OUR ENVIRONMENTAL FOOTPRINT
Our Carbon Footprint
To decrease the GHG emissions released during our processes, we employ several practices.
Transport and Distribution
We transport millions of products from our suppliers to our plants and from our plants to our customers and distributors. Our business success is dependent on a widespread, but efficient logistics network that reduces emissions. The optimization of distribution is crucial to our business performance, since transportation accounts for around 17.6% of the total GHG emissions of our value chain in Turkey.
The significance of the issue is twofold; as the number of vehicles in transit and the mileage covered also need to be optimized. We choose vehicles that consume less fuel and emit less carbon. Our “Route Optimization Project” is in line with this specific objective. To date, 65 distributors and 5 direct distribution points in Turkey used the “Road Net” platform that had been developed for our Turkey operations in 2013. In 2016, we continued to use our Road Net program, which reduced mileage travelled by 1.35 million kilometers, leading approximately to 1,400 tons of less GHG emissions and a fuel savings of $650,000 every year.
Refrigeration greatly improves our consumers’ enjoyment of our products. Yet again, with regards to protecting the environment, we need to find the balance between our efforts to please our customers and our responsibility to decrease our environmental footprint.
As of 2018 year-end, we had approximately 400,000 cold drink equipment in Turkey and they accounted for about 40% of the total number of coolers. To reduce our impact on climate change, we apply different practices.
For new cold drink equipment purchases, we switched to HFC-free equipment that contains refrigerant gases with low global warming potential. We upgraded existing equipment to the energy efficient technology, and we continue to work with suppliers to innovate and develop climate-friendly cooling technologies. Within this reporting period alone, we collected and disposed of 48,887 old cooling equipment.
With our climate-friendly actions in six countries of operations, we avoided 1,189,373 tons of CO2 emissions since 2009 which is equivalent to the amount that 99.1 million trees absorb from the atmosphere.
HFC-free Cold Drink Equipments
The use of HFCs as refrigerants in cold drink equipment has an impact on climate change. Together with its bottling partners, TCCC set the goal to have 100% of its new cold drink equipment HFC-free. Where a commercial HFC-free solution is not currently available, we collaborate with our suppliers to develop alternative HFC-free solutions. This effort is vital: HFC-free coolers when compared to their HFC counterparts have at least 1,000 times less effect on global warming.
Refrigerants in cold drink equipment may slowly leak into the atmosphere during use or may leak completely if the equipment is not properly disposed of at the end of its life cycle. CCI always ensures that coolers are properly degased. By the end of 2018, 70% of all cold drink equipment and 98% of newly purchased cold drink equipment in Turkey were HFC-free. Owing to our use of HFC-free cooling equipment, we managed to reduce our total fugitive CO2 emissions by 24,112 tons between 2009 and 2018.
Cold Drink Equipment with Energy Management Device (EMD)
Effective since 2009, Energy Management Device (EMD) is another tool by which we are able to tune our cold drink equipment’s environmental footprint. By using EMD equipped coolers, we are able to reduce energy consumption by 42%. For this reason, new cold drink equipment (larger than 250-liter capacity) with EMD were purchased as part of the initiative. By 2018 year-end we had 90% EMD ratio in our Turkey operations (please see the Performance Indicators section of the report for detailed data on EMD ratios for six countries within the reporting scope). In 2018, this program allowed us to save approximately 490 million kWh of electricity in Turkey, which means a reduction of 82,759 tons of CO2.
Between 2009 and 2018 our EMD program in Turkey yielded a total energy savings of about 2,930 Million kWh (equal to the annual energy consumption of 504,358 Turkish households) and a total CO2 emission reduction of 1,165,261 tons (equal to the amount of CO2 extracted from the atmosphere annually by 97.1 million trees).
With EMD program across CCI countries in the reporting scope, we achieved 86,550 tons of CO2 emission reduction, equivalent to the amount of CO2 that can be extracted from the atmosphere annually by 7,2 million trees.
We aim to prevent the emission of 1.75 million tons of CO2 with the EMD program between 2010-2020 across CCI.
Cold Drink Equipments with LED Lights
At CCI Turkey operations, we have been purchasing coolers with LED lights since 2012. With the purchasing of all new coolers equipped with LED lights, overall ratio of our coolers with LED lights went up from 11% in 2012 to 56% in 2018.With this strategy, we will keep increasing our ratio and minimizing our energy consumption.
The Behavioral Energy Efficiency Program
Searching for new means and promoting effective change are fundamental to TCCC’s Behavioral Energy Efficiency Program (Energy Excellence). Our individual relationship with the systems, technology, procedures, and our perceptions of this relationship have direct impacts on productivity, collaborative efforts and success. This program is designed with staff awareness and culture at its core. Our goal is to extend the Energy Efficiency Top 10 by promoting a company roadmap that provides a holistic aproach to “Energy Excellence”. It also helps to spread a sense of ownership and accountability for this issue. In 2017, the program was replicated in all 21 CCI plants in 10 countries.
Emissions by Regions
Our absolute CO2 emissions in six countries of operation decreased from 779,028 tons to 714,017 tons in 2018. In addition to monitoring the total emission for each country of operation, we also monitor our GHG emissions ratio, which represents grams of CO2e per liter of product produced. A table providing the detailed overview of our GHG emissions for the six countries of operation is provided in the “Performance Indicators” section.
Reduce the CO2 Emissions Embedded in the Drink in Your Hand by 25% by 2020*
TCCS launched a global initiative called “Reduce the CO2 emissions embedded in the drink in your hand by 25% by 2020” in 2013 and aimed at reducing GHG emissions across its entire value chain. In CCI, we align our climate change mitigation goal with this overall target in order to achieve comprehensive carbon footprint reductions across our value chain.
In 2018, it is estimated that we reduced the CO2 embedded in the Coca Cola “drink in your hand” by 21%, which is below 2010 levels (Baseline: 2010).
2018 Emissions by Scope and Region
This year in CCI Turkey Operations; our total Scope 1 emissions decreased from 51,602 tons of CO2 to 48,197 tons compared to 2017. Even though the stationary combustion emissions increased, the fleet and fugitive emissions significantly decreased in Scope 1 emissions. Yet, Scope 2 emissions increased due to increase in electricity use. In Scope 3 emissions, thanks to our climate change mitigation activities, downstream transportation emissions declined. Emissions from cold drink equipment and employee commuting increased with respect to last year.
Consequently, our absolute emissions in Turkey increased from 291,334 tons to 300,452 tons. However, our absolute emissions in six countries of operation decreased from 779,028 to 762,129 tons of CO2 in 2018. On the other hand, our production volume increased by 6% and our EBITDA increased by 36%. This is solid proof that we produce more by using less.
Hence, Scope 2 and 3 electricity emission factors were updated for 2018, but our emission calculation methodology does not change with respect to last year. Tables providing updated emission factors and the detailed overview of our GHG emissions for the six countries of operation is provided in the “Performance Indicators” section.
In addition to reducing the absolute emissions, we optimized to increase savings. In 2018, we achieved a GHG emission reduction of 212,411 tons of CO2 in Turkey as a result of emission reducing actions taken in production, cooling and distribution, which is equal to the amount of CO2 that approximately 18 million trees annually extract from the atmosphere