CSR Coca Cola 2011 2012


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CSR Coca Cola 2011 2012

  1. 1. How can a drink builda more sustainable tomorrow?Corporate Responsibility& Sustainability Report2011/2012
  2. 2. About this report ContentsThis is Coca-Cola Enterprises’ (CCE’s) seventh annual About this report Inside Front CoverCorporate Responsibility and Sustainability (CRS) QA with John Brock and Hubert Patricot 02 Our business 04Report. It replaces CCE’s 2010 CRS Report as the Our stakeholders 06company’s most recent CRS disclosure and Innovation and collaboration 08contains a full year of data from January 1, 2011 A low-carbon, zero-waste London 2012 Olympicto December 31, 2011 for our business operations and Paralympic Games 09covering seven European territories: Great Britain, Governance10France and Monaco, Belgium, Luxembourg, the Energy and Climate Change 12Netherlands, Norway and Sweden, and our offices Sustainable Packaging and Recycling 16in the United States. It also includes some illustrative Water Stewardship 20case studies and business activities from 2012. Product Portfolio 24 Community28 Active Healthy Living 30For news on CCE’s sustainability initiatives and further Workplace32resources, see our website:www.ccesustainabilityplan.com Our targets 36 GRI Index and CEO Water Mandate Index 38 UN Global Compact Index and 2011 Awards 39 Assurance statement 40Reporting boundaries Further detail of our emissions distributor of Coca-Cola products, CCE has www.ccesustainabilityplan.comand standards by scope can be found online at developed a sustainability plan aligned Our sustainability plan website provides www.ccesustainabilityplan.com. with these seven focus areas. By delivering further detail on our CRS commitments andUnless otherwise indicated, the progress against the 37 targets in our plan, The water use data in this report refers targets, a full GRI Index, progress updatesenvironmental and workplace data in this we support The Coca-Cola Company in to production facilities, where we have and details of awards and events whichreport covers all operations owned or attaining its own global goals and targets. the greatest water use. All financial data have occurred since the plan’s launch.controlled (production, sales/distribution, Each of our seven commitments is stated at in this report is in US dollars, unlesscombination sales/production facilities, the beginning of each chapter of this report Country reports: Each of CCE’s territoriesadministrative offices and fleet) byCoca-Cola Enterprises (CCE). Our otherwise stated. This report has been verified by SGS (see and a review of progress against each of the 37 plan targets is on pages 36 and 37. produces a Coca-Cola system report in conjunction with The Coca-Cola How can a drink buildworkplace, community and carbon dataincludes our offices in the United States. page 40) and is aligned with the Global Reporting Initiative (GRI), self-assessed at level B+. The report also serves as our Our sustainability plan was built during 2011 following significant consultation Company, giving local examples of how CCE’s CRS commitments are being brought to life in our communities. These a more sustainable tomorrow?Our carbon footprint is calculated in with a wide range of stakeholders. This Communication on Progress (COP) for the reports can be found online at each ofaccordance with the WRI/WBCSDGreenhouse Gas Protocol and we use an United Nations Global Compact (UNGC) and the Water Stewardship chapter report has also been shaped by the input we received – each chapter answers a question posed by a third party at our the following websites: By creating a sustainability plan that will enable us to…operational consolidation approach to Great Britain: serves as our COP-Water, as part ofdetermine organizational boundaries. roundtable events – showing how we www.cokecorporateresponsibility.co.uk our endorsement of the UNGC CEOFor example, our carbon and energy data are listening and responding. www.cokecce.co.uk Water Mandate.includes only the distribution impacts of deliver, lead France:beverages that we distribute but do not www.coca-cola-entreprise.frproduce, such as Ocean Spray products. Material information –Data is consolidated from a number of Materiality where to find it Belgium and Luxembourg:sources, including our manufacturing www.cocacolabelgium.befacilities, fuel use information, estimated Coca-Cola products are made by over CCE’s CRS programs are communicated Netherlands:cold drinks equipment energy use, and is 300 bottling companies worldwide on in a variety of publications: and innovate.analyzed centrally. Our baseline year is behalf of The Coca-Cola Company, www.coca-colanederland.nl2007 and our emissions are independent which creates and markets brands and This report Norway:of any greenhouse gas trades. trademarks, and manufactures syrups Provides an overview of CCE’s progress www.coca-cola.no and concentrates. Coca-Cola Enterprises against our commitments in 2011 and ourUnder the Protocol, we measure our is one of the licensed, independent bottling ambitions for the future. It includes Sweden:emissions in three ‘scopes’: companies which purchases these items information on our business, our www.coca-cola.se and produces and packages beverages governance and management of CRS, our• Scope 1 The Coca-Cola Company to sell and distribute to retail and wholesale stakeholders and the work we are doing The fuel we use for manufacturing, our Provides many sources of Coca-Cola customers. Our relationship with The in each focus area. It contains a summary own fleet of trucks, vans and cars, and system sustainability information. Coca-Cola Company influences the way GRI Index and indices showing our our process and fugitive emissions In particular, its website, www. we work, our spheres of responsibility and compliance with the UN Global Compact• Scope 2 how we determine our material issues. thecoca-colacompany.com, contains and its CEO Water Mandate. The electricity we use at all our sites corporate codes and policies which The Coca-Cola system has determined Online inform CCE’s own approach to CRS.• Scope 3 seven material sustainability focus www.cokecce.com Its 2010/2011 Sustainability Report, The electricity used by our coolers and areas, which make up its Live Positively www.thecoca-colacompany.com/ vending machines at our customers’ framework. These are a result of work and Our corporate website provides further sustainabilityreport/index.html, contains premises, our business travel by rail and consultation over many years. Each has a detail on some of our initiatives, our a summary of the global Coca-Cola air, and the fuel used by our third-party set of global measurable targets. As the governance structure and corporate system sustainability work. distributors. Western European manufacturer and CRS policies. www.cokecce.com Corporate Responsibility Sustainability Report 2011/2012 01
  3. 3. QA with John Brock and Hubert PatricotWhat does our new sustainability planmean for CCE?The plan sets out our new sustainability vision, QA with John Brock and Hubert Patricot Q/ What is new in the sustainability plan? we want to lead our industry in the two focus areas where we Q/ How have you ‘delivered for today’ in 2011? Q/ So how will a drink build a sustainable tomorrow?commitments and targets. It demonstrates how John Brock (Chairman A/ John Brock: We’ve defined, believe we can make the biggest difference – Energy and Climate A/ Hubert Patricot: We reduced A/ John Brock: We’re learningwe’ll grow our business while we build a more and CEO) and Hubert Patricot, (Executive Vice President for the first time, our vision for CRS at CCE. We want to build Change and Sustainable Packaging and Recycling. the carbon footprint of our business operations by around that the answer is a journey not a destination. We’ll continue tosustainable tomorrow. and President, European a sustainable tomorrow – and 70,000 tonnes CO2e (8.4 percent) embed CRS into our organization, Group) discuss our 2011 to do so we have set seven Q/ How will you innovate from 2010, while growing our in everything we do. We’ll follow CRS achievements, future commitments and 37 challenging for the future? volume by 3.5 percent. This is part our plan to meet the goals we’ve plans and challenges. and measurable targets which of an overall 10 percent decrease set and we’ll work with others to we aim to achieve by 2020. A/ Hubert Patricot: Our plan in emissions from our 2007 innovate when we don’t know all Q/ What was your greatest We have developed three opens new opportunities for us baseline. We are also working the answers. In this, our first CRS Corporate Responsibility and strategic priorities around three to work with a wide range of hard to drive down the amount Report since its launch, we hope Our strategic priorities Sustainability (CRS) achievement themes which are core to making stakeholders, building on strong, of water we use to make our to show you how we are already in 2011? our vision reality – Deliver, Lead existing partnerships with the products. We used an average delivering for today and inspiring and Innovate. UN Global Compact and its CEO of 1.43 liters of water to produce for tomorrow. Deliver for today A/ John Brock: In September Water Mandate, and generating one liter of product, down from On our commitments and targets 2011, we produced a new A/ Hubert Patricot: We’ve also new alliances to create innovative 1.48 liters/liter in 2010. sustainability plan – ‘Deliver set stretching, value chain-based solutions and drive thought for Today, Inspire for Tomorrow’, goals which address some of leadership. We want to harness John Brock: We have also started the next milestone on our CRS the bigger issues that society as the power of our own employees to address impacts related to theOur sustainability vision Lead the industry journey. Over the last two a whole faces. And we’ve said to generate new ideas and we raw materials we purchase. In a In Energy and Climate Change and years, we have examined how are already working with our joint venture with ECO Plastics, we Sustainable Packaging and Recycling leading companies should suppliers to encourage them to have built a new recycling facility,We will deliver for today, growing engage on societal issues reduce carbon and launched a ‘Continuum’. This is one of thea low-carbon, zero-waste business, and the ways in which we can ‘Carbon Challenge’ in 2011. biggest plastics reprocessingand inspire and lead change for a Innovate for the future continue to embed sustainability facilities in Western Europe. It willmore sustainable tomorrow. in everything we do. This A/ John Brock: Innovation and recycle the packaging from every Opportunities for innovation, collaboration plan is our new roadmap to partnership will become even Coca-Cola product consumed and partnership becoming an increasingly more important over time, at the London 2012 Games later sustainable company. particularly in the context of the this year. macroeconomic challenges we Q/ How did you build the plan? continue to face in our operating Q/ What is in store for 2012? environment. On issues such as A/ Hubert Patricot: The strength public health and climate change A/ Hubert Patricot: Our stretching of the plan is in the stakeholder we are determined to be part environmental goals mean that input we sought every step of of the solution. we must better understand and the way. While we have a strong measure the impacts of our value CRS foundation, after becoming chain. We’ll be working hard with a wholly European business, our suppliers to identify and we wanted to listen again to the reduce these impacts, focusing expectations of our stakeholders first on carbon. to understand how we can lead in sustainability. They told us to A/ John Brock: We’ll also be embed CRS deeper into the heart looking for ways to innovate of our business, to take further for the future, and are looking responsibility for impacts which forward to showcasing how we extend into our value chain, ‘deliver for today’ on a world stage and to be more visionary and at the London 2012 Olympic and innovative. The plan sets out a Paralympic Games. We’ll be framework in which we can do a key part of the most sustainable all this – and more. Games in history, using environmental technologies such as biogas trucks, encouraging consumers to recycle and offeringJohn Brock Hubert Patricot unique opportunities for(left) (right) representatives from ourChairman and CEO Executive Vice President communities to be part ofCoca-Cola Enterprises, Inc. (CCE) and President, European Group this amazing event. Coca-Cola Enterprises, Inc. (CCE)02 www.cokecce.com Corporate Responsibility Sustainability Report 2011/2012 03
  4. 4. Our businessWhere we operate Our manufacturing and distribution process 1.43ltr Average amount of water used to make 1 liter of product.Serving 170 million people Our business has environmental FIGURE 1 — Territories of operation FIGURE 3 — Our manufacturing and distribution processacross seven countries in Key and social impacts across theWestern Europe, Coca-Cola life cycle of our products, from PercentageEnterprises (CCE) is one of the CCE European the sourcing and use of raw emissionsworld’s largest independent Headquarters materials and ingredients, Value chain process (estimated)1 Impactbottlers of Coca-Cola beverages. Country head offices to the manufacturing of our 13,250 Bottling plants Our supply chainWe operate in Great Britain, products and their disposal.France, Monaco, Belgium, Ingredients: Ninety-five percent of our products are madeLuxembourg, the Netherlands, The goals we have set in our from concentrates supplied by our brand owners. The restNorway and Sweden. Number of employees. sustainability plan focus on are finished products that we distribute. We purchase sugar 17% reducing our impacts at each directly; our low-calorie sweeteners are already containedOur business stage of our value chain and in the concentrates we buy. We also purchase juices, mineral waters and carbon dioxide to make our products, and are IngredientsOur operations have making a positive difference to working with our suppliers to reduce the carbon and waterachieved growth in volume and the communities in which we impacts of these raw materials.operating income for the last six operate. Figure 3 shows theconsecutive years. In 2011, we sold different impacts of our business Packaging: Our packaging materials – aluminum, steel, PETapproximately 12 billion bottles at each stage of the value chain, plastic (virgin, recycled and plant-based), cardboard and shrink 47%and cans (or 620 million physical and identifies where, in the wrap – come from a range of approved suppliers. We arecases) across our territories, remainder of this report, you can working with these suppliers and innovating within our ownand generated approximately read about how we are seeking business to reduce the impacts of the packaging materials we Packaging$8.3 billion in revenues and to reduce them. We have directly put onto the marketplace. 7$1.1 billion of operating income. focused on measuring and reducing our operational impactsWe remain a public company, and the impacts we can control, Our businessincorporated and headquartered such as emissions from our Manufacturing: We use water and energy (gas and electricity)in the United States and publiclytraded on the New York Stock cold drinks equipment. Our sustainability plan will require in our manufacturing sites to produce our beverages. We 8% are focused on increasing our operational efficiencies andExchange under the symbol CCE. Number of countries innovation, collaboration and minimizing our waste. Additionally, as an employer of ManufacturingIn May 2011, we announced CCE’s of operation. partnership with suppliers and approximately 13,250 people, we provide jobs and pay taxessecondary listing on the NYSE customers to identify ways to in the countries and communities in which we operate.Euronext in Paris. reduce impacts across our Distribution: The distribution of our products uses fuel, so we 8% 17 value chain. are looking for new, low-carbon ways to get our products toOur products market. We are investigating new low-carbon fuels and waysCCE manufactures and distributes to optimize our distribution network and are working with Distributionsome of the most popular third-party hauliers to reduce our impacts.beverage brands in the world. Cooling and selling our products: Our wide range ofThe foundation of our business products reflects the changing needs and demands of ouris the world’s most recognizedbrand, Coca-Cola, alongside consumers across our territories. Refrigerating our products uses energy, so we are increasing the efficiency of our coolers 21%Diet Coke, Coca-Cola light, Number of on our customers’ premises.Coke Zero, Fanta and Sprite, as manufacturing sites.well as a growing range of water, Refrigerationjuices and juice drinks, sportsdrinks, energy drinks and FIGURE 2 — Coca-Cola Enterprises: Key Statistics The marketplaceready-to-drink teas. One of ourstrategic business priorities is to Manufacturing Carbon footprint Water use ratio Key — our areas of impact Product Portfolio: Our wide range of products reflects thebe number one or a strong Territory Employees sites (‘000s metric tonnes CO2e) (liters to make 1 liter product) changing needs and demands of our consumers acrossnumber two in each of these our territories. Belgium Luxembourg Energy and Climate Changecategories. The Coca-Cola 2,500 3 92 1.65Company is our primary strategic Sustainable Packaging Recycling: Our empty packaging becomes waste unless it is France 2,970 5 115 1.32 collected for recycling, so we are working to increase recycling Included inpartner. While beverages owned and Recycling Great Britain rates across our territories, which in turn will help us to packaging2 4,580 6 4151 1.31by The Coca-Cola Company and Water Stewardship generate more material which we can turn into new bottles.its affiliates represent more than Netherlands 830 1 107 1.42 Recycling90 percent of our volume, we Norway Product Portfolio Community: Coca-Cola is a local product, made by local 1,380 1 20 2.232distribute several brands for people and we have strong links with our communities. We Sweden 830 1 15 1.89 Communityother franchise partners, such aim to make a positive difference wherever we manufactureas Capri Sun and Ocean Spray. USA and sell our products. 160 0 6 n/a Active Healthy Living TOTAL 13,250 17 769 3 1.43 Workplace 1. Great Britain is our largest market and has carbon-intense electricity. 1. We have modeled emissions for ingredients and packaging using industry average conversion factors linked to our own 2. N orway’s water use ratio is higher as we use water to wash our refillable plastic bottles. procurement data for each raw material. This value chain footprint has not been audited by third party independent verifiers.04 3. Column does not add to 769,000 tonnes CO2e as a result of rounding. www.cokecce.com Corporate Responsibility Sustainability Report 2011/2012 2. A s a result of packaging carbon footprint methodologies. 05
  5. 5. Our stakeholdersQ/ “Will CCE deliver the sustainability plan alone or We then convened a group of Continuing engagement and Key 2011 Partnerships $3.6bn spent with over 16,000will you seek partnerships?” 25 key stakeholders from across partnership with thought leaders, suppliers in 20111. our countries of operation to NGOs, suppliers, customers andStefan Crets advise us how to develop our many others will be fundamental While all our stakeholderExecutive Director, CSR Europe goals and programs further to to achieving the stretching goals groups are important, we have ensure leadership. Their counsel, we have set and in helping us focused our CRS engagementA/ “Listening to and working with a wide range of along with benchmarking studies innovate for the future.” on our employees and onstakeholders was key to the development of oursustainability plan in 2011. Once we had stated ourambition – to be the leader in Corporate Responsibility and advice from regular advisors and internal experts, pushed us to develop the vision, plan and framework as well as the Laura Brightwell Senior Vice President, Public Affairs and subject matter experts who have been able to provide valuable insight into how we can improve our efforts. #1 ranking in Advantageand Sustainability within the food and beverage commitments and targets which Communications, CCE Group customer satisfaction survey inindustry – we drafted new commitments and targets. now guide CRS at CCE. Great Britain, France, Belgium and the Netherlands in 2011. FIGURE 4 — Working with Stakeholders to shape our Sustainability Plan Awards Recognition Academics and Investors, shareowners Media and social media Suppliers thought leaders and analysts What they said… Characteristics of leading What we did… In 2011, CCE was ranked #1 in the We have provided input into a number of In addition to announcing a secondary We have enhanced the use of our social We spent more than $3.6 billion with over sustainability companies food and beverage industry for the academic studies. We have shared our listing on the NYSE Euronext in Paris, media pages to tell our CRS story, and 16,000 suppliers in 2011. Of this, 74 percent third consecutive year in experiences on embedding sustainability we completed our sixth submission carried out a virtual sustainability panel was spent in our countries of operation Set new goals focusing on the seven most material issues A holistic approach, taking Newsweek’s Green Rankings, and into our company with Ashridge Business to the Carbon Disclosure Project and discussion to launch our sustainability and 86 percent within the EU. We expect for our business and reaching into our value chain School. We have also explained the ways our third application to the Dow Jones plan. This was a discussion about building all our suppliers to adhere to our Supplier broad responsibility also ranked higher than any other we use communication to collaborate Sustainability Index. We continue to sustainable value chains and was Guiding Principles (SGPs), a set of US consumer goods company. This with supply chain stakeholders on be a member of the FTSE4Good Index. broadcast online so that our stakeholders standards that includes health and safety, Developed a new vision for CRS at our company – “We will deliver Having a compelling vision year we also became the first soft sustainability initiatives with researchers CRS also forms a regular part of each could engage in dialogue with our human rights, labor, environment and for today, growing a low-carbon, zero-waste business, and at Brunel University. presentation we make to financial leaders in real time. At the same time, we business integrity. We also incorporate for sustainability drinks company to receive the inspire and lead change for a more sustainable tomorrow.” analysts. launched a new website – environmental criteria into our Supplier Carbon Trust Standard award www.ccesustainabilityplan.com – which Relationship Management process, which Renewed commitment from our Chairman and CEO to focus (see page 15). provides all the details of our sustainability covered 80 percent of our 2011 spend with Strong leadership on sustainability leadership that ensures we meet external plan, and will aim to seek dialogue with suppliers. We held our second Supplier expectations and drive CRS throughout our business stakeholders using social media. Sustainability Summit for our top 60 suppliers to investigate ways to work Included ‘Innovate for the future’ in our framework as a strategic FTSE4Good Development of innovative solutions together to encourage innovation priority for CRS at CCE throughout our value chain. Set commitments and targets which require us to measure Leading-edge aspirations sUPPLIER CARBON and reduce impacts outside the scope of our own operations CHALLENGE 2011 Encouraged ongoing stakeholder input during the development Transparency of our sustainability plan, which was launched to a wide variety of stakeholders Designated two ‘leadership’ focus areas for our business on Focusing on material issues which we will aim to lead the industry: Energy and Climate Change and Sustainable Packaging and Recycling Challenged ourselves to build an ‘Innovate for the future’ platform Collaborating and networking Leadership networks Employees Customers Non-governmental through collaboration and partnership As part of our commitment to organizations reduce our carbon footprint We have been invited to join the EU In 2011, we continued our partnership We have over one million customers, We are a signatory to the UN Global across the value chain, we Corporate Leaders Group on Climate with the University of Cambridge ranging from small independent retailers Compact and its CEO Water Mandate, Launching our launched a ‘Carbon Challenge’ Change to communicate the support of Sustainability Leadership Programme to large international chains. Our strategic and work closely with the International sustainability plan for 129 of our suppliers at our business for the European Union to and conducted two additional courses for business priority is to be their most valued Business Leaders Forum (IBLF). In 2011, move to a low-carbon society. In 2012, more than 50 members of CCE’s senior supplier, so we are constantly examining our Chairman and CEO, John Brock, Supplier Sustainability Summit in Our sustainability plan was we will join SustainAbility’s Engaging management. In 2012, we will continue and improving our distribution methods, engaged with the IBLF to inform its work 2011. Suppliers were surveyed Stakeholders network of peer our partnership, focusing on embedding our customer service processes and our on embedding sustainability leadership. launched to a wide range about their carbon emissions companies dedicated to advancing CRS into our commercial decision-making. internal operating systems to ensure we We have also entered into a water of stakeholders through a attributable to their supply to transparency and accountability. We also held our fourth ‘CRS in Action are meeting their needs. We set annual replenishment partnership with the virtual panel discussion in Week’, engaging in community and targets for customer satisfaction and World Wildlife Fund (see page 23) CCE and their responses September 20111. environmentally focused activities measure our performance using surveys and we maintain a wide range of have allowed us to evaluate from sporting challenges to clean-up such as those by the Advantage Group, relationships with national NGOs such their carbon impact and events across all our countries (see pages which assess suppliers on factors as those involved in packaging recovery carbon performance. Over 28 and 31). We are planning another week including category development, customer (see page 19). of action in 2012. service, innovation and logistics. In 2011, we the coming months, we’ll be were rated the leading consumer goods using these results to work company in Great Britain, France, Belgium with our suppliers and identify and the Netherlands. This was the first time areas of best practice and in which our French business unit achieved this #1 ranking. methods for reducing the total carbon emissions.06 1. Watch our launch video at www.ccesustainabilityplan.com www.cokecce.com Corporate Responsibility Sustainability Report 2011/2012 1. Excluding concentrate spend. 07