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This builds on beverages available in other markets in the juice, value-added dairy and plant-based beverages category, such as AdeS, Chi, Santa Clara, Toni and Nutriboost. As a total beverage company, we are committed to offering people more of the drink choices they want across a range of categories and in a variety of packages. Ever-evolving consumer tastes and preferences help steer our business strategy and shape the lineup of beverages we bring to market. We take a disciplined approach to product innovation and portfolio management, ensuring we develop and deliver preferred, great-tasting beverages for all occasions and lifestyles. This includes offering drinks with reduced added sugar and more brands with nutrition and wellness benefits; providing small package options and clear nutrition information on packaging and in our communications; and marketing our drinks responsibly. SECTIONSCOPE: In this section our Portfolio work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners.
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32THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY LESS SUGAR, MORE CHOICES 1 Sour ce: Nielsen IQ, U.S. All Measured Channels, 2022 full year We support the recommendations of leading health authorities that individuals should consume less than 10% of their total calories from added sugar. That’s why, from 2017–2022, we removed more than 900,000 tons of added sugar from our global portfolio through more than 1,000 beverage reformulations. We support more than 50 calorie and sugar reduction pledges globally, in collaboration with industry peers. In 2022, we joined an updated industry-wide pledge in Australia to reduce the sugar content in our portfolio by 25% by 2025. In Kazakhstan, we are among nine members of the national beverage association to sign an industry pledge to reduce average added sugar in our drinks by 10% by the end of 2026.
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In Kazakhstan, we are among nine members of the national beverage association to sign an industry pledge to reduce average added sugar in our drinks by 10% by the end of 2026. And we support guidelines released by the Health Ministry of Türkiye and Federation of Food and Drink Industry Associations of Türkiye to reduce sugar in nonalcoholic beverages and certain food categories by 10% by 2025. In Europe, we are leading the soft drinks industry in voluntarily committing to sugar reduction. Together with peers through the industry association UNESDA Soft Drinks Europe, we have reduced average added sugars in soft drinks by 28.6% across the European Union and United Kingdom since 2000. In June 2021, as part of the EU Code of Conduct for Responsible Food Business and Marketing Practices, we joined a UNESDA Soft Drinks Europe pledge to reduce the sugar in our drinks by an additional 10% by 2025, which will represent a 33% average sugar reduction when completed by 2025 compared to 2000. The European soft drinks sector is the only sector to have made an additional sugar reduction commitment under the EU Code of Conduct.
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The European soft drinks sector is the only sector to have made an additional sugar reduction commitment under the EU Code of Conduct. EUROPE By 2025, we aim for 50% of the drinks we sell in Europe to be low- and no-calorie drinks (we’re currently at 45%) in support of the EU Commission’s Farm-to-Fork strategy to accelerate the transition to sustainable food systems. UNITED STATES We’re offering more low- and no- calorie options in more places. For example, 99.7% of U.S. outlets carry our low- and zero-sugar SKUs—and, on average, 24 zero-sugar sparkling soft drink SKUs are found per store.
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For example, 99.7% of U.S. outlets carry our low- and zero-sugar SKUs—and, on average, 24 zero-sugar sparkling soft drink SKUs are found per store. 1 900,000+ tons of added sugar removed from our global portfolio cumulatively through efforts to reformulate more than 1,000 beverages from 2017–2022 19 OF TOP 20 brands are reduced-sugar or zero-sugar, or have a reduced-sugar or zero-sugar option ~1,400 tons of added sugar removed on an annualized basis through recipe changes in 2022 ~68% of the products in our beverage portfolio have less than 100 calories per 12-ounce serving 12 recipe changes to reduce added sugar in 2022 29% of our volume sold in 2022 was low- or no-calorie 246 low- or no-sugar products launched in 2022
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33THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY FLAVOR BREAKTHROUGHS Several of our core brands took creative approaches to promoting zero-calorie choices to younger consumers in 2022 through flavor innovations, packaging designs and digital experiences. The global Coca- Cola Creations platform introduced a series of limited-edition offerings inspired by consumer passion points of music, gaming and sports—starting with the outer space-inspired Coca-Cola Starlight, which offered fans a taste of outer space. In the United States, a limited-edition lineup of mysteriously flavored Fanta beverages was anchored by a zero-sugar option. SWEETENER INNOVATION One of the ways we achieve great taste without sugar is by using low- and no-calorie sweeteners. We only use sugar alternatives that have been thoroughly tested through scientific studies and confirmed as safe by globally recognized food safety authorities, including the U.S.
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We only use sugar alternatives that have been thoroughly tested through scientific studies and confirmed as safe by globally recognized food safety authorities, including the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA) and F ood Standards Australia and New Zealand (FSANZ). When used as part of a healthy diet and lifestyle, we believe the science shows that sugar alternatives can help meet public health recommendations to reduce added sugar. Additionally, food additives such as non-sugar sweeteners help make food systems more sustainable by both reducing sugar and lowering our carbon emissions. Our recent efforts have focused on collaborating with an ecosystem of suppliers and research organizations to develop, continuously improve and commercially scale stevia and other naturally derived sugar alternatives. A global list of more than 70 published journal articles dating back to 2008, reflecting research we have directly funded or authored, can be found on our website. We continue to use our marketing to drive growth of our low- and no-calorie portfolio. Coca-Cola Zero Sugar has delivered double- digit volume growth in five of the last six years.
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We continue to use our marketing to drive growth of our low- and no-calorie portfolio. Coca-Cola Zero Sugar has delivered double- digit volume growth in five of the last six years. In 2022, several leading low- and no-calorie brands in North America launched consumer campaigns with celebrity partners and sponsorship assets: SpriteZeroSugar teamed up with Marvel Studios’ Black Panther: Wakanda Forever for the “Infinite Potential. Zero Limits” campaign. Read more. Coca-ColaZeroSugartook center court during the 2022 Men’s and Women’s NCAA College Basketball Final Four tournaments in the United States with March Madness-themed “Best Coke Ever?” ads showcasing the brand’s reformulated taste. Read more. smartwater and global ambassador Zendaya, an acclaimed actor and performer, celebrated those who define “smart” on their own terms. Together, smartwater and Zendaya are also helping address the water crisis in communities across the world by partnering with the Global Water Challenge’s women for water platform, which focuses on mobilizing clean water access for every woman and her community. Read more.
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Read more. vitaminwatertapped global superstar Lil Nas X for the “Nourish Every You” campaign encouraging self-expression and self-care. Read more. Simply and actor/comedian Eugene Cordero invited consumers to “Say Yes to Simple” in a new campaign showcasing the brand’s fast- growing lineup of juices, ades, plant-based milk alternatives, smoothies and more. Read more. GoldPeak ready-to-drink tea collaborated with Grammy- and Oscar-winning artist Questlove on the “Tea is for Trying” campaign. Read more. PortfolioMarketing Since 2008, we have invested more than $100 million in sweetener innovation and sugar reduction research.
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34THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 34THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT We’re bringing teas, juices, waters, and dairy and plant-based beverages to more people in more places. Some of these beverages are enhanced by fortifying them with vitamins and minerals. NUTRITION AND WELLNESS BENEFITS Chun Yue launched as first-ever functional soda water in China, with added vitamins and minerals. Two zero-sugar, zero- calorie options offer a slightly sweet, fruity taste. They are also fortified with niacin or zinc. Minute Maid sparkling juice gives consumers in China a zero-sugar option made with real fruit juice and refreshing bubbles, along with B3 vitamins and zinc to supplement nutritional needs. Fuze Tea launched in Pakistan in two flavors— lemon and peach. The innovative brand is a fusion of reinvigorating tea extract from 100% sustainably sourced tea leaves and fruit flavors.
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The innovative brand is a fusion of reinvigorating tea extract from 100% sustainably sourced tea leaves and fruit flavors. Cappy Immunity Support is a wellness beverage in Europe powered by fruit multi-blends (orange, carrot and peach mix) along with vitamins C and B12, and zinc. Minute Maid Honey Infused ready-to-drink fruit drinks in India contain added dietary fiber to support healthy digestion. The new preservative-free line is available in three delicious flavors: apple, mixed fruit and guava. Nutriboost flavored milks have calcium, vitamin D and no added sugar. fairlife Core Power Elite contains 42g of high- quality protein to help build muscle and replenish, repair and rebuild. It is available in North America in three flavors: chocolate, strawberry and vanilla.
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CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Our commitment to offering more consumer choice includes our expansion into the fast- growing alcohol ready-to-drink (ARTD) market. In 2022, we launched Jack Daniel’s & Coca-Cola in Mexico, with more markets to follow in 2023 through our relationship with Brown-Forman. Jack Daniel’s & Coca-Cola joins our growing portfolio of ARTD offerings including Lemon-Dou, Topo Chico Hard Seltzer and Schweppes Pre-Mixed Cocktails. In the United States, we authorize third parties to produce and sell Topo Chico Hard Seltzer, Simply Spiked Lemonade and Fresca Mixed. We take the new responsibilities that come with our entry in this space very seriously. Recognizing the risks associated with alcohol consumption, we created guardrails outlined in our Global Policy on Alcohol Responsibility to ensure we grow our alcohol brands in a responsible and sustainable way. The policy articulates our commitment to: 1. E nsure the responsible marketing of our alcohol brands; 2.
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The policy articulates our commitment to: 1. E nsure the responsible marketing of our alcohol brands; 2. Support local responsible consumption partnerships and communications programs to help reduce the harmful use of alcohol; 3. Provide tools and information to enable people to make informed choices; and 4. Enable our employees and partners to be ambassadors for responsible consumption. Our responsible alcohol marketing policy determines how we innovate and bring to market ARTD brands. This policy has been reviewed by the World Federation of Advertisers and endorsed by the International Alliance for Responsible Drinking. At the heart of our approach is ensuring that our alcohol brands are only directed at adults over the legal purchasing age who choose to drink, and encouraging only drinking in moderation. This means our brands will never be directed to minors below the legal purchasing age. We run regular trainings for our people and our partners, and always apply the appropriate safeguards across all channels of communications and sales. In 2022, we joined the International Alliance for Responsible Drinking (IARD), a consortium of leading beer, wine and spirits producers committed to reducing harmful drinking and promoting moderation through robust responsibility standards.
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In 2022, we joined the International Alliance for Responsible Drinking (IARD), a consortium of leading beer, wine and spirits producers committed to reducing harmful drinking and promoting moderation through robust responsibility standards. In Brazil, we are working with three NGO partners on the Pega Leve (“Take it Easy”) program, which promotes moderation by communicating the risks of drinking and driving and excessive consumption, with a focus on 18- to 29-year-olds. The Coca-Cola Company is also a member of Drinkwise in Australia and Drinkaware in the United Kingdom and the Republic of Ireland, which are independent not-for- profit organizations that work with partners and members to reduce alcohol-related harm in those countries. 35 THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT MORE INFORMATION FOR MORE INFORMED DECISIONS We are committed to providing transparent nutrition information about all of our products, in line with local regulations, so consumers can make informed decisions. We were the first beverage company to place calorie information on the front of nearly all our packaging worldwide. Today, we provide nutrition information on product labels, with the exception of certain returnable bottles, fountain beverages and waters (unsweetened, unflavored).
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Today, we provide nutrition information on product labels, with the exception of certain returnable bottles, fountain beverages and waters (unsweetened, unflavored). For these beverage and packaging types, we offer nutrition information through websites and consumer hotlines. RESPONSIBLE MARKETING We respect the role of parents and caregivers as the primary decision-makers for what their children drink, and we do not market any of our products directly to children under 13, regardless of nutritional profile. Effective January 1, 2022, we raised the age threshold from under 12 to under 13 and reduced the audience threshold from 35% to 30%. This means we will not place our marketing or advertising in any media, platform or event where more than 30% of the audience is under 13. Our policy goes beyond media and includes packaging, in-store and point of sale. Our approach is consistent with the International Chamber of Commerce Marketing & Advertising Code and its Framework for Responsible Food and Beverage Marketing Communication. We hold everyone involved in our marketing and communications accountable to our Global Responsible Marketing Policy, from employees and bottling partners to agency and media partners.
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We hold everyone involved in our marketing and communications accountable to our Global Responsible Marketing Policy, from employees and bottling partners to agency and media partners. We are a founding member of the International Food & Beverage Alliance (IFBA), a group of leading companies that self-regulate globally on responsible marketing to children. Additionally, we collaborate with industry peers at regional and local levels to scale collective action in responsible marketing pledge programs. SMALLER PACKAGING People can enjoy our drinks in sizes that help control portions and added sugar intake. These include 7.5-oz. mini cans and 8-oz. glass bottles in many markets. We continue to expand availability of these packages and introduce newer offerings, including 150-ml mini cans and 250-ml slim cans, so people can enjoy the same great tastes in sizes that are right for them. In 2022, we kicked off a pilot of a Coca-Cola Freestyle compact fountain dispenser at on-the- go and at-work locations in France, Belgium, Great Britain and the Netherlands. In addition to giving consumers an expanded array of personalized, on-demand beverage choices—including low- and no-calorie options—the innovation helps reduce our carbon and packaging footprints.
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In addition to giving consumers an expanded array of personalized, on-demand beverage choices—including low- and no-calorie options—the innovation helps reduce our carbon and packaging footprints. ResponsibleGrowthIntoA lcohol Today, about 44% of our sparkling soft drink brands come in packages of 8.5 ounces or less. In North America, 10-pack mini cans grew 39% in 2022.
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SECTIONSCOPE: In this section, our packaging strategy refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners. Packaging WORKING TOWARD A WORLD WITHOUT WASTE We recognize our responsibility to help solve complex plastic waste challenges facing our planet and society. That’s why, in 2018, we launched an ambitious strategy called World Without Waste to drive systemic change through a circular economy for our packaging. World Without Waste is a global sustainable packaging platform focused on measurable and interconnected goals, each of which are supported by additional targets: • M aking 100% of our packaging recyclable globally by 2025—and using at least 50% recycled material in our packaging by 2030 (DESIGN); • C ollecting and recycling a bottle or can for each one we sell by 2030 (COLLECT); • B ringing people together to support a healthy, debris-free environment (PARTNER).
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36THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY IN 2022, WE ANNOUNCED A NEW GLOBAL REUSABLE PACKAGING GOAL. BY 2030, WE AIM TO HAVE AT LEAST 25% OF OUR BEVERAGES SOLD BY VOLUME WORLDWIDE IN REFILLABLE/ RETURNABLE GLASS OR PLASTIC BOTTLES OR IN FOUNTAIN DISPENSERS WITH REUSABLE PACKAGING ONE OF OUR PACKAGING DESIGN GOALS IS TO REDUCE OUR USE OF VIRGIN PLASTIC DERIVED FROM NON-RENEWABLE SOURCES BY A CUMULATIVE 3M METRIC TONS BETWEEN 2020 AND 2025
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37THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY We are making progress against each of our objectives, which are embedded in how we operate as a business, and we are taking a transparent approach to reporting our actions, results and learnings. Local teams are executing in ways appropriate for their markets, and we are using a networked approach to deliver impact at scale. Our work has also shown us where the major challenges are, and some of our markets will have challenges meeting goals as quickly as others. Because packaging accounts for approximately 30% of our carbon footprint, nearly all of our World Without Waste efforts align with our 2030 science-based climate target and net zero ambition. When we lightweight our packaging, incorporate more recycled and bio-based material, invest in local recycling programs and increase our use of reusable packaging, we can reduce both waste and our greenhouse gas (GHG) emissions.
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When we lightweight our packaging, incorporate more recycled and bio-based material, invest in local recycling programs and increase our use of reusable packaging, we can reduce both waste and our greenhouse gas (GHG) emissions. WORLD WITHOUT WASTE: DESIGN Our Packaging Portfolio We deliver our beverages in a variety of packaging formats—from glass and PET bottles, to aluminum cans, to refillable packaging. Just as we offer drink choices for a range of occasions, our packaging portfolio gives consumers multiple ways to enjoy our brands conveniently and safely. Since glass, aluminum and PET plastic are all recyclable materials, they all can play a role in a circular economy. Refillable packages, both glass and plastic, can have the lowest carbon footprints of our packaging options. PET packages with recycled content can have a lower carbon footprint than aluminum and glass, which require more energy to produce, recycle and transport. • In Scotland, Costa Limited (“Costa”) carried out a 14-store pilot of an on-the-go reusable cup scheme, which invited consumers to rent a cup by scanning a QR code before enjoying their drink and then returning the cup for it to be washed and reused.
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The effort supports Costa’s global goal for 25% of its drinks to be served in reusable or refillable packaging by 2030. We tailor our refillable packaging approach by market, based on local conditions. In 2023, we launched an end-to-end refillables operations guide to help local teams implement more effective strategies and plans. Our Design goals establish a foundation for enabling a circular economy for our packaging materials. Creating a circular economy requires designing out waste by using, collecting and reusing recycled materials, which have inherent value. It also means embracing refillable and fountain/dispensed packaging solutions. REFILLABLE PACKAGING Reusable packaging can reduce single-use packaging waste. Expanding refillable packaging options helps ensure high levels of collection of beverage containers. In 2022, we were proud to announce an industry-leading goal to have at least 25% of our beverage volume worldwide sold in refillable/returnable glass or plastic bottles or in fountain dispensers with reusable packaging by 2030.
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We continue to test and scale returnable glass bottle (RGB) and reusable PET pilot programs, including: • In LatinAmerica, the “Let’s Be Different” campaign kicked off on World Environment Day 2022, inviting consumers to trade any recyclable PET bottle for a refillable bottle of Coca-Cola Zero Sugar. In Brazil, returnable, refillable PET bottles of Coca-Cola, Fanta and Sprite can be returned, cleaned and refilled up to 25 times. The package gives shoppers an affordable option and drives repurchase rates. • In France, a 250-ml returnable glass bottle (RGB) launched in hotels, restaurants and cafes for Fuze Tea, Tropico, Sprite, Fanta and Minute Maid. Additionally, Coca-Cola and Coca-Cola Zero Sugar are now offered in RGBs nationwide, eliminating more than 15 million single-use glass bottles in 2022. • In the UnitedStates, a 500-ml returnable glass bottle pilot program in approximately 100 retail and foodservice outlets in El Paso, Texas, generated a 75% return rate, and we are exploring expansion capabilities in 2023.
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We also are working with Reuse Seattle to reduce single-use plastic waste by encouraging customers to transition to reusable cups for our dispensed products, as part of a broader multi- stakeholder effort on foodservice packaging across the metro region. • In SouthA frica , we extended the rollout of refillable 2-liter and 1.5-liter PET plastic bottles. • In SriLanka, we responded to the ongoing economic crisis by introducing the Large Returnable Glass Bottle (LRGB), nicknamed the “Big Buddy Pack,” to provide an affordable and returnable, mealtime-focused option for families. Coca-Cola, Fanta and Sprite are offered in the 750-ml bottles, which feature paper labels and aluminum caps. • In Sweden, we are collaborating with Reitan Convenience on a reusable packaging pilot in Stockholm. Shoppers who visit the sustainability- focused PDX store can choose from more than 60 fountain beverages, many of which are not available in bottles or cans. Shoppers are encouraged to bring their own refillable vessels or purchase a reusable stainless steel tumbler.
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Shoppers are encouraged to bring their own refillable vessels or purchase a reusable stainless steel tumbler. • In HongKong,China, we have installed almost 100 Bonaqua Water Stations along hiking trails and in shopping malls and transportation hubs. Consumers pay a small fee to fill their own bottles with hot or cold Bonaqua water. DESIGN: GOALS 2022 STATUS Make 100% of our packaging recyclable globally by 2025 90% globally 1 90% Use at least 50% recycled content in our packaging by 2030 25% 2 recycled material in our packaging globally and 15% of PET used is recycled PET (rPET) 25% 15% Reduce our use of virgin plastic derived from non-renewable sources by a cumulative 3 million metric tons from 2020–2025 3 In 2022, we avoided around half a million metric tons of virgin plastic usage through our efforts on lightweighting and use of recycled content, with an incremental avoidance of over 50,000 metric tons since last year.
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However, growth of plastic packaging has outpaced efforts on lightweighting and use of recycled content, so that we have not reduced our use of virgin plastic overall By 2030, we aim to have at least 25% of our beverages worldwide by volume sold in refillable/ returnable glass or plastic bottles or in fountain dispensers with reusable packaging Approximately 14% of total beverage volume was served in reusable packaging in 2022 14% 1 Onl y recyclable where infrastructure exists. 2 Incl udes select primary consumer packaging materials. 3 R eduction measured from historical usage modeled with 2018–2020 data. Read more in the Data Appendix.
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38THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY FRANCE INFINEO, a JV between Coca-Cola Europacific Partners and PlastikPak JAPAN JAPAN FIGP, a JV between Ishizuka Glass Co., Ltd and Far Eastern New Century THE PHILIPPINES PETValue, a JV between Coca-Cola Beverages Philippines and Indorama Ventures INDONESIA Amandina, a JV between Coca-Cola Europacific Partners and Dynapack Asia HONG KONG, CHINA New Life Plastics, a JV between ALBA, Baguio and Swire Coca-Cola AUSTRALIA A JV between Coca-Cola Europacific Partners, Cleanaway Waste Management Ltd, Asahi Beverages and Pact Group AUSTRIA PET2PET, a JV between Coca-Cola Hellenic and several Austrian partners SOUTH AFRICA PETCO, a collaboration between Coca-Cola Africa,
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a JV between Coca-Cola Hellenic and several Austrian partners SOUTH AFRICA PETCO, a collaboration between Coca-Cola Africa, Coca-Cola Beverages Africa and several CPGs to finance PET collection MEXICO PetStar, a JV between Coca-Cola Mexico and ARCA Continental IMER, a JV between Coca-Cola Mexico, Coca-Cola FEMSA and Alpla Planeta, a JV between Coca-Cola FEMSA and Alpla VIRGIN PET REDUCTION In 2021, we set a goal to reduce our use of virgin plastic derived from nonrenewable sources by avoiding a cumulative 3 million metric tons by 2025 compared to 2020. We are pursuing this goal, which represents about 20% of our virgin plastic use, through more than 150 lightweighting projects and advancements on use of recycled and renewable materials. In 2022, we avoided around half a million metric tons of virgin plastic usage through these efforts with an incremental avoidance of over 50,000 metric tons since last year.
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In 2022, we avoided around half a million metric tons of virgin plastic usage through these efforts with an incremental avoidance of over 50,000 metric tons since last year. However, growth of plastic packaging has outpaced efforts on lightweighting and use of recycled content, so that we have not reduced our use of virgin plastic overall. MOVING TOWARD 100% rPET1 Demand for recycled PET plastic for food-grade applications currently exceeds supply, so we need to help build a sustainable pipeline of high-quality material. We work with communities to boost PET recycling and collection; collaborate with recycling partners; and secure rPET to help ensure material for our bottles is used again and again. In recent years, system partners and suppliers have announced significant investments, both individually and through joint ventures, to boost the global rPET infrastructure. Many investments are coming online in the next two years and will change the rPET landscape, particularly in Asia. We continue to work with industry peers to advocate for government regulations permitting the use of rPET in food and beverage packaging.
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We continue to work with industry peers to advocate for government regulations permitting the use of rPET in food and beverage packaging. Notable countries with food-grade recycled plastics acceptance standards for use in 1 Ex cept where otherwise indicated, where reference is made in this report to 100% Recycled PET, 100% rPET, or 100% Recycled Plastic Beverage Packaging, we are referring to the material from which the plastic bottle is made, not the cap and label. beverages now include Bahrain, Bangladesh, Indonesia, Kuwait, Nigeria, Oman, Qatar, Saudi Arabia, South Korea, Thailand and Yemen. Coca-Cola Beverages Philippines Inc. and Indorama Ventures—the world’s largest recycled PET flake producer—began operations at the new PETValue recycling facility. The country’s first bottle-to-bottle production site will process 2 billion clear PET plastic bottles into new bottles for Coca-Cola brands. Indorama Ventures will open a similar facility in Indonesia in 2023. Around the world, many of our biggest brands are taking major steps to support a circular economy for plastic packaging. More than 40 markets currently offer at least one brand in 100% rPET packaging.
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Around the world, many of our biggest brands are taking major steps to support a circular economy for plastic packaging. More than 40 markets currently offer at least one brand in 100% rPET packaging. A few highlights from 2022 include: • In the UnitedStatesandCanada, we recently began offering the majority of DASANI bottles— from 20-oz. and 1.5-liter singles to 10-oz. and 12-oz. multipacks—in 100% rPET plastic. The shift supports the DASANI brand's pledge to remove the equivalent of 2 billion virgin plastic bottles from production by 2027 compared to 2021 levels. The announcement followed the launch of 100% rPET bottles in New York, California and Texas, which also included Coca-Cola 20- oz. bottles. Bold, on-pack labels drive consumer awareness with “100% Recycled Bottle” and “Recycle Me Again” calls to action. • Eigh t markets in Europe ( Austria, Belgium, Iceland, Luxembourg, Netherlands, Norway, Sweden, Switzerland) offer their entire locally produced portfolios in 100% rPET.
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• Eigh t markets in Europe ( Austria, Belgium, Iceland, Luxembourg, Netherlands, Norway, Sweden, Switzerland) offer their entire locally produced portfolios in 100% rPET. • In Qatar, Coca-Cola, Sprite, Fanta and Arwa water were sold in 100% rPET bottles in FIFA World Cup 2022 stadiums and fan zones. This marked both the FIFA World Cup debut of the sustainable packaging format and the Middle East’s first 100% rPET rollout. Dedicated recycling bins and on-site communication ensured proper collection of all bottles to be recycled and converted locally back into new ones, closing the loop and leaving behind a green legacy. BuildingaGlobalrPET Supply Chain Through joint ventures and long-term supplier agreements, our system is making strategic investments to boost recycling capacity, unlock new supplies of recycled plastic and scale new technologies. Active P lanned
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39THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY • In Vietnam, we launched 100% rPET Coca-Cola bottles, which is projected to avoid 2,000 metric tons of virgin plastic usage annually. • In Japan, we achieved our World Without Waste goal of 50% recycled material use in Q1 2022. Four brands are now offered in 100% recycled PET and supported by an educational marketing campaign. SPRITE TRANSITIONS FROM GREEN TO CLEAR PET We continued to transition Sprite plastic bottles from green to clear PET to help increase the efficiency of recycling systems. The move, which the brand has completed or is in process in over 100 countries, improves the efficiency of recycling systems and boosts availability of food-grade rPET. As one example, Coca-Cola North America’s entire green plastic portfolio—including packaging for Sprite, Fresca, Seagram’s and Mello Yello— made the transition to clear PET in 2022.
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As one example, Coca-Cola North America’s entire green plastic portfolio—including packaging for Sprite, Fresca, Seagram’s and Mello Yello— made the transition to clear PET in 2022. SustainableInnovation We continue to deliver breakthrough technologies to lightweight our plastic packaging: Label-lessbottles are now available across a range of brands in Japan, South Korea and China. Laser engraving technology used directly on the bottle helps improve recyclability and reduce carbon emissions. Our technology is being licensed for a 30% plant-basedplasticbottle to a company building a commercial facility in Germany, which is scheduled to deliver material in 2024. A 100% plant-basedplasticbottleprototype has been developed with plans to explore scalability of a 100% biobased PET resin and bottle (bottle, not cap and label). Biobased plastic packaging can have a lower carbon footprint than petroleum- based packaging. Bottles with tetheredcaps, which enable bottles and caps to be collected together for recycling, are being piloted for our entire portfolio in Germany, Bulgaria and Italy.
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Bottles with tetheredcaps, which enable bottles and caps to be collected together for recycling, are being piloted for our entire portfolio in Germany, Bulgaria and Italy. Additionally, a new lightweighted bottle neck finish in Europe will save an estimated 9,100 tons of plastic per year by 2024. The KeelClip® 1packagingsolution made from recyclable cardboard replaces plastic rings for multi-packs. Following a successful rollout across Europe, the first-of-its-kind solution is being piloted in select U.S. markets. 1 K eelClip is a trademark of Graphic Packaging International, LLC As The Coca-Cola Company’s second-largest brand, Sprite is proud to demonstrate its commitment to circularity through our packaging by ensuring every bottle we make can be recycled and made into a new one. We can only achieve our World Without Waste goals by creating closed-loop packaging streams, and that starts with clear PET.” SHRENIK DASANI Global Senior Director, Sprite Trademark
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40THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WORLD WITHOUT WASTE: COLLECT We work with partners across business, government and civil society to create or support closed-loop systems that ensure our packages are collected and recycled or reused. Delivering a circular economy will require significant and urgent improvement in waste management and recycling systems around the world. Preserving the inherent economic value of our packaging—and ensuring circularity— requires robust collection and recycling systems across packaging types. Collection challenges vary, as every country has unique governments, regulatory environments and consumer behaviors. Though some countries have high recycling rates across packaging types, in many regions the recycling rate for PET bottles lags that of some other materials. While we continue to focus on national collection rates, in 2022, with input from key external stakeholders, we updated our collection tracking guidance to account for material collected through system- led efforts.
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While we continue to focus on national collection rates, in 2022, with input from key external stakeholders, we updated our collection tracking guidance to account for material collected through system- led efforts. Company and bottler teams in markets with limited recycling infrastructures (including parts of Latin America, Africa and Asia) are financing system-led collection initiatives to supplement national systems and are launching our own tracking systems. In 2023, we will start incorporating Coca-Cola system-led collection data into our aggregate numbers. GOAL 2022 STATUS Collect and recycle a bottle or can for each one we sell by 2030 61%1 61% 1 The c ollection rate represents a weighted average of national collection rates, collected for recycling rates or refillable rates by packaging type to TCCS’s sales in units to express the percent of equivalent bottles and cans introduced into the market that were collected and refilled or collected for recycling for the year. In emerging markets, we advocate for government regulations permitting the use of rPET in food and beverage packaging, and we seek ways to empower the informal waste collection sector in the circular economy.
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In emerging markets, we advocate for government regulations permitting the use of rPET in food and beverage packaging, and we seek ways to empower the informal waste collection sector in the circular economy. In developed markets, we are working with industry peers to build collection infrastructures—including our more than 40 years of experience operating 40+ local Deposit Return Systems (DRS). Countries with a well-designed DRS scheme, like Germany, can achieve high levels of collection (approximately 97% collection for non-refillable packages in Germany). Material Mix Collection Rates by Packaging Type1 of the equivalent bottles and cans we introduced into the market in 2022 were collected and refilled or collected for recycling. 1 61% 26% 61% ALUMINUM & STEEL 0.5% 6% POUCHES 3% 17% CARTONS/JUICE BOXES 47% 58% PET PLASTIC Our Packaging T ypes NON-REFILLABLE GLASS 2% 35% REFILLABLE GLASS & PET PLASTIC 10% 93%
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41THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY CANADA 75% UNITED STATES 28% BRAZIL 56% URUGUAY 26% HONDURAS 29% PERU 54% GHANA 50% DOMINICAN REPUBLIC 49% SOUTH AFRICA 62% SOUTH KOREA 79% ARGENTINA 30% ECUADOR 79% JAMAICA 25% BARBADOS 60% BELIZE 50% AUSTRALIA 57% NEW ZEALAND 66% INDIA 80% NEPAL 80% ITALY 65% HUNGARY 26% BELGIUM 95% POLAND 47% CROATIA 83% PAKISTAN 75% UZBEKISTAN 83% ESTONIA 88% TÜRKIYE 66% EGYPT 45% ISRAEL 68%
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66% EGYPT 45% ISRAEL 68% BANGLADESH 30% GREECE 56% ICELAND 90% SPAIN 71% JAPAN 98% VIETNAM 45% MALAYSIA 56% INDONESIA 62% THE PHILIPPINES 48% LAOS 35% KENYA 45% TANZANIA 29% MAURITIUS 40% 2022W orldwide Collection Rates1 We advocate for well-designed Extended Producer Responsibility (EPR) schemes, in which companies that produce packaging fund collection, sorting and recycling with the goal of increasing recycling rates. Recognizing that industry cannot achieve a circular economy on its own, we are part of a Consumer Goods Forum (CGF) coalition of 40 companies supporting the development of EPR programs in collaboration with governments. The coalition has published guiding principles and key design parameters for optimal EPR programs. In the United States, we’re making progress one community at a time, through our industry initiative Every Bottle Back. As of November 2022, the initiative has launched over 25 projects which are projected to collect and capture nearly 700 million pounds of PET over ten years.
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As of November 2022, the initiative has launched over 25 projects which are projected to collect and capture nearly 700 million pounds of PET over ten years. We also work with peers and partners to advocate for legislation that enables a circular economy, like a recent EPR law passed in Colorado and minimum recycled content laws passed in California, Washington and New Jersey. However, collection rates in the United States trail those of many other countries, and we know there is much more work to do. Ensuring respect for the human rights of vulnerable workers in the informal waste sector is an important pillar of our Collection efforts. Over the last two years, we have partnered with industry peers and Tearfund, an NGO advocating for improved livelihoods for informal waste sector workers, on the Fair Circularity Initiative to develop human rights principles and guidelines for engaging with the informal waste collection industry. For more information, see the Human Rights section. Additional2022highlights: • In the Philippines, we partnered with the Technical Education and Skills Development Authority to pilot a certified skills training program for workers in the informal waste collection sector.
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Additional2022highlights: • In the Philippines, we partnered with the Technical Education and Skills Development Authority to pilot a certified skills training program for workers in the informal waste collection sector. These workers have access to training, tools and equipment for efficient waste collection and connections to materials recovery facilities (MRF) that buy the waste that is collected. We also are creating more than 2,000 collection hubs in sari-sari (convenience) stores and other retail outlets where community members can drop off used, clear PET bottles in return for incentives. Participating retailers earn income from selling collected PET bottles to waste management companies and recyclers. Similar programs are in place in Malaysia, Myanmar and Thailand. • In Brazil, SustentaPET collection centers take in more than 700,000 PET bottles a day to produce recycled resin that ultimately becomes new packaging. In its first three years, the program has recycled more than 83,000 metric tons of PET—and will expand to additional states in 2023.
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In its first three years, the program has recycled more than 83,000 metric tons of PET—and will expand to additional states in 2023. • In Egypt, we partner with BariQ, the largest bottle-to-bottle recycling plant in the Middle East, to recycle 14,000 metric tons of plastic waste annually to food-grade product compatible with the European Food Safety Authority (EFSA), Food and Drug Administration (FDA) and Egyptian Organization for Standardization (EOS). • In India, we’re teaming with bicycle grocery delivery service Zepto for the “PET Return and Recycle” initiative. Using the Zepto mobile app, consumers can return up to four empty PET bottles (across any brand) to be collected by Zepto riders during home delivery trips. Following a successful pilot in Mumbai, the program will expand to additional cities. 1 These c ollection rates represent non-refillable PET packaging only.
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42THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WORLD WITHOUT WASTE: PARTNER Tackling the global plastic waste crisis requires cross-sector collaboration and alignment on common principles and targets. We work with a range of stakeholders at a global, regional and local level. This includes partnering with governments and community organizations to strengthen recycling infrastructures and boost collection rates; collaborating with customers, peers and industry associations to shape public policy that supports a circular economy; and teaming up with suppliers, startups and R&D partners to fuel sustainable packaging innovation. In 2022, we enhanced our partnership with the Ellen MacArthur Foundation by becoming a Strategic Partner alongside some of the world’s largest and most influential organizations, with transformative potential to demonstrate what’s possible in the transition to a circular economy. As a Strategic Partner we support the Foundation’s mission to develop and promote a circular economy beyond our work on plastics and deepen our engagement globally, regionally and locally.
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As a Strategic Partner we support the Foundation’s mission to develop and promote a circular economy beyond our work on plastics and deepen our engagement globally, regionally and locally. We have been working with the Foundation on plastics across a range of projects and initiatives, including as a signatory to their Global Commitment in collaboration with the UN Environment Programme. In the past couple of years, we increased our ambition and set virgin plastics reduction and reusable packaging targets. In September 2022, we also joined the Business Coalition for a Global Plastics Treaty convened by the Ellen MacArthur Foundation and WWF , and we have an active role as a Co-Chair of the Coalition’s Policy Working Group. Over 80 organizations, including businesses from across the plastics value chain, financial institutions and NGOs, are supporting the development of an ambitious, effective and legally binding UN treaty to end plastic pollution—which will set common goals, rules and obligations for member states, and in turn, for businesses. Through a shared vision we believe that a legally binding treaty must set the right enabling conditions to successfully scale a circular economy for plastic and end plastic pollution, and in doing so, will level the playing field across countries and industries.
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This will help ensure all plastics users participate in the funding of collection systems and will set consistent targets for areas such as recyclability, recycled content and collection. We continue to play an active role in the AB InBev 100+ A ccelerator program, a global open innovation program committed to crowdsourcing and piloting sustainability-focused startups and solutions. The program’s 2022 cohort is supporting 46 startups with funding, training, mentoring and other hands-on support to execute pilot projects in a partner company’s supply chain. Within the Coca-Cola system, we are pursuing six pilot projects, building on the five pilots from last year. We have focused our investments in concepts that support a circular economy, water and climate. And while we are early in the process, we are seeing promise. Pilot projects from the last cycle (2021–2022) with ReciVeci (Ecuador) and RecyclePoints (Nigeria) resulted in ongoing partnerships that are helping to further our World Without Waste plans. In the Philippines, we are partnering with Save Philippine Seas on a campaign to find and scale community-based plastic waste solutions.
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In the Philippines, we are partnering with Save Philippine Seas on a campaign to find and scale community-based plastic waste solutions. In 2022, five startups—Barrio Studios, Sagip Kalikasan, KAKASIE Eco-Park, #RefillNotLandfill and Alon and Araw—received grants from The Coca-Cola Foundation to advance their collection, recycling and education projects. In Morocco, we are collaborating with WWF on the Plastic Smart Cities project, which brings together cities and tourism destinations to fight plastic pollution. The partnership in Tangier aims to reduce leakage of plastic waste into nature by 30%. In 2021 and 2022, the partners and the local waste management department have collected more than 3,900 metric tons of plastic waste. We look forward to partnering with more like- minded organizations and communities to make the vision of a World Without Waste a reality. We now have five years of experience implementing the World Without Waste program. With targets for both 2025 and 2030, in 2023 we are taking stock of our current status across markets to ensure our local teams have the plans and investments in place to continue to make progress.
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With targets for both 2025 and 2030, in 2023 we are taking stock of our current status across markets to ensure our local teams have the plans and investments in place to continue to make progress. Our experience in a handful of markets that are already achieving high performance against specific goals, or the full suite of targets, indicates that these goals can be met. However, we are not currently on track to meet the World Without Waste targets for 2030. Package design and the use of recycled materials are areas that are ultimately in our control, but costs, quality, technology and consumer preferences are dynamic factors that affect our ability and timelines for implementation. The key challenge for us is collection for recycling of beverage packaging, which is the key step to ensure a functioning circular economy. We will continue to invest in innovation for the small percentage of our packaging that currently has recycling challenges, including juice pouches, opaque packaging currently used for dairy beverages, and cartons. And, we will invest in new recycling technologies for PET plastic and other packaging materials.
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And, we will invest in new recycling technologies for PET plastic and other packaging materials. We see a significant opportunity to work more proactively with global and regional customers, many of which have announced their own sustainable packaging goals that can only be achieved in collaboration with key suppliers. Looking ahead, we will build on our longstanding relationships to make collective progress. WHAT’S NEXT DESIGN PARTNERS A&W ANZPAC Plastics Pact Burger King® and Loop™ Coca-Cola Europacific Partners & Pact Group, Cleanaway and Asahi Beverages Changchun Meihe Science & Technology Tesco and Loop™ UPM Virent COLLECT PARTNERS AB InBev 100+ Accelerator BanQu Benioff Ocean Institute Circular Solutions Advisors Circulate Capital Global Plastic Action Partnership & World Economic Forum GPAP Indorama Ventures PETCO Project RECAPP Solar Coca-Cola The Ocean Cleanup™ Collaboratingfor Impact In 2022, we continued to strengthen existing partnerships and establish new ones to align strategically with our World Without Waste priorities and collectively drive progress toward a circular economy. Here are a few examples: We have no time to waste.
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Here are a few examples: We have no time to waste. The need for global coordination to tackle the plastic pollution crisis has never been more urgent. A Business Coalition for a Global Plastics Treaty will push strongly for a framework that leaves the business-as- usual approach at the door and ushers us into a new era where ending plastic pollution is finally within reach.” ERIN SIMON Vice President and Head of Plastic Waste and Business, WWF
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378 OF OUR SUPPLIERS (OUT OF 495 REQUESTED) PROVIDED CLIMATE DATA TO CDP IN 2022 (A 12% INCREASE FROM 2021) 21% SYSTEM-WIDE RENEWABLE ELECTRICITY USAGE IN 2022 SECTIONSCOPE: In this section our climate emissions reduction work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners. Climate Taking well-informed, decisive action to help address climate change is a priority for our company. Climate change poses risks to our business and our stakeholders. By implementing an interconnected approach across our priority sustainability issues, we are reducing the Coca-Cola system’s greenhouse gas (GHG) emissions and building resilience in our business, value chain and local communities. 43THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 7% DECLINE IN IN ABSOLUTE EMISSIONS SINCE 2015 TOWARD A 25% SCIENCE-BASED REDUCTION TARGET BY 2030
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44THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 2030 SCIENCE-BASED TARGET PACKAGING 30–35% A circular economy helps reduce GHG emissions. We are incorporating more recycled material, lightweighting our packaging, investing in recycling infrastructure and using more reusable packaging. In 2023, we are building our capabilities in life cycle assessment (LCA) to further drive synergies between our work on packaging and climate. INGREDIENTS 10–15% We work with our agricultural suppliers to increase energy efficiency and realize carbon sequestration benefits from Nature-Based Solutions (NBS). We also work with leading sustainable sourcing schemes to quantify the impact of sustainable sourcing on emissions reduction. See Sustainable Agriculture for more. MANUFACTURING & OTHER FACILITIES 10–15% We provide system guidance to improve energy efficiency and increase the generation and purchase of renewable energy.
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See Sustainable Agriculture for more. MANUFACTURING & OTHER FACILITIES 10–15% We provide system guidance to improve energy efficiency and increase the generation and purchase of renewable energy. In 2022, there has been new renewable energy generation at system bottling plants in Europe, Latin America, the Philippines, India and the Middle East. DISTRIBUTION 5–10% We’re working to increase fuel efficiency and the use of hybrid and electric vehicles across the system. Coca-Cola Europacific Partners (CCEP) increased their use of hybrid and electric cars and vans in Europe from 12% in 2021 to 20% in 2022 and introduced 30 electric trucks to make last mile deliveries to customers in Belgium, covering approximately 40% of the country’s local delivery routes. REFRIGERATION 30–35% We are continuing to replace older equipment with hydrofluorocarbon (HFC)-free and more energy-efficient coolers. In 2022, 88% of all new coolers placed were HFC-free. This is an increase from 61% of coolers placed in 2016.
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In 2022, 88% of all new coolers placed were HFC-free. This is an increase from 61% of coolers placed in 2016. We are working to reduce our carbon footprint in line with science to avoid the worst impacts of climate change. We do this by analyzing and prioritizing the sources of GHG emissions across our value chain and by partnering with stakeholders to drive down those emissions. As of 2022, we reduced our emissions across Scopes 1, 2 and 3 by 7%, 1 making progress toward our science-based reduction target of 25% by 2030 against a 2015 baseline 1. Our ambition is to achieve net zero emissions by 2050. Several of our bottling partners have announced their own science-based targets and net zero pledges to drive climate action across the global Coca-Cola system. In 2022, our scope 1 emissions were 4.4 million metric tons, scope 2 emissions were 3.5 million metric tons 2 and scope 3 emissions were 57.0 million metric tons.
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In 2022, our scope 1 emissions were 4.4 million metric tons, scope 2 emissions were 3.5 million metric tons 2 and scope 3 emissions were 57.0 million metric tons. Our Carbon Footprint and the A ctions W e Ar e T aking NetworksSupport Our Net Zero J ourney We are part of a number of business networks that are supporting our journey to net zero. As a member of the WWF Climate Business Network, we share best practices to drive collective ambition and scale action together. Participation in the Clean Energy Buyers Association (CEBA) allows us to help deploy market and policy solutions toward a carbon-free energy system. Membership in Ceres’ Company Network has helped to identify opportunities to drive further progress toward net zero emissions. CLIMATE CHANGE GOVERNANCE The Corporate Governance and Sustainability Committee of our Board of Directors oversees climate-related issues. The Committee assists our Board in overseeing the company’s environmental, social, legislative, regulatory and public policy matters, including progress against our science-based emissions reduction target.
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The Committee assists our Board in overseeing the company’s environmental, social, legislative, regulatory and public policy matters, including progress against our science-based emissions reduction target. The committee reports regularly to the full Board on these and other matters. To learn more about our governance structure, see the Governance section. For more on climate- related governance, see our CDP 2022 Climate Change response, Section C1. TheCoca-ColaSystem’sEmissionPercentagesby Scope in 2022 1 This figur e was calculated using the market-based emissions method and therefore includes purchased renewable electricity as part of the system’s overall emissions reduction. For exclusions, please see the criteria statement in the Independent Accountant’s Review Report. 2 This figur e was calculated using the market-based emissions method and therefore includes purchased renewable electricity. 7% SCOPE 1 DIRECT EMISSIONS SCOPE 2 INDIRECT EMISSIONS SCOPE 3 UPSTREAM AND DOWNSTREAM SOURCES 5% 88% Fossil fuels Fleet vehicles Electricity Heat and steam Purchased goods and services Business travel Processing of sold products Downstream transportation and distribution
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45THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY MANAGING CLIMATE RISK Our Risk Steering Committee oversees regular system-wide risk assessments. We integrate climate risk planning into this cross-functional and cross-company Enterprise Risk Management (ERM) process. We regularly evaluate commodity- specific risks and resilience associated with climate impacts on water and our supply chain. Risks that could materially affect our business, financial condition and results of operations are disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022. This includes risks related to the effects of climate change and legal or regulatory initiatives to address climate change. Our management team works to mitigate these risks through, among other things, business continuity planning, setting targets that drive efficiency and making investments to improve our performance and increase resilience. Ultimately, the Corporate Governance and Sustainability Committee of our Board of Directors oversees climate-related risks.
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Ultimately, the Corporate Governance and Sustainability Committee of our Board of Directors oversees climate-related risks. The involvement of our bottling partners and suppliers is essential to achieving our science- based target to reduce absolute scope 1, 2 and 3 GHG emissions by 25% by 2030. The following are examples of how we are working on climate initiatives with partners across our value chain. INCREASING RENEWABLE ENERGY (ELECTRICITY) IN MANUFACTURING One critical strategy for reducing emissions in our system is the increased use of renewable energy in our manufacturing processes. Renewable electricity usage, which was third- party assured for the first time in 2021, increased from 12% in 2021 to 21% in 2022. To build knowledge across our system and increase the generation, procurement and accurate reporting of renewable energy, we published a Renewable Energy Implementation Guidebook in March 2022. This guidebook provides a step-by-step process for associates across the system to implement on-site solar photovoltaic and solar hot water and steam systems, on-site and off -site renewable energy power purchase agreements (PPAs), coupled with energy attribute certificates to align with GHG Protocol Scope 2 quality criteria.
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In addition to the guidebook, we launched a future-facing initiative called the Renewable Energy Project Pipeline in 2022, where we work closely with bottling partners to increase the number of renewable energy projects throughout our system. Approximately 20 bottling partners and 13 concentrate plants have developed 2023–2025 renewable energy plans. As the number and scope of these projects expands, we will look for opportunities to collaborate and share best practices. Coca-ColaEuropacificPartners SignsLandmark Renewable ElectricityA greement Coca-Cola Europacific Partners (CCEP) in Australia signed an eight-year agreement with Alinta Energy, which includes large-scale generation certificates and 13,000 MWh per year of renewable electricity supplied from the Yandin Wind Farm. The long-term agreement started in January 2023 and will help CCEP move closer to its goal of using 100% renewable electricity across all of its markets by 2030. BOTTLING PARTNERS SET SCIENCE-BASED EMISSIONS TARGETS Given the size of our network of bottling partners, they are critically important in making progress toward our climate ambitions.
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BOTTLING PARTNERS SET SCIENCE-BASED EMISSIONS TARGETS Given the size of our network of bottling partners, they are critically important in making progress toward our climate ambitions. Our bottling partners have a major influence on emissions reductions based on what they buy, make and deliver for our shared customers and consumers. In September 2022, Arca Continental committed to setting a science-based target. This adds to the growing list of our bottlers with approved emissions reductions goals through the Science- Based Targets initiative (SBTi). This list includes Coca-Cola Hellenic Bottling Company (CCHBC), Coca-Cola Europacific Partners (CCEP), AB Inbev, Swire Coca-Cola Limited and Coca-Cola FEMSA. We will be working to grow this list in 2023. ENGAGING WITH SUPPLIERS TO TAKE ACTION ON CLIMATE We continue to find new ways to collaborate and support our suppliers to collectively reduce emissions. In 2022, we joined the Supplier Leadership on Climate Transition (Supplier LoCT) initiative, led by Guidehouse along with 18 other companies to mobilize collective climate action by providing suppliers with resources, tools and knowledge to accelerate their decarbonization.
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As of the end of 2022, there were 94 suppliers to the Coca-Cola system participating in the initiative. The company is directly sponsoring 56 of these suppliers. The program is showing signs of success—10 suppliers that we sponsored, who successfully completed the program, have since set or committed to setting their own SBTi- approved emissions targets. In total, more than 160 of our suppliers have set or committed to setting SBTi-approved emissions targets. ReducingEmissionsfromCoolers Coolers have long been a key opportunity because approximately one-third of our emissions comes from cold-drink equipment and dispensing. In early 2023, building on analysis we conducted in 2022, we published internal guidance for coolers used across our value chain. The guidance sets specific energy usage limits, which will require increasing energy efficiency between now and 2030 and help drive the replacement of older, less efficient coolers. We are also installing more “intelligent connected” coolers that can transmit data such as product throughput, maintenance status, temperature and energy use, which has operational benefits in addition to helping reduce emissions. In 2022, 88% of all new coolers placed were HFC-free.
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In 2022, 88% of all new coolers placed were HFC-free. This is an increase from 61% of coolers placed in 2016. TakingA ction A cross OurV alue Chain Thanks to The Coca-Cola Company, in April 2022 we had the great opportunity to join the Supplier LoCT initiative. This program helped us to improve the way we calculate our Scope 1 & 2 emissions and to calculate our Scope 3 emissions for the first time. Last November, we committed to setting a science-based emissions target.” NICOLAS LOOTENS Group Sustainability Manager, Vetropak
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46THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WHAT’S NEXT? Accountingfor Land Use Emissions In line with the launch of the SBTi’s Forest, Land and Agriculture (FLAG) requirements, we are working to update our current science-based target in line with this methodology and a more ambitious trajectory. This new target would consider emissions from land use change in our supply chain as part of our overall GHG footprint and would consider carbon sequestration from land-based projects we implement in our supply chain. While we already work closely with suppliers to engage on water and sustainable agriculture, accounting for land use emissions would require an even closer partnership with our agricultural suppliers. As we incorporate more work across the agricultural supply chain, this would also help us meet evolving climate risk and data disclosure requirements.
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As we incorporate more work across the agricultural supply chain, this would also help us meet evolving climate risk and data disclosure requirements. Coca-ColaBallinaPlant RecognizedbyW orld EconomicForum The World Economic Forum’s Global Lighthouse Network recognized The Coca-Cola Company’s concentrate manufacturing facility in Ballina, Ireland, as a manufacturer showing leadership in applying Fourth Industrial Revolution technologies at scale to drive step-change financial, operational and sustainability improvements by transforming factories, value chains and business models. Investments in the facility’s IT infrastructure, advanced technologies and employee training has led to a 6.8% increase in production in three years (2019–2022) and a 29% energy reduction, which brought emissions back to 2011 levels. The Ballina team’s learnings are being shared globally. IMPROVING DATA SCOPE AND ACCURACY Gathering complete and accurate data is critical to identifying a path to achieving our science- based target. We are continuously improving the scope and detail of our data collection to ensure all significant sources of emissions across our value chain are included in our inventory.
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We are continuously improving the scope and detail of our data collection to ensure all significant sources of emissions across our value chain are included in our inventory. We are updating our 2015 baseline data due to recent acquisitions. Improving our data helps us prioritize projects and programs with the greatest impact, including more detail on renewable energy usage and more data from suppliers. ValidateRenewableEnergy Claims One area of focus has been to validate the accuracy and completeness of our renewable energy claims. We have done this through assuring our claims to the GHG Protocol. This work began in 2021 and continued through 2022. SuppliersDiscloseDataandT argets Because approximately 85% of our total carbon emissions come from goods and services we buy, it is essential to engage with suppliers to accurately capture our full scope 3 emissions and ensure our suppliers join our decarbonization journey. Each year, we encourage key suppliers to complete CDP’s Supply Chain Climate Change questionnaire, which provides useful data on GHG emissions in our supply chain and information on supplier targets and initiatives to reduce emissions.
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Each year, we encourage key suppliers to complete CDP’s Supply Chain Climate Change questionnaire, which provides useful data on GHG emissions in our supply chain and information on supplier targets and initiatives to reduce emissions. In 2022, 378 suppliers provided climate data to CDP out of 495 requested, a 12% increase from 2021. Additionally, we are working to improve data accuracy in partnership with several major suppliers across ingredients and packaging, starting with sugar and aluminum, in order to develop supplier-specific emissions factors for the commodities we procure. This allows us to better understand our supply chain, drive change and more accurately track emissions reductions of specific suppliers and commodities in key areas. Even deeper in our supply chain, work is underway to map and understand how land, water use and farming practices in our major agricultural sourcing regions both generate emissions and have the potential to reduce emissions. Costa began its own work in 2022, launching a Climate Smart coffee project in partnership with the Rainforest Alliance. Phase 1 of the project has been to conduct a GHG feasibility study to better understand the carbon footprint of coffee farms from Costa’s key sourcing origins, including Colombia and Brazil.
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Phase 1 of the project has been to conduct a GHG feasibility study to better understand the carbon footprint of coffee farms from Costa’s key sourcing origins, including Colombia and Brazil. This study is being used to inform the design of scalable climate mitigation interventions.
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1 L eader standard represents supply volume verified to a company-approved, third-party validation, that is aligned with our PSA. SECTIONSCOPE: In this section our Sustainable Agriculture work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners. Sustainable Agriculture Our products and some of our packaging are made from a wide variety of agricultural ingredients which we source from around the world. Our goal is to sustainably source all our ingredients over time. We publicly report on our 12 global priority ingredients—such as sugar, corn, fruit, coffee, tea and soybeans. Sustainably sourcing our ingredients increases the resilience of our supply chain, helps to conserve nature and empowers producers and farm workers. In practice, we encourage and support our ingredient suppliers to drive continuous improvement in sustainable farming practices, based on our Principles for Sustainable Agriculture (PSA).
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In practice, we encourage and support our ingredient suppliers to drive continuous improvement in sustainable farming practices, based on our Principles for Sustainable Agriculture (PSA). 47THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY IN 2022, 64% OF OUR GLOBAL PRIORITY INGREDIENT VOLUMES WERE SUSTAINABLY SOURCED TO OUR LEADER STANDARD1, IN LINE WITH OUR PRINCIPLES FOR SUSTAINABLE AGRICULTURE
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48THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY PRINCIPLES FOR SUSTAINABLE AGRICULTURE IMPROVING WATER MANAGEMENT TO GROW OUR INGREDIENTS 1 These appr oved standards, which can be found on our website, currently include Bonsucro for sugar; the Sustainable Agriculture Initiative Platform—Farm Sustainability Assessment (FSA) for crops including sugar cane, sugar beets and fruit; the Round Table for Responsible Soy for soybean; the Rainforest Alliance for coffee and tea; the Forest Stewardship Council for pulp and paper; and Field to Market for U.S. corn, among other crops. 2 Da ta is based on supplier reporting according to our PSA governance requirements. 3 Sour ce: Food and Agriculture Organization of the United Nations: Water for Sustainable Food and Agriculture, a report produced for the G20 Presidency of Germany In 2022, 64% of our global priority ingredient volumes were sustainably sourced to our Leader standard, in line with our PSA. We currently only report our Leader-level volumes publicly.
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We currently only report our Leader-level volumes publicly. We do not currently report Mover or Improver volumes publicly. Thriving farmers and farming communities are critically important for our supply chain. Our ability to deliver quality products depends on having a sustainable and secure supply of agricultural ingredients. Our complex supply chain spans the globe and includes many kinds of suppliers, from multinational companies to smallholder farmers. Our Principles for Sustainable Agriculture (PSA) communicate our expectations for environmental, social and economic performance to our agricultural suppliers at the farm level. The PSA, introduced in 2021 to replace our Sustainable Agriculture Guiding Principles (SAGP), take a long-term perspective and reflect the most recent science, our total beverage portfolio, and our increasingly diverse supply chain. The PSA are designed to encourage continuous improvement in farming practices and lead to more ethical and sustainable sourcing. The PSA framework for evaluating the compliance and performance of our supply farm base recognizes the on-the-ground realities in sustainable farming practices across a diversity of supply chains, farm structures and risk contexts. Based on the PSA framework, suppliers are designated as either a Leader, Mover or Improver.
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Based on the PSA framework, suppliers are designated as either a Leader, Mover or Improver. We are currently analyzing against the PSA framework the volume of the 12 global priority ingredients we procure. This mapping, which we aim to complete by the end of 2025, will help determine how we engage with suppliers to drive continuous improvement. Our long-term ambition is tw o-fold: • All o f our agricultural-based suppliers will demonstrate continuous improvement and will be categorized by The Coca-Cola Company as either a Leader, Mover or Improver. • All o f our global priority ingredient suppliers and their farm supply base will work toward achieving “Leader” status over time. Basedonthe PSA framework, suppliersaredesignatedas: • LEADER: Supply volume is verified to company approved standards, with third- party assurance aligned with the PSA.1 • MOVER: Supply volume is sourced from farms using other agricultural farming standards, effectively identifying and addressing key sustainability issues and advancing sustainable practices.
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• IMPROVER: Supply volume is sourced from smallholder/small-scale producers participating in a support program to continuously improve their priority sustainability practices. Irrigated agriculture remains the largest user of water globally, accounting for 70% of water use worldwide,3 and has significant impacts on watershed health. Agriculture is also one of the sectors most impacted by water stress and drought. Water use within our agriculture supply chain accounts for the vast majority of the surface water and groundwater consumed in the production of our beverages. Therefore, we are working with our suppliers to help promote the long-term sustainability of water resources through the implementation of advanced water management practices at the farm level. In addition, we are including our priority sourcing regions as part of our water replenishment programs. For example, in 2022, in partnership with Doktar, an agri-tech company, and with funding from The Coca-Cola Foundation, we launched a project in the regions of Bursa and Tekirdağ in Türkiye, which are priority sourcing regions for apples.
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The project aims to improve irrigation efficiency and agricultural practices on approximately 500 acres of land growing apples, peaches, nectarines and tomatoes, which are major water users. Sensors will be installed to monitor climate and soil moisture conditions and satellite data (Sentinel-2 and PlanetScope) will be used to calculate levels of evapotranspiration. All of this data will be combined to provide personalized irrigation programs for participating farmers and help to avoid excessive watering. Drip irrigation infrastructure will be built on selected sites, which helps to reduce water use, and artificial reservoirs will be constructed to capture and hold rainwater to be used for irrigation purposes.
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Drip irrigation infrastructure will be built on selected sites, which helps to reduce water use, and artificial reservoirs will be constructed to capture and hold rainwater to be used for irrigation purposes. It is estimated that drip irrigation will lead to a 20% increase in water efficiency for apple, peach and nectarine production and a 50% increase for 0 20 40 60 80 100 SOYBEANS COFFEE LEMONS ORANGES PULP AND PAPER SUGAR BEETS TEA CORN APPLES SUGAR CANE GRAPES MANGOES 37% 36% 40% 55% 70% 74% 80% 86% 89% 96% 99% 100% 2022 Progress on Sustainable Sourcing2 tomato growing as farmers shift from a flood- based irrigation system. We estimate the project will replenish approximately 500 million liters of water per year. The improvements in water-use efficiency are expected to help reduce costs and increase profitability for the farmers. Over the past year, we have worked closely with our suppliers to map our sourcing regions for our global priority ingredients.
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The improvements in water-use efficiency are expected to help reduce costs and increase profitability for the farmers. Over the past year, we have worked closely with our suppliers to map our sourcing regions for our global priority ingredients. While we recognize that traceability is not always perfect, and our supplier base is dynamic, we have begun to understand sourcing regions for our global priority ingredients that are exposed to high or extremely high water stress. We are focusing on engagement with suppliers in these priority sourcing watersheds. In 2022 and early 2023, we approached more than 45 suppliers that source ingredients from regions facing high or extremely high water stress, to gather data on their water management practices. In 2023, we plan to analyze this information to develop a baseline that will feed a supplier engagement strategy and collective action plan. This partnership has guided us with a focus on the right solutions for young farmers in highly water-stressed regions of Türkiye.” TANZER BILGEN Doktar Co-Founder and CEO
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49THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 1 Sour ce: https://revistacultivar.com.br/noticias/centro-de- citricultura-do-iac-obtem-certificacao-internacional-de- sustentabilidade For details on how we address human rights risks in our agricultural supply chain, see the Human Rights section. For details on how we address deforestation risks in our agricultural supply chain, see our CDP Forests disclosure. Smallholder farmers play an essential role in our supply chain. Their livelihoods can be particularly vulnerable because they lack the resources and scale of commercial farmers. We partner with a range of nonprofits, communities, industry organizations and other companies to support smallholder farmers in becoming more efficient and productive while improving water and climate footprints, managing soil health, maintaining crop protection, and respecting the human rights of their workforce and labor contractors.
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The “Improver” category of our PSA segmentation includes smallholders who may never be able to gain formal certification but who can, with appropriate support, contribute to more sustainable and regenerative agriculture while increasing their own incomes and resilience. ApplyingCompostDrivesPositiveOutcomes for Egyptian V egetable Farmers Agriculture in Egypt faces many challenges, including water scarcity, water pollution, desertification and land degradation. Through a grant from The Coca-Cola Foundation to Global Water Challenge (GWC), United Nations Development Programme (UNDP) and the Egypt Network for Sustainable Development (ENID) implemented a project in the Qena governorate in Upper Egypt to demonstrate the value of using a greenhouse cultivation model to produce vegetables (e.g., eggplants and tomatoes), and the recycling and use of crop residues (materials left over after a crop harvest, e.g., stalks and stems) as compost on local farms. Local farmers and laborers received equipment and training in these improved farming techniques. The application of compost increased the soil moisture holding capacity on farmland and reduced the need for synthetic fertilizer. It is estimated that composting reduced the use of water for irrigation by as much as 23%.
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The application of compost increased the soil moisture holding capacity on farmland and reduced the need for synthetic fertilizer. It is estimated that composting reduced the use of water for irrigation by as much as 23%. This decreased farming costs and generated an additional revenue stream for farmers. The recycling of crop residues provided income and short-term job opportunities for local residents along with longer-term employment prospects for approximately 500 individuals, including almost 100 women, who received training in the production and application of compost. The project also reduced the need for burning, which is the traditional way of disposing of agricultural waste. Regenerative agriculture is often referred to as a system of farming that focuses on positive outcomes that ensure the long-term viability of land to sustain production by working “with nature” rather than against it. A number of our completed and ongoing projects promote sustainable agriculture practices (e.g., use of cover crops) and contribute to positive outcomes, including reduced soil erosion and the buildup of organic matter. We will use key learnings from these projects to inform the design of future projects and incorporate regenerative agriculture principles and practices.
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We will use key learnings from these projects to inform the design of future projects and incorporate regenerative agriculture principles and practices. As a founding member of the SAI Platform’s Regenerative Agriculture Framework, we are supporting the development of an industry solution for measuring outcomes of regenerative agriculture practices at the farm level. We are also actively involved with SAI Platform’s work on the Farm Sustainability Assessment (FSA), a global verification framework and benchmark reference designed to accelerate sustainable agriculture. The latest version, FSA 3.0, includes a self-assessment questionnaire and a continuous improvement module that offers guidance for developing, implementing and monitoring performance improvement plans. StrengtheningSustainable Productionof Oranges in Brazil We are working with partners to support smallholder farmers in Brazil’s citrus sector, which is the largest in the world. Many smallholder farmers in Brazil have struggled, particularly during the COVID-19 pandemic.
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Many smallholder farmers in Brazil have struggled, particularly during the COVID-19 pandemic. As part of an industry initiative named Fruto Resiliente, which began in 2019, we are partnering with Eckes-Granini, Cutrale, one of our citrus juice suppliers, Solidaridad and innocent drinks, with co-funding from The Coca-Cola Foundation, to support nearly 500 smallholder farmers. The project aims to improve sustainable agriculture practices in the production of oranges by providing training to smallholders, including female farmers, in topics such as water, soil management and labor standards. Technical materials and resources (including booklets, podcasts, and videos) are shared for free online, and smallholders benefit from field visits to a demonstration farm operated by Sylvio Moreira Citrus Research Center (CCSM) of the Agronomic Institute (IAC). With project support, this state experimental farm reached the FSA/SAI gold level 1. In 2022, the project directly assisted approximately 200 orange farms. SUPPORTING SUSTAINABLE AGRICULTURAL PRACTICESSUPPORTING SMALLHOLDER FARMERS
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50THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY USA/Arizona, Colorado, Nebraska, Florida, Georgia: Farm irrigation efficiency (alfalfa, corn, peanuts, cotton, pecans) USA/Montana: Water distribution system improvement (alfalfa, barley, beet) USA/Indiana, Michigan, Iowa: Water retention and quality improvement (corn, soybean) USA/California: Groundwater recharge basins (fruits, nuts) USA/Illinois, Iowa, Minnesota: Treatment wetland (corn, soybean) NORTH AMERICA Brazil/Sao Paolo: Improved agricultural practices (oranges) Honduras/San Pedro Sula: Agroforestry and forest protection (fruits) Panama/Colon: Agroforestry and forest protection (coffee, plantain) Paraguay/Canindeyú: Sustainable agricultural practices (black oats,
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plantain) Paraguay/Canindeyú: Sustainable agricultural practices (black oats, perennial crops) LATIN AMERICA Spain/Sevilla: Irrigation efficiency (oranges) UK/East Anglia: Water quality improvement (sugar beet) Spain/Huelva, Valencia: Irrigation efficiency (strawberries, oranges) Italy/Sicily: Irrigation efficiency (citrus fruits) EUROPE Egypt/Qena: Irrigation efficiency (banana) Egypt/Qena: Hydroponics (vegetables, quinoa) Kenya/Turkana: Improved irrigation (many crops) Morocco/Tata, Demnate, Nicer, Assa, Ourika Valley: Irrigation efficiency (date palm, fruits, nuts, medicinal and aromatic plants) South Africa/Eastern Cape: Sustainable agriculture (rosemary, lavandin, livestock) AFRICA Bangladesh: Irrigation efficiency (rice, mango) India/Uttar Pradesh, Karnataka Maharashtra: Yield improvement and water use efficiency (sugar cane) India/12 states: Yield improvement and water use efficiency (many fruits) INDIA & SOUTHWEST ASIA China/Sichuan,
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Karnataka Maharashtra: Yield improvement and water use efficiency (sugar cane) India/12 states: Yield improvement and water use efficiency (many fruits) INDIA & SOUTHWEST ASIA China/Sichuan, Guangxi, Tarim Basin: Irrigation efficiency (tea, pear, sugarcane, cotton, wheat) China/Jilin: Irrigation efficiency (corn) GREATER CHINA & MONGOLIA Japan/Kumamoto, Kanagawa: Water retention and recharge (rice) JAPAN & SOUTH KOREA Australia/Queensland: Water quality improvement (sugarcane) Vietnam/Mekong: Improved flood-based agriculture (rice, lotus, fish) Indonesia/Central Java, East Nusa Tenggara: Improved irrigation (fruits, grains) ASEAN & SOUTH PACIFIC Türkiye/Konya: Conservation agriculture (wheat, barley, rye, oats, corn) Türkiye/Sanliurfa, Bursa: Improved irrigation (cotton, apple, pear, peach, nectarine) Kyrgyzstan/Naryn: Improved irrigation (wheat, barley,
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Bursa: Improved irrigation (cotton, apple, pear, peach, nectarine) Kyrgyzstan/Naryn: Improved irrigation (wheat, barley, potatoes) Uzbekistan/Navoy: Water-saving technologies (cotton, wheat) Gaza: Greywater reuse for irrigation (fruits, alfalfa) Kazakhstan/Kyzylorda, South Kazakhstan: Water-saving technology (many crops) Kazakhstan/Kyzylorda, Karoy, Eskeldi, Jambyl: Improved irrigation (many crops) Pakistan: Wastewater treatment and reuse for irrigation (sugarcane, wheat, cotton) Pakistan/Western Himalaya: Conservation agriculture and forest conservation (vegetables) Pakistan/Gilgit-Baltistan: Improved irrigation (many crops) Pakistan/Lahore: Floating wetlands (sugarcane, wheat,
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wheat, barley) EURASIA & MIDDLE EAST 1 2 3 4 5 6 7 8 9 5 6 1 3 2 4 7 8 9 The Coca-Cola system and The Coca-Cola Foundation have a long history of supporting projects that help improve efficiency of water use in irrigation, promote advanced water management, and drive improvement in sustainable farming practices. Below is a snapshot of some of our projects. ImprovingW ater Use in A griculture Many projects have multiple locations, and many projects have the same description. Many of these projects support agricultural ingredients that are not tied directly to our supply chain. Many of these projects have been funded by The Coca-Cola Foundation.
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Many of these projects support agricultural ingredients that are not tied directly to our supply chain. Many of these projects have been funded by The Coca-Cola Foundation. DemonstratingSustainable SugarcaneProduction In partnership with Biofábrica Siglo XXI, an agro-biotechnological company, and Unión Nacional de Cañeros, A.C.–CNPR, one of the most important canegrower organizations in Mexico, we developed a project in 2021–2022 in Huasteca Potosina and the state of Morelos in Mexico to demonstrate the positive outcomes of regenerative agriculture practices in the production of sugarcane. Farming practices promoted include the use of biofertilizers—made from microorganisms—and compost. The 24-month project is expected to show that such a production model can increase productivity, reduce the need for chemical fertilizer, improve soil health and increase carbon sequestration and retention. In 2022, the project was one of the winners of the Bonsucro Impact Fund.
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SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 1 As o f December 31, 2022. People & Communities OUR PEOPLE POWER OUR PURPOSE Our focus on people starts with our employees. They steward our beloved beverage brands, fuel our innovation agenda, drive our sustainability priorities and programs, and create a multiplier effect in local communities through partnerships with governments, nonprofits, industry peers and other stakeholders. We remain committed to caring for the people across our value chain who contribute to our success— by respecting human rights across our operations and supply chain, empowering access to equal opportunities, supporting more sustainable agriculture practices, and giving back to communities through our philanthropic initiatives. And we use our global scale as a force for progress and for good.
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And we use our global scale as a force for progress and for good. 51THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT ~700K EMPLOYED BY THE COCA-COLA COMPANY AND OUR APPROXIMATELY 200 BOTTLING PARTNERS ~82.5K EMPLOYED BY THE COCA-COLA COMPANY 1
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52THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY HUMAN RIGHTS OUR COMMITMENT TO HUMAN RIGHTS As a part of our Real Impact framework, we are renewing and refining our Human Rights Policy. The new Policy will draw on our stakeholder engagement and risk assessment to better align with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. The rights underpinning our commitment are drawn from the International Bill of Human Rights, the ILO Core Conventions, and other instruments foundational to the dignity of vulnerable stakeholders. While we are committed to respecting all human rights, we have identified 10 of our most salient issues: 1. Sa fe and healthy workplace 2. Div ersity and inclusion 3. F reedom of association 4. P rohibition on slavery and forced labor 5. P rohibition of child labor 6.
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Sa fe and healthy workplace 2. Div ersity and inclusion 3. F reedom of association 4. P rohibition on slavery and forced labor 5. P rohibition of child labor 6. W ork hours, wages, and benefits 7. Land righ ts 8. W ater and environmental stewardship 9. P rivacy 10. C onsumer wellbeing Our Human Rights Policy is embedded in expectations of our employees through the company’s Code of Business Conduct, and its precepts are extended through our supply chain through the Supplier Guiding Principles (SGP) and our Principles for Sustainable Agriculture (PSA). In line with the UN Guiding Principles, we carry out human rights due diligence across our value chain. We regularly assess our key human rights risks to ensure that we are taking sufficient steps to identify and address them and, if needed, to support remediation of impacts. Respecting human rights is one of our core values.
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We regularly assess our key human rights risks to ensure that we are taking sufficient steps to identify and address them and, if needed, to support remediation of impacts. Respecting human rights is one of our core values. The Coca-Cola Company was among the first companies to commit to the United Nations Guiding Principles on Business and Human Rights in 2011, and we have strived to inspire and drive responsible business practices ever since, embedding respect for human rights across our business and value chain. REAL IMPACT: SETTING THE STAGE FOR THE FUTURE The foundation of our human rights program is our commitment to continuous improvement. That’s why, in 2022, we engaged a human rights advisory firm to conduct a holistic and rigorous review of our human rights program to ensure that we remain at the vanguard of responsible business. The process included extensive engagement with internal and external stakeholders to understand their primary human rights concerns and their expectations of an industry-leading program. We also conducted a global risk assessment to identify salient human rights risks 1 across our global value chain and evaluate the strength of our governance to meet future challenges. The aim of this extensive analysis was to establish a framework to drive meaningful human rights progress across our operations and value chain.
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The aim of this extensive analysis was to establish a framework to drive meaningful human rights progress across our operations and value chain. The result of our year-long assessment is Real Impact, a new vision for the company’s human rights program. Our mission is to take actions that lead to a better tomorrow. We will take the lessons learned from existing programs and partnerships and seek to scale and adapt best practices across more geographies to deliver real impact to more people across our value chain. We will work to drive progress across our company, our industry and beyond through rigorous analysis, creative partnerships and constant innovation to turn commitment into action. 1 Salien t human rights risks are human rights at risk of the most severe negative impact through a company’s activities and business relationships. Thefutureof human rights at T he Coca-Cola Company is empowerment. Real Impact is our new framework for tomorrow. It is about respecting rights while working to drive progress. We will seek to bring enduring changes to the lives of those we touch around the world. To make our ambition concrete, Real Impact is grounded in three signature initiatives.
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It is about respecting rights while working to drive progress. We will seek to bring enduring changes to the lives of those we touch around the world. To make our ambition concrete, Real Impact is grounded in three signature initiatives. Our New Frameworkt o T ransform T omorrow For more information about our vision for the future, click on the icon. To make our ambition concrete, Real IMPACT includes three signature initiatives. Real IMPACT Toward a Better Tomorrow Driving meaningful and enduring change in the lives of everyone touched by the commodities at the heart of our products — from smallholder farmers and their families to the communities we serve. Empowering workers across our value chain — from upstream supply chain workers and our 700,000+ system employees to down- stream informal waste collection workers supporting recycling around the world. IMPACT AgricultureIMPACT Work Developing transformative due diligence and remediation programs through emerging technologies and creative partnerships with stakeholders and experts.
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IMPACT AgricultureIMPACT Work Developing transformative due diligence and remediation programs through emerging technologies and creative partnerships with stakeholders and experts. IMPACT Innovation 2Real IMPACT: Toward A Better Tomorrow SECTIONSCOPE: In this section, our Human Rights Policy and Supplier Guiding Principle audits refer to actions by the company as well as our owned and independent bottling partners and our Tier 1 independent suppliers and partners.
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53THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY EMBEDDING HUMAN RIGHTS ACROSS OUR NETWORK Our industry-leading global audit program is a key component of our long-term, ongoing commitment to supporting human rights. We use the same rigorous SGP protocols to audit our own operations as we do our bottling partners and Tier 1 suppliers (packaging and ingredients). In 2022, we conducted 2,770 audits and found that 99% of our own operations, 93% of system bottlers and 91% of our Tier 1 suppliers complied with our SGP protocols. These audit results are reviewed by the Corporate Governance and Sustainability Committee of our Board of Directors on an annual basis. While this process helps us hold our company and partners accountable, we also focus on building capacity to support respect for human rights across our value chain.
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While this process helps us hold our company and partners accountable, we also focus on building capacity to support respect for human rights across our value chain. This includes providing training and resources such as checklists, toolkits and guidelines. In 2022, we conducted bottler and supplier human rights-focused training across seven of our operating units, attended by over 1,000 participants. COLLABORATING TO COMBAT FORCED LABOR Forced labor is a human rights issue that plagues global supply chains and is a risk in virtually every company’s value chain. No company can solve this systemic failure alone—collaboration is the cornerstone of progress. We have joined with other companies as part of The Consumer Goods Forum to support its Human Rights Coalition (HRC). Serving as Co-Chair of the HRC, The Coca-Cola Company has helped HRC drive action to: • Help mak e Human Rights Due Diligence (HRDD) the norm in our industry by implementing forced labor-focused HRDD systems; • Impl ement HRDD systems in certain targeted high-risk supply chains, starting with palm oil in the People Positive Palm Project; and • Support the development of responsible recruitment markets through capacity building and government advocacy.
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53
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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207
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nestle.pdf
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We also collaborate with leading responsible businesses as part of the Leadership Group for Responsible Recruitment. This business group works closely with international organizations, trade unions, and key NGOs such as the Institute for Human Rights and Business and Verité to eliminate all worker fees in recruitment, both in law and in practice, by 2026. Our Value Chain Examples of Human Rights Due Diligence Approaches FARMS GROWING INGREDIENTS PRINCIPLES FOR SUSTAINABLE AGRICULTURE (PSA) VALIDATION Third-party validation programs approved under our PSA SELF-ASSESSMENT ECOVADIS PLATFORM Validated self-assessments to monitor environmental and social performance—over 2,000 system suppliers on the platform SUPPLIER GUIDING PRINCIPLES (SGP) AUDITS Audits against our SGP protocols at facilities— ~2,700 audits annually SGP AUDITS FOR WASTE MANAGEMENT Customized audit module to understand and improve the economic conditions and practices for people working across the waste collection sector INDIRECT SUPPLIERS (e.g.,
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53
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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208
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nestle.pdf
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700 audits annually SGP AUDITS FOR WASTE MANAGEMENT Customized audit module to understand and improve the economic conditions and practices for people working across the waste collection sector INDIRECT SUPPLIERS (e.g., information technology) TIER 1 SUPPLIERS (Packaging & Ingredients) MANUFACTURING (Company-owned facilities & bottling partners) END-OF-USE PACKAGING COLLECTION HumanRightsDueDiligenceAppr oaches A cross OurV alue Chain 2,770 AUDITS conducted in 2022 See our Human Rights 2022 Overview for comprehensive disclosures of our human rights policies, governance, due diligence, as well as access to remedy and grievance mechanisms.
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53
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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209
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nestle.pdf
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54THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 1 Sour ce: https://www.pewtrusts.org/en/research-and-analysis/ articles/2020/07/23/breaking-the-plastic-wave-top-findings LIVING WAGE As part of our commitment to respect human rights, we are actively engaging on the topic of a living wage. Over the past year, we have partnered with Business for Social Responsibility (BSR) to conduct a rigorous living wage gap analysis across our global offices and company- owned manufacturing sites. While further analysis is needed, we are proud to meet or exceed the BSR living wage benchmark in the vast majority of our own operations. Where gaps exist, we will be developing a roadmap to progress toward a living wage.
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54
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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