Evaluating a company's impact (the case of Heineken)

This week’s read time: 3 minutes

You are reading Green Digest Impact, a bi-weekly newsletter that provides in-depth analyses of companies’ environmental and social impact.

OUR APPROACH

Central to our narrative is the principle of double-materiality, which recognizes that a company's impact is twofold: it affects both the environment and society at large, and in turn, these external factors influence the company's financial and operational performance.

While traditional ESG assessments focus on the latter, we aim to examine companies' direct impacts on these factors. In pursuit of this, we introduce a unique scoring system that quantifies a company's impact.

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THIS WEEK’S COMPANY

Heineken

This week, we dive deep into Heineken’s environmental and social impact.

Heineken is a Netherlands-based, globally recognized beer brand. Its extensive brand portfolio, featuring iconic names like Heineken, Amstel, and Desperados, among others, reaches millions of consumers across 190 countries. 

Some interesting facts:

• Heineken was founded in Amsterdam in 1873 by Gerard Adriaan Heineken, making it over 150 years old.

• Heineken stands out with its 28-day brewing process in horizontal tanks, using natural vegan-friendly ingredients: malted barley, hops, water, and Heineken’s proprietary A-yeast, which gives it its signature taste.

COMPANY’S IMPACT

Heineken’s overall impact score

Heineken has a general impact score of -1.85 (on a scale from -5 to +5). Its impact is spread across 12 UN Sustainable Development Goals (SDGs) and 10 topics, split between positive and negative analyses.

In the socio-economic sphere,

Heineken's impact stems from its extensive global presence as the world's second-largest brewer and Europe's largest brewer. The company boasts a diverse portfolio of over 500 beverage brands and produces around 24 billion liters of beer annually, equivalent to approximately 67 billion bottles sold globally. Heineken also employs 85,000 people and partners with around 4,700 logistics service providers, playing an important role in global economic development through job creation, supply chain integration, and industry collaboration.

Heineken’s products, when consumed in moderation, may provide certain health benefits, such as a reduced risk of heart disease and stroke, enhanced cognitive function, and antioxidant properties. However, excessive alcohol consumption remains a significant public health concern, contributing to serious conditions like cardiovascular disease, cancer, and liver disease. As a leading beer producer, Heineken plays a role in both the availability and promotion of alcohol, contributing to these risks. The company drives consumption through aggressive marketing, sponsorships of major sports and entertainment events, and the normalization of drinking culture. Additionally, promotions, discounts, and large-pack formats encourage higher consumption. While Heineken supports responsible drinking initiatives, its business model inevitably contributes to increased alcohol use and its associated health impacts.

Environmentally,

Heineken has an annual carbon footprint of around 16 million tonnes of CO₂ equivalent, comparable to the annual electricity usage of over 3.3 million homes. Additionally, Heineken consumes around 34 million m³ of water annually, with 15 million m³ (44%) of it in areas at water risk, including areas of high water stress. Further, Heineken generates 4.7 million tonnes of waste annually, with 99% being non-hazardous. While the company successfully recycles or reuses 98.8% of the waste, a significant amount - 56,000 tonnes - is still disposed of unsustainably through landfilling and incineration. Moreover, Heineken's annual barley consumption requires an estimated 765,000 hectares of land and 117 million m³ of water.

_{*The impact score is current as of February 2025 and may be subject to changes as it is continuously updated.
**You can find details about the scoring methodology here and the information sources here.}

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ESG VS IMPACT SCORE

What is Heineken’s ESG rating?

For comparison, Heineken has an AA rating in MSCI's ESG evaluation.

However, ESG Ratings from MSCI ESG Research are designed to measure a company’s resilience to financially material ESG risks and they provide a window into one facet of risk to financial performance. They measure how effectively companies manage ESG risks, not their impact on these factors.

CONCLUSION

Materiality Map & Final Words

So, Heineken’s key social and environmental impact lies in …

its role as one of the world’s largest brewers, with a vast global footprint and an extensive portfolio of over 500 brands. As Europe’s leading beer producer, Heineken contributes to economic growth through employment, supply chain partnerships, and industry collaboration, supporting 85,000 jobs and working with 4,700 logistics service providers. Its massive production scale—equivalent to 67 billion bottles annually—reinforces its presence as a key player in the global beverage industry.

However, Heineken’s contributions are accompanied by significant social concerns. The company’s aggressive marketing, sponsorships, and pricing strategies contribute to excessive alcohol consumption, exacerbating public health risks such as cardiovascular disease, cancer, and liver damage. While Heineken promotes responsible drinking initiatives, its business model inherently drives higher alcohol consumption. Environmentally, Heineken’s operations result in high carbon emissions, significant water consumption in high-stress regions, and extensive agricultural land use, despite efforts to improve sustainability and recycling practices.

Heineken’s overall impact score of -1.85 reflects the balance between its positive contributions to economic growth and the negative repercussions of its role in excessive alcohol consumption and environmental sustainability challenges.

If you’d like to delve deeper into Heineken’s impact, you can explore it here.

If you'd like to learn more about the scoring methodology, you can do so here.

Do you have a specific company you'd like us to cover? Send your suggestions to [email protected]

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