Goodwill, brand reputation, customer loyalty – successful businesses know the importance of taking care of their stakeholders, including giving back to the community. These practices exist long before corporate social responsibility (CSR) and ESG (environmental, social, governance) principles were a thing. Today, sustainable practices have transformed from being an option to an essential necessity.
We took a closer look at how HEINEKEN Malaysia does it. As a brewer with nearly six decades of operations in Malaysia, HEINEKEN Malaysia has long strived to bring positive impact to the local communities while being mindful of local cultural sensitivities. The brewer strongly believes in collaborations with like-minded stakeholders in pushing the nation’s sustainability agenda.
HEINEKEN Malaysia Corporate Affairs & Legal Director Renuka Indrarajah spoke at length with Malaysiakini on how HEINEKEN’s global sustainability goals are being realised in Malaysia and some ESG achievements the company is most proud of. HEINEKEN Malaysia is guided by its Brew a Better World ambitions – a sustainability commitment aimed at driving a positive impact on the environment, social sustainability, and the responsible consumption of alcohol.
Environmental Sustainability
Under environmental sustainability, HEINEKEN Malaysia is supporting Malaysia’s pledge to cut the nation’s carbon intensity against GDP by 45% (vs. 2005 levels) by 2030, with the brewer’s goal to hit net zero by 2030, in line with their global aspirations. The company had in 2022 achieved a 49% reduction in its CO2 emissions against its 2018 baseline; it has also transitioned to 100% renewal energy since March 2022.
HEINEKEN Malaysia’s success in recycling 100% of its waste since 2017 (ahead of the group’s 2025 target) also alleviates some pressure on the nation’s finite landfill capacity – with an average of 38,000 metric tonnes of solid waste sent to Malaysia 170-plus landfills daily. As we speak, the nation is at risk of running out of space for solid waste disposal by 2050.
Last year, HEINEKEN Malaysia generated over 35,000 tonnes of waste, of which 100% were recycled, generating RM1.9 million in revenue. The brewer believes in collaborating with like-minded stakeholders and in the space of waste management, it has struck various partnerships to convert its waste to value, such as converting spent grain to animal feed.
The company’s most visible impact is arguably its water-related projects, particularly the rehabilitation of rivers through collaborations with the authorities, NGOs and local communities. After all, clean water is vital to our lives and livelihood, and maintaining healthy river systems ensures the survival of countless species, preserving biodiversity and promoting ecological balance.
“Over the years, the WATER project has seen the engagement of more than 54,000 Malaysians, with the active engagement of more than 180 local communities. It currently has 16 active river care communities nationwide, covering six rivers,” said Renuka.
HEINEKEN Malaysia’s water conservation journey started in 2007, through the Working Actively Through Education & Rehabilitation (WATER) Project, a flagship project of its CSR arm, SPARK Foundation.
Renuka added, “Through the WATER Project, we managed to involve communities, government agencies, and our environmental NGO partner Global Environment Centre (GEC), where we joined efforts in accomplishing river rehabilitation, water conservation and alternative water systems projects.”
Through its water stewardship initiative, the WATER Project implemented projects focused on river rehabilitation, water conservation, and alternative water systems, with over RM14 million invested in these initiatives since 2007. The initiatives include the rehabilitation of Sungai Way in Petaling Jaya, the construction of a 305-metre claydyke as well as the reforestation of degraded peatland at the Raja Musa Forest Reserve, and rainwater harvesting for local communities, which contributed to improving the long-term sustainability of the Sungai Selangor watershed. Earlier this year, HEINEKEN Malaysia committed a further RM6 million towards the initiative up till 2030.
Within its own operations, the brewer has improved its water efficiency by 20% compared to its 2014 baseline through various internal best practices and water-saving efforts which are focused on optimising usage. It also treats 100% of its wastewater beyond the standards required by the Department of Environment and continues to identify opportunities to maximise the reuse and recycling of treated wastewater.
“Water is a key source for us, we are proud to be the first company in Malaysia to fully balance the water we use in our products. In 2022, we have balanced 203% of water used in production through high-impact water stewardship initiatives,” Renuka shared.
For every 1 litre of water used in its products, the company targets to balance 1.5 litres. It balances the volume of water utilised for production use through programmes in water catchments and communities beyond its walls.
Social Sustainability
On the social sustainability front, HEINEKEN Malaysia’s other flagship project is the HEINEKEN Cares food aid programme, launched in 2021 with the aim of extending food aid to local communities negatively impacted by COVID-19. Since then, the programme has evolved from providing short-term food aid to ensuring long-term food security, such as helping communities set up small-scale community farms and satellite aquaponic systems, establishing and utilising existing alternative water systems to support these community farms, and distributing food supplies to the needy.
“We strive to be a responsible corporate citizen and take care of all our stakeholders, minimising the impact on our environment, and influencing positive change in the communities around us,” said Renuka.
Responsible Consumption
As a responsible and committed brewer, HEINEKEN Malaysia has always been leading the effort in engaging and educating its customers and consumers on enjoying its products responsibly. Besides giving consumers non-alcoholic options, the Heineken® brand dedicates 10% of its media spend to responsible drinking campaigns. This investment includes the ‘When You Drive, Never Drink’ (WYDND) programme that provides an opportunity to help change attitudes and behaviours and reduce drink driving around the world.
In 2022, HEINEKEN Malaysia’s WYDND campaigns included a pledge campaign that saw more than 3,000 consumers taking the pledge to support WYDND; more than 100 business partners also signed the HEINEKEN Malaysia Responsible Consumption Industry Pledge and be an ‘Enjoy Responsibly’ ambassador. Through the pledge, HEINEKEN Malaysia aims to inspire its business partners to join forces as part of a responsible and progressive industry in Malaysia.
“It’s a very bold move for a beer company to say, ‘When you drive, never drink’ but that’s how serious we are about this matter,” Renuka stressed.
Industry Recognitions
HEINEKEN Malaysia has over the years received numerous recognitions for its sustainability efforts, including include the recent win at the Sustainability & CSR Malaysia Awards 2023 for the sixth year since 2017. MDBC Sustainability Awards for four years, Sustainable Business Awards three times, Asia Responsible Enterprise Awards twice, and UNGCMYB Sustainability Performance Awards.
HEINEKEN Malaysia is also proud to have brought back Gold in the categories of Waste Management and Innovative Partnership, as well as the coveted award for Most Outstanding ESG Initiative at The Star’s ESG Positive Impact Awards 2022.
HEINEKEN Malaysia indeed has plenty to be proud of when it comes to ESG. What Renuka is most proud of is how the company had, despite the uncertainties of its own operations (during the breweries’ closure amidst the pandemic), thought of how to keep its employees engaged as well as alleviate the suffering of the local communities – which was how HEINEKEN Cares came about.
“We are proud of how we created the opportunity to bring people together for a good cause, at a time when many were feeling disheartened, to include our people in a good cause to give back to the community,” Renuka said.
Encouraged by all the positive social impact it has achieved through strategic collaborations, HEINEKEN Malaysia urges all corporates in Malaysia to step up and join it in the effort to bring positive impacts to society.
“Together, we can steer positive change on a bigger scale,” Renuka said.
