Coca-Cola European Business and Social Review 2005 Coca-Cola Services S.A. Coca-Cola European Business “Coca-Cola who?” You would think that nobody could ever ask a Chaussée de Mons 1424 question like this. After all, Coca-Cola is often described as the world’s 1070 Brussels and Social Review 2005 most famous brand. And yet, if you know us for our flagship product, Belgium do you know about our full range of beverages? If you know us as a www.coca-cola.com successful American business, do you understand our business email@example.com presence in Europe? Many are not aware of this fact, which is why we are publishing our first Coca-Cola European Business and Social Review. In it, we explain how our business works in Europe and outline our approach to corporate social responsibility. Additional information is available in Coca-Cola’s global Annual Report, Environment Report and Citizenship Report. See www.coca-cola.com Environment Community 26 18 Who we are p How we put corporate 28 responsibility into practice 06 14 Key figures Coca-Cola around 04 the world 03 Workplace 02 01 Marketplace Economic contribution Message from Dominique Reiniche Scope of this review The review covers activity between 2003 and 2005. The brands featured in this report are trade marks of The text and data cover both the activities of The Coca-Cola During this period Coca-Cola reorganised its business The Coca-Cola Company, its affiliated entities and/or Company and the independent companies that manufacture, structure in Europe. Unless otherwise stated, data relate its joint venture partners. bottle and distribute its products, ie the ‘Coca-Cola system’ to the new ‘European Union Group’, covering the 25 (except where stated). Some of our bottlers in Europe issue EU member states plus Albania, Iceland, Liechtenstein, Consultancy by Context. their own corporate responsibility reports, see for example; Norway, Switzerland, Israel and the Palestinian Authority. Designed by Radley Yeldar. www.coca-colahbc.com/community. Some data refers to a wider area corresponding to Coca-Cola’s previous business structure in Europe, Printed by St Ives Westerham Press, a CarbonNeutral company In addition, some of our national businesses in Europe i.e. ‘Europe, Eurasia and Middle East’. This is indicated registered to ISO 14001 Environmental Management System. issue their own reports, often jointly with their local bottlers. at the appropriate points in this review. See for example: The paper used is Take 2 Offset, made from 100% recycled Coca-Cola Great Britain (www.coca-cola.co.uk/citizenship) fibres sourced entirely from post consumer waste. or Coca-Cola España (www.conocecocacola.com) Who we are Three largest bottling companies in Europe Company Countries of operation in Number of Many people think of Coca-Cola as one brand made by a single the European Union Group employees company. In reality, our roots are local and diverse – around Coca-Cola Hellenic Bottling Company S.A. Operates in Austria, Czech Republic, Estonia, Greece, 15,041 30 companies manufacture and distribute hundreds of different (Coca-Cola HBC) Hungary, Italy, Latvia, Headquarters in Lithuania, Northern Ireland, brands to European consumers. Athens, Greece Poland, Republic of Ireland, Slovakia, Slovenia and Switzerland. Coca-Cola Operates in Belgium, 10,526 Enterprises Inc (CCE) France, Great Britain, Headquarters in Atlanta, Luxembourg and USA The Netherlands. Coca-Cola Germany 9,600 Erfrischungsgetränke AG (CCEAG) Headquarters in Berlin, Germany A wide range of brands One system, many partners We offer consumers a choice of products to The Coca-Cola Company typically manufactures reflect a wide range of tastes and lifestyles. concentrates and syrups which it then sells to We have more than 130 different brands companies which, under a licence agreement, throughout Europe, including: manufacture the finished products, put them in bottles and cans, and distribute them to retailers, • Carbonated soft drinks e.g. Coca-Cola, restaurants and others who sell to the final Coca-Cola Light, Fanta, Fanta Free, Lilt, consumer. There are around 30 companies Sprite, Sprite Light manufacturing in 99 plants and distributing • Juice and fruit drinks e.g. 5 Alive, Cappy, hundreds of different beverages under our brands Hi-C, Ipsei, Minute Maid, Oasis, Sonfil to European consumers. We call them ‘bottling companies’ and we refer to the whole network • Sports drinks e.g. Aquana, Aquarius, Powerade as ‘the Coca-Cola system’. • Energy drinks e.g. Burn In a few markets, Coca-Cola owns the bottling • Water e.g. Aquabona, Bonaqua, Chaudfontaine, company. In 2004, we held controlling ownership Dorna, Malvern, Valser interest in three bottling companies in Europe (in Norway, Sweden and Germany), representing • Ready to drink tea and coffee e.g. Nescafé 12% of unit case volume.1 In other markets, we Xpress, Nestea, Tian Tey own a minority interest in the bottling companies, In 2004, Coca-Cola brand beverages (Coca-Cola, and in many other markets, they are totally Coca-Cola Cherry, Coca-Cola Vanilla, Diet Coke, independent local businesses. manufacturing and Caffeine-free Diet Coke, Diet Coke with Lemon, bottling operations Whatever the ownership of our bottling partners, Diet Coke with Lime, Diet Coke Vanilla and we aim for collaborative relationships in which we Coca-Cola Light Sango) represented 66% of The manufacturing process in Europe support each other. These independent businesses sales in Europe by volume. 23% of sales were have their own management, policies and low- or no-calorie brands, a large and fast growing governance structures. Many are publicly quoted product category. companies. Some are also involved in businesses outside the non-alcoholic beverage sector. We do Our Company not control the policies and programmes of these The Coca-Cola Company is the world’s largest independent bottlers, but we do have mutual non-alcoholic beverage company. People around interests so often we work together to find Ingredients the world consume Coca-Cola products more common ground. We take common action in & Bulk Packaging Vending machines than a billion times every day. many areas, including a common approach to e.g. Lemon oil, & coolers environmental and social issues. vanilla & cherry The Coca-Cola Company develops and markets flavour the brands and manufactures the concentrates and syrups from which our products are made. Bottle plants Transport Consumers Concentrate Warehouse plants Ingredients & Packaging 1 ‘Unit case volume’ is the number of unit cases of Company trademark or licensed beverage products directly or Customers indirectly sold by the Coca-Cola bottling system or by the The Coca-Cola Company to customers. A ‘unit case’ is e.g. water, sugar/sweeteners equal to 192 US fluid ounces of finished beverage. & carbon dioxide Coca-Cola Europe Business and Social Review 2005 01 Key figures Revenue Employment The value of The Coca-Cola Company’s operations The Coca-Cola Company has 1,650 employees in in Europe continues to grow. In 2004, when our Europe and our European bottlers employ a further business region also included Eurasia and the 60,000 people, making the Coca-Cola system a Middle East it accounted for 33% of the major employer on the Continent. Company’s global net operating revenues – making it the largest business we had in the Operations world, bigger even than North America. Our system operates 99 bottling plants and 4 In 2004, our sales in Europe (plus Eurasia and the concentrate plants that distribute our products Middle East) amounted to 4.3 billion unit cases, to countless local stores and other outlets. 22% of our sales worldwide. The pie chart shows the distribution of sales between countries in this business division. Net operating revenues 2004 unit case volume Europe, Eurasia and Middle East (US$ millions) (per cent) 5,262 6,556 7,195 Other 20% Germany 14% The Netherlands Eurasia and 3% Middle East 12% Belgium 3% Italy 6% Great Britain12% France 7% Central Europe Spain 12% and Russia 11% 2002 2003 2004 Operating income Europe, Eurasia and Middle East (US$ millions) 1,612 1,908 1,898 2002 2003 2004 Data in the charts above refer to Europe, Eurasia and Middle East Group existing until 30 April 2005. Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 02_03 Message from Economic contribution Dominique Reiniche The Coca-Cola Company makes a substantial contribution to the European economy through the wealth it generates, the employment it creates and the supplier industries it supports. A measure of this is President of the Coca-Cola European Union Group ‘cash value added’ which is the value of sales less the cost of bought in materials and services. In 2004, our cash value added in Europe People usually assume that nobody ever asks me “who is Coca-Cola?” was u2.04 billion. After all, Coca-Cola is the world’s most famous brand. And yet people don’t really know much about the company that brings Coca-Cola to them. Some may even believe that our products are imported from the US and they are surprised to see a French woman representing what they see as an American institution. Well, it is an American icon – but what my team and I manage is really a European business. The purpose of this first Business and Social them so that they are able to respond to consumer The contribution of the Coca-Cola system, Our extensive beverage distribution system and Review is to present the facts about Coca-Cola demand. In countries where the health and including our large network of bottling partners, the relatively simple and affordable nature of our operations in Europe – who we are, what we do, wellness trend is stronger, such as Great Britain, is of course much larger. We do not report on products, means that we provide opportunities how we do it. the diet version of our flagship brand already financial figures relating to our bottling companies, for a myriad of local companies, small and large, outsells the regular version in supermarkets. More which have their own governance structure, to sell our products or to supply us. Studies in There are three things I would like everybody information on the variety of products we sell and following statutory financial reporting rules. several countries indicate the significant job to know about us. on our actions in contributing to the fight against multiplier effect of our business: each direct job in Facts and figures for 2004: First, we are fully integrated into the economic obesity are provided in the ‘Marketplace’ section our system indirectly generates between seven and and social fabric of Europe. Our products have of this Review. • Capital investment (The Coca-Cola ten additional jobs in related businesses, including been on sale in Europe since 1900 (in Great Britain) suppliers and retailers. This means that around half and we have had manufacturing operations here Thinking of The Coca-Cola Company as just the Company only): u234 million a million European jobs are directly or indirectly maker of the red flagship brand is like thinking you since 1927 (in Italy). Some of our famous brands know Europe by visiting just one city. You may love • Wages (The Coca-Cola Company related to our Company. were actually invented here – like Fanta. Most of our management, our supplies, our research and Coca-Cola as you love my hometown, Paris – but only): u191 million Coca-Cola is not all we offer, just as Europe has development, our marketing and our manufacturing • Employment in Europe: 1,650 enormously more to offer than Paris alone. operations are European. The beverages that carry our brands are manufactured, bottled and Third, The Coca-Cola Company and our bottling employees within The Coca-Cola distributed to retail outlets by bottling companies partners are committed to being responsible Company and approximately owned primarily by European shareholders. members of European society. We aim to be 60,000 in our bottling partners model employers, committed to an open, diverse This federation of companies creates employment, • Payments to European suppliers and inclusive work environment where people pays taxes, pays dividends and purchases supplies. The figures provided on the following feel valued and are highly motivated. We have (The Coca-Cola Company only): environmental systems and standards, with a pages show that Coca-Cola is a large European strong focus on water sustainability, global warming u1.6 billion Our contribution in Central and Eastern Europe business, close to European consumers and Coca-Cola was one of the first major international and solid waste management. We invest in contributing to Europe’s economy. investors in Central and Eastern Europe in the early communities with a focus on encouraging exercise Second, we are in the business of satisfying especially among young people. Under our ‘Fit for 1990s. The Coca-Cola Company and its bottling consumers’ needs and desires. This has led us the Future’ programme we already support over partners have invested u3.3 billion in this region, to learn how to measure and respond to social 200 different active lifestyle events every day creating more than 13,000 jobs within the changes with ingenuity and speed. We have throughout Europe. Coca-Cola system and generating opportunities doubled the number of our brands in Europe in just and income for many others. I hope that you find this Review informative and eight years. In the late ’90s, Coca-Cola in Europe On 1 May 2004, ten countries in our Group relevant. We intend to publish regular updates and was launching some 200 new products and line (Poland, Czech Republic, Slovakia, Hungary, to increase our measurement and target setting in extensions every year. Last year we launched more Slovenia, Cyprus, Estonia, Latvia, Lithuania and these key areas. than 600 in the name of greater choice. Malta) joined the European Union, bringing with Part of this choice is offered to respond to a them 75 million new EU citizens. EU enlargement growing consumer need for health and wellness, helps to generate economic growth across Europe and demand for low-calorie food. Yet calories are and also helps us grow our business. a by-product of what really matters to consumers: The Coca-Cola Company offered its expertise hydration, refreshment, taste, functionality and and resources to support these countries in their nutrition. Our traditional soft drinks respond to Dominique Reiniche accession to the EU. We have advocated for many of these needs – they have done so for more President of the Coca-Cola foreign investment, supported local training and than a hundred years and we continue to innovate European Union Group education initiatives, and provided expertise on legislative harmonisation affecting our industry. We have also partnered with the EU and other Euro figures are converted from US dollar figures reported reputable independent organisations to sponsor in our Annual Report in 2004. We used a conversion rate of o1 = $1.2382, the average 12 month exchange debate on the opportunities and challenges rate for 2004. of accession. Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 04_05 How we put corporate Environmental Advisory Board members responsibility into practice Rt. Hon. John Gummer, MP – Chairman Dr. Amory Lovins Chief Executive Officer, Our reputation relies on trust. Wherever Coca-Cola does business, we Chairman, Sancroft Rocky Mountain Institute strive to be trusted partners and good citizens. We are committed to Professor Daniel Esty Ms. Julia Marton-Lefèvre Director of the Center for Rector, University for Peace, achieving the highest standards of corporate governance and have a Environmental Law and Costa Rica. Former Executive clearly defined set of values to guide our actions: honesty, integrity, quality, Policy, Yale University Director, Leadership for respect for individuals and for the environment, and accountability for Ms. Yolanda Kakabadse Environment and our actions. Executive President, Fundación Development International Futuro Latino Americano. Former Mr. Ma Jun Executive Director – IUCN (The Consultant, Sinosphere World Conservation Union) Corporation The framework for corporate governance at Stakeholder engagement Our participation in EU legislative and political The Coca-Cola Company consists of our discussions mainly relate to: food law, health and Corporate Governance Guidelines and the charters We believe that many environmental and nutrition as applied to foodstuff, packaging of the Board Committees. These documents social issues are best addressed through regulations, marketing legislation, fiscal matters and a list of our Board members are available at dialogue and partnerships between companies, related to our products, customs classifications, www.coca-cola.com. The Board’s Public Issues governments, non-governmental organisations regulated markets related to our main purchases and Diversity Review Committee oversees our (NGOs) and local communities. We work closely (such as sugar), fluorinated gases used in corporate responsibility initiatives and performance. with a range of external stakeholders on a number refrigeration and water safety legislation. On a daily basis, corporate responsibility issues are of social, environmental and community issues, at local and regional levels. For example, we are Our Code of Business Conduct governs, among managed by a team established in 2004, which working with Greenpeace to develop alternative, other things, our contacts with politicians and includes senior-level representatives from key climate-friendly refrigeration; as an industry, we are regulators. All our employees attend a mandatory corporate functions around the world. working with the European Commission to devise training session on the Code, learning for example In 2004, we started introducing a set of a multi-stakeholder strategy to fight obesity; and about how to differentiate between acceptable and operating principles for responsible citizenship we are helping schools and local communities to unacceptable behaviour. and a management framework for implementing develop grassroots football tournaments promoting The full Code is available at: Our operating principles them across the Coca-Cola system. physical exercise for youth. www2.coca-cola.com/ourcompany/pdf/business_ Citizenship@Coca-Cola was developed jointly by Listening to others and engaging in honest and conduct_codes.pdf. The Coca-Cola Company and our main bottling Marketplace partners. The operating principles reflect the constructive dialogue with external stakeholders We provide products and services that meet the highest standards of citizenship and cover four benefits Coca-Cola. For example at corporate beverage needs of our consumers. In doing this, key areas – marketplace, workplace, environment level our environmental strategy is informed by we provide sound and rewarding business and community (see bubble, left). an Environmental Advisory Board (EAB) that opportunities for customers, suppliers, distributors advises our Executive Committee. The EAB is To ensure the principles are embedded in the composed of six independent experts who are and local communities. Coca-Cola system, each business unit is leaders in their fields (see above). They provide Workplace encouraged to assess their current position valuable external perspectives on environmental We foster a safe and inclusive environment based against our Operating Principles to identify risks issues and challenge our own thinking. on recognised workplace human rights, where a and opportunities; develop plans to improve highly motivated, productive and committed performance; implement the plans and Political engagement workforce drives business success through monitor progress. We are a non-political organisation and we do superior execution. not support nor endorse any political party or For more detailed information on organisation in Europe. We believe that our Environment Citizenship@Coca-Cola please see influence on political decisions must be limited to We conduct our business in ways that protect www2.coca-cola.com/citizenship. the transparent defence of our legitimate business and preserve the environment and we integrate interest. We also provide information and expertise principles of environmental stewardship and to authorities responsible for the well-being of the sustainable development into our business societies in which we operate. We are in favour of decisions and processes. practical regulations governing corporate political Community engagement, at EU and national level, to promote We invest time, expertise and resources to trust and transparency. provide economic opportunity, improve quality of life and foster goodwill in communities through locally relevant initiatives. Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 06_07 Marketplace Being a responsible business begins with our relationships with consumers. We have recognised for many years the importance of product safety and consistent quality. Similarly, our commercial practices must be fair and honest, and product information must be clear and objective. But today, more is expected of a responsible business. We need to understand the wider impact our products have on society, and seek to minimise any negatives while promoting positives. Important issues for consumers and society at large are discussed in this section. Listening to consumers Fair commercial practices Retailers Knowing our consumers is vital to our business. We subscribe to the International Chamber The Coca-Cola Company has sponsored and We invest in considerable consumer research of Commerce’s (ICC) International Code of supported the Coca-Cola Retailing Research to gain an insight into consumer trends and Advertising Practice and its application to the Council Europe for 15 years. The council identifies changing lifestyles. food and beverage industry. It covers areas critical issues for retailers, commissions research such as honesty, social responsibility (including on these issues and makes the research findings We operate information lines in all European not encouraging excessive consumption and widely available to help strengthen the food retailing countries, which consumers can use to contact portion sizes), avoiding misleading information, distribution business. us free of charge. These lines receive around not undermining the promotion of healthy and 400,000 calls every year, relating to queries about The studies are carried out independently under active lifestyles or parental guidance, and proper consumer promotions, information on our product the guidance of the retailers on the council. use of health claims. range, issues about the quality of our products In 2005, the council commissioned research or packaging, and our corporate policies. Together with other companies, we recently on the growth of discount grocery retailers in commissioned a study by the European Advertising Europe. Previous studies include supplier-retailer Quality Standards Alliance and the World Federation of collaboration in supply chain management, Advertisers on compliance with the ICC code in how customer information will revolutionise We are committed to providing quality products Europe. According to the results of this study, our food retailing, and the future of the food store. for our consumers. All our bottlers must comply company was found in breach of the code in only Reports are available at www.ccrrc.org. 400,000 with the standards set by our global quality management system, known as The Coca-Cola 0.9% of our advertising spots, a better compliance rate than the industry average. Our aim is to Quality System. This system is consistent with achieve zero non-compliance. We will work at the ISO 9001 international management standard improving both our monitoring and our compliance, on quality. and we plan to report our progress. Our free information lines Our supplier management programme ensures We are committed to sales practices that respect receive around that only materials produced by authorised open competition and consumer choice and we 400,000 calls every year suppliers are used by our bottlers, distribution cooperate with authorities to ensure that this systems and customers. Our bottlers and happens in the marketplace. suppliers are audited regularly to ensure our quality standards are met. In addition, we The European Commission has conducted a purchase samples of all our products from five-year investigation into our sales and marketing a wide range of sales outlets around Europe practices, leading the Commission to have to check quality and ensure we meet regulatory preliminary concerns that some practices restricted and labelling requirements. competition. We cooperated fully to address the Commission’s concerns, and in June 2005 the The Coca-Cola Company is a leader in food quality Commission ended its investigation when we and safety and many of our quality standards agreed to change certain practices. By example, influence or define internationally recognised we committed with respect to certain coolers, that standards in the beverage industry, for example the customer would be free to use at least 20% for quality standards for sugar and carbon dioxide. other products and we committed not to tie the sales of Coca-Cola and, in certain instances, Fanta Orange to purchases of other beverages. Further detailes can be found at www. coca-cola.com. Coca-Cola Europe Business and Social Review 2005 Marketplace Coca-Cola Europe Business and Social Review 2005 08-09 130 Different brands on offer throughout Europe. Supply chain Tackling obesity Why are we concerned? 1. Promoting choice The continued success of our business depends Fifty years ago, The Coca-Cola Company sold only Our commercial relationships with suppliers are What is the issue? on providing consumers with the products they one product: Coca-Cola. We now offer more than governed by our Supplier Guiding Principles. The World Health Organization (WHO) estimates want. Issues that concern consumers such as 130 different brands throughout Europe, twice as These set out the standards we expect from that globally more than one billion people are obesity and health are therefore important to us. many as we had eight years ago. Products under our suppliers in areas such as the work overweight. Around 300 million of these are obese, We put consumer research at the heart of our the Coca-Cola trademark account for 66% of our environment, health and safety, child and forced including 22 million children. The condition affects innovation and marketing strategies. This helps sales in the EU Group (including both regular and labour, wages and benefits, collective bargaining almost all ages and socio-economic groups. us to respond to trends in societal concerns and light versions). and environmental practices. See www2.coca- According to the WHO, about 20 – 30% of changing lifestyles. Working collaboratively with cola.com/ourcompany/supplier_principles.html Europeans are overweight or obese. We now offer consumers a choice of products legislators and other relevant partners, nutrition for details. to reflect different tastes and lifestyles. We have There is broad consensus that obesity and its and health are now priorities in our product extended our range of drinks to include low sugar We are currently engaged in a large auditing related diseases have multiple causes. Profound development, and have become a driving force and diet varieties as well as bottled waters, teas, program that aims to verify compliance with our changes in society have led to more sedentary for innovation within the company. juices and juice drinks (the illustration on page 10 standards throughout the supply chain. In 2004, lifestyles and unbalanced diets. Other causes What are we doing? shows examples of our brands from 0 kilocalories we commissioned third party auditors to visit 600 include genetic predisposition and socio-economic Our strategy for helping society tackle obesity is per 100ml to 51 kilocalories per 100ml). facilities that manufacture packaging, ingredients factors. In combination, these factors have caused called ‘Fit for the Future’. It has four components and marketing materials around the world. an increase in the proportion of people who are Diet Coke, introduced in Europe in 1983, is and will evolve with the societal debate and in We also supported 150 suppliers with training. overweight and obese. now the biggest selling light soft drink in Europe. response to our experience of what works and We have already audited more than 800 plants Low- or zero-calorie products now account for The Coca-Cola Company believes that because what does not. worldwide in 2005. 23% of the total volume of sales in the EU group. there is no single cause of obesity, the solutions We will: In supermarkets, for example, sales of Diet Coke The Coca-Cola Company has a firm policy of also need to be multi-factorial, involve multiple have already overtaken sales of regular Coca-Cola using only ingredients which have been evaluated actors and multiple strategies. We are working 1. Provide choice in nutrition and portion size. in Great Britain in 2005. for safety based on sound food science and in partnership with other stakeholders, Extend our product range, including low calorie, accepted for use in food by the relevant health including governments, health authorities and juice and water options As a result of the consumer trend for health and and safety regulatory authorities. In Europe, we non-governmental organisations, to promote wellness and our response to it, the average 2. Provide clear and consistent information to help recognise that there is widespread consumer healthy eating and physical activity to help calorie content of the drinks we sell in Europe has consumers make informed nutritional choices concern about genetically modified organisms. prevent and fight obesity. fallen by over 10% in recent years (and as much as For this reason, we do not use ingredients which 3. Market responsibly with particular safeguards 30% in Belgium). In Great Britain and Belgium, for are genetically modified or derived from genetically for children example, where this trend is particularly strong, modified organisms. no- or low-calorie drinks account for 36% and 4. Encourage more active lifestyles. 39% of our total sales respectively. We have worked closely with a range of suppliers to develop environmentally beneficial technologies. As well as choice of calorie content, we also offer For example, our collective efforts have produced customers a wide choice of sizes. This helps packaging which is lighter and has a higher recycled content, and cooling equipment with better energy efficiency and reduced global 800 consumers choose the right size serving for their needs. Our consumer research has shown an increasing demand for smaller packaging warming impact. sizes, particularly for personal use for people on-the-move. We are responding to this by Audits of suppliers introducing smaller cans and bottles in some in 2005 markets. For example, in Belgium, Coca-Cola is now available in a 150ml slimline can. We also plan to introduce smaller cup sizes for fountain soda. Family-size two litre bottles of our major brands remain popular because of the value they offer, and we believe that it is right to continue to offer this format, intended mainly for families or parties. Coca-Cola Europe Business and Social Review 2005 Marketplace Coca-Cola Europe Business and Social Review 2005 10_11 Selection of The Coca-Cola Company’s range of products on sale in European countries* We intend to display 2. Providing information At a minimum, the label on each of our products nutrition information energetic value/sugar content (in kCal/grams per 100ml) on our packaging, for We believe it is our responsibility to help consumers provides information on the amount of energy, example, by printing make informed choices about our products as protein, carbohydrates and fat contained in the clear calorie content part of balanced healthy lifestyles. We provide product. This already goes beyond what is information per serving size. information on our packaging, through local required by the law, but we realise our consumers websites and consumer information centres in the want more information. It is important for us to countries where we operate. We make no health understand what information consumers need claims unless these are scientifically proven. and how best to provide it. We and our industry partners commissioned research by the European Nutritional information is available to consumers Food Information Council which showed that from our carelines and our websites in consumers were most concerned about energy every market. For example, the website content (such as calories per serving). We are now www.coca-cola.co.uk/nutrition in Great Britain, working to identify the best ways to communicate Chaudfontaine Malvern Bonaqa Valser Coca-Cola Caffeine free Sprite Light Aquana Oasis or www.cocacolabelgium.be in Belgium provide this information in a way that consumers can easily 0/0 0/0 0/0 0/0 Light Coca-Cola 1.3/0 Orange Lemon the nutritional values for all the products available 0.2/0 1.6/0 Lime Light understand. We are cooperating with European Light in these countries. 0.2/0 2.6/0.2 legislators and other stakeholders to implement an industry-wide approach that will help consumers make informed choices. Reality check in Germany Five Alive Fanta Bonaqa Nalu Minute Maid Frutonic Rose’s Tian Tey Powerade Our policy is not to target marketing at children. Tropical Hit Orange/Z Apple/Pear 19.9/4.2 Tomato Orange Lime Juice 24/5.7 24/6.0 Squash 3.1/0.5 12.7/2.8 19/4.3 20/4.6 Cordial This is not always straightforward. Unfortunately 3/0.4 21/4.9 we cannot ensure that children do not see our advertising if they watch programmes designed for adults. This depends on guidance from parents or supervising adults. We implement this policy by avoiding advertising spots during children's programmes, which we define as programmes having a share of children viewers of 50% or more. We recognise that we need to improve how we monitor the implementation of this policy and we plan to report on this in the future. A place where we are well advanced in the monitoring of the Nescafé Ipsei Nestea Nestea Aquarius Minute Maid Nordic Mist Oasis Kinley implementation of our policy is Germany. There a Xpress Black 24.4/6 Lemon Peach Orange 100% Juice Tonic Summer Fruits 39/9.4 26/6.8 31/7.6 32/7.8 32/7.8 with Zinc 37.5/9 37/10 total of 12,760 television advertising spots were 33/8.2 aired for The Coca Cola Company Germany between January and August 2005. Virtually all (99.9%) of the advertising budget fell in slots where the share of child viewers was below 50%. More than 96% of the budget was spent on slots intended for adults only (where the share of child viewers was less than 10%). The remaining 0.1% of the advertising budget, which fell in slots where the share of child viewers was above 50%, still complied with the ICC codes (for example, no undermining of parental Sprite Coca-Cola Minue Maid Cappy Nescafé Minute Maid Fanta Burn Five Alive 41/10.1 42/10.6 Orange Apple Xpress White Apple Orange 49/11.5 Citrus Burst guidance). But we believe that even 0.1% is too 46/11 46/11.2 47/8.3 47/11 48/11.2 51/13.0 much and we plan to address this marginal non- *Figures are indicative and may vary slightly in different markets. compliance in the future. Coca-Cola Europe Business and Social Review 2005 Marketplace Coca-Cola Europe Business and Social Review 2005 12_13 3. Marketing responsibly In secondary schools, we respect the classroom as We are committed to marketing and selling our a commercial-free zone and introduce unbranded products responsibly. We believe we have a duty vending machines with graphic panels showing of care to all our consumers, and are particularly young people engaging in physical activity or other aware of how our activities affect families and images related to healthy eating and lifestyles. young people. We have a policy of not targeting We also make sure that wherever possible a full advertising of any of our products to children under range of beverages (including water, juices and the age of 12. See bubble for an example of how other beverages in both regular and sugar-free we are implementing this policy in Germany, our version) is made available, in appropriate container Active lifestyle examples biggest European market. We will monitor the sizes designed for individual consumption. implementation of this policy and report progress in future reports. 4. Encouraging active lifestyles In Italy, a school project called the ‘Fuoriclasse In Germany, the Coca-Cola ‘1,000 schools Over the last fifty years there has been a sharp Cup’ (www.fuoriclassecup.it) promotes sports and in motion’ programme continued in 2005 with It is our policy not to engage in direct commercial decline in physical activity across Europe, active lifestyles among students. The Fuoriclasse Coca-Cola trucks touring schools with games activities in primary schools, unless otherwise particularly among school children. The fourth Cup is a students’ competition based on a and sports equipment for sports days and requested by school authorities. There are a small element of our Fit for the Future strategy is to combination of academic and sports performance. festivals. The programme encourages children number of cases in which our products (essentially promote a long-lasting change of behaviour away The winning score is a combination of points to exercise in a relaxed, non-competitive waters and fruit juices) are present in primary from sedentary lifestyles. The effect of this goes achieved in a football tournament and in the atmosphere. It has reached more than two schools, but they represent a very small fraction well beyond controlling weight and extends to the educational part of the programme. In 2005, million pupils since it was launched in 1996. of our sales (0.1%). overall health and wellbeing of society. Every day, 450,000 boys and girls from 2,243 schools in we support on average over 200 different active 51 Italian cities entered the ‘Fuoriclasse Cup’ In Hungary, Coca-Cola launched a new lifestyle events throughout Europe, mostly for (40% more than in 2004). programme in 2005 designed to help people young people. get fit and enjoy a healthy active lifestyle by In Denmark, we are helping the Danish Cycling Coca-Cola has a long-standing connection with Federation (DCF) to encourage people to cycle choosing activities that suit them. The programme, sport as one of the first sponsors of the Olympic more as part of a five-year partnership. The focus called ‘Wake Up Your Body’, focused on popular Games in the 1920s and a sponsor of international of the campaign in 2005 was the Big Bicycle sports, and active cultural and musical events. football for over 70 years. Sponsoring the elite in Day on 12 June. DCF set up over 100 special Around 60,000 people participated in 16 events sport has been mirrored by support for a wide bicycle routes for the day and offered prizes around the country, including the Coca-Cola Cross range of grassroots sports programmes in of cycling equipment. People across Denmark Balaton Swim and the Coca-Cola Running Gala. communities where we live and work. For example, are encouraged to register the number of our school football tournament is now run in over kilometres they have cycled on the DCF website In Poland, more than 4,500 teams entered 10 countries in Europe, for boys and girls over the (www.storecykeldag.dk). The Big Bicycle Day the Coca-Cola Cup soccer tournament in 2005. age of 12. The bubble shows some examples of boosted the distance cycled by around a third Established in 1999, the Cup gives students an our work in different communities around Europe. to a total of 1.3 million kilometres. opportunity to develop team-building skills and 200 encourages them to take exercise. In Greece, we sponsored the first Southeast Europe Children’s Festival which was held in In Great Britain, we run the ‘Personal Best Athens, under the auspices of the International Challenge Park’ programme in partnership with Foundation of Olympic & Sport Education, the the Youth Sport Trust and the British Olympic National Olympic Committees and the Greek Foundation. The programme provides a wide Ministries of Culture and Education. From August range of sports and games equipment for Every day, 27th to September 3rd, 2005, the Festival secondary school playgrounds to encourage we support on average over 200 welcomed approximately 220 children from young people to participate in physical activity different active Albania, Romania, Bulgaria, Serbia-Montenegro, each day during their break times. Research by lifestyle events FYR Macedonia, Turkey, Greece and Cyprus the Institute of Youth Sport at Loughborough throughout Europe, mostly for young who engaged in various athletic and recreational University suggests that the initiative more than people. activities designed to educate them on the health doubles the time students spend doing physical benefits of physical activity combined with activity. To date, nearly 9,000 students have balanced nutrition. Coca-Cola provided the benefitted in receiving a Park in their school with children with creative messages on the concepts more planned for 2006. Coca-Cola Great Britain of fair play, teamwork, collaboration and friendship has also committed to support the development and, via the company’s nutritionists’ network, tips of a resource pack that will be accessible to all on healthy and balanced nutrition. secondary schools across England. Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 14_15 Workplace Training and development at CCE in Great Britain Coca-Cola Enterprises (CCE) (our second largest The Coca-Cola system is a major employer in Europe with over 61,000 bottling company in Europe, by volume of sales) employees. We are committed to fostering an open and inclusive work employs around 5,000 people in Great Britain. environment where employees feel valued and are highly motivated. In 2004, the company invested £3.4 million The Coca-Cola Company’s and our bottlers’ policies for work environment (almost u5 million) in training, providing an average of 2.6 days of training per employee. responsibility provide a framework for managing workplace issues. They cover health and safety, workplace fairness, working hours, All CCE employees have access to ‘My career’ – an online personal development and career compensation and benefits. planning tool. They also receive a performance and development review twice a year. 70 In 2004, CCE launched a programme for senior managers to develop their leadership skills. The course covers managing peak performance, conflict resolution, coaching and team About workplace data development. Participants also learn how to ensure the Company’s values are integrated into business The data in this section covers The Coca-Cola practices and the behaviour of employees. Company, which has approximately 1,650 employees in Europe. The Coca-Cola system (including bottling companies) employs over 61,000 In 2004 in Europe we employed people people in Europe. We do not collect workplace from around 70 data for the whole system because bottling different nationalities. companies manage their own workplace issues. However, we have included in this section, case Employee survey Diversity Ethics We are committed to building a diverse workforce We expect our employees to act with integrity in studies on management of workplace issues at In 2004, The Coca-Cola Company carried out that reflects the backgrounds of our customers, all their business dealings. Our Code of Business our two largest Coca-Cola bottlers in Europe – its first global employee survey. In Europe, consumers and the communities in which we live Conduct helps to guide employees on ethical Coca-Cola HBC and Coca-Cola Enterprises. 90% of employees participated. Responses to and work. issues and provides real-life examples of ethical 10 of the questions most relevant to corporate dilemmas employees might face. It covers a responsibility are shown in the table. Some of In 2004 in Europe The Coca-Cola Company range of issues, including bribery and corruption, these responses are very encouraging, for employed people from around 70 different conflicts of interest and political contributions. example 85% of employees are proud to be part nationalities. The full code is available in several languages at of The Coca-Cola Company and 84% believe The gender balance in our workforce is www2.coca-cola.com/ourcompany/business_ that we act with integrity towards our business 52% women and 48% men. conduct. partners. However, we are concerned about lower scores on issues such as work-life balance Gender diversity (as at October 2004) All employees receive a copy of the Code of and promoting the best people. We are reviewing Number Number Business Conduct when they join the Company our performance in these areas to find ways male female % female and must sign an acknowledgement form to improve. Pay Grade employees employees employees confirming they have read and understood the 0-4 23 70 75 provisions of the code. Employees can report 5-9 133 365 73 any concerns or violations of the code. The Ethics and Compliance Office, based in Atlanta, was Coca-cola employee survey % agree 10-14 563 373 40 formally launched in 2003. * This data refers to Coca-Cola employees (excluding bottling companies) in Europe, Eurasia and the Middle East. 15-22 59 7 11 Not assigned 20 36 64 85 84 81 76 73 61 61 53 43 38 Total 798 851 52 Training and development We encourage our employees to realise their potential through training and career planning programmes. In 2004, we provided between three and five days training per employee in most countries in Europe. This included leadership 85% development programmes and training for specific skills such as IT and finance. A B C D E F G H I J The rate of employee turnover helps us gauge how satisfied our people are at work. In 2004, the level Survey questions 85% of employees of turnover varied considerably between countries A I am proud to be part of The Coca-Cola Company G My organisation acts with integrity in its dealings are proud to be part from 4% in Turkey to 21% in our German and B My organisation operates with integrity towards those with employees of The Coca-Cola Company. Nordic Division. We moved our German offices outside the organisation (bottling partners, customers, H I believe I have the opportunity for personal development suppliers, etc) in my organisation from Essen to Berlin in 2004, which accounts for C My immediate manager treats all his/her employees fairly I In my opinion, my organisation does a good job of the relatively high level of turnover in this region. D The company is socially responsible in the community promoting the best people E Where I work most of the time it is safe to speak up J My work schedule allows sufficient flexibility to meet my personal/family needs F I think my performance on the job is evaluated fairly Coca-Cola Europe Business and Social Review 2005 Workplace Coca-Cola Europe Business and Social Review 2005 16_17 Labour rights Occupational health and safety The Coca-Cola Company complies with all It is Coca-Cola’s policy to offer its employees a safe applicable labour and employment laws in the and healthy workplace. To implement this policy, countries in which we do business. We recognise Coca-Cola designed a safety management system international labour standards and are committed as an integral part of The Coca-Cola Quality to respecting the workplace human rights of our System, which incorporates health and safety employees and the parties with whom we do standards and guidelines for The Coca-Cola business. We do not employ anyone under the Company and our bottling partners throughout the legal age in countries where we operate and we world. It is fully compatible with the international do not tolerate forced labour, physical or other Occupational Health and Safety Assessment Series abuse, or harassment. management standard OHSAS 18001. Representation We encourage all of our system’s manufacturing The Coca-Cola Company respects its employees’ sites within Europe, including bottling plants, Promoting a good workplace right to join or not join labour unions, and ensures to achieve certification to OHSAS 18001. at Coca-Cola HBC that those rights are exercised without fear of This requires sites to be independently audited retaliation, repression or any other form of by third party accredited auditing bodies. Coca-Cola HBC is our largest bottling company Representation discrimination. At present we have 14 sites that have achieved in Europe, by volume of sales, with almost Coca-Cola HBC respects the right of employees to The Coca-Cola Company established a forum OHSAS 18001 certification and by 2006 we 15,000 employees in 14 countries in the join or not to join trade unions, and to consult with in 1998 to consult with its employees in the expect this number to increase to approximately European Union. (Coca-Cola HBC also management on issues of joint interest. Over 30% European Economic Area about the development 20 representing 20% of the total. operates in 12 non-EU European countries.) of the workforce are members of a trade union of the business and allow them to raise concerns and a further 60% of employees are covered by Health and safety on transnational issues related to matters such as collective labour agreements. Health and safety is a very important issue in health and safety, training, equal opportunities and manufacturing. Coca-Cola HBC aims to have all The Coca-Cola HBC European Works Council restructuring. Similar European works council its plants certified to the Occupational Health and (EWC) was established in 2002, under the forums are established by the European bottlers Safety Assessment Series (OHSAS) 18001 by European Works Council Directive. This forum who have establishments in several countries within 2007. During 2004, operations in Greece, Italy is made up of employee and management the European Union. and Switzerland all achieved OHSAS 18001 representatives from Austria, Greece, Italy, Northern certification, and health and safety training was Ireland and the Republic of Ireland. Participation provided for over 200 employees. In the first was expanded in 2005 to include representatives full-year results, a total of 1,103 lost-time accidents from countries that joined the EU in 2004 – the (resulting in more than one day’s absence from Czech Republic, Estonia, Hungary, Latvia, work) were reported. The accident frequency rate Lithuania, Poland, Slovakia and Slovenia. (the total number of occupational accidents Training and development resulting in one or more days of absence from All employees in positions from team leader work multiplied by 100,000 and divided by the upwards receive an annual skills assessment total days worked by employees) was 12.56. to help them identify training and development Diversity opportunities. Coca-Cola HBC invested u12 million Coca-Cola bottling Coca-Cola HBC is working to encourage more in training in 2004. plant in Norway receives 14 female employees, particularly in management Further information is available in the HBC positions. In 2004, women represented 21% of Social Responsibility Report 2004. diversity award managers and 15% of all employees. The under- representation of women is partly because the See www.coca-colahbc.com. Coca-Cola’s bottling plant in Oslo (fully owned by nature of manufacturing work has traditionally The Coca-Cola Company) employs people of over been more attractive to men, but women can 40 different nationalities. The plant works closely be recruited for these jobs. with the Pakistani Muslim community in Norway to integrate Pakistani employees in the workforce. At present we have It received a Bridge Building Award for its efforts, 14 sites that have presented by the leader of the Pakistani achieved OHSAS community. The company has implemented 18001 certification and by 2006 we several measures to increase diversity in its expect this number workforce, including silent rooms for prayers, to increase to approximately 20 catering for special diets in its canteen, and representing 20% language courses. of the total. Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 18_19 Environment We are committed to good environmental stewardship – throughout the Coca-Cola system. Following consultations with our Environmental Advisory Board, we have concluded that the three environmental priorities for our business are water, global warming and solid waste. In this section we explain our environmental strategy, and our performance in these three areas in Europe. 90 Water use efficiency (litres/litre of product) By 2006, an estimated 90 out of 99 facilities 2.52 2.46 2.43 1.80 in the European Union Group will have achieved ISO 14001 certification (72 had been certified by the About environment data end of 2004). The environment data cover the ‘Coca-Cola system’ (both The Coca-Cola Company and its bottlers) in Europe, Eurasia and Middle East. A total of 164 plants in Europe reported 2002 2003 2004 Target environment data in 2004, equivalent to 97% of for 2009 our total product volume. We have estimated the unreported element, based on the average per Our environmental governance We work closely with our bottling partners to In 2004, we launched The Company’s Global litre of product. We show the reported data ensure that our approaches to environmental Water Initiative and Risk Assessment programme The development of our environment strategy is issues are aligned. For example, representatives to, amongst other things, assess the water and estimated total separately in the charts. ultimately the responsibility of the audit committee of The Coca-Cola Company sit on the challenges our bottling system faces as well as In 2005 our new European Union Group covers of The Coca-Cola Company’s Board of Directors. CSR/environment committees of our two largest those of the community in which we operate and a smaller geography, in which 99 plants operate. Its management is the responsibility of our bottlers in Europe, Coca-Cola HBC and CCE. to identify potential solutions. We are working We will report their performance in 2007. Environment and Water Resources Department on this in collaboration with our bottlers and which develops environmental policies, guidance By 2006, an estimated 90 out of 99 facilities in other stakeholders. and programmes. the European Union Group will have achieved ISO 14001 certification (72 had been certified Water quality Our strategy is informed by an Environmental by the end of 2004). This requires sites to be The Coca-Cola Company has a rigorous quality Advisory Board (EAB), composed of six independently audited. In 2004, external audits system to ensure that all our products meet independent experts who are leaders in their fields. were carried out at 139 sites in Europe (55% of the highest standards of quality and safety The EAB provides valuable external perspectives the total)2. We aim to have all our system’s (see page 6). All the water we use in our products on environmental issues and challenges our own manufacturing sites within Europe, including must meet the standards established by the World thinking. See page 5 for the EAB members. bottling plants, certified to ISO 14001 by the Health Organization or local laws, whichever are Since much of the environmental impact of our end of 2006. more stringent. business is created outside Company-owned Every manufacturing plant in the Coca-Cola system facilities, we work continually with our bottling Water has a multiple barrier water treatment system, partners to help them develop consistent policies which disinfects and filters the water. Water quality and improve the environmental performance of the Water is fundamental to our business – it is the main ingredient in our products and is used in is tested at all facilities at least once a year by entire Coca-Cola system. recognised external laboratories. our manufacturing process. Coca-Cola’s environmental management system, Water efficiency known as eKOsystem, incorporates environmental More importantly, water is of course essential to the well-being of society. We share local water In 2004, the Coca-Cola system in Europe used standards and guidelines for The Coca-Cola a total of 56.05 billion litres of water to produce Company and our bottling partners throughout the resources with local communities as well as other commercial users. Given its importance, we believe 23.06 billion litres of product – an average of world. It is closely aligned with the international 2.43 litres per litre of product. The difference environmental management standard ISO 14001. that water stewardship is critical to the long-term sustainability of our business. We focus on between what is used and what is put in our For more information, see our global 2004 initiatives which encourage efficient water use, product is on average 1.43 litres, needed to clean Environmental Report (available at www2.coca- clean waste water effectively, and support water the bottles, filling lines, mixing tanks and the plants cola.com/citizenship/environmental_report.html). conservation projects in local communities. – essentially to ensure the quality and the safety of the products. In absolute terms, we reduced the In the European Union, water resources are usually amount of water we used at the same time as Environmental management supervised by regulators and our plants are given increasing the amount of product made. in Europe licences limiting the amount of water they can consume. In some other parts of Europe, local Our European environmental manager works regulation may be less strict and it falls to us to with a network of local environmental coordinators ensure our consumption is not interfering with in the operating divisions and production facilities the needs of others. About half of the water to ensure high standards are achieved across used to produce our products in Europe comes our operations. from municipal utilities, most of the rest from privately-owned wells near the bottling facilities. 2 This data refers to our previous structure, i.e the ‘Europe, Eurasia, Middle East’ Group. In the current EU Group there are 99 sites. Coca-Cola Europe Business and Social Review 2005 Environment Coca-Cola Europe Business and Social Review 2005 20_21 Water use ratios (the amount used divided by the Community projects Sales and marketing equipment amount of product produced) may vary depending We believe our contribution to managing freshwater We estimate that almost two-thirds of our on local circumstances. For example plants using can go beyond good environmental practices in greenhouse gas emissions are from sales and refillable bottles need more water for rinsing. the plants bottling our products. We want to use marketing equipment carrying our brands. We believe that our current water use ratio is our knowledge and expertise, as well as our local As well as using energy to keep our products cool, among the best in the industry. We believe we presence and global reach, to help stimulate public equipment typically contains hydrofluorocarbon can improve further. In 2004, our bottling system reduced the amount of water used per litre of awareness and to engage in valuable conservation (HFC) gases as a refrigerant. These gases, product by 2.4% from the previous year. The target projects. We are doing this by establishing which were introduced as a safe substitute for is to achieve 1.8 litres per litre of product by 2009. partnerships with nongovernmental organisations ozone-depleting CFCs 10 years ago, have That level of efficiency represents the best that and local communities. a high global warming impact if released into could be obtained using the best available the atmosphere. technologies in our mix of plants and products. On 1 June 2005, The Coca-Cola Company and our bottler Coca-Cola HBC signed a partnership We recognise that climate change will have 2.43 Our Water Savers programme is designed to with the International Commission for the serious implications across the world, and are ensure that the target is met. The programme Protection of the Danube River (ICPDR), for the committed to finding ways to minimise emissions includes training and promoting best practice, and joint protection and preservation of the Danube of greenhouse gases. We have focused our incorporates a self-assessment tool-kit. We are River. This partnership includes support for efforts on developing alternatives to HFC planning a Water Savers league and Water Savers celebrating Danube Day (29 June) and help refrigerants and improving the energy efficiency awards to encourage our operations to show creating educational material on the Danube. of refrigeration units. leadership in this area. In 2004, the Coca-Cola system in We are helping to increase private involvement in In June 2000, we made a commitment to stop We are not able to compare total volume of water Europe used a total conservation projects. The partnership includes buying new cooler equipment using HFCs where used in 2004 (56.06 billion litres) with the amounts of 56.05 billion litres several conservation initiatives at national and cost-efficient alternatives are commercially “The International Commission for the used in the past, because of a change in the of water to produce 23.06 billion litres of local level in the countries of the Danube basin. available. This applies both to refrigerant gases and Protection of the Danube River (ICPDR) has way we measure and aggregate this indicator product – an average These involve partnership with local authorities insulation. We have embarked on a large research partnered with The Coca-Cola Company and (the change does not affect the water use ratio). of 2.43 litres per litre and NGOs. Five such projects were launched in and development programme with suppliers and of product. its bottler, Coca-Cola HBC during the past year. We believe our new measurement standard is Slovakia, Hungary, Serbia and Montenegro, technology partners (worth more than u24 million) The ICPDR carefully reviewed the commitment more accurate. Bulgaria and Romania. The total contribution and evaluated the commercial potential of a variety of the company to environmental protection from Coca-Cola was almost u400,000 at the of alternatives including ammonia, carbon dioxide, and water management in particular. We have Wastewater Like most manufacturing operations, plants in end of 2005. hydrocarbon, and the helium-based Stirling cycle. been greatly impressed with the leadership Coca-Cola has demonstrated in managing The Coca-Cola System generate effluent, or We also pursue local projects in other water Following extended lab and field tests which began water resources. Most important is their careful wastewater. Most of this effluent in Europe goes catchment areas. In Spain, we have partnered in the latter half of 2003, we concluded that carbon accounting of water use and wastewater to municipal treatment facilities. In areas where with WWF to raise awareness of water dioxide-based refrigeration is the best alternative for discharges and their commitment to improve adequate treatment facilities are not available, conservation in the region of Valencia. We have our needs. Initial field tests, performed during 2004 their environmental management systems. we require our bottling partners to build systems developed educational materials for children, in Greece, Spain and Australia, indicated that Coca-Cola’s ongoing corporate monitoring to treat the effluent on site. a pamphlet with water-saving tips for households, carbon dioxide equipment in real-life conditions and accounting of water use and discharges Our company standards require that effluent and a brochure on water conservation for was between 17% and 35% more energy-efficient to water (using International Standards) – discharged from our facilities into a natural body local businesses. than equivalent units using standard refrigerants. and their regular achievements in reducing of water is treated to a level capable of supporting In Great Britain, we donated US $270,000 water use and improving water quality – are fish life. We maintain fish habitats (ponds and (u220,000) to support research and education in a model for other companies. As part of the aquariums) filled with our treated effluent at more water sustainability, conservation and management partnership agreement with Coca-Cola, than 21 plants to confirm and demonstrate the at Linacre College and the Environmental Change the ICPDR will work with the company to effectiveness of our treatment. At the end of 2004, Institute, Oxford University. promote improvements in the company’s water about 90% of plants in the system met our effluent management in countries in the Danube region, standard, and we are working to achieve full Global warming and more generally. ICPDR and Coca-Cola compliance by 2006. are committed to utilise the company’s The Coca-Cola Company and its bottling partners resources to raise awareness of appropriate contribute to European greenhouse emissions water management following the principles through energy used in manufacturing and fuel of the Danube River Protection Convention used for transporting products. But the biggest among communities near the river. Coca-Cola’s impact on global warming is from the two million skills and expertise together with the refrigeration units, vending machines and fountain framework and international coordination dispensers (which we refer to as sales and offered by the ICPDR ensure that these efforts marketing equipment) used to display and sell can have a broader impact involving other our products in Europe. companies and sectors of society.” Philip Weller ICPDR Coca-Cola Europe Business and Social Review 2005 Environment Coca-Cola Europe Business and Social Review 2005 22_23 4.5% We have reduced the amount of solid waste produced per litre of product by 4.5% since 2003. In 2005, Coca-Cola launched large field tests of Greenpeace Executive Director, said: “Greenpeace Energy Waste carbon dioxide units in several European countries, welcomes the commitments made by Unilever, (billion megajoules) including Germany and Norway. We plan to launch Coca-Cola and McDonald’s. What they are doing We are working to minimise our environmental further tests in the near future. By 2006, we will is to show that technologies that save the planet 10.30 10.92 12.56 11.26 0.50 0.49 impact through initiatives to reduce, reuse and have more than 2,000 of these units in the from HFCs are here. They exist! We call on recycle waste. marketplace. We will expand these large tests other companies in their sector to follow suit.” Solid waste from our product packaging is the to validate reliability targets, verify service and See www.refrigerantsnaturally.com for more most visible environmental issue associated support processes, and prepare for system-wide about this joint initiative. with Coca-Cola and its bottling partners. conversion when appropriate. Nearly all new Packaging is essential to carry and preserve our Manufacturing models our bottlers purchase in Europe have beverages and plays a critical role in marketing. In 2003, the Coca-Cola system in Europe used a switched to HFC-free foams (they are mostly But it also creates an obvious environmental total of 11.26 billion megajoules (MJ) of energy to cyclopentane or water-blown foams). We intend challenge: what to do with the package after produce 23.06 billion litres of product – an average to de-certify equipment with HFC foams from the beverage has been drunk. of 0.49 MJ per litre of product. The amount of January 2006. Reported Data Estimated Total Efficiency energy needed per litre of product has been 2003 2004 2003 2004 (megajoules/litre) We also generate solid waste in our manufacturing We are also working with our suppliers to develop reduced by 2% since 2003. Our total energy use 2003 2004 process. new equipment that is 40% to 50% more energy in Europe has been reduced in absolute terms by efficient by 2010 (compared with 2000 levels). around 600 million MJ, notwithstanding the growth We have extensively tested new hardware and of our total sales. Manufacturing waste software solutions that can better manage the In 2004, the Coca-Cola system in Europe u24 million energy use of our equipment and intend to Improving energy efficiency cuts costs and reduces our greenhouse gas emissions. We are planning an produced nearly 229,000 tonnes of solid waste. start rolling these out in our standard purchases On average, 9.91 grams of solid waste were Energy Savers programme in 2006 to help identify generated for each litre of product sold. We have from 2006. We believe this will put us in a good potential savings and share best practice. reduced the amount of solid waste produced position to comply with our 2010 goal. We have calculated that the combined effect of the The initial phase of the programme will pool energy per litre of product by 4.5% since 2003. We also We have embarked measures mentioned above will ensure that our saving best practice across the bottling plants. recycled a higher proportion of solid waste than in in a large R&D programme with new equipment purchased worldwide in 2010 Using a simple self-assessment tool, facilities will the previous year (78% in 2004 compared with “Given the enormous greenhouse potential suppliers and will emit 700,000 fewer tonnes of greenhouse test their local performance and practices against 71% in 2003), which means that our business in of HFCs it is crucial to eliminate them step by technology partners (worth more than gases than models purchased in 2000. This is the best global standards. This will enable them to Europe generated about 50,000 tonnes of solid step, especially from commercial refrigeration, e24 million) and roughly equivalent to taking 150,000 cars identify improvement opportunities and set targets. waste for final disposal, or two grams per litre which is one of the biggest single applications evaluated the off the road every year. The next phase will involve training at local level to of product. A combination of less solid waste commercial potential of HFCs. Therefore it was a big step forward, of a variety of begin implementation of the programme. generated and a higher recycling rate means that alternatives including Our approach to developing new technology is not only as a political signal, but a concrete in one year we have reduced the amount of solid ammonia, carbon to seek partners and consult widely. We do not Transport benefit for the environment, that Coca-Cola waste going for disposal by about 22,000 tonnes, dioxide, hydrocarbon, regard global warming as a competitive issue and Our business system is mostly built on took the initiative to phase out HFCs within notwithstanding the growth of our business. and the helium-based Stirling cycle. want any new solutions to be widely available. concentrate-based products, which means that their own business. It is as remarkable to In June 2004, we organised a joint conference our long-haul transportation needs are extremely see how Coca-Cola did not just talk and We have a training programme known as with Unilever and McDonald’s to promote limited. A truckload of Coca-Cola concentrate, for make plans, but took action by investing Waste$mart to help employees identify ways to environmentally friendly refrigeration. This was example, corresponds to roughly 2,000 trucks of in sustainable refrigeration research and reduce waste and identify cost-saving opportunities. supported by Greenpeace and the United Nations finished products. This is the main reason why development, and implementing its Solid waste generated 2003 2004 Environment Programme (UNEP). Gerd Leipold, the contribution of transportation to the overall eKofreshment programme. It is impressive Reported data greenhouse gas emissions of our business is to see Coca-Cola – despite considerable (thousand tonnes) 205.65 221.67 relatively limited (see chart). economic risks – pioneering an ecological and technological revolution which has the Estimated total Greenhouse gas emissions Finished products are transported by our bottling potential to really make a difference and (thousand tonnes) 250.79 228.52 (millions of tonnes of CO2-equivalent) partners to customers. Because our bottling contribute to a shift towards sustainable Efficiency (grams/litre) 10.38 9.91 network in Europe is very dense and mostly development in commercial refrigeration. Recycling rate (%) 71 78 country-based, transportation of our finished I would be very happy to see not only the Fleet 0.6 Sales and marketing products consists mainly of local distribution from a final technical and economic success of equipment 3.4 bottling plant to a warehouse, or directly to shops. Coca-Cola’s eKOfreshment programme for We estimate that delivery vehicles in the Coca-Cola their technology at point-of-sale, but to see Manufacturing system in Europe consume an average of around this programme being extended to additional operations 1.2 9.3 litres of diesel per 1,000 litres of product business fields like refrigeration in transport delivered. and production.” Wolfgang Lohbeck Greenpeace Coca-Cola Europe Business and Social Review 2005 Environment Coca-Cola Europe Business and Social Review 2005 24_25 Packaging We have been helping to promote the market for No matter how much we improve the Litter The Coca-Cola Systems aim is to systematically recycled PET for several years. We fund and environmental profile of our packaging, there will Litter is an undesirable result of people disposing reduce the life-cycle environmental impact of contribute to several research and development eventually be some waste created. In Europe, the of their waste irresponsibly. Discarded beverage our packaging. Our packaging teams work to projects looking into new recycling technologies. whole industry involved in the packaging chain has packaging is a highly visible example of litter, incorporate environmental criteria into packaging We are bringing companies together to build already improved recovery rates from the waste although it accounts for only a small proportion design and have focused on reducing the amount and invest in new recycling plants equipped stream in response to the EU Packaging and of all litter. Beverage containers represented only of materials used. For example, the original two litre for the production of food-contact grade PET. Packaging Waste Directive. Recovery organisations, 9% of litter in the Netherlands in 2001 (according PET bottles weighed over 70 grams and have now For example, we have been involved in developing mostly financed by industry, have been set up in to research by SVM-Pact) and only 6% in been reduced to around 50 grams. United Resource Recovery Corporation (URRC) all member states. It is estimated that total funding Germany (according to research by Roland technology. URRC is a sophisticated mechanical by industry of packaging recovery and recycling Berger), measured by number of items.3 We believe it is preferable to use as much recycled recycling process that generates food-grade PET was u2.8 billion in 2001 (the latest available data) material as possible in our packaging, as this tends We encourage our consumers to dispose of their to reduce the energy content and provides a use for material that could otherwise become waste. recyclate and is now being widely used in the Coca-Cola system globally. We have also been instrumental in the opening of two European 25 million – representing 65% of the total incremental cost of packaging recycling. beverage containers responsibly. In most European countries our packaging carries the Our use of recycled material varies from market to As a result, the EU packaging recovery rate is ‘Tidy Man’ logo. recycling plants using this technology. These are in market but we estimate that we purchase more now more than 60% and still increasing, leading Switzerland and Germany, with a third one planned We support national anti-littering campaigns than US$4 billion (u3.2 billion) worth of recycled to a reduction of greenhouse gas emissions of in Sweden. 25 million tonnes in virtually every country where we operate, material worldwide each year. 25 million tonnes of carbon dioxide equivalent of CO2-equivalent for example ‘Keep the Baltics Tidy’ in several We also support new legislation being considered emissions avoided in so far. Even though the growth of our economies Many of the packaging materials we use routinely Nordic countries and ‘Vacances Propres’ in by the European Commission to prevent Europe through the has meant that consumers are buying more and have a high recycled content, such as glass, steel recycling of 60% of France. We conducted an extensive anti-littering restrictions on use of recycled materials in food more packaged products, the absolute amount of and aluminium. packaging waste. advertising campaign during the 2004 Athens packaging. This proposes strict testing procedures packaging waste being disposed of has reduced Olympic Games. The Coca-Cola system provided Plastic presents the biggest challenge since to protect the health and safety of consumers. by more than 10% between 1997 and 2001. In this recycling bins throughout the city and teams the economics usually favour virgin material. Our scientists have been instrumental in developing field effective regulation combined with investment of young people spread the message to ‘keep In addition it is easier to recycle a PET bottle into a and using such tests over the last 10 years. by industry has succeeded in decoupling Athens clean’. different product such as carpet or textile, than to This new regulation will be extremely important to economic growth from environmental impact. recreate a new bottle which has very high quality our strategy for introducing recycled-PET bottles in As well as helping to prevent people littering, Packaging material recycling in Europe specifications. We believe bottle-to-bottle recycling several countries where we are currently prevented we work to clear existing litter. For example, Average for PET packages should be encouraged, as it can from doing so by law. rate of Coca-Cola Great Britain continues to be a member provide a vast, and so far largely untapped, market of ‘ENCAMS’, formerly the ‘Keep Britain Tidy’ In Europe, we use PET bottles with recycled K/tonnes packaging for waste PET bottles. Recycled recycled campaign. Coca-Cola and its bottlers employees content in Belgium, Germany, the Netherlands, Material in EU-12 by material in Romania volunteer to help clean up public Sweden and Switzerland, and we are planning the Glass 8150.9 59.1% parks as part of annual ‘spring cleaning days’. use of recycled-content bottles in several other Paper 17796.6 69% Beach clean-ups were organised in Serbia, markets in the near future. Metal 2526 58.5% Montenegro, Romania and Slovakia as part of u3.2 billion We support the use of refillable systems where economically viable and environmentally Plastics 2634.3 25.4% our Green Danube project to protect the Danube River and its ecosystems. advantageous (they typically require more transport Total 31107.8 We have been working with Ocean Conservancy and washing). We also have to have the necessary Source: ASSURRE, ‘Packaging and Packaging Waste Statistics 2002’ to sponsor the International Coastal Cleanup since logistics and retail structures and to ensure the 1996. In September 2005, hundreds of thousands bottles are accepted by consumers. In Europe, of people volunteered to clear litter from more We estimate that 30% of our total beverage volume is distributed in than 11,000 miles of shoreline around the world. we purchase more refillable packages. than US$4 billion Our sponsorship helps to publicise the event and (e3.2 billion) worth of recycled material purchase supplies, and Coca-Cola employees are worldwide each year. encouraged to participate in local cleanup activities. Source: http//www.europen.be 3 Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 26_27 Community Coca-Cola’s interpretation of corporate social responsibility focuses primarily on our core business activities, but we believe that well-targeted community investment can also make a meaningful contribution to society. Our contribution is a combination of time, Austria Romania Palestinian Authority Area expertise and resources, both from The Coca-Cola In 2004, Coca-Cola HBC Austria donated In 2003 Coca-Cola Romania, the CONCEPT The National Beverage Company (NBC), our Company and our bottling partners. Putting a u50,000 to SOS Kinderdorf, a children’s charity Foundation and the Ministry of Education, bottling partner in the Palestinian Authority Area, value on these donations is not easy, but when we made an estimate in 2000, the total figure in Europe was approximately US $7.4 million that provides residential homes for children in need. Coca-Cola HBC are also encouraging young people in Austria to take an interest in 10 million launched Magic Books, an educational programme to help schoolchildren develop a love of reading and books. Psychologists, artists, choreographers supports a range of community projects. Many of these focus on helping children, including orphans and those with special needs. NBC’s Back to (u6 million). We intend to track these donations the environment by supporting Junior Rangers and social workers helped to design exciting School programme provides school clothing and systematically and report more accurate in the Hohe Tauern National Park. teaching sessions, now being piloted in six materials for children. In 2004, Coca-Cola Spain figures in future. schools in Bucharest. supported this programme by collecting 10,000 Greece High-school students school kits (including bags and stationery) for Most of our community investment is focused on In 2002, Coca-Cola in Greece, in cooperation who participated in Great Britain Palestinian children. For the past three years they promoting physical activity among young people. with the NGO Hellenic Society for the Protection the Spanish National Coca-Cola Great Britain supports the Valued Essay contest since distributed more than 15,000 bags. This is part of our strategy to help tackle obesity. of the Environment and Cultural Heritage, launched its beginning. Youth programme, run by the national charity In 2003, we supported over 100,000 physical a 3-year environmental education programme Youth Esteem UK, to help secondary school NBC also opened 4 children’s libraries at public activity events throughout Europe (these are called “Environment: Do we really care?” students develop their self-confidence by acting hospitals in Ramallah, Jenin and two in Gaza covered in the section on Encouraging Active addressed to 60 Greek schools and more than as classroom tutors for primary school children. as part of a broader Coca-Cola initiative in the Lifestyles, see page 12). 2,000 students of secondary education. Coca- Results of the programme include improved Middle East region to provide books for children Cola’s commitment to environmental awareness levels of academic achievement, self-esteem in hospital. We also support a range of local initiatives and and sustainability was set off in 2001 with the and a greater commitment to succeed and good causes in the areas of arts and culture, Now NBC is giving one MBA scholarship every support of the 1st National Research stay in school. Nearly 8,000 young people have education, and environment. Many Coca-Cola year and supporting graduate students by training on “The Environmental Conscience of Greeks” participated in the programme since 2001. employees give their time as volunteers on them “How to enter their career life”. aimed at surveying and recording environmental these projects. awareness and engaged behaviour of Greek Spain Here are some of the thousands of recent citizens vis-à-vis environmental issues. Within the The Coca-Cola Spain Foundation supports a range examples of the support we provide to same context, Coca-Cola was the sponsor of of arts and education projects, including art therapy communities across Europe: the first Environmental Guide called “Light-footed” workshops in three hospitals, national drama and the follow-up launch of the 2nd National competition for 14 to 18 year olds and a national Research in 2005. During the ATHENS 2004 essay contest for secondary-school students. Olympic Games, Coca-Cola, in cooperation The latter has been organised every year in the with Athens Olympics Organising Committee past 46 years and about 10 million high-school and UNEP, developed a campaign on the students have participated in it. Coca-Cola Spain importance of recycling and donated 5,000 runs an environmental game on its website, trees to the Municipality of Athens in the context developed with conservation organisation WWF. of its “Olive Tree, the tree of Athens” activation. The game enables players to plant a virtual tree by answering some simple questions. Coca-Cola plants The Netherlands a real tree for every virtual tree planted. For more In The Netherlands Coca-Cola sponsors initiatives information, see www.conocecocacola.com to encourage young people to become more interested in reading. Coca-Cola support the De Jonge Jury, an annual event giving children the chance to select their favourite new books. ‘Mood cabins’ have been provided for over 20 secondary schools giving children a fun space in which to read some of the short-listed books. Coca-Cola Europe Business and Social Review 2005 Coca-Cola Europe Business and Social Review 2005 28 Coca-Cola around the world The Coca-Cola Company worldwide employs approximately 50,000 people in more than 200 countries, and our bottling partners employ many more. Although this review focuses on Europe, here we outline briefly some issues and initiatives from outside Europe that have global significance. HIV/AIDS in Africa Education in Asia Water in India Labour rights in Colombia The Coca-Cola system is the largest private sector The Coca-Cola Company employs around Water is a very valuable resource in India where More than 2,000 Columbians are employed by employer in Africa with over 60,000 employees 9,400 people in nearly 40 countries throughout supplies are limited. We are continually working Coca-Cola bottlers. Nearly 10 years ago, a union working for The Coca-Cola Company and Asia. It supports a range of local community to reduce our water use and our impact on the leader was shot and tragically killed at the gate of 40 bottling partners in over 50 countries. programmes, many of which focus on education. local environment. Between 2000 and 2004, we one of these plants. Separate judicial inquiries by For example in China, the Coca-Cola system has reduced our water use ratios per litre of product a Colombian court and the Colombian Attorney As well as providing jobs and contributing in supported Project Hope for over a decade – an by 24% in India. General found no evidence to support allegations other ways to local economies, Coca-Cola initiative run by the China Youth Development that bottler management conspired to intimidate supports a range of local community projects. Allegations have been made over the last Foundation to improve access to education in trade unionists. In 2001 the Coca-Cola Africa Foundation two years that water use by our bottling plant rural areas. We have invested over US$4 million was established. This focuses on three areas: in Kerala, India, was depleting local groundwater We also commissioned Cal Safety Compliance (u3.2 million) in the construction of 56 Project healthcare, education and the environment. levels. After an independent scientific study was Corporation – an independent firm accredited Hope schools and 100 libraries. The Foundation and our African operations conducted, the Kerala High Court determined for social compliance auditing by the Fair have donated approximately US $40 million In the Philippines, the Coca-Cola Foundation that the primary cause of the water shortage Labor Association and SA8000 – to conduct (u32.3 million) to community work on the Philippines supports the Little Red Schoolhouse was reduced rainfall over several years and not an independent assessment of our bottling $4 million continent since 2001, including US $4.9 million (u4 million) in 2004. project. Since 1997, this has helped to build over 55 schools, and provide equipment and training because of water use by the Coca-Cola plant. partners’ operations in Colombia to ensure their business practices meet the highest To help replenish water resources we have installed for teachers. standards. The assessment found no evidence of The Foundation’s healthcare programmes are rainwater harvesting systems in 22 of our plants intimidation by management against any employee targeted at the continent’s most urgent crisis: In India, The Coca-Cola Company has partnered (more than 80% of company-owned bottling or union official. We have invested HIV/AIDS. The Foundation expects to spend with a range of NGOs including Child Relief & You, facilities in India) and in a number of communities, over US$4 million in the construction of 56 US $30 million (u24.2 million) on HIV/AIDS Pratham, Prayas, the Naandi Foundation and and we are expanding these efforts. A significant More than 30% of those employed by Coca-Cola Project Hope schools programmes by the end of the decade. It supports Literacy India to provide educational facilities in portion of the water we use is now returned to bottling partners in Colombia are union members, and 100 libraries a range of education, awareness, prevention and areas most in need of them. groundwater systems. compared to a national average of only 4%. treatment programmes in close partnership with All unionised workers are covered by collective Biosolids produced in wastewater treatment at our organisations including UNAIDS, Hope Worldwide, bargaining agreements regulating wages, benefits Kerala bottling plant were distributed to farmers the Global Business Coalition on HIV/AIDS and the and working conditions. Our Colombian bottling for use as a soil conditioner. It has been alleged Nelson Mandela Foundation in Africa. partners work with unions and government to that cadmium and lead were present in these provide emergency mobile phones, secured Employees of The Coca-Cola Company in Africa biosolids, but a study by the Kerala State Pollution transportation to and from work, secure housing and its 40 African bottling partners – and their Control Board deemed the biosolids produced by 24% and other measures to protect union leaders. family members – are provided with access to our Kerala plants to be non-hazardous. We are free antiretroviral medication, confidential testing working with stakeholders to resolve this matter, Coca-Cola has operated in Colombia for over and counselling. More needs to be done to change and we continue to work with industry associations 70 years. We support initiatives which help perceptions and remove the stigma associated and the Indian government to regarding proper children, promote education and provide relief with HIV/AIDS to encourage greater participation characterisation, handling and disposal of biosolids. for the victims of the country’s ongoing conflict. in our programmes. In 2003, 159 bottler Between 2000 and In 2005, we provided US$10 million (u8.1 million) For more information, see employees received antiretroviral treatment 2004, we reduced to establish the Columbian Foundation for our water use per www.coca-colaindia.com and www.cokefacts.org. – only 16% of those estimated to need it. litre of product by Education and Opportunity. A group of well 24% in India respected Colombians, including the President On World AIDS Day, 1 December 2003, we of the Colombian United Confederation of Workers, launched the Big Match – an internal employee is running this Foundation, which addresses the volunteering programme that enables Company needs of victims of violence. employees in Africa to take time off to participate in local HIV/AIDS and other community initiatives For more information, see www.cokefacts.org. of their choice. The Coca-Cola Africa Foundation matches funds raised by employees up to a maximum of US$500 (u400) annually per employee. Further details of our community initiatives around For further information see the world are available in our 2004 Citizenship www.AIDSprogramsinafrica.coca-cola.com. Report (www.citizenship.coca-cola.com).
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