COCA-COLA CHINA

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							          COCA-COLA CHINA
2008/2009 SUSTAINABILITY REVIEW
    CONTENTS
    i       Performance Highlights                           35      Sustainable Packaging
    3       A Letter from Our President                      39      Workplace
    4       Business Profile                                 45      Corporate Governance
    7       LIVE POSITIVELY™                                         and Ethics
    9       Beverage Benefits                                46      Global Reporting Initiative
    15      Active Healthy Living                            47      Forward-Looking Statements,
    19      Community                                                Environmental Statement and
    25      Water Stewardship                                        Equal Opportunity Policy
    31      Energy Management                                49      Awards and Recognitions
            and Climate Protection




    Scope of Review

    Business Entities                                     Timeframe
    Unless otherwise specified, this Review covers the    This Review covers the 2008/2009 calendar years and
    operations and activities of "Coca-Cola China" in     is accurate as of December 31, 2009. This Review also
    mainland China, Hong Kong, Macau and Taiwan.          covers some significant developments that were initiated
    While Coca-Cola China is not a legal entity, the      in 2009 and carried over into 2010. Our previous report
    name is used throughout this Review to simplify       published in 2008 covered the calendar year of 2007. We
    discussion of points that apply to all Greater        will be providing regular updates on our sustainability
    China entities owned or operated ultimately by        efforts biannually.
    The Coca-Cola Company. Please see page 4 for a
    full description.                                     Format
    This Review covers the commitments, principles        The development of this Review was guided by the
    and operations of Coca-Cola China. Global             Global Reporting Initiative (GRI) G3 guidelines, for
    commitments are indicated by reference to             which an index is provided on page 46 of this Review.
    The Coca-Cola Company or the Company.                 The Coca-Cola Company became a signatory to the
    Because we work closely with our bottling partners,   United Nations Global Compact in March 2006, and
    we describe many collaborative efforts in this        its principles have also guided our reporting. Data has
    Review. We indicate when information also reflects    been assured through an internal verification process,
    bottling partner involvement through reference        which included reviewing accuracy of qualitative and
    to the "Coca-Cola China system," which includes       quantitative claims and data calculations.
    Coca-Cola China and our bottling partners.



    For more information, please visit:                       To provide your feedback or comments on this Review,
    The Coca-Cola Company: www.thecoca-colacompany.com        please email us at: sustainability@apac.ko.com
    Coca-Cola China: www.coca-cola.com.cn
                                                              Or write to us at:
                                                              Sustainability Review
                                                              Coca-Cola China
                                                              1702 Full Link Plaza
                                                              No. 18 Chaoyangmenwai Avenue, Chaoyang District
                                                              Beijing 100020, PRC
1   COCA-COLA CHINA
Imagine a better world
A world where all people have access to safe water, where packaging has a life
beyond its original use, and where communities are healthy and prosperous. This
is our vision.

The Coca-Cola Company and our bottling partners are committed to making
a lasting, positive difference in the world. We are constantly innovating to keep
our products affordable and make our business more environmentally and
economically beneficial to the communities we serve. And we believe that
investing in the economic, environmental and social development of communities
will help our business grow.




Envision China’s harmonious future
A country where sustained economic development is enabled by green
innovations, championed by active healthy people living in vibrant communities,
and supported by responsible businesses.

Together with our local bottling partners, Coca-Cola China is committed to China’s
harmonious future. We are continuously innovating and improving every aspect of
our operations – because we aspire to be a model and a vehicle for sustainable
growth in China’s dynamic marketplace. We provide refreshing beverages
to our consumers, meaningful career opportunities to our associates, lasting
contributions to our local communities, and innovations throughout our value
chain. Through our actions, we hope to demonstrate our commitment to all our
stakeholders.




                                                                2008/2009 SUSTAINABILITY REVIEW   2
PERFORMANCE HIGHLIGHTS1

BEVERAGE BENEFITS                                                                               ACTIVE HEALTHY LIVING



                                                                                               1.5 million students
                                                                                               from 2,000
                                                                                               schools in 20 cities
                                                                                               participated in
     Our beverage innovations                                                                  Happy Playtime
                                                                                               activities
COMMUNITY


     Cumulative direct investments of USD 2 billion
     and additional planned investments totaling
     USD 2 billion within 3 years
     Our cumulative charitable contribution commitments total more than



     RMB 200 million
WATER STEWARDSHIP                                                                                                         ENERGY MANAGEMENT AND
                                                                                                                          CLIMATE PROTECTION




     35%+                                                                                                                     35%+
                                                                  Save a Barrel of Water
                                                                  project brought water
                                                                  conservation messages
                                                                  to   1 million
      improvement in water                                        students in 22 cities
      efficiency from 2004                                        across China
      baseline


     1 The facts and figures here represent select highlights of our performance and progress. Some cumulative facts and figures that have not been
     disclosed in our prior sustainability reports are included here, together with other facts and figures that are specific to 2008 and 2009.

 i    COCA-COLA CHINA
                                                 WORKPLACE




                                                    95%+
      Supporting "Healthy Weight
      Management - 2009"
      project in 6 cities to enhance
      public health education                       of associates working within
                                                    the Coca-Cola China system
                                                    are unionized
                                                    employ 40,000 associates and
                                                    create 400,000 job opportunities
                                                    throughout our supply chain



 Our community                                    The only international company committed to
                                                  sponsoring 4 of the biggest public events in China's

 programs have                                    recent history: the 2007 Shanghai Special Olympics;
                                                  2008 Beijing Olympic Games; 2008 Beijing

 cumulatively impacted                            Paralympic Games; and 2010 Shanghai World Expo




 84 million+
 people across China

                                       SUSTAINABLE PACKAGING


improvement in                           15,000 T-shirts and 7,000
energy efficiency
from 2004 baseline                       visors made from recycled
Increasing placement of                  PET bottles for 2008 Beijing
environmentally friendly
coolers that reduce energy
                                         Olympic Games
use by

50%
                                                                               2008/2009 SUSTAINABILITY REVIEW   ii
A LETTER FROM OUR PRESIDENT
Dear Stakeholders,
In the past two years, together with China, we have reached many milestones. In 2008, together we celebrated the
Beijing Olympic Games. That same year, China became The Coca-Cola Company’s third largest market globally. In
2009, we celebrated 30 years of China’s reform and opening-up policy and the 30th anniversary of The Coca-Cola
Company’s re-entry into the Chinese market. These parallel milestones did not happen by chance – they come from
our long-term unwavering commitment to growing together with China.
The new decade is fast approaching and China remains steadfast to the commitment of building a harmonious society.
Economic, environmental and social impacts of businesses operating here are more important than ever. As China’s
living standards continue to improve, we will keep step with these dynamic changes and live up to our responsibilities
as a leader in China’s beverage industry.
                         Sustainable Growth. In the past three decades, Coca-Cola China has embraced the opportunity
                         to grow with and contribute to China’s rapid economic development through our direct
                         investments, technological innovations, talent development, and knowledge transfer of global
                         best practices. Our unbending commitment to China allowed us to play a pivotal role in the
                         growth of not only the Chinese beverage industry, but other industries such as marketing and
                         logistics as well. We challenge ourselves to accelerate our positive economic impact through
                         continued direct investments and employment opportunities.
                         Sustainable Lifestyles. The vibrancy and passion of the Chinese people is truly inspirational.
                         Within our business operations, we believe we can harness this people potential by creating not
                         just jobs, but also rewarding careers. For our consumers, we are constantly looking for product
                         innovations and we challenge ourselves to develop more innovative new beverage choices to
                         meet their changing lifestyles faster than ever before. Furthermore, as urbanization, increased
                         affluence, and fast-paced living continue to alter lifestyles, we have an increasing responsibility
                         to champion physical activity as a part of active healthy living.
Sustainable Communities. Our business model allows us to employ, source, produce and sell our beverages locally. We
are very much a part of the fabric of every local community where we operate in China – and we realize the sustainability
of our business depends on the sustainability of the local communities where we operate. Together with our bottling
partners, we delivered much needed water to people caught in the 2008 snow-storms and are helping rebuild schools
destroyed by the tragic Sichuan earthquake. Together with people from all across China, as a global sponsor we
celebrated the Beijing Olympic Games and are getting ready to welcome the 2010 Shanghai World Expo. These are just
a few highlights from some of our recent efforts.
Sustainable Environment. By definition "sustainability" means preserving natural resources for future generations.
As we continue to grow our business in China, we will do so in ways that not only minimize our environmental impact
but also create innovative solutions and partnerships that positively impact climate protection and water resources.
Through cutting-edge innovative technologies in our operations, investing in long-term environmental projects in
local communities, and promoting public awareness, we hope to catalyst environmental protection actions from local
communities and businesses across different industries.
Sustainable Reporting. Transparency and accountability go hand-in-hand and these are the dual objectives of this
Review. Our brands are amongst the most recognized and beloved brands in China and they are synonymous with
quality, unique good taste, and refreshment. Our reputation is based on trust with our stakeholders who care about our
business, a trust that we continuously renew with each and every one of our beverages and our actions. This Review is
our third report on sustainability efforts in China. The two first reports helped us further engage our stakeholders and we
hope this will be the case for this Review as well.
LIVE POSITIVELY™. The Coca-Cola Company is a global leader in the beverage industry and Coca-Cola China
is a leader in the Chinese beverage industry. We have taken a serious and profound look at the impacts we make
economically, environmentally and socially and challenged ourselves to live up to the tremendous honor bestowed
upon us and the responsibility that comes with it. LIVE POSITIVELY™ is a holistic way for us to think about sustainability
and our business impacts. It is a modern expression of our heritage of caring about our people and our planet. LIVE
POSITIVELY™ includes goals, metrics and principles for our work in developing beverage benefits; supporting active
healthy living programs; building sustainable communities; improving environmental programs for our operations; and
creating a safe, inclusive work environment for our associates. It is about all of us making the right decisions each day, in
every aspect of our work and our lives. This Review is organized based on our LIVE POSITIVELY™ commitments and our
progress towards achieving our goals.
For me, it is simultaneously a privilege, a humbling experience and a tremendous responsibility being a part of the
Coca-Cola China team, which in turn is a part of the engine that fuels China’s sustained economic growth. This is a part
of our journey together and I welcome your inputs and feedback on how we can continue improving the way we operate
going forward.
Sincerely,




Doug Jackson
President, Coca-Cola Greater China & Korea



 3   COCA-COLA CHINA
                                                                                                     BUSINESS PROFILE



Our History
Established in 1886, The Coca-Cola Company operates in more
than 200 countries and markets over 500 brands and more than
3,000 beverage products. These products include sparkling
and still beverages, such as waters, juices and juice drinks,
teas, coffees, sports drinks and energy drinks. We have four of
the world’s top five nonalcoholic sparkling beverage brands:
Coca-Cola, Diet Coke, Sprite and Fanta.
Our history in China dates back to 1927 when we first
officially entered the Chinese market with the opening of
two bottling plants, one in Shanghai and another in Tianjin –
these two plants were among The Coca-Cola Company’s first
international plants. And in 1979, just one day after China and
the United States established formal diplomatic relations, The
Coca-Cola Company announced its return to the Chinese
market. In the past 30 years, together with our partners, we
have invested over USD 2 billion to build 38 bottling plants and
two concentrate plants here in China. And we plan to invest
an additional USD 2 billion within three years. This new wave
of direct investments started with a USD 90 million investment
for our Coca-Cola China Headquarters Complex in Shanghai
which also features our Global Innovation and Technology
Center. Together with our bottling partners, we employ almost
40,000 local associates and create an additional 400,000 job
opportunities throughout our value chain in China.


Our Business Model                                                 Coca-Cola China:
The Coca-Cola Company is a global business that operates           Because we serve a vast geographic area
on a local scale in every community where we do business.          covering just about everywhere in China, we
Our business model allows us to create global reach with           operate through a number of local operational
local focus because of the strength of the Coca-Cola system,       units. Coca-Cola China’s operational units
which comprises our Company and our bottling partners –            include Coca-Cola Beverages (Shanghai) Ltd.,
more than 300 worldwide. Our Company manufactures and              Coca-Cola China Ltd., and Coca-Cola Far East
sells concentrates, beverage bases and syrups to bottling          Ltd. Consistent with our global business model,
operations; owns and manages the brands; and is responsible        in addition to owning and managing our
for consumer brand marketing initiatives. Our bottling partners    brands, and being responsible for consumer
manufacture, package, merchandise and distribute the finished      brand marketing initiatives, we directly manage
branded beverages to our customers who are grocery stores,         and operate our two concentrate plants that
restaurants, street vendors, convenience stories, movie theaters   manufacture and sell concentrates, beverage
and many other businesses, who then sell our products to           bases and syrups to our bottling partners.
consumers at the rate of 1.6 billion servings each day globally.
Around the world, this is the framework that we operate under.
From time to time, as we develop our business, we make
certain adaptations as necessary to meet local business and
regulatory requirements, to enhance efficiencies and better
serve our customers and consumers.




                                                                                       2008/2009 SUSTAINABILITY REVIEW   4
BUSINESS PROFILE



     Our Bottling Partners
     In China, we work primarily with three bottling group partners that each operates a number of bottling companies
     in their respective franchise territories. Our bottling group partners manufacture, sell, distribute, and market our
     branded beverages.

                      Swire Beverages Ltd.                     COFCO Coca-Cola Beverages Ltd.                         Coca-Cola China Industries Ltd.2
     Ownership        Swire Pacific Ltd.: 87.5%                COFCO Ltd.: 65%                                        Wholly owned by The
                      Coca-Cola South Asia Holdings,           Coca-Cola (Holdings) Asia Limited                      Coca-Cola Company
                      Inc. (which is wholly owned by           (which is wholly owned by The
                      The Coca-Cola Company): 12.5%            Coca-Cola Company): 35%

     Territory        Guangdong (excluding the cities          Tianjin, Beijing, Hunan, Hainan,                       Shanghai, Heilongjiang, Jilin,
                      of Zhanjiang and Maoming),               Shandong, Jiangxi, Guizhou,                            Liaoning, Shanxi, Sichuan,
                      Fujian, Zhejiang, Anhui, Jiangsu,        Hebei, Inner Mongolia, Ningxia,                        Chongqing, Hubei, Guangxi,
                      Henan, Shaanxi, Taiwan, Hong             Gansu, Qinghai, Xinjiang, Tibet,                       Yunan
                      Kong                                     the cities of Zhanjiang and
                                                               Maoming in Guangdong
     We also have a special partnership with Coca-Cola Bottlers Manufacturing Holdings Limited (CCBMH). CCBMH,
     jointly owned by The Coca-Cola Company and our China bottling group partners, coordinates the production of
     most of our branded still beverages.



     Coca-Cola China System Bottling and Manufacturing Plants
                                                     Coca-Cola China System
                                                     38 Bottling Plants
                                                     Coca-Cola China Headquarters

                                                     Global Innovation and Technology Center

                                                                                                                                           Harbin

                              Urumqi
                                                                                                                                      Changchun

                                                                                                                              Shenyang
                                                                                                            Beijing



                                                                                                           Tianjing          Dalian
                                                                                               Taiyuan

                                                                                                             Zhangqiu
                                                                                                                           Qingdao
                                                                      Lanzhou                  Zhengzhou
                                                                                       Xi'an                     Nanjing


                                                                                                             Hefei                    Shanghai
                                                                                                  Wuhan
                                                                      Chengdu                                         Hangzhou
                                                                            Chongqing
                                                                                                       Nanchang              Wenzhou
                                                                                               Changsha
                                                                                                             Xiamen

                                                                                                Guangzhou                        Taoyuan
                                                                   Kunming          Nanning


                                                                                                               Huizhou
                                                                                 Zhanjiang                   Dongguan
                                                                                                         Hong Kong
                                                                                Haikou              Macau
                                                                                                  Zhuhai



     2 Starting in 2006, The Coca-Cola Company incrementally acquired 100% equity interest in Coca-Cola China Industries Ltd. (CCCIL) through
     Atlantic Industries, a wholly owned subsidiary. Because CCCIL operates independently from Coca-Cola China, for the purposes of this Review,
     it is categorized similarly with our other bottling partners.

 5   COCA-COLA CHINA
                                                                                                 BUSINESS PROFILE



The Coca-Cola Company's Value Cycle

The Coca-Cola system operates in the context of a broader value cycle. We work with suppliers to source
ingredients, packaging materials and promotional items; to warehouse, distribute and sell our products; and
to minimize our environmental footprint from water, energy and packaging usage. Managing sustainability
through a complex business cycle can be challenging. We must collaborate closely with our business
partners, suppliers, customers, consumers, local communities, and governmental and civil society partners.




 Ingredients                   Water                      Packaging                       BEVERAGE BENEFITS
 Sugar, citrus, coffee         Approximately 300          Bottles, cans,
 and other ingredients         billion liters used        cardboard trays and
 sourced from around           annually in our            other packaging
 the world                     beverages and in           designed for
                               their production           efficiency and
                                                          effectiveness                   ACTIVE HEALTHY LIVING




                                                                                          COMMUNITY


 The Coca-Cola Compay                      Bottling Partners
 Produces the concentrate and              Independent bottling partners, as
 beverage bases for regular, low-          well as Company-owned bottlers and
 and no-calorie beverage products;         facilities, manufacture, package and
 develops marketing and advertising        distribute our finished products                WATER STEWARDSHIP
 for system




                                                                                          ENERGY MANAGEMENT AND
                                                                                          CLIMATE PROTECTION


 Customers                                 Warehouses
 Supermarkets, convenience stores,         Collect and store products for
 restaurants and others who sell our       distribution to retail outlets
 products directly to consumers
                                                                                          SUSTAINABLE PACKAGING




 Consumers                                 Vending Machines and Coolers
 Our beverages are consumed nearly         More than 10 million pieces of
 1.6 billion times a day around the        equipment placed in strategic
                                                                                          WORKPLACE
 world                                     locations to meet consumer needs




                                                                                   2008/2009 SUSTAINABILITY REVIEW   6
We recognize that the world is more interconnected than ever, requiring more
collaboration and partnership.

LIVE POSITIVELY™ is our commitment to making a positive difference in the world.
Through redesigning the way we work and live, we consider sustainability as part of
everything we do. As we act with an eye toward future generations, we will focus on
driving business growth and creating a more sustainable world.




                            BEVERAGE                      ACTIVE                     COMMUNITY
                            BENEFITS                      HEALTHY
                                                          LIVING


LIVE POSITIVELY™            We aim to quench              We aspire to help people   We are a global company
focuses on seven            every thirst and need         lead active, healthy       with local roots in every
core areas key to our       while providing quality       lives by producing         community where we
business sustainability:    consumers can trust.          a wide variety of          do business. We are
Beverage Benefits; Active   We strive to offer and        beverages; providing       committed to fostering
Healthy Living; Energy      tailor beverages for          nutrition information      sustainable communities
Management and Climate      every lifestyle, life stage   and consumer health        through wide‐ranging
Protection; Community;      and occasion based on         education; and             programs geared to
Sustainable Packaging;      individual needs.             supporting physical        develop economies,
Water Stewardship; and                                    activity programs.         improve lives and create
Workplace.                                                                           opportunity.




 7   COCA-COLA CHINA
Consumers make purchasing decisions                 that share their values and are doing their
about beverage brands based on the great            part to protect and enhance people’s lives,
taste and quality of the products as well as        communities and the world. By engaging
considerations about nutrition and health.          in sustainable business practices and
They also are increasingly making their             helping to improve the lives of people in
decisions based on the character of the             the communities we call home, we earn the
company that makes the products. People             social license to operate and the opportunity
want to interact with brands and companies          to thrive.




WATER                    ENERGY                     SUSTAINABLE                  WORKPLACE
STEWARDSHIP              MANAGEMENT                 PACKAGING
                         AND CLIMATE
                         PROTECTION

We are committed         We aim to be the           We envision a world in       We foster open work
to responsible water     beverage industry leader   which our packaging          environments as diverse
stewardship. Our goal    in energy conservation     is seen as a valuable        as the markets we
is to safely return to   and climate protection.    resource for future use.     serve. We provide a
nature and communities   We are committed to        We are making this vision    healthy and safe place
an amount of water       growing our business but   a reality by creating        to work and abide by
equivalent to what       not the carbon emissions   value at every stage of      internationally respected
we use in all of our     from our manufacturing     our packaging lifecycle,     human rights principles.
beverages and their      operations.                through efforts to reduce,   We strive to cultivate
production.                                         recover and reuse.           an environment where
                                                                                 people are inspired to
                                                                                 create superior results.




                                                                                  2008/2009 SUSTAINABILITY REVIEW   8
We aim to quench every thirst and need while providing quality consumers can trust. We
strive to offer and tailor beverages for every lifestyle, life stage and occasion based on
individual needs.

"Drinking beverages is a part of everyone’s daily life. Coca-Cola China provides innovative
beverage choices for Chinese consumers and has helped accelerate the rapid growth of the
Chinese beverages market."
                                   — ZHAO Yali, Director of China Beverage Industry Association




9   COCA-COLA CHINA
                                                                                                           BEVERAGE BENEFITS




          BEVERAGE INNOVATION

The Coca-Cola Company is the world’s largest
nonalcoholic beverage company and Coca-Cola
China is a leader in the fast growing Chinese
                                                                 Volume Mix of Beverage Categories3
beverage industry. We bring great-tasting, quality
nonalcoholic beverages to consumers throughout
China. While we are best-known for the world’s                                                                     1%
most beloved brand Coca-Cola, Sprite is a favorite
for consumers in China as well. We are constantly
challenging ourselves to continuously innovate our              14%
                                                                                                            15%
portfolio of beverages.                                                                  68%
                                                                      3%
We are committed to offering a beverage for every
lifestyle, life stage and occasion, where it also
makes sense for our long-term business growth.
We focus our thinking on what consumers want
today and anticipate what they will want tomorrow.                  Sparkling                             68%
                                                                    Juice Drinks                          15%
                                                                    Water                                 14%
                                                                    Ready-To-Drink Teas                    3%
                                                                    Other                                  1%

                                                                    3 This chart reflects percentage breakdown of our
                                                                    beverage categories on mainland China in 2009.
                                                                    Figures are rounded to the nearest full percentage.




Our Consumers Wanted a…                                   Our Innovations...
new juice drink flavor                                    Minute Maid Pulpy introduced
                                                          new Tropical Fruit, White Grape
                                                          and Lemon flavors
great tasting low-calorie sparkling beverage              Coke Zero has zero sugar and
                                                          tastes great

ready-to-drink tea that reflects the Chinese tradition    Yuan Ye is 100% brewed from real
and reverence for tea culture                             tea leaves

delicious dairy-based beverage fortified with nutrition   Minute Maid Pulpy Super Milky
                                                          combines plump "coconut bits"
                                                          (nata de coco) with the smooth
                                                          richness of dairy-based beverages

hydrating beverage with nutritional benefits for active   glacéau vitaminwater has
lifestyles                                                no added artificial flavors nor
                                                          preservatives - its fruity colors come
                                                          from natural fruits and vegetables




                                                                                             2008/2009 SUSTAINABILITY REVIEW   10
BEVERAGE BENEFITS




                 BEVERAGE INNOVATION
       Our portfolio includes a wide range of full-, low- and no-calorie sparkling and still beverages.
       From the added benefits of vitamins and minerals to new ingredients and packaging
       innovations, we are constantly challenging ourselves to identify additions to our portfolio of
       beverages based on the needs of our Chinese consumers.




                 Volume Mix of Sparkling and Still Beverages4




                                                   68%
                                                   32%




                    Sparkling                      68%
                    Still                          32%



                    4 This chart reflects percentage of sparkling and still beverages for our products
                    sold on mainland China in 2009. Figures are rounded to the nearest full percentage.




 11   COCA-COLA CHINA
                                                                                                                                   BEVERAGE BENEFITS




            HOW WE INNOVATE:
            GLOBAL INNOVATION AND TECHNOLOGY CENTER IN SHANGHAI
The Coca-Cola China Headquarters Complex in Shanghai                                GITC is putting into action The Coca-Cola
represents a total investment of USD 90 million and features                        Company’s long-term commitment to China.
our new Global Innovation and Technology Center (GITC)                              In addition to developing technological and
that was officially opened on March 6, 2009. Covering                               beverage innovations for our global system
an expansive 14,460 square meters, GITC is a part of the                            and serving as the training ground for technical
Company’s global R&D network and our largest research                               expertise, GITC’s primary focus is speedy
and innovation center in Asia. GITC is one of a few Gold                            innovations for China and other Pacific Region
Level Leadership in Energy and Environmental Design (LEED)                          markets. Faster and better new product and
certified buildings in China and features environmental                             packaging development is made possible by real-
innovations as well as state-of-the-art R&D equipment.                              time strategic collaborations on consumer insights
GITC currently employs 137 scientists and engineers, all                            with Coca-Cola China’s award-winning marketing
with the common goal of facilitating the acceleration and                           team, making it possible to deliver locally relevant
sustainability of our beverage innovations.                                         innovations to meet the needs of our consumers in
                                                                                    China with more efficiency and effectiveness.




Using our 5-stage product development cycle, here’s a glimpse of how innovation at GITC delivered Minute Maid Pulpy Super Milky:


5 Stages             R&D Based on Consumer Needs                                         Innovation Insights
Idea Scoping         Consumer needs + market dynamics + technical                        Opportunity exists for a unique and differentiated
                     trends product concept                                              nutritious dairy-based beverage that is affordable

Preliminary          Consumer benefits + market potential + financial                    Milk powder with whey protein from dairy with added
Business Case        feasibility innovation committee approval                           fruit juice and coconut bits presents unique proposition to
                                                                                         meet Chinese consumer needs

Full                 Internal validations:                                               Feedback through consumer reseach:
Development          • prototypes assessed for regulatory compliance                     • prefer creamy and refreshing fruit-flavored dairy drink
                     • production process assessed through line trials                     which is unique in dairy category
                                                                                         • prefer more protective bottle that fits on-the-go lifestyles
                                                                                         • prefer mango, peach and pineapple flavors
                                                                                         • prefer addition of fruit bits to make product more
                                                                                           interesting

Launch               • approvals for new ingredients and technological processes         Minute Maid Pulpy Super Milky launched in 300 cities
Preparation          • bottlers start production to build inventory for product launch   across China from October to December 2009

Market               Continously track, monitor and assess Minute                        So far, great results! Chinese consumers love the great
Execution            Maid Pulpy Super Milky against product concept                      tasting and affordable Minute Maid Pulpy Super Milky
                     objectives                                                          because it offers high-quality nutrition with a unique
                                                                                         mouthfeel and fits their on-the-go lifestyles




                                                                                                                   2008/2009 SUSTAINABILITY REVIEW        12
BEVERAGE BENEFITS




                  PRODUCT SAFETY AND QUALITY
       The safety and quality of our beverages is of the utmost                        Occupational Safety and Health System in China,
       importance to us. Food safety and quality is also very                          as it applies similarly to all of The Coca-Cola
       important to the Chinese consumers and government. We                           Company’s operations worldwide. TCCMS also
       are guided by the highest global standards and processes                        incorporates the Hazard Analysis Critical Control
       that often exceed the requirements of local regulations at                      Point and Good Manufacturing Process systems
       each stage of our beverage manufacturing process. As an                         and mandates standard operating procedures for
       industry leader with a proven track record, we will continue                    the entire product lifespan. The Coca-Cola China
       to ensure the safety and quality of our products.                               system rigorously and continuously implements,
                                                                                       documents, and conducts internal and independent
       The Coca-Cola Management System (TCCMS) sets the                                third-party assessment audits to ensure compliance
       standards and governs the Quality, Environmental and                            with all TCCMS requirements.




       Ensuring Safety and Quality Every Step of the Way:                                          5




         1    Ingredients & Packaging
         • The ingredients that go into our beverages and the packaging that contains them are sourced only
           from pre-approved suppliers that pass strict pre-approval audits.
         • We routinely collect water, sugar, high fructose corn syrup and in-plant treated sugar syrup from
           each production plant for laboratory tests to ensure they meet regulatory requirements.



             2 Concentrate & Beverage Production
             • Every production facility is routinely audited by independent third-party auditors in accordance
               with TCCMS requirements.
             • Each production facility conducts incoming quality control to ensure ingredients and packaging
               materials are meeting regulatory and quality control requirements before acceptance.



         3 Warehousing & Distribution
         • We implement Good Warehouse Practices to protect our products during warehousing.
         • First Expire First Out guidelines are applied to ensure product age control.



             4 In-Market Quality Monitoring
             • We randomly collect products from retail outlets across China for laboratory testing in our world-
               class analytical lab in Shanghai to evaluate quality performance.
             • More than 1,000 randomly collected samples are analyzed monthly.



         5 Traceability
         • We have a system in place to ensure product traceability through the lifespan of each beverage.
         • Every beverage product comes with a code which can trace the product back to its bottling plant,
           date of production, and ingredient suppliers.



  5 This list highlights only some of the important steps we take as a part of our quality assurance process.



 13   COCA-COLA CHINA
             BEVERAGE BENEFITS




2008/2009 SUSTAINABILITY REVIEW   14
 We aspire to help people lead active, healthy lives by producing a wide variety of
 beverages; providing nutrition information and consumer health education; and supporting
 physical activity programs.

 "People are aspiring to live healthier lifestyles. Different foods should not be categorized as
 good or bad - the key to healthier lifestyles is through good dietary behavior. With changing
 lifestyles, now there are more overweight people in China. The solution to weight management
 is simple - the amount of calories consumed must be balanced with the amount of calories
 burned. The best way to to achieve healthier lifestyles is to balance food and beverage intake
 with regular physical activity."
        — Professor CHEN Chunming, Dean of Chinese Center for Disease Control and Prevention




15   COCA-COLA CHINA
                                                                                            ACTIVE HEALTHY LIVING




          Encouraging Active
          Healthy Living
We care about the health and well-being of our
consumers and want to make a positive difference in
people’s lives. We believe that a balanced, sensible
diet combining foods and beverages with regular
physical activity is the foundation of active healthy living.
Coca-Cola China hopes to inspire active healthy lifestyles
through the beverages we produce and how we market
them, the nutritional information we provide about our
beverages, and our support of programs that encourage
                                                                   OUR ACTIVE HEALTHY LIVING
active healthy living.                                             FRAMEWORK
China’s rapid economic development in recent years                 THINK
has brought about a number of lifestyle changes.
Urbanization has led to fast-paced lifestyles that are
                                                                   Inform, empower and motivate people
more affluent but can at times be more stressful and less          to make healthy diet and activity choices
active. Health issues related to weight management have
arisen, particularly in urban centers and amongst youth.           DRINK
While the causes of these health issues such as diabetes           Provide and tailor beverages for every
and obesity are complex, through our engagement                    lifestyle, life stage and occasion
with health-care experts, doctors and related Chinese
government agencies we have come to believe                        MOVE
that Coca-Cola China and our beverages can play a                  Raise the standards of physical activity
meaningful role in helping our consumers live active               around the world
healthy lifestyles.




Happy Playtime
In March 2006, the China National Committee for
the Wellbeing of the Youth and 12 ministries such
as the Ministry of Education, the Ministry of Health
and the General Administration of Sport launched
the "Chinese Campus Health Campaign" to help
Chinese children grow up happy and healthy.

We supported this Campaign by launching "Happy Playtime,"
a project that provides toolkits on good nutrition and dietary
habits for teachers to use as teaching material in classrooms.
Through Happy Playtime, hundreds of exercises and physical
activity games that are fun and scientifically based to maximize
physical benefits have been developed for children to enjoy
during school. By 2009, more than 1.5 million students from
2,000 schools in 20 cities across China have participated in
Happy Playtime activities.




                                                                                    2008/2009 SUSTAINABILITY REVIEW   16
ACTIVE HEALTHY LIVING




                 CONSUMER EDUCATION

                              Public Health Education - China
                              Health Communications Award
                              (Healthy Weight Management - 2009)
                              On April 27, 2009, together with the Ministry of Health
                              and the China Journalist Association, Coca-Cola China
                              launched the China Health Communications Award
                              (Healthy Weight Management - 2009) project. The
                              theme of this project is focused on how people can
                              maintain healthy weight through a balanced diet and
                              regular exercise.
                              The project will provide a range of communication tools
                              for media members and provincial bureaus of health
                              to encourage the media to conduct more accurate
                              reporting of health issues and to help the government
                              craft more effective messages on health and wellbeing
                              to the public. Among the communication tools is a
                              comprehensive booklet titled "Communication Points
                              on Weight Management, Media Kit and Dictionary on
                              Weight Management" that was compiled by health
                              experts at the Ministry of Health. There is also a website
                              where informative interviews of medical professionals
                              and Ministry of Health officials can be found.
                              The project also includes conferences where well-
                              known health experts share their knowledge on weight
                              management with media members. The conferences
                              have been held in Hangzhou, Shanghai, Beijing,
                              Guangzhou and other cities across China and were
                              chaired by representatives from the local bureaus of
                              health.


                              Consumer Health Education - Nutritional
                              Labeling
                              We have a responsibility to inform our consumers with
                              fact-based ingredient and nutrition information for our
                              products so they can make beverage choices that are in
                              line with a sensible, balanced diet and active lifestyle.
                              Providing ingredient and nutrition information on our
                              beverages helps consumers to make informed choices
                              about the beverages they enjoy.
                              In addition to listing the ingredients for each beverage
                              on the packaging, our labels also indicate energy,
                              protein, fat, carbohydrate and other nutritional content
                              and adhere to China's nutrition labeling regulations and
                              related policies of The Coca-Cola Company.




 17   COCA-COLA CHINA
                                                                                                   ACTIVE HEALTHY LIVING




Responsible Marketing                                         Advertising and Marketing to Children Policy
We respect and support our consumers and communities          We are committed to creating accurate, age-appropriate
with advertising and marketing that is tasteful, truthful     advertising. We led the global beverage industry in
and responsible.                                              adopting a global Advertising and Marketing to Children
                                                              Policy, communicating our marketing guidelines and
Our portfolio of beverage brands provides appropriate
                                                              our respect for the role of parents in choosing beverage
beverages for people of different ages on different
                                                              options for their children.
occasions from simple daily routines to festive social
celebrations. And we are honored to be a part of the          We do not directly target children under the age of 12 in
daily lives of our consumers and their families.              our marketing messages in our advertising, and we do
                                                              not show children drinking any of our products outside of
We fully appreciate the right and responsibility of parents
                                                              the presence of a parent or caregiver.
and caregivers to make the appropriate beverage choices
for children and this philosophy is the cornerstone of        We are committed to monitoring this policy to ensure
our Responsible Marketing Practices – Advertising and         it is responsive to the needs and requests of parents
Marketing to Children Policy. We know that children are       and caregivers, and reflective of the ever-changing
increasingly exposed to marketing messages across more        marketplace. We have advocated for the entire non-
media channels and the need for greater control and           alcoholic beverage industry worldwide to follow this
guidance has been heightened – we have stepped up to          approach and are delighted that guidelines consistent
meet this challenge and we are calling for industry-wide      with our policy have been adopted by the International
participation.                                                Council of Beverage Associations.




                                                                                           2008/2009 SUSTAINABILITY REVIEW   18
 We are a global company with local roots in every community where we do business.
 We are committed to fostering sustainable communities through wide-ranging programs
 geared to develop economies, improve lives and create opportunity.

 "In 2009, the China Youth Development Foundation was very pleased to present Coca-Cola
 China with an Outstanding Contribution Award as we celebrated the 20th anniversary of Project
 Hope. Through their long-term commitment to improving rural education, Coca-Cola China
 has made a significant contribution to China. Over the years, Coca-Cola China has built 61
 Project Hope Schools throughout China and initiated many educational youth development
 programs in the schools. And recently, their support of schools reconstruction in areas impacted
 by the Sichuan earthquake is most appreciated and is another example of their commitment to
 improving education for children in China’s rural areas."
                        — TU Meng, Secretary General of China Youth Development Foundation




19   COCA-COLA CHINA
                                                                                                           COMMUNITY




         Economic Impact

With operations in more than 200 countries, the                During the height of the recent global financial
Coca-Cola system employs local people, sources local           downturn, the Coca-Cola China system maintained
ingredients, and produces and sells our products locally-      and increased its unbending commitment to China
directly and indirectly creating millions of jobs. As a        by opening three new plants in Jiangxi, Wuhan
Company dependent upon consumer purchasing power,              and Xinjiang in 2009, all in support of the Chinese
the sustainability of our business depends on sustainable      government’s policy to further develop China’s
economies. Our strategy has always been to develop             central and western regions. For these plants, we
and grow our business in markets by providing jobs,            invested RMB 800 million and directly created
investment and economic opportunities.                         10,000 jobs for local communities in 2009. With
                                                               the addition of these new plants, the Coca-Cola
As one of the very first international companies to return     China system now operates 38 bottling plants and
to China after the reform and opening-up policy became         2 concentrate plants, employing more than 40,000
a reality, we have now been a part of the business, cultural   associates directly and indirectly creating more
and social landscape of modern China for 30 years. As          than 400,000 jobs. And we have already begun
China has grown over these three decades, so has our           construction of what will become our newest plant
commitment to China and our business in China. The             in Inner Mongolia.
Coca-Cola China system has made direct investments
of USD 2 billion in China and will invest an additional
USD 2 billion within three years. The Coca-Cola China
Headquarters Complex in Shanghai that features our
headquarters and Global Innovation and Technology
Center representing a USD 90 million investment marks
the beginning of this second wave of direct investments.




Cumulative Direct         Additional Direct             Direct Employment          Indirect Employment
Investments:              Investments Planned           Opportunities:             Opportunities:
                          Within 3 Years:


USD 2 USD 2                                             40,000                     400,000
billion billion
Cumulative Charitable Contribution Commitments:         Cumulative Community Projects' Beneficiaries:



RMB 200 million 84 million



                                                                                      2008/2009 SUSTAINABILITY REVIEW   20
COMMUNITY




                 Sustainable Communities

       Our goal is to help build sustainable communities wherever we operate. In China, we will
       continue to respond to the needs of the local communities we serve, ranging from providing
       education and nutrition to rural children, to promoting active healthy living, to enabling
       environmental protection and conservation. We are also there to celebrate the milestones such
       as the 2008 Beijing Olympic Games and the 2010 Shanghai World Expo.

       We were devastated by the Sichuan Earthquake and took action immediately to participate in
       the rescue and recovery efforts, and contribute to the rebuilding process. Immediately after the
       earthquake, we donated much needed drinking water to affected communities and individuals.
       But that was just the start of our efforts. We also immediately provided a RMB 20 million
       contribution to various civil society and governmental organizations and then followed with an
       additional commitment of USD 12 million from The Coca-Cola Foundation to work with the
       China Youth Development Foundation and local governments in various earthquake impacted
       provinces and regions to rebuild schools destroyed by the earthquake.




 21   COCA-COLA CHINA
                                                                                                            COMMUNITY




Contributing to sustainable communities is embedded in the way we operate. In addition to the
community programs we support described in other sections of this Review, we would also like to
highlight our Project Hope partnership and AIDS-Impacted Orphan Care Program.

Project Hope
The Coca-Cola China system has a long-standing commitment to improving educational opportunities for
underprivileged children in rural China. In partnership with the China Youth Development Foundation, we
have supported Project Hope for nearly 20 years. Our contributions to Project Hope have resulted in the
construction of 61 Project Hope schools, 100 Hope libraries, 56 e-learning centers and 55 multi-media
centers in over 20 provinces. We have also provided training to 1,200 teachers and numerous Hope Star
Scholarships to assist promising Project Hope graduates extend their education beyond primary school
to middle school, high school, university and graduate school. To date, our support of Project Hope has
reached 60,000 students across China.


AIDS-Impacted Orphan Care Program
Yunnan is one of the provinces most affected by the HIV/AIDS epidemic and, as a result, has a rising number
of orphans. In 2006, in order to alleviate the growing pressure of this new demographic, we partnered with
the Chinese Foundation for Prevention of STDs and AIDS, the Yunnan Women and Children Development
Center and the Yunnan Ruili Women’s Association to launch the first AIDS-Impacted Orphan Care Program
in Ruili county.
The primary function of this Program is to provide support and care to AIDS-impacted orphans in the 75
villages throughout Ruili. The Program pays for the orphans’ physical check-ups and medical expenses,
subsidizes living and education expenses, provides for regular counseling sessions, and delivers soy milk
powder to supplement their daily nutritional needs.
In 2008 and 2009, Coca-Cola China joined efforts with the Gary Player Foundation to organize annual
fundraisers which have raised RMB 13.5 million collectively to reach 2,000 orphans in Yunnan, Sichuan,
Xinjiang and Gansu.




                                                                                       2008/2009 SUSTAINABILITY REVIEW   22
COMMUNITY




                 2008 BEIJING
                 OLYMPIC GAMES
       The Olympic Games is a pinnacle sporting event that is watched by billions of people all over the world.
       Since the 1928 Amsterdam Olympic Games, The Coca-Cola Company has maintained the longest
       continuous commitment to the Olympic Movement of any corporate sponsor.

       The 2008 Beijing Olympic Games was a spectacular sporting event unparalleled in history and we are proud
       of our part in making this event possible within China. Our sponsorship focused on sharing the excitement
       of the Beijing Olympic Games with as many people as possible across China, giving everyone the
       opportunity to experience the Olympic Games. We believe facts and numbers speak for themselves. This is
       our Beijing Olympic Games story…




       "Coca-Cola was the most recognized and effective global sponsor of the Beijing Olympic Games. Through
       their comprehensive marketing programs allowing people from all over China to experience the Games,
       and by providing beverages to all the spectators and athletes, Coca-Cola's sponsorship made a significant
       contribution and helped bring the Olympic Movement to China."

       — WANG Wei, Former Executive Vice President of the Beijing Organizing Committee for the 29th Olympiad



                                                   In addition to sponsoring the 2008 Beijing Olympic Games,
                                                   we also sponsored both the international and domestic torch
                                                   relays of the 2008 Beijing Olympic Games and the 2008 Beijing
                                                   Paralympic Games.




 23   COCA-COLA CHINA
                                                                                                              COMMUNITY




         2008 BEIJING
         OLYMPIC GAMES
The Green Olympics
5,162 environmentally friendly coolers
      placed in Olympic venues                            1,500 athletes inspired by Coca-Cola’s
                                                                environmental speakers signed
                                                                      commitments to protect the environment

15,000 T-shirts and 7,000                visors made from recycled PET bottles


The High-Tech Olympics
358 million              downloads of the Coca-Cola
                         Olympic Song                         28 million photos submitted online toMosaic
                                                                         Coca-Cola Olympic Photo
                                                                                                    the



30,000          artists submitted Coke Art
                Bottle designs and                             12 million people voted on their favorite designs
310 million votes cast for Coca-Cola’s selection 62 million
            of inspirational torchbearers
                                                                                    virtual torch relay participants
                                                                                    on Coca-Cola China websites

The People’s Olympics
240,080 visitors to the Coca-Cola Shuang Experience Center sampled 343,770                         beverages

24.9 million            servings provided to   7.6 million        participants (athletes, volunteers, media,
staff and spectators)

151,944         visitors bought   26,395          pins,   2,216      pinsets, and traded   3 million
pins at Coca-Cola Pin Trading Centers




2010 SHANGHAI WORLD EXPO
Signing up for the 2010 Shanghai World Expo made us the only international
company committed to sponsoring 4 of the biggest public events in China's
history: the 2007 Shanghai Special Olympics; 2008 Beijing Olympic Games;
2008 Beijing Paralympic Games; and 2010 Shanghai World Expo. The 2010
Shanghai World Expo is estimated to become the biggest Expo ever held and
with projected 70 million visitors it is poised to become the largest public event in
human history.

To support the Expo’s theme of "Better City, Better Life," we will leverage this
opportunity to demonstrate our technological innovations and environmental
conservation efforts throughout our pavilion. We invite you to visit us at the Expo!

Coca-Cola China:
 • one of the 1st global partners to support the 2010 Shanghai World Expo;
 • one of two multinational companies with an independent corporate pavilion;
 • will be official beverage service provider to an estimated 70 million visitors to the Expo.


                                                                                         2008/2009 SUSTAINABILITY REVIEW   24
 We are committed to responsible water stewardship. Our goal is to safely return to nature
 and communities an amount of water equivalent to what we use in all of our beverages and
 their production.

 Coca-Cola China Water Stewardship Commitment:
  • By 2012, reduce our water use ratio6 to 1.95.

 "Water quality and availability are serious issues in China. The Yangtze River is the world's
 3rd largest river and it sustains the livelihoods of one-third of the population of China. WWF
 appreciates Coca-Cola China's long-term commitment to be a leader in water stewardship in its
 own operations and to protect the Upper Yangtze River Basin area. Our joint vision is to see a
 healthy Yangtze River for people and nature. WWF was very pleased to award Coca-Cola China
 our Conservation Partner of the Year in 2008."
                                     — Dermot O’GORMAN, Country Representative of WWF China


 6 Water use ratio represents the liters of water required to produce a liter of beverage product.




25   COCA-COLA CHINA
                                                                                                                 WATER STEWARDSHIP




           OUR WATER STEWARDSHIP

Water sustains life – it is vital to our associates, consumers                 By 2020, our Company's global goal is to safely
and every community where we operate. Water is                                 return to nature and communities an amount
fundamental to our business – it is the primary ingredient                     of water equivalent to what we use in all of our
in all our products and is indispensable in our production                     beverages. Our water stewardship efforts focus on
process. In China, there are critical challenges related                       three main areas:
to water ranging from water pollution, water quality, to
water access in rural areas. We take our responsibility to                       1. reduce our water use ratio;
be a steward of water resources very seriously and we are                        2. recycle water used in our operations (through
collaborating with our partners, governmental agencies and                          water reuse projects and effective wastewater
civil society to make a lasting positive impact in this area.                       treatment); and
                                                                                 3. replenish the water we use through improving
In 2007, The Coca-Cola Company became one of the first                              community water access and watershed
six companies to commit to the CEO Water Mandate, a                                 restoration and protection.
program designed to help companies better manage water
use in their direct operations and throughout their supply
chains. The guidelines of this mandate help frame the
content of our water stewardship reporting.




The majority of water we use in China come from municipal water sources and we pay the local
governments for all the water we use in our operations. Some of the water we use goes to
hydrating the millions of people who consume our beverages in China but water is also used
in our production process for rinsing, heating, cooling and washing. To comprehensively reflect
our water efficiency, we include the water content of our beverages and the water used in the
production process in our calculation of water use ratio.



   Water Use Ratio7
   (liters/liter of product)

                                                        Compared with our 2004 baseline,
                                                         there is a 35% improvement in
   3.2
                   2.92                              water efficiency in our bottling plants.

                                  2.68
                                                   2.44
                                                                     2.21
                                                                                      2.06




  2004             2005           2006             2007             2008              2009


 7 This chart includes data from all Coca-Cola China system bottling plants.




                                                                                                      2008/2009 SUSTAINABILITY REVIEW   26
WATER STEWARDSHIP




 27   COCA-COLA CHINA
                                                                                WATER STEWARDSHIP




Recycling Water
in Our System

While we work to improve our water efficiency for each liter of product we
produce, we also recycle the water we use in our operations. Water pollution
is a serious issue in China caused primarily by agricultural practices, industrial
discharge and household sanitation. For our part, we are minimizing the amount of
water we discharge across the Coca-Cola China system, ensuring that wastewater
discharged from all our facilities meet regulatory wastewater requirements, and
provide leadership to China’s beverage industry on best-in-class wastewater
treatment management. Currently, all the wastewater discharged from our
manufacturing processes in China is at a level that supports aquatic life.

  These fish are swimming in recycled wastewater in
  our Shanghai plant.
Water used in our system operations is recycled through a stringent treatment
and cleansing process. This ensures that the quality of the wastewater meets or
exceeds applicable laws and regulations before being released back into the
environment. All Coca-Cola China system facilities meet the wastewater effluent
standards of The Coca-Cola Company and those of the local governments where
they operate. Treated wastewater also is sometimes used within our plants for
utility purposes in boilers, evaporators and chillers and outside for landscape
irrigation and dust control, reducing our use of external water resources.



2008 WASTEWATER DISCHARGE LIMITS8
(mg/L = milligrams per liter)
                                       Maximum Concentration
                                   (unless local limits are lower)


  5-Day Biological Oxygen Demand                        50 mg/L
  pH Level                                          6.5-8 mg/L
  Total Suspended Solids                                50 mg/L
  Total Dissolved Solids                            2,000 mg/L
  Total Nitrogen                                      2-5 mg/L9
  Total Phosphorus                                    2-5 mg/L9


8 These are six of the 20 water quality parameters established for
the Coca-Cola system.
9 Depends on receiving stream water conditions.




                                                                     2008/2009 SUSTAINABILITY REVIEW   28
WATER STEWARDSHIP




                 WATER BEYOND OUR OPERATIONS
       Water is a resource under great pressure in China and globally. Looking ahead, we foresee that economic
       development, climate change and population growth will increase pressure on freshwater resources in
       China. Because we are a leader in China’s beverage industry, we welcome the responsibility to replenish
       water resources in the communities where our associates and consumers live, where our facilities operate,
       and in the rural areas where much of our ingredients are locally grown and sourced. We aspire to replenish
       an amount of water to these local communities that is equivalent to what is used in our beverages. We do
       this in partnerships with Chinese government agencies, local communities and NGOs.



       Preserving the Yangtze River Basin for Future Generations with WWF China
       In 2007, The Coca-Cola Company and World Wide Fund for Nature (WWF) initiated
       a transformational multi-year partnership to conserve seven of the world’s most
       important freshwater river basins with a total commitment of USD 23.75 million.
       The Yangtze River Basin, running across China and sustaining more than 400 million
       people and countless fish and wildlife species, is an integral part of this global
       commitment. The Coca-Cola China system is working with WWF China in four focus
       areas and numerous related local initiatives to improve the health of the Yangtze River
       Basin. Below are some highlights from our partnership thus far. We look forward to
       reporting further progress in future reports.




                              Field Demonstration
                              Pilot sites along Min River and Jialing River established and being used to
                              demonstrate the protection of freshwater ecosystems in innovative ways.




                              Policy Advocacy
                              In 2009, supported the development of the Yangtze Conservation and
                              Development Report and the Corporate Sub-Forum of the 3rd Yangtze
                              Forum in Shanghai.




                              Business Engagement
                              Continued to champion industry leadership by sharing best-in-class
                              practices in water conservation.



                              Raising Public Awareness
                              In 2008 and 2009, we supported WWF China’s Wetland Ambassador Action which
                              promotes wetland conservation through wetland assessments and related activities.
                              2008: 300 college students spread wetland conservation messages to 14 provinces across
                              China, reaching 60,000 people directly and at least 400,000 people through the media.
                              2009: 700 college students spread wetland conservation messages to 18 provinces across
                              China, reaching 105,000 people directly and millions more through the media.




 29   COCA-COLA CHINA
                                                                                                 WATER STEWARDSHIP




         WATER BEYOND OUR OPERATIONS
Supporting China’s Efforts to Improve Rural             This project is co-funded by the partners with a total
Water Access and Safety                                 input of USD 6,792,000 for a 4-year period (2007-2011).
                                                        It aims at supporting government efforts to improve
The Chinese government has made significant efforts     water resources management and drinking water safety
to expand the supply of safe drinking water in rural    in rural regions of China with priorities given to the
areas over the past decades. The central government     western and northern region and communities of ethnic
has promised in its 11th Five Year Plan (2006–2010)     minorities who are ecologically fragile, economically
to make safe drinking water available to 160 million    disadvantaged and geographically remote.
rural residents by 2010. The government has also
set an ambitious target of providing all of China’s        To date, through research, capacity building and field
rural residents with clean drinking water by 2013.         demonstrations:
In our effort to support this important government         1. 320,000 residents in project areas participated and
directive, in 2007 we joined the government of China          benefited;
represented by the Ministry of Water Resources, China      2. 30,000 tons of sewage treated by the Shuangcheng
International Center for Economic and Technical               city wastewater treatment plant;
Exchanges of the Ministry of Commerce, together            3. 25,000 local residents gained access to water
with the United Nations Development Programme,                through field demonstration projects; and
in an unprecedented partnership – "Improved Water          4. 22,713 students and teachers benefited from
Resources Management and Drinking Water Safety in             improved sanitation facilities and access to safe
Rural Regions of China."                                      drinking water in 20 schools located throughout
                                                              Sichuan and Xinjiang.

     Saving Water Across China, One Barrel At A Time

        The Save a Barrel of Water program was launched in 2005
         to educate young people across China on the importance
            of water conservation. Since then, this project has grown
            to become a country-wide movement across China,
            encouraging students and their families to practice
            water conservation in their daily lives through practical        "Our team visited
          tips. By 2009, this project reached one million students in       wetlands to find out what
        22 cities.                                                        plants are most effective for
                                                                        cleaning water in nature. Even
                                                                      though we gave up our weekends and
                                                                    holidays to go back and forth between
                                                                  labs and wetlands under the scorching sun,
                                                                we gained so much knowledge from our field
                                                              observations and hands-on experiments that we
                                                             all wanted to keep going! We were all hugging each
                                                            other when we heard our recommendations will be
                                                            implemented and will remember this experience for
                                                             the rest of our lives!"

                                                             — Teacher & Students, Class 8, Junior Grade 2,
                                                                  No. 6 Middle School, Tongzhou, Beijing




                                                                                      2008/2009 SUSTAINABILITY REVIEW   30
 We aim to be the beverage industry leader in energy conservation and climate protection.
 We are committed to growing our business but not the carbon emissions from our
 manufacturing operations.

 Coca-Cola China Energy Management and Climate Protection Commitments:
  • By 2015, reduce our energy use ratio10 to 0.40.
  • By 2010, continue to reduce our carbon footprint by placing 5,000 environmentally friendly
    coolers in the marketplace, in addition to the more than 13,300 environmentally friendly
    coolers we have already placed since 2008.

 "Climate change is the most serious global challenge of the 21st century. Through continuous
 investment in technological innovation and effective management to reduce their carbon
 emissions, Coca-Cola China has achieved remarkable success in climate protection through their
 actions and is a best-practice model for other businesses."
           — ZHAI Qi, Secretary General of China Business Council for Sustainable Development


 10 Energyr use ratio represents the megajoules of energy required to produce a liter of beverage product.




31   COCA-COLA CHINA
                                                                               ENERGY MANAGEMENT AND CLIMATE PROTECTION




            Improving Energy Efficiency

Energy Use Ratio11
(megajoules/liter of product)                                                  Improving our energy efficiency and climate
                                      Compared with our 2004 baseline,         protection is a key focus area for the entire
                                       there is a 35% improvement in           Coca-Cola China system. We use energy
                                  energy efficiency in our bottling plants.     to operate our production facilities, power
  0.65        0.64                                                             our offices, refrigerate and distribute our
                           0.59                                                products. Because the use of energy from
                                         0.55                                  non-renewable sources creates carbon
                                                      0.48                     dioxide (CO2) emissions, which is the main
                                                                  0.42         greenhouse gas responsible for climate
                                                                               change, we aim to improve our energy
                                                                               efficiency and minimize our carbon footprint.
                                                                               Not only does this make environmental
                                                                               sense, it’s also good business sense because
  2004        2005         2006          2007         2008        2009         in the long term it reduces costs.
11 This chart includes data from all Coca-Cola China system bottling plants.
                                                                               We have an energy management system in
                                                                               place to monitor our use and identify areas
                                                                               where there is room for improvement. We
                                                                               measure our efficiency performance by the
Sources of Energy12                                                            megajoules of energy used to produce a
                                                                               liter of product, which is our energy use
                                                                               ratio (EUR). As we produce more beverages
                                                                               to meet China’s growing ready-to-drink
                      7%                           4%                          hydration needs, our total energy use may
           17%                                                                 increase, but we are continuously improving
                                                                               our EUR, making our beverages more
                                                                               energy efficient year-on-year. Compared to
                                                                               our EUR in 2004, our 2009 EUR represents a
                                                      12%
                                  44%                                          35% improvement in efficiency.
            1%

                                                     15%


   Electricity                     44%
   Natural Gas                     17%
   Coal                            15%
   Purchased Steam                 12%
   Heavy Fuel Oil                   7%
   Light Fuel Oil                   4%
   Propane (LPG)                    1%
12 This chart reflects different sources of energy used by the
Coca-Cola China system bottling plants in 2009.




                                                                                                   2008/2009 SUSTAINABILITY REVIEW   32
ENERGY MANAGEMENT AND CLIMATE PROTECTION




                 Managing Our
                 Carbon Footprint
      We believe that climate change can
      impact the sustainability of our business,
      and are diligently working to minimize
      the environmental impact of our products
      and operations. We know that seeing the
      full picture of our carbon emissions is an
      important step to implementing effective
      emissions reduction strategies. We have a
      good understanding of the main elements of
      emissions from the Coca-Cola China system
      and have taken steps to reduce emissions
      from our operations.


      Coca-Cola China – Built to Sustain Our People and the Planet            Some green features include:
      We are very proud of the environmental innovations featured in          • Wind-powered solar road lighting
      our new Coca-Cola China Headquarters Complex in Shanghai that           • Thermal-powered hot water system
      houses Coca-Cola China’s new headquarters, our Global Innovation        • Wastewater and rainwater collected
      and Technology Center and other facilities. This complex opened for      for landscaping and sanitation use
      operations in 2009 and represents a USD 90 million investment. The      • Green roof minimizes heat gain from
      green design of our complex takes a long-term approach towards           sunlight
      environmental conservation and includes innovative technologies,        • Forest Stewardship Council certified
      materials and design for enhanced indoor air quality, alternative        wood incorporated
      energy, equipment efficiency, and energy savings. Our headquarters
      and GITC were given Gold Level LEED certification.




                                      Supporting Earth Hour in China
                                      Our darkest hour might be our
                                      brightest! Earth Hour is a global
                                      event launched by Worldwide Fund
                                      for Nature calling for people to turn
                                      off lights for ONE hour on March
                                      28th, 2009 to raise awareness.

                                        • All Coca-Cola China offices, 15
                                          bottling plants and 223 sales
                                          offices went DARK;
                                        • 2,440 billboards belonging to us
                                          and our customers went DARK;
                                        • More than 1 million people
                                          pledged to support Earth Hour on
                                          Coca-Cola China websites.




 33   COCA-COLA CHINA
                                                                 ENERGY MANAGEMENT AND CLIMATE PROTECTION




         Climate Innovations
We are continuously learning from best practices in energy management and climate protection and implementing
them throughout the Coca-Cola China system. In our manufacturing operations and office facilities, our
improvements range from fixing leaks, insulating pipes and putting in efficient lighting to installing renewable
energy sources. But we feel we can do more. As a leader in the beverage industry worldwide, The Coca-Cola
Company is making significant investments to champion climate protection innovations with our partners. Up
to now, our Company has invested USD 50 million in research and development to advance the use of climate-
friendly cooling technologies.

                                                              The Promise:
Refrigerants Naturally! is a global not-for-profit            • By using HFC-free insulation material, we can
initiative launched by The Coca-Cola Company and other         eliminate harmful blowing agents by 100%.
companies in 2004 to combat climate change and ozone          • By using HFC-free refrigerants, we can reduce
layer depletion by substituting harmful fluorinated gases       refrigeration equipment’s direct greenhouse gas
("F-gases," such as CFCs, HCFCs and HFCs) with natural          emissions by 99%.
refrigerants. For The Coca-Cola Company, this applies to      • By 2010, all our new refrigeration equipment
our cold-drink equipment which are the refrigeration units      purchases will be 40% - 50% more energy efficient.
and vending machines that allow our beverages to reach        • By 2015, all our new refrigeration equipment
consumers cool and refreshing.                                  purchases will be HFC-free.



                                                              Keeping Our Promise:
                                                              • 2006 Coca-Cola China system commits to using 100%
                                                               HFC-free insulation in all new refrigeration units.
                                                              • 2008 Coca-Cola China system places 5,700
                                                               refrigeration units that use HFC-free refrigerants.
                                                              • 2009 Coca-Cola China system places energy saving
                                                                EMS-55 and cassette technology in all new units with
                                                                capacity grreater than 250 liters.
                                                              • 2009 Coca-Cola China system places additional 7,700
                                                                refrigeration units that use HFC-free refrigerants.




EMS-55 is an intelligent system that monitors usage patterns and then adjusts energy usage to
maximize efficiency. For example, a cooler placed in a store may be opened frequently during the day,
but would likely be left unopened when the store is closed overnight. EMS-55 self adjusts to allow more
energy usage during peak times while going into rest mode when less energy is needed. We believe
that this technology has the potential to make refrigeration units up to 35% more energy efficient.
Coupled with new cassette technology that will be incorporated into refrigeration units, the total
reduction of energy use can reach up to 50%.




                                                                                     2008/2009 SUSTAINABILITY REVIEW   34
 We envision a world in which our packaging is seen as a valuable resource for future use.
 We are making this vision a reality by creating value at every stage of our packaging
 lifecycle, through efforts to reduce, recover and reuse.

 Coca-Cola China Sustainable Packaging Commitment:
  • By 2015, improve packaging material efficiency per liter of product sold by 7% from our
    2008 baseline.

 "Our mission is to improve resource use efficiency in China by giving new life to post-consumer
 plastic bottles. We collect, process and purify 50,000 tons of plastic bottles each year and there
 are many different uses for the plastic chips. Coca-Cola China shares our vision and is a key
 industry driver of plastic bottle recycling and reuse efforts in China. We look forward to working
 with partners like Coca-Cola China to develop more efficient ways to collect and process plastic
 bottles for future use."
                             — Ricky YAO, Director and CEO of Incom Resources Recovery Co. Ltd.




35   COCA-COLA CHINA
                                                                                   SUSTAINABLE PACKAGING




     Our Sustainable Packaging Vision

Packaging adds value to our products by increasing shelf life, minimizing breakage, safeguarding
public health, providing product information, and creating consumer convenience. But in an era of
rising energy costs and scarce resources, we must work toward packaging that adds value not only
to our products, but also to our environment and society. We hope to do this through our sustainable
packaging vision:




R     educe            We strive to be the most environmentally efficient user of high-
                       quality, consumer-preferred packaging in the beverage industry. We
                       continually explore new ways to reduce the amount of material and
                       energy used in our packaging without sacrificing quality. All of our
                       major packages have seen significant material reductions since their
                       initial introductions.
                       By 2015, our goal is to use 7% less packaging material in each bottle
                       or can compared to our 2008 baseline.




R     ecover           The recovery of glass bottles, plastic bottles and aluminum cans
                       for reuse is critical to our sustainability aspirations. In China, these
                       packaging materials have economic value and so there is an informal
                       system in place that recovers a significant amount of these packaging
                       materials. However, we will continue to look for opportunities to
                       support and enhance the packaging recovery process.




R     euse             We are working to encourage demand for recovered materials and
                       assisting local recyclers to make use of recovered materials. In 2008,
                       for the Olympic Games in Beijing, we promoted the use of recycled
                       PET bottles by providing thousands of T-shirts, visors and uniforms
                       made from PET to athletes, officials, associates and our hospitality
                       guests. And we are helping to develop local reuse capability with
                       INCOM, a company based in Beijing that processes used plastic
                       bottles into recycled PET chips for future use.




                                                                              2008/2009 SUSTAINABILITY REVIEW   36
SUSTAINABLE PACKAGING




                 PACKAGING INNOVATION



                                        ink
                             t You Dr                      fe after th
                                                                       ey’ve
                Wear Wha                       redible li pties and
                                       an inc
                            an have                  our em
                 Bottles c                collect y        Then the
                                                                      y can
                     ne the  ir job. So      li ng bins.              ol
                  do               the recyc               luding co
                  pu t them in new things – inc e planet
                              ck as                      for th
                   come ba d doing your bit
                              A n
                   clothes.         out of sty
                                               le.
                                                                         many
                       ver goes                                 y – how
                    ne                             e s, jewelr              !
                                       ags, purs bottle have? Lots
                    T-shir ts, tote b       a Cok   e
                                 lives can
                     different



                                                                                   Cap =



                                                                                   Shirt =



                                                                                 T-Shirt =




                                                                                Hip Bag =




 37   COCA-COLA CHINA
                                                                                                 SUSTAINABLE PACKAGING




         PACKAGING INNOVATION
We are continuously looking for packaging                 Primary and Secondary Packaging Materials13
innovations…

1881 – Shorter, Lighter and Better
Than Ever!                                                                                                  8%    5%
                                                                        7%
                                                                                                                 6%
                                                                 23%
                                                                                          51%
       Old Model              1881

1881 refers to a new innovative model of PET
bottle necks. By reducing the height, weight and
design of the bottle necks, we can reduce the
amount of PET used in each bottle between 1.25               Plastic - Nonrefillable PET                     51%
grams to 1.35 grams, and a typical closure weight            Paper - Corrugated                              23%
reduction of 0.5 grams.                                      Metal - Aluminum                                 7%
                                                             Plastic - Low-Density Polyethylene               6%
Here in China, the rollout of our new short-height           Plastic - Polypropylene                          5%
1881 bottle cap for most of our sparkling and still          Other                                            8%
beverages is expected to eliminate the equivalent
plastic use of 439 million caps and 208 million 500-      13 This chart reflects percentage breakdown of our primary and

ml bottles.                                               secondary packaging materials on mainland China in 2009 based
                                                          on total tonnage of packaging materials used.




                                          Ice Dew – More Than a Light Weight!
                                          In July of 2009, we made a commitment to light weight our Ice
                                          Dew bottles nationally. We are reducing the amount of PET used
                                          for each 550-ml bottle by 6.2 grams, making it the lightest bottle
                                          of its kind in the Chinese market.
                                          Using a baseline figure of 1 billion bottles of Ice Dew per year,
                                          6,200 tons of PET, which is the equivalent of 16,400 tons of carbon
                                          emissions, will be saved. The total carbon emissions saved from Ice
                                          Dew light weight bottles equal 101 acres of forest planted or 2,788
                                          cars taken off the road.
                                          Additionally, carbon emissions will be reduced in transportation,
                                          and the light weight bottle is easy to twist and crush for recycling.
                                          Ice Dew is well on its way to a new green living journey!




                                                                                            2008/2009 SUSTAINABILITY REVIEW   38
 We foster open work environments as diverse as the markets we serve. We provide a
 healthy and safe place to work and abide by internationally respected human rights
 principles. We strive to cultivate an environment where people are inspired to create
 superior results.

 "I’ve been working in the Coca-Cola China system for 30 years. In these 30 years, together
 with the Company, we witnessed reform and opening-up in China that brought prosperity
 to my homeland. During this time, together with the Company, we tackled many challenges
 and created countless successes. In the Coca-Cola family, associates are inspired because the
 Company cares about us and creates a development platform for us. I love this Company and
 hope I can work here for another 30 years!"
                            — ZHANG Shoujun, Engineer, Production & Technology Department,
                                                            Beijing Coca-Cola Beverages Co. Ltd.




39   COCA-COLA CHINA
                                                                                                        WORKPLACE




         INCLUSIVE WORKPLACE

We believe that associates who are inspired
and valued create superior results. We strive
to be a great place to work for all of our
associates by fostering safe, open, inclusive
and healthy work environments.
The Coca-Cola Company’s Workplace Rights
Policy and Human Rights Statement establish
a consistent approach to engaging with all
associates of entities where The Coca-Cola
Company has majority ownership. We also
seek to positively influence our independent
bottling partners and suppliers to share our
values in their workplaces. We aim to provide
the best possible workplace environment
for the 40,000 associates in the Coca-Cola
China system and the more than 400,000 job
opportunities created in our value chain.


Managing Workplace Safety
Throughout the Coca-Cola China system, we are committed to providing a safe and healthy work environment
through implementation of our Occupational Safety and Health policies which are a part of The Coca-Cola
Safety Management System, and an integral part of the holistic TCCMS described earlier in this Review.




Associate Engagement
                                                             Percentage of associates
We believe in and encourage continuous
engagement with our associates. We use both
                                                             unionized as of 2009
formal and informal methods to communicate                   •   Coca-Cola Beverages (Shanghai) Ltd.: 100%
with associates, including an open-door policy               •   Swire Beverages Ltd.: 95%
for discussions with management, interactive                 •   COFCO Coca-Cola Beverages Ltd.: 100%
roadshows with senior management, newsletters
                                                             •   Coca-Cola China Industries Ltd.: 100%
and regular associate reviews. In addition,
every two years an Employee Insights Survey is               •   Coca-Cola Bottlers Manufacturing
conducted to better understand the needs of our                  Holdings Limited: 94%
associates.
We also encourage constructive dialogue with our
associates and their chosen representatives. As
of 2009, a significant majority of our associates
throughout the Coca-Cola China system were
unionized and their respective unions are
playing an important role in communicating with
management.




                                                                                   2008/2009 SUSTAINABILITY REVIEW   40
WORKPLACE




                  Talent Development
                                            Giving our associates the opportunity and tools they need to
                                            realize their fullest potential is a key driver for the Coca-Cola China
                                            system. One way we seek to achieve this goal is providing regular
                                            training for our associates. We provide training through a number
                                            of different methods such as internal training sessions and the use
                                            of third-party professional trainers at off-site training facilities.

                                            Coca-Cola University
                                            With increasing demands on people development and capability
                                            building, we are also developing internal training services.
                                            The Coca-Cola University was officially opened in 2006 to provide
                                            the Coca-Cola China system with optimal training solutions in
                                            terms of quality, focus, effectiveness and value. In addition to
                                            providing training to Coca-Cola China system associates, we
                                            have now expanded our services to provide training for our key
                                            customers as well.
                                            Our mission is to become a capability building organization
                                            providing one-stop training service.

       At the Coca-Cola University, we aim to:
        • create a learning environment that excites and motivates people;
        • develop well-rounded beverage professionals capable of effective leadership; and
        • provide our customers with true value through our training programs.

       Some achievement highlights:
        •   training hours more than doubled from 2,200 hours in 2006 to 5,100 hours in 2009;
        •   number of key external customers more than tripled from 10 in 2007 to more than 30 in 2009;
        •   expanded areas of service from classroom training to include e-learning; and
        •   hosted more than 80 EMBA groups from business schools all over the world to share insights on
            doing business in China.

       Coca-Cola University is not only a place "where learning never stops" but also a place where
       learning starts!




41   COCA-COLA CHINA
                                                                                          WORKPLACE




From Supply Chain
To Sustainability Chain

The Coca-Cola China system is supported by hundreds of independent
suppliers who supply us with goods and services. Like most companies
operating in China, we face challenges in our supply chain. However,
we are committed to exerting a positive influence on our suppliers
by encouraging best practices in their operations through regular
communications, trainings, coaching and monitoring.


In 2008, a few Chinese students published a report online alleging labor
misconduct at bottling and supplier facilities. We took this report very
seriously and immediately began a comprehensive investigation and
conducted independent third-party audits of the named facilities. While
our audits have not found the bottlers’ use of contract labor in violation of
the Chinese Labor Laws, we are still very interested in an open dialogue
with the students in order better to understand their concerns and discuss
potential options for further improvements in our labor relations.

Coca-Cola China and our bottling partners run our businesses in full
compliance with local labor laws, government guidelines and policies. We
have robust programs in place to monitor and audit the workplace practices
of our bottlers and suppliers to ensure full compliance with China’s labor
laws. All our bottlers and suppliers are required to be in full compliance with
The Coca-Cola Company’s Supplier Guiding Principles (SGP) and they are
routinely audited for compliance.

SGP is the foundation of our commitment to promote the respect of labor
rights among our business partners. SGP compliance is a requirement for all
direct suppliers of goods and services to the Coca-Cola China system and is
included in all relevant contracts.




                                                                     2008/2009 SUSTAINABILITY REVIEW   42
WORKPLACE




                 From Supply Chain
                 To Sustainability Chain
                 Supplier Guiding Principles
                 Freedom of Association and Collective Bargaining
                 Respect employees’ right to join, form, or not to join a labor union without fear of reprisal,
                 intimidation or harassment. Where employees are represented by a legally recognized union,
                 establish a constructive dialogue with their freely chosen representatives and bargain in good faith
                 with such representatives.


                 Prohibit Child Labor
                 Adhere to minimum age provisions of applicable laws and regulations.



                 Prohibit Forced Labor and Abuse of Labor
                 Prohibit physical abuse of employees and prohibit the use of all forms of forced labor, including
                 prison labor, indentured labor, bonded labor, military labor or slave labor.


                 Eliminate Discrimination
                 Maintain workplaces that are free from discrimination or physical or verbal harassment. The basis for
                 recruitment, hiring, placement, training, compensation, and advancement should be qualifications,
                 performance, skills and experience.


                 Work Hours and Wages
                 Compensate employees relative to the industry and local labor market. Operate in full compliance
                 with applicable wage, work hours, overtime and benefits laws, and offer employees opportunities to
                 develop their skills and capabilities, and provide advancement opportunities where possible.


                 Provide a Safe and Healthy Workplace
                 Provide a secure, safe and healthy workplace. Maintain a productive workplace by minimizing the risk
                 of accidents, injury, and exposure to health risks.


                 Protect the Environment
                 Conduct business in ways which protect and preserve the environment. Meet applicable
                 environmental laws, rules, and regulations.




43   COCA-COLA CHINA
                                                                                                     WORKPLACE




From Supply Chain
To Sustainability Chain
SGP Assessments

The Coca-Cola Company’s policy requires that suppliers be assessed for SGP compliance
every three years by an authorized external auditing agency. Where non-compliance
is found, we provide a specific timeframe for corrective action, require the supplier to
provide a corrective action plan, and either require the supplier to certify completion
of the corrective action in writing or will re-audit the supplier within six months to three
years, depending on the nature of the non-compliance.

The goals of our supply chain management process are to protect workers’ rights,
improve environmental performance and ensure responsible procurement. We believe
we can make the most positive impact on our supply chain by engaging non-compliant
suppliers and providing them training, support and ongoing monitoring. Through this
process of working with non-compliant suppliers and giving them the opportunity for
improvement, their employees and surrounding environments will benefit more than if
we took our business elsewhere. Of course, in cases where suppliers refused to work with
us in this process, we would de-authorize the supplier and terminate the relationship.
Our suppliers have given us positive feedback on this process and indicated that their
employees have benefited from better labor relations, safer workplaces and improved
standards.

In 2008, 672 assessments were conducted on 426 suppliers. 211 of the suppliers we
assessed in 2008 were in compliance. 109 suppliers with violations, such as blocked
emergency exists or overtime pay violations, developed corrective action plans and re-
assessment timelines were agreed to and executed. 106 suppliers with more systematic
issues were not authorized.

In 2009, 451 assessments were conducted on 442 suppliers. 301 of the suppliers we
assessed in 2009 were in compliance. 122 suppliers with violations developed corrective
actions plans and re-assessment timelines have been agreed to and have been, or are
in the process of being, executed. 19 suppliers with more systematic issues were not
authorized.




                                                                                2008/2009 SUSTAINABILITY REVIEW   44
       CORPORATE GOVERNANCE AND ETHICS

       Board of Directors. At The Coca-Cola Company, we are guided by our established standards of corporate
       governance and ethics. We continually review our systems to ensure transparency and accountability. The
       Board of Directors ("Board") of The Coca-Cola Company is elected by the shareowners to oversee their
       interest in the long-term health and overall success of the Company and its financial strength. The Board
       serves as the ultimate decision-making body of the Company, except for those matters reserved to or
       shared with the shareowners. The Board carries out certain responsibilities through the work performed by
       its seven standing committees: the Audit Committee, Compensation Committee, Committee on Directors
       and Corporate Governance, Executive Committee, Finance Committee, Management Development
       Committee and Public Issues and Diversity Review Committee. The Board selects and oversees members
       of senior management, who are charged by the Board with conducting the business of the Company. The
       Board currently has 14 members, 13 of whom are not employees of The Coca-Cola Company.

       The Corporate Governance Guidelines, along with the Board Committee Charters and the key practices of
       the Board, provide the foundation for corporate governance at The Coca-Cola Company. The Corporate
       Governance Guidelines address such areas as the Board mission and responsibilities; Director qualifications;
       determination of Director independence; Chief Executive Officer compensation and performance
       evaluation; and management succession planning.

       Codes of Business Conduct. The Code of Business Conduct ("Code") of The Coca-Cola Company,
       which is available in 19 languages, including Chinese, on both our internal and external websites, guides
       our business conduct, requiring accountability, honesty and integrity in all matters. All associates of The
       Coca-Cola Company and its majority-owned subsidiaries are required to read and understand the Code
       and follow its precepts in the workplace and larger community. The Code is administered by the Ethics
       and Compliance Committee (various members of the Company’s senior leadership), with oversight by The
       Coca-Cola Company’s Chief Financial Officer, General Counsel and the Audit Committee of the Board,
       which is composed solely of independent Directors. Non-employee Directors of The Coca-Cola Company
       and its subsidiaries are bound by a Code of Business Conduct for Non-Employee Directors that reflects
       the same principles and values as the Code but focuses on matters of most relevance to non-employee
       Directors. This non- employee Director Code is administered by the Committee on Directors and Corporate
       Governance of the Board, which is composed solely of independent Directors.

       Anti-Corruption. The Coca-Cola Company’s long-standing commitment to doing business with integrity
       means avoiding corruption in any form, including bribery, and complying with the anti-corruption laws of
       every country in which we operate. The Coca-Cola Company’s Anti-Bribery Policy provides guidance on how
       to conduct business in a fair, ethical and legal manner.

       We conduct periodic anti-bribery audits of our business to raise overall awareness, detect potential
       misconduct and monitor compliance with anti-corruption laws and Company policy. We have assessed all
       our business units for risks related to corruption and concentrate our auditing on the highest-risk locations.

       From January 2008 through June 2009, we conducted anti-bribery audits in The Coca-Cola Company
       business units operating in nearly 100 countries, including China.

       In 2008, we hosted an anti-bribery summit for The Coca-Cola Company and Coca-Cola system associates.
       The summit allowed associates to connect and share best practices, leveraging expert insights and
       experiences.




45   COCA-COLA CHINA
GLOBAL REPORTING INITIATIVE (GRI)
Below is an index of our reporting against the GRI G3 Guidelines within the content of Review. Indicators
not included in the table are not reported against in this Review. Additionally, this is a country level report
and as such, only partial information is included and indexed here for reference. The Coca-Cola Company’s
entire report against the GRI G3 Guidelines can be viewed at www.gri.thecoca-colacompany.com.

Section           Page      Section           Page     Indicator           Page     Indicator             Page
Standard Disclosures                                   Performance Indicators

Strategy and Analysis       3.6           1, 5         Economic Performance         Labor Practices

1.1           3             3.7           1            Indicators                   and Decent Work

Organizational Profile       3.8           1, 4-5       EC1            20            Performance Indicators

2.1           2             3.11          3            EC6            4, 6, 43-44   LA12             40
2.2           4, 6, 11      3.12          1, 46        Environmental                Human Rights

2.3           4-5           Governance,                Performance Indicators       Performance Indicators

2.4           12, 33        Commitments, and           EN1            38            HR2              43-44
2.6           4-5           Engagement                 EN3            32            HR6              43-44
2.7           4-5           4.1           45           EN5            32, 34        HR7              43-44
2.9           5, 20, 33     4.2           45           EN6            32, 34        Society Performance

2.10          48            4.3           45           EN9            26            Indicators

Report Parameters           4.8           45           EN10           26            SO2              45
3.1           1             4.9           45           EN13           29            SO3              45
3.2           1             4.12          1, 26, 30    EN14           29, 32        SO5              17, 20, 26,
3.3           1             4.13          26           EN18           34, 38                         29-30
3.4           1             4.14          3            EN26           29-30, 33, 38 Product Responsibility
3.5           1, 3          4.17          3            EN27           38            Performance Indicators

                                                       EN30           29-30         PR1              6, 13
                                                                                    PR3              17
                                                                                    PR5              10, 12
                                                                                    PR6              18




                                                                                       2008/2009 SUSTAINABILITY REVIEW   46
       FORWARD LOOKING STATEMENTS, ENVIRONMENTAL
       STATEMENT AND EQUAL OPPORTUNITY POLICY
       Forward-Looking Statements
       This Review contains statements, estimates or projections that constitute "forward-looking statements" as
       defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate,"
       "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally
       are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that
       could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our
       present expectations or projections. These risks include, but are not limited to, water scarcity and quality,
       changes in the nonalcoholic beverages business environment, the ability to maintain good relationships with
       our bottling partners, changes in laws and regulations applicable to our business, and litigation and legal
       proceedings. You should not place undue reliance on forward-looking statements, which speak only as of
       the date they are made. The Company undertakes no obligation to publicly update or revise any forward-
       looking statements.

       Environmental Statements
       A healthy environment, locally and globally, is vital to our business and to the communities where we
       operate. We view protection of the environment as a journey, not a destination. The Coca-Cola Company
       began that journey more than 100 years ago and it continues today. Each employee of The Coca-Cola
       Company has responsibility for stewardship of our natural resources and must strive to conduct business
       in ways that protect and preserve the environment. Our employees, business partners, suppliers and
       consumers must all work together to continuously find innovative ways to foster the efficient use of natural
       resources, the prevention of waste and sound management of water. Doing so not only benefits the
       environment, it makes good business sense.

       Equal Opportunity Policy
       The Coca-Cola Company values all employees and the contributions they make. Consistent with this
       value, the Company reaffirms its long-standing commitment to equal opportunity and affirmative action
       in employment, which are integral parts of our corporate environment. The Company strives to create an
       inclusive work environment free of discrimination and physical or verbal harassment with respect to race,
       gender, color, national origin, religion, age, disability, sexual orientation, gender identity and/or expression,
       or veteran status. We will make reasonable accommodations in the employment of qualified individuals with
       disabilities, for religious beliefs and whenever else appropriate.

       The Company maintains equal employment opportunity functions to ensure adherence to all laws and
       regulations, and to Company policy in the areas of equal employment opportunity and affirmative action.
       All managers are expected to implement and enforce the Company policy of nondiscrimination, equal
       employment opportunity and affirmative action, as well as prevent acts of harassment within their assigned
       area of responsibility. Further, it is a part of every individual’s responsibility to maintain a work environment
       that reflects the spirit of equal opportunity and prohibits harassment.


       "Coca-Cola," "Coca-Cola" in Chinese, "Coca-Cola Zero," "Coca-Cola Zero" in Chinese, "Coca-Cola Light"
       in Chinese, "Dynamic Ribbon Device," "Contour Bottle," "Sprite," "Sprite" in Chinese, "Sprite Icy Mint"
       in Chinese, "Fanta," "Fanta" in Chinese, "Smart," "Smart" in Chinese, "Minute Maid," "Minute Maid" in
       Chinese, "Minute Maid Pulpy Orange" in Chinese, "Minute Maid Pulpy Super Milky" in Chinese, "Beauty
       Fruit" in Chinese, "C Bits Lemon," "Refreshing Pulpy" in Chinese, "Tropical Fruit Bits" in Chinese, "Qoo,"
       "Qoo" in Chinese, "Qoo" character, "Heaven and Earth," "Heaven and Earth" in Chinese, "Ice Dew," "Ice
       Dew" in Chinese and "Original Leaf" in Chinese (stylized font), "Live Positively" and "Live Positively" icon
       are the trademarks of The Coca-Cola Company.
       "Glacéau" and "Glacéau vitaminwater" are the trademarks of Energy Brands Inc.
       "Schweppes" is the trademark of Atlantic Industries.
       "NESTEA," "NESTEA" in Chinese, "ICE RUSH" and "ICE RUSH" in Chinese are the trademarks of Société
       des Produits Nestlé S.A.



47   COCA-COLA CHINA
2008/2009 SUSTAINABILITY REVIEW   48
                        2008 Awards and Recognitions                                                            14



              Recipient Company15    Name of Award/Recognition16                              Awarding Organization



                 Beverage Benefits

                  Coca-Cola China    Best Global Brand Award                                  “Business Weekly” and Interbrand

              Swire Beverages Ltd.   Top 20 Enterprises in China’s Beverage Industry Award    China Beverage Industry Association

                                     Exemplary Organization for Safe Production Award         Administrative Committee of Xian Municipal
                                                                                              Economic and Technical Development Zone

COFCO Coca-Cola Beverages Ltd.       Exemplary Food Safety Enterprise Award                   Tianjin Municipal Government Food Association

                                     Safe Production Enterprise Award                         Jinan Municipal Government

 Coca-Cola China Industries Ltd.     Outstanding Socially Responsible Quality Control Award   Jilin Provincial Government Quality Supervision
                                                                                              Bureau
                                     Level AAA Quality Prestige Award                         Shanxi Provincial Government




                 Active Healthy Living

                  Coca-Cola China    Top Ten Global Sports Marketing Award                    China Sports Bureau, China Enterprise
                                                                                              Sports Association, China International Brand
                                                                                              Development Association, China Sports Brands
                                                                                              Research Center


 Coca-Cola China Industries Ltd.     Caring for Life “Loving Heart” Games, Certificate of     Sichuan International Committee of the Red Cross
                                     Honor




                 Community

                  Coca-Cola China    Conservation Partner Award                               WWF China

                                     Model International Corporate Citizen Award              China International Charity Committee

                                     Model Citizenship Award                                  CSR Committee of the Ministry of Commerce

COFCO Coca-Cola Beverages Ltd.       Loving Heart Enterprise Title                            Hunan Province Youth Development Foundation
                                     Caring Heart for Disabled Students Certificate           Zhanjiang City Special Education School

 Coca-Cola China Industries Ltd.     Dazhou Blizzard Relief Contribution,                     Dazhou Municipal Charity Association
                                     Honorary Certificate
                                     Outstanding Tax Contributor Award                        Shanghai Jinqiao District Supervision and
                                                                                              Administration Commission
                                     Outstanding Tax Contributor Award                        Guangxi Nanning Municipal Supervision and
                                                                                              Administration Commission
                                     Love and Care Award                                      Shanghai Red Cross




 49   COCA-COLA CHINA
                         Water Stewardship

                    Swire Beverages Ltd.               Exemplary Water Savings Organization                             Hangzhou Municipal People’s Government

                                                       Water Savings Enterprise Award                                   Zhengzhou Municipal Water Resources Bureau

COFCO Coca-Cola Beverages Ltd.                         Outstanding Water Savings Enterprise Award                       China Beverage Industry Association

     Coca-Cola China Industries Ltd.                   Water Resource Management Award                                  Changchun Water Resource Management Bureau




                         Energy Management and Climate Protection

                    Swire Beverages Ltd.               Exemplary Organization for Ecological Restoration and            Administrative Committee of Hangzhou Economic
                                                       Environmental Protection                                         and Technical Development Zone
                                                       Exemplary Organization for Environmental Protection              Hefei Municipal Environmental Protection Bureau
                                                       Exemplary Energy Savings Organization                            Xiamen Municipal Government

COFCO Coca-Cola Beverages Ltd.                         Exemplary Organization on Environmental Protection               Laoshan District Government
                                                       Commitment

     Coca-Cola China Industries Ltd.                   Boiler Facility Energy Savings and Emission Reduction            Shengyang Municipal Government
                                                       Award
                                                       Environmentally Friendly Enterprise Award                        Jilin Province Environmental Protection Bureau




                         Workplace

                    Swire Beverages Ltd.               Exemplary Safety Organization Award                              Shanxi Provincial Public Security Bureau

COFCO Coca-Cola Beverages Ltd.                         Top 10 Contributor to Industry Economic Development              Hainan Province Industrial Economic Federation,
                                                       Award                                                            China Industrial News Agency, China New Industry
                                                                                                                        Promotion Association

                                                       Top 100 Best Enterprises Award                                   Tianjin Municipal Government Economic and
                                                                                                                        Technology Development District Management
                                                                                                                        Committee

                                                       Exemplary Sanitation Practices Enterprise Award                  Zhanjiang Municipal Patriotic Sanitation Movement
                                                                                                                        Commission
                                                       Exemplary Fire Safety Enterprise Award                           Zhangqiu Municipal Government

     Coca-Cola China Industries Ltd.                   Exemplary Fire Safety Enterprise Award                           Chengdu Municipal Government
                                                       Harmonious Labor Relations Award                                 Shengyang Municipal Government, Municipal
                                                                                                                        General Trade Union
                                                       Fair Employment of Disabled Persons Award                        Chengdu City Xindu District Government
                                                       Peace and Social Security Award                                  Kunming Municipal High-Tech Industrial
                                                                                                                        Development Zone Management Committee




14 This is a non-exhaustive list of select Coca-Cola China system awards and recognitions received in 2008 and 2009, respectively. For ease of
reference only, they are placed into LIVE POSITIVELY™ categories.
15   For ease of reference, awards and recognitions presented to specific bottling facilities are listed under their respective bottler groups.
16   The English names of the awards and recognitions reflect our best effort translation from their Chinese originals.




                                                                                                                                        2008/2009 SUSTAINABILITY REVIEW   50
                        2009 Awards and Recognitions
                Recipient Company    Name of Award/Recognition                               Awarding Organization

                 Beverage Benefits
                  Coca-Cola China    University Students’ Favorite Brand Award               “China Business Journal”
                                     Top 10 MNC Brand Award                                  People’s Net

              Swire Beverages Ltd.   Exemplary Organization Award                            Hangzhou Municipal Quality and Technical
                                                                                             Supervision Bureau, Economic and Technical
                                                                                             Development Zone Branch Bureau

                                     Exemplary Organization for Safe Production Award        Administrative Committee of Wenzhou Economic
                                                                                             and Technical Development Zone

COFCO Coca-Cola Beverages Ltd.       Quality Assurance Class A Enterprise Certification      Hunan Province Quality Assurance Registration and
                                                                                             Certification Committee
                                     Top 10 Marketing Enterprises Award                      Hainan Industrial Association
                                     Quality Control Contribution Award                      Beijing Quality Association, Beijing Municipal
                                                                                             Working Committee, Beijing Science and
                                                                                             Technology Association

 Coca-Cola China Industries Ltd.     3.15 Brand Integrity Medal                              Sichuan Municipal Consumer Protection Committee

                                     Production Safety Award                                 Wuhan Municipal Development Zone Supervision
                                                                                             and Administration Commission


                 Active Healthy Living

 Coca-Cola China Industries Ltd.     Caring for Life “Loving Heart” Games, Certificate of    Sichuan International Committee of the Red Cross
                                     Honor



                 Community

                  Coca-Cola China    Most Influential MNC Award                              “China Business Network”

                                     CSR Award                                               American Chamber of Commerce in Shanghai

                                     CSR Award                                               “China Entrepreneur News”
                                     CSR Best Practice Award                                 China Beverage Industry Association
                                     Outstanding Contribution Award                          China Youth Development Foundation
                                     Community Contribution Award                            Union of Charity Organizations in Beijing
                                     Best Contributor of World’s Top 500 Companies Award     “Southern Weekend”

              Swire Beverages Ltd.   Top 10 Industrial Enterprises Award                     Xiamen Municipal Government
                                     Socially Responsible Enterprise Award                   Hangzhou Municipal Committee of the Communist
                                                                                             Party of China, Hangzhou Municipal Government

                                     CSR Best Practice Award                                 China Beverage Industry Association

COFCO Coca-Cola Beverages Ltd.       CSR Best Practice Award                                 China Beverage Industry Association
                                     Consumer Rights Contribution Award                      Hunan Province Consumer Rights Committee
                                     Outstanding Foreign Invested Enterprises Contribution   China Foreign Investment Enterprises Association
                                     to Social Responsibility Award
                                     Exemplary Loving Heart Enterprise                       The Communist Youth League Jinan Municipal
                                                                                             Party Committee

 Coca-Cola China Industries Ltd.     Level A Tax Contributor Award                           National Tax Bureau, Wuhan Municipal Tax Bureau




 51   COCA-COLA CHINA
               Water Stewardship

            Swire Beverages Ltd.    Outstanding Water Savings Enterprise Award             China Beverage Industry Association
                                    Exemplary Organization for Building Water Saving       Xian Municipal Government
                                    Society


COFCO Coca-Cola Beverages Ltd.      Outstanding Water Savings Enterprise Award             China Beverage Industry Association


  Coca-Cola China Industries Ltd.   Outstanding Water Savings Enterprise Award             China Beverage Industry Association


               Energy Management and Climate Protection

                Coca-Cola China     China Green Benchmark Company Award                    Guanghua School of Management, China
                                                                                           Enterpriser Association
                                    LEED Gold Level Certification                          U.S. Green Building Council

            Swire Beverages Ltd.    Top 10 Environmentally Responsible Enterprises         Wenzhou Municipal Committee of the Communist
                                                                                           Party of China, Wenzhou Municipal Environmental
                                                                                           Protection Bureau, “Wenzhou Daily Press”

                                    Environmentally Friendly Enterprise Award              Anhui Provincial Environmental Bureau

COFCO Coca-Cola Beverages Ltd.      Exemplary Green Organization Award                     Urumuqi Economic and Technology Development
                                                                                           District Management Committee


  Coca-Cola China Industries Ltd.   Exemplary Environmental Compliance Award               Shengyang Municipal Government
                                    Environmental Protection Award                         Wuhan Municipal Government Supervision and
                                                                                           Administration Commission

Coca-Cola Bottlers Manufacturing    LEED Silver Level Certification (Beijing, Wuhan)       U.S. Green Building Council
                 Holdings Limited   Clean Production Certification                         Guangdong Province Economic and Trade
                                                                                           Committee, Guangdong Province Science and
                                                                                           Technology Department

                                    Dongguan City Environmentally Friendly Enterprise      Dongguan City Environmental Protection Bureau
                                    Award


               Workplace

                Coca-Cola China     Top 50 Best Workplaces Award                           “China Business Journal”
                                    Top 20 Happy Competition Company                       “Business Times”

            Swire Beverages Ltd.    Internal Security Award                                Nanjing Municipal Public Security Bureau
                                    Exemplary Organizational and Individual Occupational   Nanjing Center for Disease Control and Prevention,
                                    Health Surveillance Award                              Occupational Disease Prevention Office
                                    Exemplary Organization for Workplace Sanitation,       Hangzhou Center for Disease Control and
                                    Honorary Credential                                    Prevention, Occupational Disease Prevention Office



COFCO Coca-Cola Beverages Ltd.      Exemplary Fire Safety Enterprise Award                 Jinan Municipal Fire Safety Committee
                                    Harmonious Labor Relations Enterprise Award            Beijing Economic and Technology Development
                                                                                           District Department of Personnel and Labor
                                                                                           Security


  Coca-Cola China Industries Ltd.   Harmonious Labor Organization Award                    Dalian Labor and Social Security Bureau, Dalian
                                                                                           Industries Committee, Dalian Associations Union,
                                                                                           Dalian General Trade Union, Dalian State-Owned
                                                                                           Assets Supervision and Administration Commission

                                    Exemplary Grass-Roots Trade Union Title                Chengdu City Xindu District Industrial Development
                                                                                           Zone Supervision and Administration Commission



Coca-Cola Bottlers Manufacturing    Green Supply Chain of the Year Award                   China Supply Chain Council
                 Holdings Limited

                                                                                                       2008/2009 SUSTAINABILITY REVIEW   52
www.coca-cola.com.cn/responsibility.htm

						
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