Read The Coca-Cola Company's 2016 Sustainability Report, which covers: Our Way Forward, Agriculture, Climate Protection, Giving Back, Human & Workplace Rights, Packaging & Recycling, Water Stewardship and Women's Economic Empowerment. It also looks at Coke's progress against their 2020 Sustainability Goals, and includes a hand-written letter from their James Quincey, President and CEO of The Coca-Cola Company.
Learn more on Coca-Cola Journey: http://www.coca-colacompany.com/2016-sustainability-report
2. Letter from the
President and CEO
Letter from the Public
Issues and Diversity
Review Committee
Letter from the Chief
Sustainability Officer
2016 Highlights
Our Way Forward
Agriculture
Climate Protection
Giving Back
Human & Workplace Rights
Packaging & Recycling
Water Stewardship
Women’s Economic
Empowerment
Points of Intersection
Tracking our Progress
Progress Update
Approach to Reporting
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
A YEAR OF REFLECTION
As we look back on 2016, we decided an image that illustrates global
reflection would be appropriate for our Sustainability Report cover. For
us, it largely was a year of reflection, listening and setting into action Our
Way Forward—becoming a growth-oriented, consumer-centered, total
beverage company. Whether people want less sugar, more nutrition, or
fun, unexpected flavors, the beverage wheel illustrates the many ways
we give people the drinks they want for all tastes, lifestyles, and diets. We
also continued to pursue previously set sustainability goals, with progress
shared in this report. We reflect on successes and gaps. As we look toward
sustainability goals beyond 2020, we remain committed to and excited
about making positive and lasting social and environmental impacts across
the world.
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3. INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
2016 Sustainability Report
3
LETTER FROM THE
PRESIDENT AND CEO
Read the full letter:
http://www.coca-colacompany.com/stories/2016-letter-from-the-president-and-ceo-james-quincey
James Quincey
President and Chief Executive Officer
The Coca-Cola Company
4. INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
2016 Sustainability Report
4
LETTER FROM THE PUBLIC
ISSUES AND DIVERSITY
REVIEW COMMITTEE
Read the full letter:
http://www.coca-colacompany.com/stories/2016-letter-from-the-board-pidrc-chair
Alexis M. Herman
Chair, Public Issues and
Diversity Review Committee
The Coca-Cola Company
5. INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
2016 Sustainability Report
5
LETTER FROM THE CHIEF
SUSTAINABILITY OFFICER
Read the full letter:
http://www.coca-colacompany.com/stories/2016-letter-from-the-chief-sustainability-officer-bea-perez
Bea Perez
Senior Vice President and
Chief Public Affairs, Communications
and Sustainability Officer
The Coca-Cola Company
16. INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
2016 Sustainability Report
16
CLIMATE
PROTECTION
HUMAN & WORKPLACE RIGHTS
PACKAGING &
RECYCLING
WOMEN’S
ECONOMIC
EMPOWERMENT
GIVING BACKAGRICULTURE WATER
STEWARDSHIP
2015
2015
2015
2015
2015
2015
115%
(190.9 B liters)
12%
(1.98 liters)
90%
59%
1.2M
92%
Estimated percentage reduction of the
carbon footprint of the “drink in your hand”
vs. 2010 baseline**
Percentage of bottling partners that achieved
compliance with our Supplier Guiding Principles (SGP)
Percentage of bottles and cans equivalent to
what we introduce into developed markets
recovered and recycled
Number of women entrepreneurs economically
empowered across our global value chain
(Cumulative, as per Coca-Cola’s definition)
Percentage of direct suppliers that achieved
compliance with our Supplier Guiding Principles (SGP)
Percentage improvement in manufacturing operations
water efficiency since 2010 (liters of water used per liter
of product produced by the Coca-Cola system)
PercentageoftheCompany’soperatingincome
annuallyinvestedbackintolocalcommunitiesthrough
TheCoca-ColaFoundationandTheCoca-ColaCompany
(Totaldollaramount)
Percentage of our key agricultural ingredients
sourced from more sustainable sources in 2016
Percentage of water used in our finished beverages
and their production returned to communities
and nature (liters of water used in our finished
beverages replenished)*
= 2020 Goal (25%)
= Achieved
= 2020 Goal (98%)
= Achieved
= 2020 Goal (75%)= 2020 Goal (5 Million)
= Achieved= Achieved
= 2020 Goal (95%)
= Achieved
= 2020 Goal (1%)= 2020 Goal (100%)
= Achieved= Achieved = 2020 Goal (100%)
= Achieved
= 2020 Goal (25%)
= Achieved
0
00 0
0
0
0
0
50%
3%100% 150%
100%
5M
100%
50%
30%
50%
60%
3M
60%
30%
10%
1%25% 50%
20%
1M
20%
10%
20%
2%
40%
2M
40%
20%
40%
75% 100%
80%
4M
80%
40%
2015 12%
14%2016
Coffee
Corn
Lemons
Oranges
Tea
94%
(153.6 B liters)
2014
88%2014
61%2014865K2014
90%2014
10%
(2.03 liters)2014
2015
1.9%
($117M)
Cane Sugar
2014
1.3%
($126M)
1.2%
($106M)2016
Beet Sugar
2016
132.9%
(221.2 B liters)
2016
89%2016
59.3%20161.7M2016
90%2016
13%
(1.96 liters)2016
2020 SUSTAINABILITY GOALS:
TRACKING OUR PROGRESS
* As estimated working with our many external partners and using generally accepted, independently peer reviewed scientific and technical methods. Finished beverages based on global sales volume.
** The percentage calculation of progress toward our “drink in your hand” goal has been internally vetted using accepted and relevant scientific and technical methodologies, but those
methodologies are evolving. We are working to simplify our data collection and measuring systems, and plan to have our data externally verified by an independent third party in future years.
At that time, we will also revisit our 2015 estimate to ensure its accuracy and make any updates or necessary corrections, if any, to our public reporting.
0 100%60%20% 40% 80%
Learn more: http://www.coca-colacompany.com/stories/2020-sustainability-goals
Track our progress: http://www.coca-colacompany.com/stories/2016-tracking-our-progress
17. INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
2016 Sustainability Report
17
2020 GOALTOPIC PROGRESS
2014 2015 2016
Agriculture
Climate
Protection
Giving Back
Human &
Workplace
Rights
Packaging &
Recycling
Water
Stewardship
Women’s
Economic
Empowerment
More sustainably source our key
agricultural ingredients.
Reduce the carbon footprint of
“the drink in your hand” by 25%
(vs. 2010 baseline).*
Give back at least 1% of the
Company’s operating income (OI)
annually. (%OI; Total $)
Achieveatleast98%compliance
withourSupplierGuiding
Principles(SGP)among
independentfranchisebottling
partnersand95%compliance
amongoursuppliers.
Workwithourpartnerstorecover
andrecyclebottlesandcans
equivalentto75%ofthosethatwe
introduceintodevelopedmarkets.
Safely return to communities
and nature an amount of water
equivalent to what we use in our
finished beverages and their
production. (percentage of water
used in our finished beverages
(based on year’s sales volume)
returned to communities and
nature; liters of water used
in our finished beverages
replenished).**
Enable the economic
empowerment of 5 million
women across our global value
chain (Cumulative as per
Coca-Cola’s definition)
Improve water efficiency in
manufacturing operations by
25%. (% Improvement since 2010;
liters of water used per liter of
product produced by the
Coca-Cola system).
Developed the seven-step
Supplier Engagement
Program and convened 14
workshops.
Business Units set draft
reduction targets through
2020.
1.3% ($126M)
Bottling partners: 88%
Direct suppliers: 90%
61%
94% (153.6B)**
865,000
10% (2.03)
Finalized Supplier
Engagement Program
guidance document;
procured 100 percent of our
coffee and tea from more
sustainable sources; on
track to more sustainably
source our key agricultural
ingredients by 2020.
Estimatedtohavereduced
theCO2embeddedinthe
“drinkinyourhand”by12%
in2015.
1.9% ($117M)
Bottling partners: 90%
Direct suppliers: 92%
59%
115% (190.9B)**
1,200,000
12% (1.98)
Continued to procure 100
percent of our coffee and tea
frommoresustainablesources;
procured 51-75 percent of our
lemons and beet sugar from
more sustainable sources;
procured 0-25 percent of cane
sugar, corn and oranges from
more sustainable sources.
Estimated to have reduced
the CO2 embedded in the
“drink in your hand” by 14%
in 2016.
1.2% ($106M)
Bottling partners: 89%
Direct suppliers: 90%
59.3%
132.9% (221.2B)**
1,700,000
13% (1.96)
2020 SUSTAINABILITY GOALS:
PROGRESS UPDATE
*The percentage calculation of progress toward our “drink in your hand” goal has been internally vetted using accepted and relevant scientific and technical methodologies, but those
methodologies are evolving. We are working to simplify our data collection and measuring systems, and plan to have our data externally verified by an independent third party in future years.
At that time, we will also revisit our 2015 estimate to ensure its accuracy and make any updates or necessary corrections, if any, to our public reporting.
**As estimated working with our many external partners and using generally accepted, independently peer reviewed scientific and technical methods.
Learn more: http://www.coca-colacompany.com/stories/2020-sustainability-goals
Track our progress: http://www.coca-colacompany.com/stories/2016-tracking-our-progress
18. INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
2016 Sustainability Report
18
OUR APPROACH TO REPORTING
Coca-Cola is committed to reporting comprehensively and transparently. Our complete Sustainability Report is online
at Coca-Cola Journey. We invite you to explore these disclosures and core reporting elements via links on this page.
About This Report
The systems, scope and
activities associated with our
reporting.
Our Refreshed
Reporting
How to use this report and
navigate our sustainability
reporting structure.
*The 14 percent calculation of progress toward our “drink in your
hand" goal has been internally vetted using accepted and relevant
scientific and technical methodologies, but those methodologies
are evolving. We are working to simplify our data collection and
measuring systems, and plan to have our data externally verified
by an independent third party in future years. At that time, we will
also revisit our 2015 estimate to ensure its accuracy and make any
updates or necessary corrections, if any, to our public reporting.
In 2016, it is estimated we reduced
the CO2 embedded in the
Coca-Cola “drink in your hand” by
In 2013, we set a 2020 goal to
reduce the carbon footprint of the
Coca-Cola “drink in your hand” by
energy efficiency
improvement within our
manufacturing operations
in 2016.
Progress toward the “drink in your hand” goal involves reducing emissions across our manufacturing and emissions
associated with growing our ingredients, producing our packaging, and distributing and refrigerating our products.
12B+ PlantBottle® packages
distributed, which are made of
up to 30% plant-based
materials and have a lighter
footprint on the planet than
virgin PET plastic.
invested over the past
decade to make our
coolers more
environmentally efficient.
HFC-free coolers,
fountains and vending
machines introduced into
the marketplace in 2016.
We are working to responsibly manage our manufacturing emissions and improve our energy efficiency per liter of
product produced. We are also driving collaboration throughout our supply chain in an effort to reduce emissions
associated with getting our products in the hands of consumers - from growing our ingredients, producing our
packaging, and distributing and refrigerating our products.
Our goal is to reduce the carbon footprint of the Coca-Cola "drink in your hand”
by 25% by 2020.
CLIMATE PROTECTION
25%
14%*
ESTIMATED SHARE OF CARBON ACROSS OUR VALUE CHAIN
OUR CARBON FOOTPRINT GOAL RESPONSIBLE REFRIGERATION
623K+
2%
HFC-free coolers,
fountains and vending
machines introduced
since 2009.
2.5M
operational renewable
energy projects in 25
countries at the end of 2016.
81
$100M+
Manufacturing
10 - 15%
Refrigeration
30 - 35%
Distribution
5 - 10%
Ingredients
20 - 25%
Packaging
25 - 30%
Our Value Chain
Working with reliable partners
on sustainability programs
across our value chain.
2020 Sustainabililty
Goals
The sustainability
goals that we aim to achieve
by 2020.
Stakeholder
Engagement
Engaging our stakeholders
informs our decisions and
enhances our progress on
our 2020 sustainability goals.
Regional and Bottling
Partner Sustainability
Reports
Sharing the work of our bottling
partners and business units
across the system.
Disclosure &
Content Index
Our reporting against leading
sustainability frameworks -
GRI, UNGC, UNGP, and SDGs.
Ethics & Compliance
Our commitment to building
an ethical business culture
throughout the Coca-Cola
system.
Assuring the Accuracy
of Our Disclosures
Assurance provides external
validation of our goals and
enhances the accuracy of our
disclosures.
Priority Issue Analysis
Prioritizing our issues
enables us to report on those
that matter most to our
business and stakeholders.
Corporate
Governance
Guiding our performance and
our commitment to good and
efffective corporate
governance.
2016 Progress Tracker
Our progress against the
sustainability goals that we aim
to achieve by 2020
19. 2016 SUSTAINABILITY REPORT
T H E C O C A - C O L A C O M P A N Y
R E P O R T I N G
C O M M I T M E N T S
T H E C O C A - C O L A F O U N D A T I O N
O U R W A Y F O R W A R D
B E V E R A G E S
W A T E R S T E W A R D S H I P
C L I M A T E P R O T E C T I O N
H U M A N & W O R K P L A C E R I G H T S
W O M E N ’ S E C O N O M I C E M P O W E R M E N T
S U S T A I N A B L E A G R I C U L T U R E
P A C K A G I N G & R E C Y C L I N G
5 B Y 2 0
G I V I N G B A C K
S
U
S
T
A
I
N
A
B
I
L
I
T
Y