy (Cont’d)
specific water consumption improvement per site in 2012 compared to 2011% Improvement
Gua
ngzh
ou (C
hina
)
nou
mea
(new
Cal
edon
ia)
tan
gera
ng (i
ndon
esia
)
auc
klan
d (n
ew Z
eala
nd)
ula
anba
atar
(Mon
golia
)
Man
gata
inok
a (n
ew Z
eala
nd)
tie
n G
iang
(Vie
tnam
)
sam
pang
agu
ng (i
ndon
esia
)
Da
nan
g (V
ietn
am)
Qua
ng n
am (V
ietn
am)
tim
aru
(new
Zea
land
)
Hai
kou
(Chi
na)
tua
s (s
inga
pore
)
Han
oi (V
ietn
am)
phn
om p
enh
(Cam
bodi
a)
Ho
Chi
Min
h C
ity (V
ietn
am)
ban
gkok
(tha
iland
)
por
t Mor
esby
(pap
ua n
ew G
uine
a)
Maw
atha
gam
a (s
ri l
anka
)
lae
(pap
ua n
ew G
uine
a)
Vie
ntia
ne (l
aos)
-15.
3
-14.
8
-2.4
-2.1
1.0
1.2
1.3
1.5
1.7
2.0
5.76.6
6.97.1
7.3
10.010
.7
10.8
18.3
20.7
33.1
Thermal energy consumptionWe decreased our total thermal energy consumption by almost 9% while our specific thermal energy consumption decreased by 17%, from 100.7 mega joule per hectolitre of beverage (MJ/hl) in 2011 to 83.4 MJ/hl this year. thermal energy consumption is the amount of heat that is required to produce one hectolitre of beer and soft drinks. We met our target for 2012 (84.3 MJ/hl) and are on track to fulfil our revised 2014 target (80.6 MJ/hl).
seventeen of our breweries improved their use of specific thermal energy, of which 10 better their performance by over 5%. these were our breweries in auckland, Da nang, Guangzhou, Quang nam, sampang agung, singapore, tangerang, tien Giang, timaru and ulaanbaatar. the top performers this year were our breweries in Guangzhou and timaru which improved by 47% and 37.2% respectively. in Guangzhou, better performance was achieved through obtaining greater efficiency at the packaging line, the use of condensate for supplementary heating purposes and an increase in production volume. the timaru brewery achieved savings through outsourcing steam supply and optimising its brewing processes.
our breweries in bangkok, lae, port Moresby and Vientiane increased specific thermal consumption by 1.9%, 5.2%, 4.7% and 8.9% respectively.
Types of fuel usedGroup-wide, we use primarily liquid fuels (65%) such as diesel, fuel oil and gas oil to produce thermal energy. Gaseous fuels (30%), such as natural gas, propane and liquefied petroleum gas (lpG), were the second most commonly used by our
breweries. We reduced our use of coal significantly from 19% in 2011 to 5% this year. We substituted coal with liquid fuels (65% in 2012 compared to 52% in 2011), which being “cleaner”, had a more positive impact on direct carbon dioxide emissions this year. although we are not using biogas significantly at our breweries now, we are continuously exploring feasible ways to leverage renewable energy at our operations.
25
reducING our cArBoN FooTPrINT
Types of fuel used
5%
65%
30%
Coal
Gaseous fuels (natural gas, propane, lpG)
liquid fuels (diesel, fuel oil, gas oil)
102.2 100.7
specific thermal energy consumption @ breweries & soft drink plantsMJ/hl beer + soft drink
120
100
80
60
40
20
02010 2011 2012 2013 2014
actual target
83.4 84.3 80.6
26
reDuCinG our Carbon Footprint (Cont’d)
specific thermal energy consumption improvement per site in 2012 compared to 2011% Improvement
-8.9-5
.2
-4.7-1
.9
0.20.9
1.32.43.
84.24.98.
310.0
10.512
.015.116
.3
21.623
.2
37.2
47.0
Gua
ngzh
ou (C
hina
)
tim
aru
(new
Zea
land
)
Da
nan
g (V
ietn
am)
auc
klan
d (n
ew Z
eala
nd)
tang
eran
g (in
done
sia)
ula
anba
atar
(Mon
golia
)
Qua
ng n
am (V
ietn
am)
sam
pang
agu
ng (i
ndon
esia
)
tua
s (s
inga
pore
)
tie
n G
iang
(Vie
tnam
)
Hai
kou
(Chi
na)
Maw
atha
gam
a (s
ri l
anka
)
phn
om p
enh
(Cam
bodi
a)
Man
gata
inok
a (n
ew Z
eala
nd)
Ho
Chi
Min
h C
ity (V
ietn
am)
Han
oi (V
ietn
am)
nou
mea
(new
Cal
edon
ia)
ban
gkok
(tha
iland
)
por
t Mor
esby
(pap
ua n
ew G
uine
a)
lae
(pap
ua n
ew G
uine
a)
Vien
tiane
(lao
s)
electricity consumptionthis year, total electricity consumption increased by almost 2% compared to 2011. Despite this, we still performed better than target for total energy consumed per hectolitre of beverage produced as we have far surpassed our specific thermal energy target this year.
although our consumption of specific electricity reduced by 6% to 9.7 kilowatt hour electricity per hectolitre of beverage (kWh/hl) in 2012 from 10.3 kWh/hl last year, we did not achieve our target of 9.5 kWh/hl this year.
Green fridgesthe Csr steering Committee mandated the use of green or energy-efficient fridges at our operations. a green fridge model has been selected and is currently being tested and verified for energy efficiency. in addition to leveraging an energy management system and leD lighting, we have also reinforced the green model with double-low emission glass for better insulation and energy saving. the current fridges which our operations are using will be made obsolete and we will be replacing them with green models in phases. We have yet to set a time line for all operations to roll out green fridges in their markets. We aim to review the action plan for green fridges in the next reporting year.
Fourteen of our breweries reduced specific electricity consumption this year, of which 8 improved by over 5%. these breweries were Da nang, Guangzhou, Ho Chi Minh City, port Moresby, sampang agung, tangerang, timaru and ulaanbaatar. the brewery in Guangzhou, which reduced specific electricity used by 27.2%, was the top performer followed by our ulaanbaatar brewery which improved by 18.3%. the Guangzhou brewery achieved savings through improved efficiencies at the packaging line and cooling plant as well as an increase in production volume while the brewery in ulaanbaatar performed better by optimising the cooling plant and making improvements at the packaging line.
our breweries in Hainan (+7.8%), Hanoi (+1.0%), lae (+1.6%), Mangatainoka (+11.8%), noumea (+6.4%), phnom penh (+5.6%) and Vientiane (+21.9%) increased in their consumption of specific electricity.
direct & indirect co2 emissionsWe emitted less carbon dioxide (Co2) operationally this year compared to 2011. We reduced total direct Co2 emissions by 15% while our indirect emissions increased by 8% this year compared to 2011. as a result, absolute total Co2 emissions reduced by 6% while specific total emissions decreased by 14% from 12.9 kilogram of Co2 per hectolitre of beverage (kg Co2 /hl) in 2011 to 11.1 kg Co2 /hl this year.
27
reDuCinG our Carbon Footprint (Cont’d)
10.6
10.3
specific electricity consumption @ breweries & soft drink plantskWh/hl beer + soft drink
11
10
92010 2011 2012 2013 2014
actual target
9.79.5
9.3
12.9
direct and indirect co2 emission @ breweries & soft drink plantskg CO2/hl beer + soft drink
15
10
5
02010 2011 2012
11.113.0
28
reDuCinG our Carbon Footprint (Cont’d)
specific electricity consumption improvement per site in 2012 compared to 2011% Improvement
-21.
9
-11.
8
-7.8-6.4
-5.6
-1.6
-1.0
1.2
1.62.42.54.
7
4.85.27.
57.8
7.89.
6
10.0
18.3
27.2
Gua
ngzh
ou (C
hina
)
ula
anba
atar
(Mon
golia
)
tang
eran
g (in
done
sia)
sam
pang
agu
ng (i
ndon
esia
)
Da
nan
g (V
ietn
am)
tim
aru
(new
Zea
land
)
por
t Mor
esby
(pap
ua n
ew G
uine
a)
Ho
Chi
Min
h C
ity (V
ietn
am)
auc
klan
d (n
ew Z
eala
nd)
Qua
ng n
am (V
ietn
am)
tuas
(sin
gapo
re)
Maw
atha
gam
a (s
ri l
anka
)
ban
gkok
(tha
iland
)
tien
Gia
ng (V
ietn
am)
Han
oi (V
ietn
am)
lae
(pap
ua n
ew G
uine
a)
phn
om p
enh
(Cam
bodi
a)
nou
mea
(new
Cal
edon
ia)
Hai
kou
(Chi
na)
Man
gata
inok
a (n
ew Z
eala
nd)
Vien
tiane
(lao
s)
at our breweries, we commit to manage and dispose waste (effluent organic load discharged to surface water and non-recycled industrial waste) responsibly and according to local regulatory requirements, if not better.
this year, our effluent organic load discharged to surface water increased significantly by 50% to 1.8 kton CoD (Chemical oxygen Demand) from 1.2 kton CoD last year. this is due to an increase of 639 tons and 92 tons of effluent organic load discharged to surface water by our breweries in tangerang and Honiara respectively. this negative trend was slightly offset by improvements at our breweries in lae (-63 tons CoD) and Mangatainoka (-6 tons CoD) as well as the exclusion of our shanghai brewery from the reporting scope. (the shanghai brewery discharged 24 tons CoD in 2011.)
While Honiara was a new reporter which will see to better alignment of standards and action plans to improve its performance, the high level of effluent discharged to surface water at the tangerang brewery was the result of an underperforming Waste Water treatment plant. the root cause of this incident had been identified and the brewery has resolved this issue and prepared a preventive action plan to avoid a future occurrence.
this year, we decreased our total non-recycled industrial waste by 43% to 9.3 million kilograms (kg) from 16.3 million kg in 2011. We also decreased our specific non-recycled industrial waste by 48% from 1.15 kg of waste/hl of beer in 2011 to 0.6 kg/hl, fulfilling our 2012 target (1.18 kg/hl). We have revised our 2014 target on specific non-recycled industrial waste to 0.57 kg/hl.
our breweries in bangkok, Ho Chi Minh City and Quang nam topped this year’s performance with a reduction of non-recycled industrial waste by over 10%. the brewery in Ho Chi Minh City had the best improvement at 72% while our breweries in bangkok and Quang nam achieved savings of 12% and 11% respectively, by improving recycling efforts.
29
MANAGING wAsTe resPoNsIBLy
1.221.15
specific non-recycled industrial waste production @ breweries & soft drink plantskg/hl beer + soft drink
1.50
1.25
1.00
0.75
0.50
0.25
02010 2011 2012 2013 2014
actual target
0.60
1.18
0.57
as a rule, we will only install beer membrane filters if we replace or extend beer filter installation which will in turn reduce solid waste from our breweries.
1.8
effluent organic load to surface waterkton COD
2012
2011
2010
1.2
1.1
We did not receive any environmental complaints this year. However, there were two environmental accidents with off-site effects. the first accident occurred in Da nang where waste water was discharged into rainwater drainage instead of the waste water treatment system. We already took remedial action at the Da nang brewery. the second accident was caused by a malfunction of the waste-water treatment plant (WWtp) in Mawathegama due to technical faults. the production line was temporarily halted for four days to undergo investigation and remedy. brewery operation resumed after aerobic settings of the WWtp were reconfigured. the external public health inspector was satisfied with the quality of the waste water after the technical faults were resolved and no further actions were taken.
30
coMPLAINTs, AccIdeNTs ANd FINes
0
environment complaintsnumber
2012
2011
2010
1
3
environment accidentsnumber
2012
2011
2010
2
2
5
31
INSPIRING MORE DOING MORE GIVING MORE CREATING MORE
at apb singapore, sustainability lies at the heart of the company’s Dna and culture. the company ensures that processes to embed sustainability throughout its business are actively practiced throughout apb singapore. For its efforts, the company won three sustainability awards this year, spurring it further to develop more innovative technologies as well as to track and assess its performance so that it can continue to implement best practices across the company.
• apb singapore received two awards - merit and gold - at the 3r Packaging Awards, organised by the national environmental agency. since the inaugural awards in 2008, the company has received accolades for its efforts in reducing waste through packaging innovations. Most significantly, by light-weighting its cans, apb singapore conserves over 7.9 million tonnes of aluminium a year. Furthermore, 87% of bottles that currently leave the brewery for the market are returned and approximately 85.5% are reused, resulting in the elimination of 25,000 tonnes of waste going into landfill annually.
• apb singapore also won the Manufacturing category in the singapore environmental Achievement Awards, organized by the singapore environmental Council, for its achievements in minimizing energy, water and waste impacts on the environment.
• the 2012 singapore sustainability Awards, an initiative of the singapore business Federation (sbF), recognises organizations for their innovative sustainable business practices. apb singapore received an achievement in excellence award in the large enterprise category. recipients of this award are assessed for their effort in driving sustainable business growth while maintaining product quality and services, of which apb singapore is a proud forerunner.
by light weighting its cans, apb singapore conserves over 7.9 million tonnes of aluminium.
APB sINGAPore scored A “hAT TrIcK” IN susTAINABILITy PerForMANce
moregiving
›
more to the community
giving
›
34
stringent supply-chain standardsour brands are synonymous with high quality and each year we seek to protect and build on this reputation. We want to build on our experience of making beer in asia over the last 80 years by applying high standards to our production processes as well as through our supply-chain.
our breweries adhere to strict supply-chain standards and audits stipulated by Heineken. We also put Heineken-qualified suppliers through technical qualification trials to ensure that they meet the required technical and commercial standards.
We apply rigorous quality standards in the procurement of raw materials and in our brewing and packaging processes. iso 22000 and Hazard analysis and Critical Control points (both related to food safety) are the most commonly applied international external standards and 11 of our 15 operating companies with breweries were certified to both standards as of 2012. the majority of the remaining breweries reported that they will seek certification on these standards by 2014.
MAINTAINING hIGh ProducT QuALITy ANd resPoNsIBILITy
in 2012, we introduced and rolled out our Code of Conduct for Vendors. this Code requires all vendors to satisfy minimum standard working conditions required by local laws including the following.
• Do not use child or involuntary labour;
• employ workers on the basis of their ability to do the job;
• to meet applicable laws on health and safety standards and reduce work-place injury and illness;
• overtime work does not exceed the maximum number of hours specified by local law;
• Workers have the right to organise and bargain collectively.
the Code also allows us to conduct inspections at vendor’s facilities and to interview workers upon mutual agreement. When and if violations are found, we are committed to work with our vendors on a corrective action plan and to agree on implementing the plan in a timely manner.
since the implementation of the Code, half of our operating companies received vendors’ commitment to comply to the Code. We target to have the remaining operating companies receive their vendors’ endorsement of the Code of Conduct in the next reporting year.
our beer bottles that leave the brewery for the market are returned. in singapore, almost 86% of the bottles returned are reused and preventing 25,000 tonnes of waste from going into landfills annually.
35
MaintaininG HiGH proDuCt Quality anD responsibility (Cont’d)
Product labelling and informationWe comply with all legal labelling requirements which include responsible drinking, alcohol content and recycling. Given the importance of responsible drinking to our customers and our business, we go beyond minimum requirements set by national legislation in most countries.
Clear labelling is one way that we help our customers make the right choices and enjoy our products responsibly. in 2011, we set targets for all operating companies to include a drink-responsibly message on:
1. all corporate brands (primary packaging) - by mid 2013
2. all corporate brands (secondary packaging) - by end 2013
3. all local brands that apb/operating companies own (primary & secondary packaging) - by end 2014
We are on track to meet each of these targets. twelve out of 15 operating companies are meeting the target to incorporate a responsible-drinking message on primary packaging of all corporate
brands (tiger, Heineken, bintang, anchor, abC stout and baron’s strong brew) by mid 2013. nine are currently on track to incorporate a responsible-drinking message on secondary packaging of all corporate brands by end 2013. We have also started communicating our target to include a responsible-drinking message on primary and secondary packaging of all local and regional brands that our operating companies own and do not own by end of 2014. We are working with our operating companies to review any issues or resistance by brand owners.
With regards to alcohol content, all our operating companies that brew beer label alcohol content on primary packaging of products. a total of nine of our operating companies include recycling messages on product labels.
in 2012, there were no consumer product recalls compared to four incidents in 2011.
36
MaintaininG HiGH proDuCt Quality anD responsibility (Cont’d)
rewarding qualitysince 2004, we have been motivating our operating companies to produce consistently high-quality tiger beer and to ensure that the same quality is maintained to the point of consumption with the annual tiger Quality award.
the award is judged by a selected group of staff, member of the Heineken technical services team, independent retail auditors and external business partners. the winning operating companies are being judged on the freshness and taste quality of tiger beer, packaging quality and point of display as well as product delivery and serving standards.
the winners of the 2012 tiger Quality award are as follows.
• brewing Quality: Vietnam brewery limited
• in-Market Quality: asia pacific brewery (singapore) pte ltd
• Most improved in-market Quality: asia pacific brewery (Hanoi) limited
• best improved: asia pacific brewery (Hanoi) limited
• overall: asia pacific brewery (singapore) pte ltd
our portfolio of beer brands received numerous international awards each year. these awards include Monde selection, international beer Competition 2012 (Japan), superior taste award and the World beer Championships to name a few. the awards that our brands won in 2012 are listed in detail on our website http://www.apb.com.sg/brand-awards.html.
our operating companies also won the following awards.
PT Multi Bintang Indonesia Tbk- listed no. 15 on Forbes indonesia “50 top
Companies” for 2012
Asia Pacific Breweries (singapore) Pte Ltd- achievement in excellence (large enterprise
Category), 2012 singapore sustainability awards
- Merit award & Gold award, 3r packaging awards
- Winner of singapore environmental achievement awards (Manufacturing Category)
Vietnam Brewery Limited- saigon’s symbolic enterprise 2011 by the
enterprises association of HCMC
- Honourable Flag from Ho Chi Min City people’s Committee
Multi-stakeholder partnerships
self regulation
relevant Consumer engagement
Promote responsible drinking &
Minimise Alcohol - related harm
37
esTABLIshING The PosITIVe roLe oF Beer IN socIeTy
Millions of consumers, everyday, enjoy our beers. While majority of them use our products responsibly, a small minority still drink irresponsibly and pose a threat to themselves, their families and communities. there is also a growing concern about non-communicable diseases such as diabetes, cancer and heart disease, some of which may be associated with alcohol abuse.
We understand that the cause of alcohol-related harm is multifaceted. Very often, irresponsible drinking patterns and harm are contextual and may result from a permutation and combination of factors that include a person’s intrinsic predisposition to diseases, low awareness about alcohol abuse and harm as well as poor law enforcement. external stimuli such as peer or workplace pressure and inappropriate drinking habits and attitudes that are currently socially entrenched also play a part in influencing irresponsible alcohol consumption.
as such, we make it a priority to engage with stakeholders so that we understand local concerns better and are involved in and contribute to the wider alcohol debate in a relevant way. We also focus on forming sustained partnerships with local stakeholders to tackle alcohol-related harm inclusively and collectively.
our approach to responsible drinkingat apb, we have a three-pronged approach to encourage the responsible consumption of alcohol. it involves us exercising internal discipline in relation to marketing our products and the way we conduct ourselves when consuming alcohol. We focus on raising public awareness about alcohol responsibility and encouraging attitudinal change. We also embark on multi-stakeholder partnerships to leverage the power of community to reduce alcohol-related harm.
on a daily basis, our efforts to encourage alcohol responsibility are guided by the following beliefs.
• our beers bring enjoyment to a majority of adult consumers.
• We respect the rights of adults to choose to drink our beers or choose not to drink them.
• We must work with governments and other stakeholders to tackle alcohol abuse and harm collectively.
• We have no conflict of interest when tackling alcohol-related harm and are as concerned as governments in addressing the issue.
• We expect our employees to conduct themselves responsibly when consuming alcohol.
• the information we provide to consumers about our beers and alcohol consumption must be accurate and balanced.
stepping up internal disciplineto be a credible advocate for responsible alcohol consumption, it is important that we walk the talk. in this regard, we align our operating companies with a set of internal guidelines and policies.
38
establisHinG tHe positiVe role oF beer in soCiety (Cont’d)
our employees are the company’s ambassadors. staff conduct in relation to alcohol at work, in the community and at home is fundamental to the success of combatting alcohol abuse and harm. our employees are aligned to the apb alcohol policy which guides staff on appropriate conduct in relation to alcohol and serves to heighten understanding about alcohol responsibility.
next year, we aim to introduce an alcohol information and intervention programme leveraging Heineken’s ‘Cool @ Work’ programme. the objective is to value-add to the apb alcohol policy and to maintain a safe and healthy workplace. We also aim to leverage the programme to support problem drinkers where possible so that they get back on track quickly and safely.
it is important to us that our communication and touch points to consumers stay balanced, accurate and do not encourage negative drinking patterns such as excessive and underage consumption or drink-driving. to ensure that we do so, our operating companies are governed by the apb Code of practice in Marketing our brands (Marketing Code).
We reissued our Marketing Code and introduced a checklist to help our operating companies review their compliance to the Code this year. the Code applies to all marketing activities of our brands and covers a wide range of requirements including:
• never targeting minors intentionally or unintentionally;
• promote our products only through media, programmes or events where at least 70% of the audience is above the legal drinking age of the country;
• all brand websites must ask for age declaration at the point of access;
• people shown drinking in our advertisements must be at least 21 years old;
• never imply that drunkenness is acceptable or that consumption of alcohol contributes to social or sexual success.
this year, Db breweries, our operating company in new Zealand, had two reports of non-compliance with marketing regulations. the Complaints board ruled that both matters were settled and did not result in any kind of fine or penalty.
the first complaint was about an error in commercial scheduling of a tui brand advertisement which was aired before 8:30pm (the new Zealand Code for advertising liquor states that liquor advertisement must not be broadcasted before 8:30pm). the responsible television broadcaster immediately amended the broadcast schedule. the second complaint was related to a tui billboard that was placed in a public location erroneously, when it was intended for display only within the tui brewery. Db voluntarily agreed to remove the billboard as soon the complaint was received.
singapore‘choose one, not both’a public awareness campaign with the singapore traffic police to encourage the public to make a responsible choice - either drink or drive but not both.
39
establisHinG tHe positiVe role oF beer in soCiety (Cont’d)
Grand brasserie de nouvelle Caledonie (GbnC), our operating company in new Caledonia, was fined s$ 55,291 for a complaint filed by a competitor for advertising an alcohol brand2.
being new to the apb Group, solomon breweries limited, our operating company in the solomon islands, reported that they have yet aligned to the Marketing Code and has targeted to do so by next year.
Keeping information on responsible drinking relevant and engagingto encourage the responsible consumption of our products, we strongly believe that the information we provide our consumers about alcohol and consumption should always be accurate and balanced. it is also important to us that the mode of delivery stay relevant and engaging so that consumers take notice of our information to them. this is fundamental to the way we engage consumers on responsible drinking to ensure that key messages stick and awareness is heightened.
Drink-savvy.com continues to be our conduit to engage consumers on drinking responsibly. this year, we revamped the website so that it is more user-friendly. it is also now available in seven languages with laotian and thai being the latest additions. While we continue to provide consumers with useful factoids on alcohol and how it affects us, the interactive features of the website such as on-line games and videos remain as a key focus of the website to ensure that our engagement with consumers does not become passive. it is our objective to grab attention and to have the consumer retain and share the information on responsible drinking that we deliver.
the involvement of key opinion leaders is also an important highlight on our website. We have popular actors, musicians, business leaders and even the police joining our cause to promote responsible drinking. the involvement of these local influencers enhanced the relevance and raised the profile of drinking responsibly amongst consumers while it demonstrated our inclusiveness in promoting positive consumption patterns in different communities.
each year, we also aim to engage consumers proactively on an interactive campaign so that they continue to have fun with responsible drinking. this year, we launched ‘endless Conga’, a digital campaign that reinforced the message of “drink don’t drive” and to promote the positive habit of using alternative transport after consuming alcohol. the campaign complemented and served as an extension to our responsible-drinking television commercial, ‘train’, which we launched regionally last year.
2 There were no other fines or material non-monetary sanctions for non-compliance with laws and regulations other than those reported in this section.
solomon Islands‘drink don’t drive’ educational advertisements on 15 community buses encouraged the public to report drink-driving incidents directly to the police.
40
establisHinG tHe positiVe role oF beer in soCiety (Cont’d)
the campaign reached out to 18-30 year olds in indonesia, singapore, thailand and Vietnam to watch ‘train’ and to pledge their support for responsible drinking by creating their own avatars using the real-time photo booth application on endlessconga.com. the objective was to have as many participants join the virtual conga line as possible on the microsite by rallying friends on Facebook, twitter and emails using their ‘endless Conga’ avatars.
alcohol production and trade as important players and encourages the industry to consider effective ways to prevent and reduce harmful use of alcohol, including self-regulatory actions and initiatives. this recognition by the WHo gave us additional impetus to step up our alcohol responsibility activities, including engagement with stakeholders to stay closer to the wider alcohol debate including the development of local alcohol policy.
this year, a total of 15 responsible drinking programmes were implemented Group-wide. they ranged from television and radio commercials as
the Vietnam traffic police carrying out enforcement against drink-driving and an inter-city bus-driver being breathalysed and trained on self-checks and the dangers of drinking and driving.
a total of more than 3,100 unique participants joined the virtual conga line and over 9,500 visitors browsed the campaign website. over the six-week campaign period (1 May – 14 July 2012), ‘train’, was viewed more than 84,300 times across various digital media such as youtube and our social media engagement activities on Facebook engaged close to 8,000 new fans to ‘like’ us.
contributing to a wider alcohol debate & policy development the WHo Global alcohol strategy to reduce Harmful Drinking regards economic operators in
Asia Pacific‘endless conga’a digital campaign that reinforced the message of “drink don’t drive” by encouraging the online community to form the longest virtual conga line in support of responsible drinking.
41
establisHinG tHe positiVe role oF beer in soCiety (Cont’d)
well as billboard and poster campaigns that raised public awareness about responsible and moderate consumption to partnerships with local traffic police to tackle drink-driving. the total expenditure on alcohol responsibility initiatives Group-wide was $1,087,524 this year. We continue to feature our responsible-drinking initiatives on drink-savvy.com to encourage more meaningful partnerships with like-minded stakeholders.
We were most active engaging with policy-makers in Vietnam this year. together with the Vietnam beer beverage & alcohol association (Vba), our operating company in Hanoi led the dialogue with regulators who are responsible for the development of the Vietnam national alcohol policy. the highlight of the engagement was a study tour to brussels, Madrid and prague where the Vietnamese policy-makers (Ministry of Health, Ministry of industry & trade and
the Government office) gained insights to european best practices on alcohol-related harm prevention and policy development. the stakeholders engaged in europe included Health Ministries, road safety authorities as well as brewers associations and the World Federation of advertisers. We continue to legitimise our role in the alcohol debate in Vietnam by maintaining our support to the government in the areas of information and best practice sharing as well as the development and implementation of responsible drinking programmes.
in this regard, we supported iCap Vietnam on ‘Global action on Harmful Drinking’ this year. the programme maintained its focus on the capacity building of road safety enforcers and raising public awareness about the dangers of drink-driving. this included training young professional inter-city drivers and station managers on self-checks using breathalysers. iCap Vietnam also engaged the Vba and member companies to develop a monitoring framework to assess compliance of the industry marketing code. in the area of non-commercial alcohol, iCap Vietnam presented the results of a qualitative study on non-commercial alcohol in bac ninh, Quang binh and tien Giang to policy-makers which led to a request for a follow-up quantitative study to understand the issue in a more in-depth manner.
VietnamVietnam policy-makers’ study tour to europe policy-makers gained insights to european best practices in alcohol-related prevention and policy development during the tour facilitated by apb and its Vietnam operating companies in support of the development of the Vietnam national alcohol policy.
Vietnam‘drink don’t drive’ a national campaign that leveraged 60 billboards in five major cities in south Vietnam to encourage urban motorbike riders to not drink and drive.
42
establisHinG tHe positiVe role oF beer in soCiety (Cont’d)
this year, we also conducted a series of high-level meetings with representatives of the Cambodian government to better understand the situation of drink driving in Cambodia in view of the country’s three-year plan to combat drink driving. the government representatives we engaged with included those from the transport Ministry, the national road safety Committee, the national police, the Ministry of information and Handicap international, a non-governmental organisation which champions road safety in Cambodia. the objective of the meetings was to determine the prospect of embarking on suitable and practical initiatives to address drink-driving in Cambodia.
to value add to the discussions with practical proposals, we involved a road safety expert from the international Centre for alcohol policy (iCap) at the meetings. We also gained valuable insights to the government’s key concerns regarding alcohol and the developmental status of an alcohol policy in Cambodia through these engagements. these initial meetings also resulted in other one-on-one engagements with other stakeholders. For implementation next year, our operating company in Cambodia is currently planning for projects to raise public awareness on the dangers of drink-driving and responsible-drinking, particularly among young Cambodians who are of legal drinking age.
in Mongolia, we helped organised and joined a workshop to align the beverage alcohol industry on best practices on alcohol-related harm prevention and policy development. the workshop was facilitated by iCap. the workshop resulted in a mapping of key government stakeholders in ulaanbaatar and an action plan for stakeholder engagement. Given the political uncertainties in the country, the industry was unable to carry out the engagement plan effectively this year. We will continue to proactively pursue stakeholder engagement in Mongolia next year to better understand and address alcohol-related issues there.
Papua New Guinea‘here’s to Lucy for driving, so her mates can have fun’a public print and radio campaign to promote the concept of designated driver to discourage drink-drinking through friendship and kinship.
Papua New GuineaAnti-drink-drive public education campaigna public-private sector initiative to raise awareness on how anti-drink driving incidents are not just potential hazards to public safety but also contravene the law and have legal consequences.
43
establisHinG tHe positiVe role oF beer in soCiety (Cont’d)
Thailand‘Let’s cheers! drunk don’t drive’an on-going partnership with Chiang Mai authorities to reduce drink-driving related accidents during the songkran Festival.
We continue to align ourselves to global developments that aim to reduce the harmful use of alcohol by supporting and complementing them with in-market efforts by our operating companies.
this year, we engaged stakeholders on non-communicable diseases (nCDs) in view of a WHo report on the united nations (un) nCD summit in september 2011 that alleged harmful use of alcohol as one of the modifiable risk factors of nCDs such as cardiovascular diseases, cancers and diabetes. the latest proposal by the un is to achieve at least 10% relative reduction in harmful use of alcohol as appropriate within a national context. it also advocates advertising bans, restrictions on access to reduce overall consumption and pricing policies. the proposal is also ambiguous about the role of private sector in the nCD debate. We will continue to engage stakeholders on the nCD-alcohol agenda and are committed to work in partnership with local governments to address the issue.
44
ATTrAcTING & MAINTAINING TALeNT
our approachthe human resource (Hr) landscape today is different. the competition for talent is now more intense in a more complex business environment. We recognise that for apb to grow, we will need to develop our employees.
our Hr vision is to develop high-performing talent, build sustainable capabilities and create an inspiring workplace. We have identified the following six “Must Win battles” as our key focus for the next three years to drive employee engagement and to establish apb as the leading “employer of choice” in the region.
1. strengthen our recruitment through a holistic employee Value proposition
2. strengthen our end-to-end talent and performance management
3. engage and retain employees to deliver maximum discretionary effort
4. improve collaboration, communication and change management
5. become a strategic business partner
6. improve decision making and decrease time on transaction tasks through enabling systems and processes.
We had regular interactions between Hr at the Group and operating company level including conference calls, webinars and regional workshops. During these interactions, major people-related initiatives were discussed, alignment across companies and geographies was sought and Hr capacity was built.
our approach to people management is set out in our Code of Conduct where we establish our commitment to a discrimination-free work environment where employees are required to act honestly, responsibility and with integrity. our Code specifies that harassment of any kind (sexual, racial or religious) is unacceptable. in addition, we have the following commitments.
• to deal fairly with all employees;
• to provide opportunities to develop and promote employees;
• to maintain a professional and safe work environment;
• to recognise and compensate our employees based on their performance and contributions.
Number of employees
Vietnam 1926
China 1538
singapore 493
indonesia 473
new Zealand 433
papau new Guinea 392
thailand 318
Mongolia 314
Cambodia 303
sri lanka 193
laos 172
new Calendonia 122
soloman islands 109
our workforceour total workforce (full and part-time permanent employees only, excluding contractor workforce) was 6,786 across 13 countries. this represents a 2.8 per cent increase over 2011. our businesses in Vietnam, China and indonesia were the largest employers.
45
attraCtinG & MaintaininG talent (Cont’d)
We aim to recruit locally in order to generate greater local benefits in and around our breweries. across all our operating companies, 97.8 per cent of employees were citizens of the country where they work. thirty-five per cent of general managers are citizens of the country in which they work. During the year, a total of 1,518 people were hired and the overall turnover rate was 19.5. this year, we also implemented an analytics report to track and monitor key metrics for better decision making.
Talent management and developmentthe Hr departments at our operating companies drive the talent management process in their respective geographies. this year, we reviewed and further developed a management review process to ensure consistency of talent assessment across the Group. Group Hr coordinates information across all operating committees so that the talent review can be undertaken using consistent data. We have a talent review with the executive committee at least once a year.
a Group-wide learning management system was developed in 2012 and the first module was launched in october 2012. electronic modules have been designed to suit the needs of all operating companies and Group employees. the first module
focuses on management information systems policies and subsequent topics include competition law, our Code of Conduct and the employee alcohol policy.
We initiated a project to design and implement an apb leadership programme in singapore with the inseaD business school in singapore. in addition to this, a range of training programmes to increase professional knowledge is being undertaken at the operating company level.
Gender and age profile of our workforce
23.4%(Female)
76.6%(Male)
Women represented 23.4 per cent of the workforce. Just over 1 in 4 managers was female (27.5 per cent) and the average percentage of women in executive roles was just less than 1 in 5 (or 18.8 per cent).
the age profile of our workforce is fairly young with 31.7 per cent of employees being less than 30 years old and 60.7 per cent between the ages of 30 and 50 years old. only 0.8 per cent of employees worked part-time. More detailed data is available in appendix: Human resource.
13
do you implement the APB code of conduct as your anti-corruption policy?
0 5 10 15 20
Number of operating companies
operating company has own corruption policy no yes
3
4
46
attraCtinG & MaintaininG talent (Cont’d)
code of conduct and Integrity Line our Code of Conduct covers the following issues - conflict of interest, fair dealing with customers, distributors, suppliers and competitors, gifts and entertainment and insider trading. thirteen of our operating companies use our Code of Conduct as their anti-corruption policy and four have anti-corruption policies of their own. six of our operating companies train executives, management and staff on anti-corruption policies and procedures in addition to making the Code of Conduct available to employees.
in February 2012, we launched apb integrity line. it is an independent hotline service that gives employees, suppliers and customers the opportunity to report misconduct anonymously. it includes a dedicated hotline number, website, fax number, email address and postal address for the report of suspected incidents of misconduct. the independent system is managed by Deloitte and touche under the Forensic services Division in singapore. timely reporting of incidents are made to the Ceo. issues are then raised to a review Committee that comprises of the Ceo, the Group Finance Director and the Group Human resource Director as well as the respective regional Director (assuming no conflict of interest). since its inception, the system has received no reports of
discrimination. in 2013, further efforts will be made to publicise the line and to encourage employees to use it.
in addition to the apb integrity line, three operating companies have grievance mechanisms or polices for employees to raise incidents of discrimination. no discrimination concerns were reported in this year by our operating companies.
We conducted a corporate climate survey in october 2012 by a third party to obtain information from 3,500 employees. We will report on the results in 2013.
employee benefits and disease prevention training
a wide range of employee benefits are offered across the company. these include life and healthcare insurance, disability/ invalidity coverage, maternity leave, parental leave and retirement benefits. the table below details the number of operating companies which offer these benefits to their full-time employees.
We have a role to play in terms of preventing serious diseases and contributing to the health, satisfaction and stability of the workforce, their families and the local communities. as part of a preventive strategy for managing the health and safety of our employees, we provide access to training/education, counselling, prevention and risk-control programmes regarding communicable diseases. eleven operating companies offered HiV/aiDs awareness training, counselling and testing as well as regular medical reviews.
the chart below provides a snapshot of the percentage of the total employees that have access to each assistance programme. We also offer some training to our employee’s families, community members and beer promoters and more detailed information is available in appendix: Human resource.
Benefit Total number of operating companies that offer benefits
life insurance 13
Disability/invalidity Coverage 21
Healthcare 18
Maternity leave 21
paternal leave 17
retirement provision 21
47
attraCtinG & MaintaininG talent (Cont’d)
parental leave) were 81.6 per cent for female and 100 per cent for male employees. our absentee rate was 3.1 days per employee.
occupational health & safetyWe aim to reduce accidents at work and seek to have high standards of health overall for our
employees. in 2012, we undertook a process to enhance understanding and awareness of occupational health and safety (H&s) by defining H&s metrics. this process excludes operational safety performance as it is currently being tracked at individual breweries and reported to Group supply Chain on an annual basis. employees’ leave due to accidents is now tracked on a quarterly basis to identify areas for improvement. in 2013, we intend to set targets using the H&s metrics.
in 2012, our injury and occupational disease rate was 2.3 per 100 employees and our lost-days were 25.0 per 100 employees. no fatalities were reported this year.
collective bargaining, grievances and legal actionsWe respect the right of our employees to have union representation and the benefit that this representation can bring with regards to collective bargaining and other issues. all operating companies have some type of formal or informal grievance procedure or feedback process where staff can give feedback to management or to the union. other feedback mechanisms include staff meetings and suggestion boxes. employees are encouraged to raise any issues with their managers.
in 2012, all female and 84 per cent of male employees were entitled to take maternal and/or parental leave. in total, 118 female and 138 male employees took parental leave and 74.6 per cent of women returned to work after maternity leave. all the men returned to work following their parental leave. retention rates (12 months after taking
69%
education, training, counselling, prevention, and risk-control programmes on communicable diseasePer cent of employees offered training
education/training
prevention/ risk control
Counselling treatment
100
80
60
40
20
0
57.6%64.2% 63.6%
48
PrIorITIsING oPerATIoNAL sAFeTy
We continue to make operational safety at our breweries a priority as it is our fundamental responsibility to provide a safe workplace for our employees and contractors.
since 2010, we have adopted the safety pillar within total productive Management (tpM), an established methodology to heighten our efficiency and safety performance and to inculcate a zero accident mentality and safety awareness among staff.
this year, eight more breweries (instead of the targeted four) implemented the tpM safety pillar, making a total of 20 breweries leveraging the methodology for safety and efficiency improvement.
Accidents reportedWe continue to see a downward trend in the number of accidents of company personnel as a result of more technical safety training and discussions conducted at the breweries. For the second consecutive year, no fatal accident was reported.
We reduced accidents by 15% to 33 cases this year compared to 39 reported in 2011. However, the number of contractor accidents doubled from 6 cases in 2011 to 12 cases this year. our brewery
in port Moresby was the main contributor, which reported 5 contractor accidents. this increase was related to more project work on site and a higher focus on reporting.
the number of accidents decreased or remained constant at most of our operations except for our breweries in bangkok, Hanoi, noumea, port Moresby, sampang agung and timaru. our brewery in port Moresby reported twice as many accidents this year compared to 2011. to avoid a reoccurrence of accidents, all our breweries have taken corrective measures which include the management enforcing the wearing of personal protective equipment (ppe), conducting more safety awareness programmes and modifying equipment.
Four of our breweries showed the most improvement in safety performance this year. they were our breweries in Guangzhou, lae, Mangatainoka and Mawathagama. these breweries highlighted that employee engagement on safety awareness was a crucial factor that contributed to their significant improvement this year. our breweries in Quang nam and Vientiane have been accident-free for four years since 2008.
Accident frequencyWhile we reduced the accident frequency from 1.3 to 1.2 cases per 100 Full-time equivalents (Ftes), we did not meet the target of zero case per 100 Ftes this year. our brewery in Honiara reported an accident frequency of 2.4 cases per 100 Ftes, which was twice the average number this year. to reduce accident frequency, the Honiara brewery has increased safety training and improved registration of near misses, unsafe acts and working conditions to flag potential risks at the brewery so that precautionary action can be taken. the brewery has also strengthened enforcement for staff to wear ppe.
0
Accident frequencycases/100FTE for all sites
2013
2012
2011
2010
1.2
1.3
2.4
49
prioritisinG operational saFety (Cont’d)
Half of our breweries maintained or decreased the number of lost days. our brewery in ulaanbaatar reported the most significant improvement from 61 lost-days in 2011 to 8 lost-days this year by implementing tpM safety pillar and many safety campaigns that include investigating all accidents in 2011 and 2012 as well as conducting safety audits across departments on a monthly basis.
our breweries in Ho Chi Minh City, noumea, port Moresby and singapore reported the most significant increases in the number of lost days.
Cuts (mainly from broken glass) were most common at these breweries resulting in 41 lost days. our brewery in port Moresby reported an arm injury which resulted in 139 lost days while our Ho Chi Minh brewery reported a leg fracture which resulted in 137 lost days. the singapore brewery also reported a leg fracture which resulted in 71 days of medical leave. to reduce risk and lost-days due to workplace injuries, all three breweries have made improvement plans to raise safety awareness amongst employees, step up on safety audits and encourage staff to give feedback on safety issues to the safety Committee.
We did not receive any complaints for non-compliance with local safety regulations this year.
regional learning and planned improvementsWe did not achieve our safety targets this year. this was the result of more rigorous reporting at all breweries and insufficient safety discipline at some sites. Moving forward, we recognize that more effort has to be put in place to implement tpM safety pillar. our investigation revealed that breweries which emphasized more safety training for employees and contractors achieved better safety performance and improvements.
We will continue to give priority to operational safety next year. regional safety training to enhance the level of safety awareness and discipline as well as the sharing of best practices on safety amongst our breweries will remain as our focus area. We also have plans to conduct safety assessments on main packaging machinery in our breweries to maintain a safe operational environment for our staff.
Accident severitythe number of lost days associated with the accidents reported this year increased by 50% from 359 lost-days in 2011 to 540 lost-days this year. the increase in lost days resulted in higher accident severity from 12 lost-days per 100 Ftes in 2011 to 19 lost-days per 100 Ftes this year. We did not achieve our 2012 target of zero lost-day per 100 Ftes. overall, accident severity increased 58% between this and the last reporting year.
0
Accident severitylost calendar days/100 FTE for all sites
2013
2012
2011
2010
19
12
30
50
prioritisinG operational saFety (Cont’d)
parameters (absolute values) unit 2010 2011 2012
Fatalities of company personnel Cases 0 0 0 Fatalities of contractor personnel Cases 0 0 0 permanent disabilities of company personnel Cases 0 0 0 Fatalities of company personnel in commuting Cases 1 0 0
parameters (absolute values) unit 2010 2011 2012
accidents of company personnel Cases 74 39 33 accidents of contractor personnel Cases 20 6 12 lost days of company personnel Days 928 359 540 production workforce (Fte) Fte’s 3,095 3,071 2,854
performance indicators (average values) unit 2010 2011 2012
accidents frequency Cases/100 Fte 2.4 1.3 1.2 targets accidents frequency Cases/100 Fte - 1.1 0.0 accident severity Days/100 Fte 30 12 19 Guide values accident severity Days/100 Fte - 13 0.0
51
creATING VALue IN coMMuNITIes
throughout our footprint, we produce high-quality products that consumers enjoy and build strong local businesses that contribute to their economies and social development. to achieve this, we work to conserve resources and to operate efficiently, responsibly and in an accountable manner so that we do not disadvantage or compromise the future generations of local communities from meeting their own needs.
our Code of Conduct guides our employees on how to act responsibly on a wide range of issues that can impact society including how to avoid corruption. We also support the development of government policy that targets to prevent alcohol-related harm while campaigning proactively against irresponsible drinking such as drink-driving and underage consumption.
We consider it a key business driver to contribute to the sustained development and stability of local communities through direct employment and development of staff, payment of taxes, as well as generating economic value via our retail network and strong customer and consumer base. We also recognise that the long-term growth and success of apb is linked closely to the well-being of the local communities. in this regard, our Community
investment (Ci) policy provides a framework on how we invest in the community and guides our philanthropic spending to benefit societies strategically.
Value-adding to social developmentWe launched the Ci policy in June 2012. it clearly defines our position on Ci, articulates priority areas for investment, provides good practice principles including how to select, monitor and measure our contribution to communities. it also clearly explains what should be excluded in order to ensure effectiveness of our efforts. the policy serves to be a practical guide to decision-making, planning and implementation of Ci throughout the Group. We aim to enhance the value of our community investment activities where we operate. this, in turn, helps generate value for our shareholders and employees as we secure our license to operate by building a good rapport with local people, raising morale and commitment of our employees, earning the respect of business partners, anchoring consumer loyalty and improving our corporate reputation in the markets that we serve.
our definition of community investmentWe define community investment as financial and in-kind donations as well as contribution or investment of time, skills and knowledge (e.g. employee volunteering on company time) to communities. these initiatives typically take the form of a formal commitment for a minimum of 12 months. they should be based on a good understanding of community and government priorities that are aimed at supporting local economic growth, protecting the local environment and improving social welfare and quality of life of the community in ways that are sustainable and aligned to our business goals.
52
CreatinG Value in CoMMunities (Cont’d)
We define philanthropy as giving to charitable causes. this often takes the form of one-off donations in response to a disaster or as a result of an appeal of a worthy multilateral or not-for-profit organisation. in essence, our community investment efforts are anything that we do to help the local community over and above the direct running of our business. We do not regard the promotion of responsible drinking, the improvement of brand promoters’ work conditions and investment in operational infrastructures such as waste-water treatment plants as well as innovations to improve operational efficiencies as Ci because we consider them as fundamental to the way we conduct business responsibly.
Priority areas – water and educationWe are focusing our community efforts on water and education on the account of their joint importance to the business and the community. We aim to move away from untargeted philanthropic donations to more sustainable community investment projects and to also align local philanthropy in priority areas.
We use water to brew beer and this has a potential impact on local water supply to the communities as water is increasingly becoming a scarce resource. We aim to improve the quality of and access to water
in the communities in which we operate. We give priority to water-related initiatives that educate and promote water conservation, improve access to clean water and sanitation as well as watershed protection schemes.
education builds capacity and empowers communities to break away from poverty. it also helps build the talent pool which apb requires to develop and renew itself. in many of the developing regions where we operate, educational opportunities are limited and we aim to play a proactive role in addressing the gap. We support education initiatives that prevent school drop-outs and scholarship programmes for all levels of education including higher education.
Good Practice Principlesthe following principles are applied when making decisions on our community investment.
1. Community investment should be in our focus areas – water and education - and conform to local legal standards.
2. Community investment should be sustainable.
3. projects should be for the local communities close to where we operate and involvement of local stakeholders to ensure relevance is preferred.
all operating companies have been asked to undertake pre-selection, monitoring and evaluation steps when they are exploring to support a community project.
community Investment scorecardWe adopted the london benchmark Group (lbG) methodology for measuring and reporting inputs, outputs and impacts of Ci. the lbG system, coupled with Csr asia’s Community investment scorecard, is used to measure return on investment to apb and the community.
this system employs outcome and impact indicators to measure the quantity and quality of change for the community and apb. in June 2012, we trained our operating companies on how to use the lbG and scorecard systems. operating companies are now equipped to assess their respective community investment initiatives by data tracking, making year on year measurements, comparisons and assess impact.
53
CreatinG Value in CoMMunities (Cont’d)
community investment and philanthropic spending and activity our total spending on philanthropic and community investment increased 20 per cent in 2012 to $2,348,907 compared to $1,955,309 in 2011. of this, $543,960 was designated community investment according to the new policy while $1,804,947 was philanthropic spending. this year community investment focused on education projects but we anticipate that there will be more water projects next year. our direct cash contributions represented 90.5% of the total spend while our other contributions (management and volunteer time) made up the remainder.
Asia Pacific Breweries Foundationthe asia pacific breweries (apb) Foundation was established in 1994 and focuses its support in the arts, education and the needy. the flagship projects under these tenets Groceries with heart, scholarship for Persons with disabilities and the signature Art Prize - are designed to plug gaps in singapore and regionally, have long-term impact and benefits to our communities. to ensure that the Foundation stays relevant, we evaluate the Foundation’s flagship programmes half-yearly and continue to explore new initiatives that the Foundation can champion.
For the past four years, the Foundation has been supporting Groceries with heart, a grocery delivery programme partnering apex Club of singapore (City) to provide food staples (e.g. bread, milk, eggs, rice, cooking oil, fruits and vegetables, etc) and critical household items like toothbrushes, toothpaste, soap and light bulbs to needy elderly and families in singapore who are on government social assistance aid. our employees in singapore also volunteered to deliver groceries to the beneficiaries of this project. to date, the Foundation has disbursed $314,552 to the programme.
the APB Foundation scholarship for Persons with disabilities, which was launched in 2004, empowers and levels the playing field in singapore for students with disabilities by offering them a unique bond-free undergraduate programme at a local university. the scholarship, which was initially offered to students with physical disabilities, has been extended to students with hearing, visual or speech impairments since 2008. the apb Foundation is currently partnering the society for the physically Disabled to administer and manage the scholarship programme.
to date, the Foundation has funded over $549,000 to the scholarship and 19 scholars (from 2004 – 2011) have benefited from the programme. the scholars have also been gainfully employed. amongst them is Mr Jeffrey soh who is currently working as an analyst at the global investment firm, Goldman sachs. as a member of the Disability interest Forum in the firm, he aims to promote an inclusive workplace environment in singapore.
starting from 2012, the Foundation has increased the scholarship quantum from s$11,000 to s$12,000 per annum to help scholarship recipients manage rising tuition fees.
apb employees in singapore distributing food staples and critical household items to beneficiaries of ‘Groceries with heart’
the signature Art Prize is a bespoke contemporary art award that is unrivalled in terms of prize money (s$45,000), the involvement of renowned judges and the exposure and recognition that it gives to art practitioners in the asia pacific region.
partnering the singapore arts Museum, the apb Foundation doubled its funding for the triennial award from $2.25 million for five editions to $4.45 million. the last instalment of the art prize was in 2011 and it received close to three times more nominations (130 artworks) from 24 countries compared to 34 artworks from 12 countries in the inaugural edition. the 2011 signature art prize exhibition was visited by over 35,000 people and enjoyed widespread publicity coverage with a value of more than $5.6 million locally and internationally. the next edition will take place in 2014.
54
CreatinG Value in CoMMunities (Cont’d)
thai apb provided about 200,000 litres of drinking water and food stuff to 1,000 flood-affected thai families, including make-shift mobile toilets that relieved sanitation problems.
in December 2011, thailand experienced devastating flooding that had a catastrophic impact on the country for months. it was impossible to use roads to villages safely and local communities suffered from poor sanitation, lost of electricity and a shortage of food and fresh water. some thais had their houses entirely submerged in water and had to move to temporary accommodation.
thai asia pacific brewery (thai apb) responded urgently to aid 5,000 affected local residents in saiyai and ratniyom areas. thai apb provided food, water and sanitation as well as empowered local people to rebuild their homes with waterproof-vinyl materials. a total of 16 mobile toilets were installed while 2,000 20-litre water canisters were distributed to people in
need. the water canisters were re-filled with fresh water until the flooding subsided. Five hundred sheets of vinyl were used to help locals waterproof their homes and protect them from the elements. in all, thai apb spent a total of $33,000 on the relief effort, including the donation of basic sanitary supplies and food to the main evacuation centres.
Mr peter ong, General Manager of thai apb, said, “We are a part of thai society and it is important that we help one another in times of need. We work to rise above challenges and be a strong force to create positive impact for our fellow thais.”
FLood reLIeF IN ThAILANd
55
CreatinG Value in CoMMunities (Cont’d)
AcTIVe IN coNserVING & ProVIdING Access To cLeAN wATerbetween June and september 2012, Vietnam brewery limited (Vbl) launched the project, “1 Minute less: save Water For our Future” to raise awareness about water conservation amongst employees and local communities near our breweries such as those in Can tho, Da nang, Ho Chi Minh, nha trang and tien Giang. in total, Vbl invested $113,500 on the project which included
260 volunteer hours by more than 500 employees promoting water conservation at local communes, giving out 18,000 stickers and 8,000 information leaflets on water scarcity and tips to save water. employees and local communities made close to 1,400 pledges to save water.
in trung an Commune, a community close to our brewery in tien Giang, Vbl initiated a project to reduce uncontrolled water exploration in the
community by drilling a new water borehole and installing a water-pipe system that helps to increase clean water supply to more than 500 households in the area. this eliminated the need for the local population to use water from the river and in turn, reduce water-borne diseases amongst residents.
the project, which cost $26,500, has been well received in the community and by local government officials.
staff of Vbl raising awareness about water conservation & helping trung an Commune access clean water
morecreating
›
more for our future
creating
›
58
GrI INdex
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
strategy and Analysis
1.1 statement from the most senior decision-maker Full Ceo’s Foreword 1-2 of the organisation
1.2 Description of key impacts, risks and opportunities Full Ceo’s Foreword 1-2 our approach to sustainability 15-16
organisational Profile
2.1 name of the organisation Full about asia pacific breweries 5
2.2 primary brands, products and/or services Full about asia pacific breweries 5
2.3 operational structure Full annual report 2011/12
2.4 Headquarters location Full about asia pacific breweries 5
2.5 Countries of operation Full about asia pacific breweries 5
2.6 nature of ownership and legal form Full Ceo’s Foreword 1-2 about asia pacific breweries 5
2.7 Markets served Full about asia pacific breweries 5
2.8 scale of organisation Full Ceo’s Foreword 1-2 attracting and Maintaining talent 44
59
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
organisational Profile
2.9 significant changes during the reporting period Full Ceo’s Foreword 1-2 regarding size, structure, or ownership about asia pacific breweries 5
2.10 awards Full Case study apb scored a “hat trick” 31 in sustainability performance Maintaining High product Quality 36 and responsibility
report Parameters
3.1 reporting period Full about this report 18
3.2 Date of most recent previous report Full about this report 18
3.3 reporting cycle Full about this report 18
3.4 Contact Full about this report 18
3.5 process for defining report content Full our approach to sustainability 10, 15-16 about this report 17-18
3.6 boundary of the report Full about this report 17-18
3.7 specific limitations on the scope or boundary of report Full about this report 17-18
60
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
report Parameters
3.8 basis for reporting on joint ventures, subsidiaries, Full about this report 17-18 leased facilities, outsourced operations and other entities.
3.9 Data measurement techniques and Full appendix 73-79 the bases of calculations
3.10 effect of any re-statements Full about this report 18
3.11 significant change changes from previous reporting Full about this report 17-18 periods in the scope, boundary, or measurement methods applied in the report.
3.12 table identifying the locations of the standard Gri index 58-69 Disclosures in the report
3.13 assurance Full about this report 18 external assurance 70-72 by ernst and young
61
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
Government, commitments and engagement
4.1 Governance structure of the organisation Full annual report 16-26
4.2 indicate whether the Chair of the highest Full annual report 16 governance body is also an executive officer.
4.3 For organisations that have a unitary board Full annual report 16, 19 structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.
4.4 Mechanisms for shareholders and employees Full annual report 26 to provide recommendations or direction to the highest governance body.
4.5 linkage between compensation for members Full annual report 20-23 of the highest governance body, senior managers and executives, and the organisation’s performance.
4.6 processes for the highest governance body to Full annual report 16-20, 25 ensure conflicts of interest are avoided.
4.7 process for determining the composition, qualification, Full annual report 18-20 and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.
62
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
Government, commitments and engagement
4.8 internally developed statements of mission or Full What we said we will do 6 values, codes of conduct, and principles relevant our approach to sustainability 8 to economic, environmental and social performance, attracting & Maintaining talent 44-47 and the status of their implementation. Creating value in communities 51
4.9 procedures of the highest governance body for Full our approach to sustainability 9 overseeing the organisation’s identification and management of economic, environmental, social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles.
4.10 process for evaluating the highest governance partial annual report 20 body’s own performance, particularly with respect to economic, environmental and social performance.
4.11 explanation of whether and how the precautionary Full our approach to sustainability 15-16 approach or principle is addressed by the organisation. pursuing resource efficiency 21 at our breweries establishing the positive role 37-38 of beer in society
63
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
Government, commitments and engagement
4.12 externally developed economic, environmental, and Full about this report 18 social charters, principles, or other initiatives to which the organisation subscribes or endorses.
4.13 Memberships in association and/or national/ Full our approach to sustainability 15 international advocacy organisations.
4.14 list of stakeholder groups engaged by the organisation. Full our approach to sustainability 11-15
4.15 basis for identification and selection of stakeholders Full our approach to sustainability 10-15 with whom to engage.
4.16 approaches to stakeholder engagement, including Full our approach to sustainability 11-15 frequency of engagement by type and by stakeholder group.
4.17 Key topics and concerns that have been raised Full What we said we will do 6 through stakeholder engagement, and how the our approach to sustainability 15-16 organisation has responded to these key topics and concerns, including through its reporting.
64
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
economic
disclosure on Management Approach What sustainability Means to us 7 about asia pacific breweries 5 about this report 18
eC1 Direct economic value generated and distributed, partial about asia pacific breweries 5 including revenues, operating costs, employee Creating value in communities 53-54 compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
eC2 Financial implications and other risks and opportunities Full Ceo’s Foreword 1-2 for the organization’s activities due to climate change.
eC8 Development and impact of infrastructure investments Full Creating value in communities 54-55 and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
65
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
environmental
disclosure on Management Approach pursuing resource efficiency 21-22 at our breweries improving our water efficiency 23 reducing our carbon footprint 25 Complaints, accidents and fines 30
en3 Direct energy consumption by primary energy source Full pursuing resource efficiency 21-22 at our breweries reducing our carbon footprint 25-28
en4 indirect energy consumption by primary source partial pursuing resource efficiency 21-22 at our breweries reducing our carbon footprint 25-28
en5 energy saved due to conservation Full pursuing resource efficiency 21-22 and efficiency improvements at our breweries reducing our carbon footprint 25-28
en6 initiatives to provide energy-efficient or renewable Full pursuing resource efficiency 21-22 energy based products and services, and reductions at our breweries in energy requirements as a result of these initiatives. reducing our carbon footprint 25-28
66
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
environmental
en7 initiatives to reduce indirect energy consumption partial reducing our Carbon Footprint 25-28 and reductions achieved.
en8 total water withdrawal by source. Full improving our water efficiency 23
en16 total direct and indirect greenhouse Full reducing our carbon footprint 27 gas emissions by weight.
en22 total weight of waste by type and disposal method Full Managing Waste responsibly 29 apb scored a “hat trick” 31 in sustainability performance en28 Monetary value of significant fines and total number Full Complaints, accidents and fines 30 of non-monetary sanctions for noncompliance with environmental laws and regulations
67
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
Labour
disclosure on Management Approach attracting & Maintaining talent 44-50
la1 total workforce by employment type, employment Full attracting & Maintaining talent 44-45 contract, and region, broken down by gender. appendix 76
la2 total number and rate of new employee hires and Full attracting & Maintaining talent 45 employee turnover by age group, gender, and region. appendix 78
la3 benefits provided to full-time employees that are Full attracting & Maintaining talent 46 not provided to temporary or part-time employees, appendix 77 by significant locations of operation.
la7 rates of injury, occupational diseases, lost days, Full attracting & Maintaining talent 47-50 and absenteeism, and total number of work-related appendix 79 fatalities, by region and by gender.
la8 education, training, counselling, prevention, Full our approach to sustainability 14 and risk-control programmes in place to assist attracting & Maintaining talent 46-47 workforce members, their families, or community appendix 77 members regarding serious diseases.
la15 return to work and retention rates after Full attracting & Maintaining talent 47 parental leave, by gender.
68
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
human rights
disclosure on Management Approach attracting & Maintaining talent 46
Hr4 total number of incidents of discrimination Full attracting & Maintaining talent 46 and corrective actions taken.
society
disclosure on Management Approach Maintaining High product Quality 34 and responsibility establishing the positive role of beer 37 in society attracting & Maintaining talent 44-50 Creating value in communities 51
so5 public policy positions and participation in public Full establishing the positive role 37, 40-43 policy development and lobbying. of beer in society
so8 Monetary value of significant fines and total number Full establishing the positive role 39 of non-monetary sanctions for noncompliance of beer in society with laws and regulations.
69
Gri inDex (Cont’d)
Profile description of indicator disclosure level section Pagedisclosure (full/partial)
Product responsibility
disclosure on Management Approach Maintaining High product Quality 34 and responsibility establishing the positive role 37 of beer in society
pr2 total number of incidents of non-compliance with Full Maintaining High product Quality 35 regulations and voluntary codes concerning health and responsibility and safety impacts of products and services, by type of outcomes.
pr3 type of product and service information required by Full Maintaining High product Quality 34-35 procedures and percentage of significant products and responsibility and services subject to such information requirements.
pr6 programs for adherence to laws, standards, and voluntary Full our approach to sustainability 12-13 codes related to marketing communications, including establishing the positive role 37-43 advertising, promotion, and sponsorship. of beer in society
pr7 total number of incidents of non-compliance with Full establishing the positive role 38-39 regulations and voluntary codes concerning marketing of beer in society communications, including advertising, promotion, and sponsorship by type of outcomes.
70
We have performed limited assurance procedures in relation to apb’s 2012 sustainability report (‘the report’) as detailed in the ‘scope of Work’ below.
Management responsibility the Managers of the Company are responsible for the preparation of the report. the report has been prepared by the management of apb (‘Management’) who is responsible for the collection and presentation of information within it and for maintaining adequate records and internal controls that are designed to support the sustainability reporting process. there are currently no legally prescribed requirements relating to the preparation, publication and verification of sustainability reports.
Auditor’s responsibilityour responsibility in performing limited assurance procedures is to the Management and Directors of apb only and in accordance with the terms of reference for this engagement as agreed with
INdePeNdeNT LIMITed AssurANce sTATeMeNT To The MANAGeMeNT ANd dIrecTors oF AsIA PAcIFIc BrewerIes LIMITed (‘APB’)
ernst & young llp one raffles ouay north tower level 18 singapore 048583Mailing add: robinson road po box 384 singapore 900734 T: +65 6535 7777 F: +65 6532 7662 w: www.ey.com
them. We do not therefore accept or assume responsibility for any other purpose or to any other person or organisation. any reliance any such third party may place on the report is entirely at their own risk.
our limited assurance engagement has been planned and performed in accordance with the isae 30001. We have also considered the Global reporting initiative G3.1 (‘Gri G3.1’) reporting guidelines in conducting our limited assurance procedures, as described below.
these procedures have been undertaken to form a conclusion that nothing has come to our attention that causes us to believe that apb has not undertaken the stated approach to the preparation of the report for the period 1 october 2011 to 30 september 2012 (within the boundaries described in the report). our responsibility does not include:
• any work in respect of information reported outside of apb’s 2012 sustainability report, such as sustainability information published elsewhere on apb’s website;
• sustainability information prior to 1 october 2011;
• review of management’s forward looking statements such as targets and intentions; and
• assessing whether the report is in accordance with all of the requirements of Gri G3.1 or whether any application level prescribed by the Gri G3.1 has been achieved.
our multi-disciplinary team has the required competencies and experience to conduct this assurance engagement.
Level of Assurancea limited assurance engagement consists of making enquiries and applying analytical and other limited assurance procedures. our procedures were designed to provide a limited level of assurance and as such do not provide all the evidence that would be required to provide a reasonable level of assurance.
1 international Federation of the accountants’ international standard for assurance engagements other than audits or reviews of Historical Financial information (isae3000)
71
the procedures performed depend on the assurance practitioner’s judgement including the risk of material misstatement of the specific activity data, whether due to fraud or error. While we considered the effectiveness of Management’s internal controls when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
scope of workWe designed our procedures in order to state whether anything has come to our attention to suggest that the subject matter detailed below has not been reported in accordance with the criteria listed below.
subject Matterthe subject Matter for our limited assurance engagement is:
inDepenDent liMiteD assuranCe stateMent to tHe ManaGeMent anD DireCtors oF asia paCiFiC breWeries liMiteD (‘apb’) (Cont’d)
ernst & young llp one raffles ouay north tower level 18 singapore 048583Mailing add: robinson road po box 384 singapore 900734 T: +65 6535 7777 F: +65 6532 7662 w: www.ey.com
the indicators, statements and claims related to the following five Focus areas as they relate to the production process as defined on page 21 to page 31, page 37 to 43 and page 48 to 50 of the report:
• energy efficiency and emission: (a) thermal energy (b) electrical consumption and its related indirect Co2 emissions, and (c) direct Co2 emissions
• Water & waste water management: (a) water consumption, and (b) effluent CoD to surface water
• environment accidents and complaints
• operational safety (safety at breweries): (a) safety and environment incidents (b) accident frequency (c) accident severity
• responsible drinking: accuracy of statements of commitment and performance of work undertaken in communities surrounding sites visited and from broad-based media research
criteriain relation to the Focus areas we have evaluated the subject matter against apb’s application of the Gri G3.1 principle of accuracy defined as:
• is the reported information sufficiently accurate and detailed for stakeholders to assess the reporting organisation’s performance?
Procedures undertaken our assurance procedures, which were performed at apb’s corporate office and three production sites2 , included but were not limited to:
• interviewing selected corporate and site personnel to understand key sustainability issues related to the Focus areas and processes for the collection and accurate reporting of performance information;
• tours of the breweries and on-site observations
• Where relevant, performing walkthroughs of systems and processes for data aggregation and reporting;2 production locations selected for site visits were bangkok in
thailand, Mawathagama in sri lanka, and Haikou in China.
72
• Verifying the accuracy of calculations via sampling methods ;
• Checking that data and statements had been correctly transcribed from corporate systems and/or supporting evidence, into the report; and
• obtaining and reviewing evidence to support key assumptions and reasonableness in calculations and other data.
observations and areas for improvementour observations and areas for improvement will be raised in an internal report to apb management. the focus on this report will be in addressing any identified gaps between the Gri principles for defining report content - materiality, completeness, sustainability context and stakeholder inclusiveness and those presented within the report.
to ensure continuing consistency and accuracy in the report, we would recommend apb to conduct periodical training to those personnel responsible for data gathering and reporting, keeping in mind potential manpower transitions.
inDepenDent liMiteD assuranCe stateMent to tHe ManaGeMent anD DireCtors oF asia paCiFiC breWeries liMiteD (‘apb’) (Cont’d)
ernst & young llp one raffles ouay north tower level 18 singapore 048583Mailing add: robinson road po box 384 singapore 900734 T: +65 6535 7777 F: +65 6532 7662 w: www.ey.com
these observations do not affect our conclusions on the report set out above.
our Independence this is the third year that ernst & young has been commissioned to provide independent assurance on apb’s sustainability report of which the last 2 years have been published.
in conducting our assurance engagement we have met the independence requirements of the institute of Certified public accountants of singapore (iCpas) Code of professional Conduct and ethics. ernst & young’s independence policies, which address and in certain places exceed the requirements of the iCpas Code of professional Conduct and ethics, apply to the firm, partners and professional staff. these policies prohibit any financial interests in our clients that would or might be seen to impair independence. each year, partners and staff are required to confirm their compliance with the firm’s policies.
our conclusionnothing has come to our attention that causes us to believe that the subject Matter, described above, as presented in apb’s 2012 sustainability report, was not presented fairly, and calculated in all material respects in accordance with the Criteria detailed above.
ernst & young llp21 December 2012 singapore
73
APPeNdIx: eNVIroNMeNTAL PArAMeTers ANd INdIcATors
Parameters
Thermal energy consumption Consumption of thermal energy in MJ
electricity consumption Consumption of electrical energy in kWh
water consumption Water consumption in m3
solid waste disposal non-recycled waste in kg such as hazardous waste, waste water treatment sludge and industrial waste
cod load of effluent the Chemical oxygen Demand of the treated or untreated waste water leaving the production unit and discharged to surface water in tonnes
waste water treated the number of units discharging waste water untreated in the environment (status of the waste water treatment plant programme)
environmental accident environmental or industrial safety accident with off-site effect, which is an uncontrolled event with the potential of harming human life, property or the ecosystem
environmental complaint Complaint made by a third-party related to an environmental or industrial safety accident with off-site effect
74
appenDix: enVironMental paraMeters anD inDiCators (Cont’d)
Performance indicators
specific thermal energy consumption thermal energy consumption per unit produced in MJ/hl beer plus soft drinks
specific electricity consumption electricity consumption per unit produced in kWh/hl beer plus soft drinks
specific co2 consumption Fossil carbon dioxide emission (direct and indirect) per unit produced in kg/hl beer, cider plus soft drinks derived from the thermal energy and electricity consumption. the corresponding Co2 emission is derived using the World business Council sustainable Development (WbCsD) and World resources institute (Wri) Greenhouse Gas protocol. emission factors applied for indirect Co2 emission were as per international energy agency (iea) statistics 2012 addition, entitled, “Co2 emissions From Fuel Combustion Highlights”.
specific water consumption Water consumption per unit produced in hl/hl beer plus soft drinks
75
APPeNdIx: sAFeTy PArAMeTers ANd INdIcATors
Fatal accidents Fatalities, own staff and contractor personnel
Accidents resultingin permanent disability permanent disabilities, own staff
Accidents resultingin absence from work accidents, own staff and contractor personnel
Lost day the number of calendar days the employee was incapable to perform his/her regular job or was limited to restricted work activity as from the first calendar day after the accident
workforce expressed in full-time equivalents (Fte)
Number of complaints external complaints related to nuisance
Performance indicators
Accident frequency own staff, number of accidents resulting in absence from work per 100 full-time equivalents (Fte)
Accident severity own staff, days absence from work per 100 full-time equivalents (Fte)
76
APPeNdIx: huMAN resource
employment by country, gender and employment typenumber of employees
Male Female
Management executives staff ToTAL Management executives staff ToTAL
Cambodia 43 21 193 257 5 0 41 46
China 107 23 1041 1171 50 4 313 367
laos 8 14 106 128 5 3 36 44
indonesia 104 44 257 405 15 8 45 68
Mongolia 3 5 180 188 6 0 120 126
new Caledonia 13 4 72 89 8 1 24 33
new Zealand 127 21 148 296 59 6 72 137
papua new Guinea
45 28 232 305 21 7 59 87
singapore 75 75 185 335 47 25 86 158
solomon islands
2 4 82 88 0 3 18 21
sri lanka 63 26 96 185 3 1 4 8
thailand 45 13 188 246 16 4 52 72
Vietnam 185 32 1288 1505 76 10 335 421
ToTALs 820 310 4068 5198 311 72 1205 1588
77
appenDix: HuMan resourCe (Cont’d)
Benefits offered only to Full Time employeesnumber of operating companies
Assistance and training programmes offered number of operating companies
Benefit south / south-east Asia Indochina/Thailand North Asia oceania Total
life insurance 1 2 4 2 9
Healthcare 2 3 4 2 11
Disability/invalidity Coverage
1 3 5 0 9
Maternity leave 2 2 5 3 12
paternal leave 2 2 5 2 11
retirement provision 3 4 6 2 15
stock ownership 1 0 0 0 1
Types of assistance programmes offered
employees employee Families community Members Beer Promoters
education/ training yes – 9 yes – 1 yes – 2 yes – 4
Counselling yes – 6 yes – 1 yes – 1 yes – 3
prevention/ risk control yes – 8 yes – 1 no yes – 2
treatment yes – 7 yes – 3 no yes – 2
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appenDix: HuMan resourCe (Cont’d)
Turnover datanumber of employees
Total number of new hires Gender Age (years)
region total Male Female below 30 between 30 and 50 above 50
south asia/ south-east asia
150 122 28 83 66 1
indochina/thailand 351 273 78 249 99 3
north asia 628 495 133 373 237 18
oceania 1129 890 239 705 402 22
ToTALs 2258 1780 478 1410 804 44
Total number of employees leaving
Gender Age (years)
region total Male Female below 30 between 30 and 50 above 50
south asia/ south-east asia
127 100 27 41 72 14
indochina/thailand 297 229 68 162 117 18
north asia 640 499 141 383 252 5
oceania 257 203 54 36 88 21
ToTALs 1321 1031 290 622 529 58
TurNoVer rATe Gender Age (years)
region total Male Female below 30 between 30 and 50 above 50
south asia/ south-east asia
11.0 10.8 11.5 25.5 13.5 8.5
indochina/thailand 10.9 10.7 11.7 20.7 6.8 8.7
north asia 34.6 36.7 28.6 43.1 26.5 38.5
oceania 24.3 26.1 19.4 14.0 13.2 15.8
ToTALs 19.5 20.0 18.3 29.0 13.0 11.2
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appenDix: HuMan resourCe (Cont’d)
Injury and Lost day raterates are per 100 employees
Absentee ratenumber of days absent per employee
Injury/occupational disease rate Lost day rate
region Male Female Male Female
south asia/south east asia
2.9 0.0 12.7 0.0
indochina/thailand 1.7 8.2 3.4 67.1
north asia 0.2 0.0 1.0 0.6
oceania 4.9 1.9 91.4 77.0
Absentee rate
region Male Female
south/south east asia
2.0 3.0
indochina/thailand 1.6 2.0
north asia 0.2 1.1
oceania 8.9 10.3
