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Risk Management And Ethics

 

Priority Areas

2019 Goals

2018 Goals

Performance in 2018

Status

 

Risk Management

Continue to update and further develop the ERM website.

ERM website has been updated. Transfer of ERM website to new portal is ongoing.

Achieved

  • To revise and update the approach for establishing the consolidated risk dashboard at the Group Level
  • Utilizing Videoconferencing as a tool for some internal audits to save time and be more environment-friendly

Risk Management at CCI

CCI Board’s Risk Committee oversees the risk management. Enterprise Risk Management (ERM) Team, directly reporting to the CEO and the Risk Committee, acts as the facilitator and conducts risk assessments. ERM team members are the CEO, the Strategy and Business Development Director and Regional Directors.

 

ERM conducts risk assessment on country and group levels using the input from the World Economic Forum, global surveys and The Coca Cola System. The risks are prioritized based on their general likelihood, and the probability of occurence in the short-term and impact.

 

CCI Country Operation Managers are responsible for risk management and mitigation. They identify the critical threats and opportunities based on the risk assessment results, integrate them into their Strategic Business Plans and prepare the mitigation action plans. High-priority risks are reported to the Board’s Risk Committee along with mitigation action plans.

 

Internal Audits are performed to track the risk mitigation plans and the results are reported to the Audit Committee.

Top 5 Global Risks in Terms of Likelihood

Failure of climate change mitigation and adaptation

Interstate conflict with regional consequences

2016

Extreme weather events

Major natural catastrophes

Large-scale involuntary migration

Massive incident of data fraud/theft

2017

Extreme weather events

Large-scale involuntary migration

Major natural disasters

Large scale terrorist attacks

2018

Natural disasters

Extreme weather events

Cyber attacks

Data fraud and theft

Failure of climate change mitigation and adaptation

Top 5 Global Risks in Terms of Impact

Large-scale involuntary migration

Severe energy price shock

2016

Failure of climate change mitigation and adaptation

Weapons of mass destruction

Water crises

Major natural disasters

Failure of climate change mitigation and adaptation

2017

Weapons of mass destruction

Extreme weather events

Water crises

Failure of climate change mitigation and adaptation

Water crises

2018

Weapons of mass destruction

Extreme weather events

Natural disasters

Economic

Environment

Geopolitical

Societal

Technological

Source: World Economic Forum 2008–2018, Global Risks Reports.

CCI country management uses the pillars in the company’s strategic business plan to evaluate business risks. CCI’s principal risks and key mitigations are given below:

Risk Pillar

Principal Risk

Key Mitigations

Environmental

Supply Chain

Cybersecurity

Work Life

Community & Stakeholder Relations

Water Scarcity

Waste Water

Energy

Climate Change

Water

Food Safety

Packaging

Supplier Management

Quality

Compliance Risks

Ethics-Bribery & Corruption

Human & Workplace Rights

Health & Safety

Sustainable Talent Capability

Cyber-attacks that may cause data leakage or service interruptions

Legal & Compliance

 

• Implement locally relevant projects with local and international project partners.

• Drive stakeholder perception through transparency and reporting practices.

• Water reduction activities at plants.

• Continue local replenishment and access to water program.

• Sustainable sourcing.

• Wastewater treatment systems.

• Periodic analysis.

• ISO 14001 EMS and KORE Audits.

• OE Projects, Behavioral Energy Program.

• Improve energy efficiency (achieve energy use ratio targets)

• Energy efficiency and GHG emission reduction programs at plants, logistics and cooling operations.

• Post-consumer packaging programs to reduce packaging materials and GHG emissions.

• Policy making and engagement with NGOs and legal authorities.

• Investigate alternative clean energy sources.

• Conduct SVA studies.

• Follow-up of Source Water Protection Plan.

• Implementation of water efficiency projects.

• Improvement of WUR (water use ratio).

• Implementation KORE audits and International Standards.

• Implementation of sustainable packaging and waste solutions. Maintaining packaging innovation, Lightweight, PlantPet, recycling activities. Coordination with local authorities for waste collection and recycling.

• Follow-up of SGP audit findings.

• KORE audits and International Standards.

• Establish an early warning mechanism for critical draft and recent regulations.

• Lobby as an industry against unfavorable regulatory and tax initiatives of the government.

• Train employees on the Code of Ethics.

• Encourage effective use of Ethic Hotline.

• Implement ethics program.

• SGP Audits.

• Follow-up SGP audit results.

• Ethics Hotline.

• Hand in Hand Safety Program.

• KORE Compliance Implementations.

• Distributor safety process implementations.

• Contractor safety process implementations.

• Driving Safety Program.

• Continue with talent development forum.

• Effective cooperation with respected universities to build employer branding.

• Security program,

• cyber resilience,

• cyber risk insurance.

In 2018, risk assessments were conducted three times; in January, June and in August following the devaluation of Turkish Lira. CCI’s top risks for 2018 were instability in international politics and security, economic volatility, and corporate acceptance. Followed by these were capability building, regulatory taxes and changing consumer preferences. CCI’s principal environmental risks were assessed as post-consumer packaging, water scarcity and climate change.

 

CCI employees are regularly trained on risk management and informed via the ERM website, that is accessible through the CCI internal Portal. The website provides an ERM tool along with guidelines, leading articles, useful links and an awareness training presentation on ERM .

 

Outlook for 2019:

• Understanding technology’s impact on strategy, business models and cybersecurity

• Anticipating and planning for geopolitical and regulatory changes

• Overseeing the culture and talent in an era of innovation and transformation

• Engaging with the stakeholders on long-term governance, environmental and social issues

   CONTENT

Content & Design Consultancy: ESG Turkey™ Consultancy

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SUSTAINABILITY REPORT 2018

Printable Full Version

In 2018, risk assessments were conducted three times; in January, June and in August following the devaluation of Turkish Lira. CCI’s top risks for 2018 were instability in international politics and security, economic volatility, and corporate acceptance. Followed by these were capability building, regulatory taxes and changing consumer preferences. CCI’s principal environmental risks were assessed as post-consumer packaging, water scarcity and climate change.

SUSTAINABILITY REPORT 2018