Professional Documents
Culture Documents
SUSTAINABILITY
REPORT
Letter from the 3
President and CEO
2016 Highlights 6
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Our Way Forward 7 INFO
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Agriculture 8 INFO
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Climate Protection 9 INFO
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Giving Back 10 INFO
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Packaging & Recycling 12 INFO
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
James Quincey
President and Chief Executive Officer
The Coca-Cola Company
3
2016 Sustainability Report
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
Alexis M. Herman
Chair, Public Issues and
Diversity Review Committee
The Coca-Cola Company
4
2016 Sustainability Report
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
Bea Perez
Senior Vice President and
Chief Public Affairs, Communications
and Sustainability Officer
The Coca-Cola Company
5
2016 Sustainability Report
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
100% 14%
of our coffee and tea and estimated reduction of the
over 50% of our lemons and CO2 embedded in the
beet sugar from more “drink in your hand”.*
sustainable sources than in
previous years.
GIVING BACK
HUMAN AND
WORKPLACE RIGHTS $106M+
donated across more than
221B
liters of water replenished
PACKAGING AND through community and
RECYCLING watershed projects across
the globe.**
60%
of bottles and cans WOMEN’S ECONOMIC
equivalent to what we EMPOWERMENT
introduced into the
1.7M
marketplace were refilled or
recovered and recycled with
our support.
women enabled through our
5by20 initiative.
*The 14% calculation of progress toward our “drink in your hand" goal has been internally vetted using accepted and relevant scientific and
technical methodologies, but those methodologies are evolving. We are working to simplify our data collection and measuring systems, and plan
to have our data externally verified by an independent third party in future years. At that time, we will also revisit our estimate to ensure its
accuracy and make any updates or necessary corrections, if any, to our public reporting.
**As estimated working with our third party partners.
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
AGRICULTURE
We set a goal to more sustainably source our priority ingredients by 2020.
Agriculture accounts for approximately half of what we spend on inputs to our products and packaging, as most of our
products are based on agricultural ingredients. A healthy agricultural supply chain is essential to the well-being of
communities, economies and the environment. ‘Sustainable sourcing’ to us is when our farm suppliers meet certain
standards relating to human and workplace rights, environmental protection, and responsible farming management.
Our priority ingredients make up 95% of our ingredient supply.
4 5M+
BEVERAGE FARMERS
INGREDIENT contributed to our
CATEGORIES agricultural supply in
2016, with support for
Fruits smallholder sourcing to
engagement with
industry and suppliers.
Sweeteners
SOURCING MAP
Coffee
Launched a sourcing map in 2016 that reflects
over 90% of our supply volume for 12 ingredients
Tea and stories on how we create better agricultural
practices at the farm level around the globe.
Tea
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
CLIMATE PROTECTION
Our goal is to reduce the carbon footprint of the Coca-Cola "drink in your hand”
by 25% by 2020.
We are working to responsibly manage our manufacturing emissions and improve our energy efficiency per liter of
product produced. We are also driving collaboration throughout our supply chain in an effort to reduce emissions
associated with getting our products in the hands of consumers - from growing our ingredients, producing our
packaging, and distributing and refrigerating our products.
623K+
operational renewable
81 energy projects in 25
HFC-free coolers,
fountains and vending
countries at the end of 2016. machines introduced into
the marketplace in 2016.
energy efficiency
2% improvement within our
manufacturing operations
in 2016.
*The 14 percent calculation of progress toward our “drink in your 12B+ PlantBottle® packages
hand" goal has been internally vetted using accepted and relevant distributed, which are made of
scientific and technical methodologies, but those methodologies
are evolving. We are working to simplify our data collection and
up to 30% plant-based
measuring systems, and plan to have our data externally verified materials and have a lighter
by an independent third party in future years. At that time, we will
footprint on the planet than
also revisit our 2015 estimate to ensure its accuracy and make any
updates or necessary corrections, if any, to our public reporting. virgin PET plastic.
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
GIVING BACK
1% of the Company’s operating income is invested back into the community
through The Coca-Cola Foundation and The Coca-Cola Company.
The Coca-Cola Company has always had a strong legacy of giving back. The Coca-Cola Foundation was launched in
1984 as the global philanthropic arm of the Company. It awards grants that support local community initiatives around
the world, which are aligned with the Company’s core priorities.
1.2% $900M+
of the company’s operating awarded by
income was invested back The Coca-Cola Foundation
into local communities in 2016. since 1984.
*Includes donations from The Coca-Cola Foundation & The Coca-Cola Company
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
100% 40 MEGA-SPORTING
EVENTS PLATFORM
earned for 11th consecutive year human rights training programs Worked with the Institute for
on the Human Rights Campaign’s facilitated for our bottlers, Human Rights and Business
annual Corporate Equality Index. suppliers and auditors in 2016. (IHRB), NGOs, sports bodies,
businesses, government
representatives, and others in
90% 11 2016 toward development of a
Mega-Sporting Events Platform
of our direct, authorized suppliers Diversity Advisory Councils and
for Human Rights (MSE Platform).
achieved compliance with our Business Resource Groups help
supplier guiding principles. ensure our success in embracing
the similarities and differences of HUMAN RIGHTS
$1B
people, cultures and perspectives. CONFERENCE
Hosted 9th Human Rights
5
Conference. Attendees included
in spending commited with
150+ human rights experts,
diverse suppliers by 2020. Spent
advocates and business leaders,
$631 million in 2016. additional third-party studies
in 2016.
developed on key human rights
risks in our sugar-sourcing
countries.
TRUST FAIRNESS
DIGNITY RIGHTS
COMMUNICATION RESPECT
COMMUNITY
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
59% 12% 8% 6% 1%
The great majority of our predominant packages (bottles, cans – PET, aluminum/steel and glass) are 100% recyclable.
STATE-OF-THE-ART
RECYCLING FACILITES
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
WATER STEWARDSHIP
For every drop of water we use, we aim to give one back.
Water quality and availability are key to our business. As we work to establish a more water-sustainable business on a
global scale, we have focused water stewardship efforts on the areas where we can have the greatest impact,
including improving water-use efficiency and reuse, managing waste water, mitigating water risk and replenishing the
water we use in our finished beverages.
221B LITERS
Projects implemented by end of 2016 provide a replenish
benefit of 221 billion liters per year through community
and watershed projects across the globe.
PARTNERSHIPS
We partner with many
organizations such as
World Wildlife Fund
The types of 12B L/Year (6%) 175B L/Year (79%) 34B L/Year (15%)
projects that Improve safe access to Protect watersheds Provide water for
water and sanitation (includes conserving or productive use (includes
contributed to our
(includes installing wells, restoring water quantity efficiency projects such
replenish liters per water storage facilities, or quality). as rainwater harvesting
year volume total purification and septic or water reuse for
are in 1 of 3 areas: systems). irrigation).
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
500,000+ 1.7M+
WOMEN ENABLED IN 2016 WOMEN ENABLED SINCE 2010
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
POINTS OF INTERSECTION
In addressing sustainability issues, we consider intersections, always
examining how improvement in one area could positively impact another.
In a rapidly growing world faced with environmental and social challenges, a siloed approach to sustainability is no
longer an option. Achieving maximum impact from Coca-Cola sustainability efforts requires identifying and
implementing integrated programs. Sustainability connection points are where we can realize the greatest gains.
EKOCENTER
Packaging
EKOCENTER is a cross between a community
center and a general store and run mostly by
Points of Intersection:
local women entrepreneurs to help improve
social and economic well-being. Manufacturing
Community
Points of Intersection:
Distribution
Women Community Water
Refrigeration
Recycling Climate Women
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
Beet Sugar
1.2% 132.9%
Cane Sugar 2016 ($106M) 2016 (221.2 B liters)
Coffee
1.9% 115%
Corn 2015 ($117M) 2015 (190.9 B liters)
Lemons
1.3% 94%
Oranges 2014 2014 (153.6 B liters)
($126M)
Tea
0 25% 50% 75% 100% 0 1% 2% 3% 0 50% 100% 150%
Percentage of our key agricultural ingredients Percentage of the Company’s operating income Percentage of water used in our finished beverages
sourced from more sustainable sources in 2016 annually invested back into local communities through and their production returned to communities
The Coca-Cola Foundation and The Coca-Cola Company and nature (liters of water used in our finished
(Total dollar amount) beverages replenished)*
13%
2016 (1.96 liters)
12%
2015 (1.98 liters)
10%
2014 (2.03 liters)
0 20% 40% 60% 80% 100% 0 20% 40% 60% 80% 100%
Percentage improvement in manufacturing operations
water efficiency since 2010 (liters of water used per liter
Percentage of bottling partners that achieved Percentage of direct suppliers that achieved
of product produced by the Coca-Cola system)
compliance with our Supplier Guiding Principles (SGP) compliance with our Supplier Guiding Principles (SGP)
WOMEN’S
CLIMATE ECONOMIC PACKAGING &
PROTECTION EMPOWERMENT RECYCLING
= 2020 Goal (25%) = 2020 Goal (5 Million) = 2020 Goal (75%)
= Achieved = Achieved = Achieved
2016 59.3%
2016 14% 2016 1.7M
2015 59%
2015 1.2M
2015 12%
2014 61%
2014 865K
0 10% 20% 30% 40% 50% 0 20% 40% 60% 80% 100%
0 1M 2M 3M 4M 5M
Estimated percentage reduction of the Percentage of bottles and cans equivalent to
carbon footprint of the “drink in your hand” Number of women entrepreneurs economically what we introduce into developed markets
vs. 2010 baseline** empowered across our global value chain recovered and recycled
(Cumulative, as per Coca-Cola’s definition)
* As estimated working with our many external partners and using generally accepted, independently peer reviewed scientific and technical methods. Finished beverages based on global sales volume.
** The percentage calculation of progress toward our “drink in your hand” goal has been internally vetted using accepted and relevant scientific and technical methodologies, but those
methodologies are evolving. We are working to simplify our data collection and measuring systems, and plan to have our data externally verified by an independent third party in future years.
At that time, we will also revisit our 2015 estimate to ensure its accuracy and make any updates or necessary corrections, if any, to our public reporting.
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
Agriculture More sustainably source our key Developed the seven-step Finalized Supplier Continued to procure 100
agricultural ingredients. Supplier Engagement Engagement Program percent of our coffee and tea
Program and convened 14 guidance document; from more sustainable sources;
workshops. procured 100 percent of our procured 51-75 percent of our
coffee and tea from more lemons and beet sugar from
sustainable sources; on more sustainable sources;
track to more sustainably procured 0-25 percent of cane
source our key agricultural sugar, corn and oranges from
ingredients by 2020. more sustainable sources.
Climate Reduce the carbon footprint of Business Units set draft Estimated to have reduced Estimated to have reduced
“the drink in your hand” by 25% reduction targets through the CO2 embedded in the the CO2 embedded in the
Protection
(vs. 2010 baseline).* 2020. “drink in your hand” by 12% “drink in your hand” by 14%
in 2015. in 2016.
Giving Back Give back at least 1% of the 1.3% ($126M) 1.9% ($117M) 1.2% ($106M)
Company’s operating income (OI)
annually. (%OI; Total $)
Human & Achieve at least 98% compliance Bottling partners: 88% Bottling partners: 90% Bottling partners: 89%
with our Supplier Guiding Direct suppliers: 90% Direct suppliers: 92% Direct suppliers: 90%
Workplace
Principles (SGP) among
Rights independent franchise bottling
partners and 95% compliance
among our suppliers.
Packaging & Work with our partners to recover 61% 59% 59.3%
and recycle bottles and cans
Recycling
equivalent to 75% of those that we
introduce into developed markets.
Water Safely return to communities 94% (153.6B)** 115% (190.9B)** 132.9% (221.2B)**
and nature an amount of water
Stewardship
equivalent to what we use in our
finished beverages and their
production. (percentage of water
used in our finished beverages
(based on year’s sales volume)
returned to communities and
nature; liters of water used
in our finished beverages
replenished).**
*The percentage calculation of progress toward our “drink in your hand” goal has been internally vetted using accepted and relevant scientific and technical methodologies, but those
methodologies are evolving. We are working to simplify our data collection and measuring systems, and plan to have our data externally verified by an independent third party in future years.
At that time, we will also revisit our 2015 estimate to ensure its accuracy and make any updates or necessary corrections, if any, to our public reporting.
**As estimated working with our many external partners and using generally accepted, independently peer reviewed scientific and technical methods.
INTRO HIGHLIGHTS OUR WAY FORWARD AGRICULTURE CLIMATE GIVING BACK HUMAN RIGHTS PACKAGING WATER WOMEN INTERSECTION PROGRESS REPORTING
About This Report Disclosure & 2020 Sustainabililty Priority Issue Analysis
The systems, scope and Content Index Goals Prioritizing our issues
activities associated with our Our reporting against leading The sustainability enables us to report on those
reporting. sustainability frameworks - goals that we aim to achieve that matter most to our
GRI, UNGC, UNGP, and SDGs. by 2020. business and stakeholders.
CLIMATE PROTECTION
Our goal is to reduce the carbon footprint of the Coca-Cola "drink in your hand”
by 25% by 2020.
We are working to responsibly manage our manufacturing emissions and improve our energy efficiency per liter of
product produced. We are also driving collaboration throughout our supply chain in an effort to reduce emissions
associated with getting our products in the hands of consumers - from growing our ingredients, producing our
packaging, and distributing and refrigerating our products.
623K+
operational renewable
81 energy projects in 25
HFC-free coolers,
fountains and vending
countries at the end of 2016. machines introduced into
the marketplace in 2016.
energy efficiency
2% improvement within our
manufacturing operations
in 2016.
*The 14 percent calculation of progress toward our “drink in your 12B+ PlantBottle® packages
hand" goal has been internally vetted using accepted and relevant distributed, which are made of
scientific and technical methodologies, but those methodologies
are evolving. We are working to simplify our data collection and
up to 30% plant-based
measuring systems, and plan to have our data externally verified materials and have a lighter
by an independent third party in future years. At that time, we will
footprint on the planet than
also revisit our 2015 estimate to ensure its accuracy and make any
updates or necessary corrections, if any, to our public reporting. virgin PET plastic.
Ingredients
20 - 25% Our Refreshed Packaging
25 - 30%
Manufacturing
10 - 15%
Distribution
5 - 10%
Refrigeration
30 - 35% Ethics & Compliance Stakeholder Corporate
Reporting Our commitment to building Engagement Governance
How to use this report and an ethical business culture Engaging our stakeholders Guiding our performance and
navigate our sustainability throughout the Coca-Cola informs our decisions and our commitment to good and
reporting structure. system. enhances our progress on effective corporate
our 2020 sustainability goals. governance.
Our Value Chain Assuring the Accuracy Regional and Bottling 2016 Progress Tracker
Working with reliable partners of Our Disclosures Partner Sustainability Our progress against the
on sustainability programs Assurance provides external Reports sustainability goals that we aim
across our value chain. validation of our goals and Sharing the work of our bottling to achieve by 2020
enhances the accuracy of our partners and business units
disclosures. across the system.
18
BEVERAGES
OU R WAY FORWARD
WATER STEWARDSHIP
CLIMATE PROT ECTION
HUMAN & WORKPLACE RIGHTS
COMMITMENTS
WOMEN’S ECONOMIC EMPOWERMENT
THE COCA-COLA FOUNDATION
5BY20
S U S TA I N A B L E A G RI C U LT U R E
THE COCA-COL A COMPANY
GIVING BACK
REPORTING
PACKAGING & RECYCLING