SUSTAINABILITY REPORT 2018

OUR ENVIRONMENTAL FOOTPRINT

Sustainable Sourcing

Sustainable agriculture is critical for us to meet the expectations of our consumers, customers and other stakeholders and to enable the continued growth of our business. Sourcing of CCI’s raw materials accounts for a large portion of our economic, social and environmental footprint.

Sustainable sourcing is purchasing ingredients from farm locations and suppliers that meet TCCC-approved standards, most preferably adhering to TCCC’s Sustainable Agriculture Guiding Principles (SAGP), which among other things, also set standards to be met by farm suppliers for human and workplace rights, environmental protection and responsible farming management. TCCC’s approach to sustainable agriculture is founded on principles that protect the environment, uphold workplace rights and help build more sustainable communities. Coca-Cola is addressing the challenges of agriculture availability, quality and safety in the mean time addressing the improvement of the and the well-being of farming communities. TCCC set its target on sustainably sourcing key agricultural ingredients by 2020 and developed Sustainable Agriculture Guiding Principles.

Compliance with SAGP is verified according to international third-party standards such as Bonsucro, Rainforest Alliance, Sustainable Agriculture Initiative Platform (SAI) and Fairtrade International or equivalent. In line with TCCC’s strategy, CCI set a goal to investigate sustainable sourcing opportunities for sugar and sweeteners, engage with stakeholders and conduct a feasibility study for sustainable sugar sourcing in Turkey in 2016. We established a study group formed by TCCC and CCI PAC, Technical and Procurement responsible for understanding how to comply with SAGP Related information regarding the validation process, compliance standards and expectations were discussed. In May 2017, a workshop was organized on the SAGP compliance program for suppliers. CCI’s sweetener suppliers were invited to the meeting.

Sustainable Agriculture Guiding Principles

Workplace and Human Rights

  • Freedom of association and collective bargaining
  • Prohibit child labor
  • Eliminate discrimination
  • Work hours and wages
  • Safe and healthy workplaces
  • Community and traditional rights

Environment

  • Water management
  • Energy management and climate protection
  • Conservation of natural habitats and ecosystems
  • Soil management
  • Crop protection

Farm Management Systems

  • Harvest and postharvest handling
  • Reproductive material identity, selection and handling
  • Management systems, record keeping and transparency
  • Business integrity

Energy Management and Climate Protection

Climate change is one of the biggest threats to the world’s ecosystems and humanity. With its responsible business practices, CCI joins the global business community in implementing the necessary changes to combat these risks.

Energy efficiency and climate protection are among the three priorities in reducing our environmental footprint. We recognize that climate change may have medium term direct and indirect implications for our business, supply chain and communities. These potential effects raise the need for immediate action.

The focus areas of our energy efficiency and climate protection strategy are:

  1. Reducing energy use and GHG emissions in our manufacturing operations, manufacturing and sales offices by implementing energy efficiency programs;
  2. Reducing logistics-based direct emissions with effective fleet and fuel management and optimization practices;
  3. Reducing indirect emissions by concentrating on our climate friendly refrigeration programs;
  4. Increasing awareness on climate protection by collaborating with our distributors, dealers, suppliers and other stakeholders;
  5. Calculating, verifying and reporting accurate carbon footprint of our operations;
  6. Promoting climate change awareness by engaging with our stakeholders in relevant platforms;
  7. Calculating the carbon footprint of our products in line with a life-cycle approach;
  8. Researching clean and renewable energy and investing in, where possible;
  9. Investigating opportunities and conducting a feasibility study to supply sustainable sources.

These efforts require both national and international coordination as we aim to work in collaboration by adhering to the global efforts for climate change initiative.

In 2018, we saved 8.82 Million MJ of energy and reduced 1,006 tons of CO2 by means of our efficiency projects and the OE Program conducted in CCI Turkey Operations.

  • We supply energy needs of lighting and our post mix line in our İzmir Plant from 100% clean energy resources.
  • 90% of the total cold drink equipment in Turkey is equipped with Energy Management Device (EMD) which provides energy saving.
  • With our EMD program, we saved 511.5 million kWh electricity in six countries of operation. We achieved 86,550 tons of CO2 savings that is equivalent to the amount that 7.2 million trees annually extract from the atmosphere.
  • We saved approximately 42.1 Million MJ energy and reduced 3,850 tons of CO2 by efficiency projects in our plants in six countries of operation.

Energy Management Figures

Core Energy Use Ratio (MJ/L)

*2006 is the baseline year for TCCC, Turkey, Jordan, Kazakhstan and Azerbaijan operations. Similarly, 2016 is for Pakistan and Kyrgyzstan.

Improvements in Core EURs between 2006 and 2018 (MJ/L)

* Pakistan and Kyrgyzstan data were included in the sustainability report in 2015 and 2016 respectively.