HEINEKEN’s three-year capability-building journey
As the parent company of DB Breweries, HEINEKEN has been leading a progressive and structured climate transition plan that has evolved significantly between 2023 and 2025:
- Foundation building (2023) – HEINEKEN began by identifying climate risks, establishing robust governance processes, adopting Task Force on Climate-related Financial Disclosures frameworks, conducting early scenario analysis and engaging stakeholders.
- Integration (2024) – The climate strategy was further embedded into financial reporting, risk management, digital systems, supply chains, and executive accountability across the HEINEKEN group.
- Full operationalisation (2025) – HEINEKEN delivered detailed transition roadmaps, implemented internal carbon pricing, enhanced scenario analysis, strengthened governance and deeply integrated climate considerations into strategic planning and capital expenditure decisions.
This evolving transition plan demonstrates HEINEKEN’s commitment to moving from understanding climate risks to actively managing them through integrated systems, strong governance and organisation-wide accountability. As DB Breweries’ parent, HEINEKEN’s approach directly shapes DB’s sustainability journey and risk management.
Further details about HEINEKEN’s climate change transition can be found in the 2023, 2024, and 2025 annual reports.
HEINEKEN’s key climate change-related risks
The first three risks are assessed as HEINEKEN’s top climate change-related risks.
|
Category |
Risk |
Mitigations and controls |
|
1. Carbon pricing and regulatory transition risk |
Rising carbon taxes, emissions-trading costs, and regulatory tightening increase operational and supply chain costs. |
Internal carbon pricing, renewable power purchase agreements, net-zero strategy, efficiency upgrades. |
|
2. Water scarcity and water stress |
Reduced water availability threatens operations and sourcing. |
Water efficiency, water balancing, watershed restoration, reuse/recycling, risk assessments. |
|
3. Agricultural supply chain risk |
Climate impacts reduce yields and increase volatility. |
Regenerative agriculture, sustainable sourcing, local sourcing, supplier roadmaps. |
|
4. Packaging and circularity risk |
Regulatory shifts and emissions from packaging. |
Circularity targets, increased recycled content, supplier decarbonisation plans, closed-loop systems. |
|
5. Physical climate risks |
Extreme weather disrupts operations and logistics. |
Resilience planning, site-level plans, water reclamation, digital monitoring. |
|
6. Energy transition risk |
Fossil energy volatility and regulatory phase-outs. |
Renewable electricity, low-carbon thermal solutions, efficiency and digital optimisation. |
|
7. Social, market and reputation risk |
Stakeholder expectations and reputation concerns. |
Net-zero targets, transparent reporting, stakeholder engagement, responsible consumption. |
|
8. Governance and controls risk |
Insufficient oversight may hinder transition. |
Risk management, committees oversight, audit assurance, climate-linked remuneration. |
All risks have been evaluated against 1.5°C and 3–4°C warming scenarios by 2050. Full details are available in HEINEKEN’s 2025 annual report.
DB Breweries’ climate change-related risks
To align with HEINEKEN’s global risk framework, DB Breweries has independently reviewed its physical climate risks across New Zealand’s domestic supply chain, brewery operations, and national distribution network.
|
Category |
Risk |
Mitigations and controls |
|
1. Water scarcity |
Reduced water availability at Auckland and/or Timaru due to drought |
Water efficiency and reuse, wastewater treatment, assessment of alternative supply options, and alternative production measures |
|
2. Agricultural supply chain risk |
Lower hop yields in Tasman District |
Sustainable sourcing of raw materials, supplier diversification, recipe flexibility, and support for growers with nature-based resilience |
|
3. Physical climate risks |
Flooding and coastal inundation at Timaru Brewery |
Financial impact assessment, business continuity planning, support for Waitarakao Lagoon nature-based restoration, and flood defence gap assessment |
|
4. Governance and controls risk |
Strategy and governance does not adequately consider physical climate-related risks |
Review and incorporate risks into DB's enterprise risk platform |
Both HEINEKEN and DB Breweries acknowledge the uncertainty surrounding many climate factors and will continue to assess and evolve their risk mitigation and adaptation strategies as external conditions and scenarios evolve.
