Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate
• Water
• Packaging and Waste
• Product Choice
• Sourcing
• Our People
• Community

Environmental Achievements

• Reduced GHG emissions in core operations by 0.45% against an increase in production, compared to the 2018 baseline.
• Achieved 100% water replenishment.
• 83% of waste recycled or recovered in Taiwan (over 690 tonnes in 2019).

Social Achievements

• Launched the “Tap, Return & Earn” Beverage Bottles Redemption Scheme in Hong Kong, collecting over 830,000 plastic bottles.
• Provided unconscious bias training to 715 managers in Chinese Mainland and Taiwan.
• Launched the Male Allies initiative to engage men in leadership positions to advocate for gender equality.

Governance Achievements

• Established a Diversity and Inclusion Steering Committee (DISCO) to oversee implementation of the D&I strategy.

Climate Goals & Targets

Environmental Challenges

• Inaccurate, timely and substantiated figures on packaging collected after consumption and disposal.
• Primary packaging types which are not technically recyclable.
• Lack of transparency about what happens to recycled material.
• Road accidents remain the major cause of lost time injuries in Chinese Mainland.
• Manual material handling injuries remain the top priority in our U.S. operations.

Mitigation Strategies

• Conducting a comprehensive review of waste streams to find alternative disposal options.
• Implementing defensive driving training and providing safety helmets in Chinese Mainland.
• Implementing the Pristine Condition programme to reduce manual handling injuries in the U.S.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• TCCC’s Code of Business Conduct and Supplier Guiding Principles (SGP)
• Swire Pacific’s Supplier Corporate Social Responsibility (CSR) Code of Conduct
• The Coca-Cola Operating Requirements (KORE)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events that could disrupt supply chains

Transition Risks

• Changing regulations and consumer preferences as the world shifts to a low-carbon economy

Opportunities

• Transition to renewable energy; increasing recycled content in packaging.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001, ISO/FSSC 22000, OHSAS 18001

Third-party Assurance: Deloitte (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low- and no-sugar beverages; mini cans; products with recycled content.

Awards & Recognition

• Numerous awards for energy and water saving; Caring Company 2019; GS1 Hong Kong Quality Food Traceability Scheme 2019 - Diamond Award.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Packaging and Waste
• Sugar Reduction
• Employees
• Community Engagement
• Sourcing

Environmental Achievements

• 24% reduction in GHG emissions from core operations since 2018
• 21% of electricity used in core operations was from renewable sources
• Four plants operate on 100% renewable electricity
• 85% waste generated in core operations was diverted from landfill and incineration
• Almost all (>99% by weight) primary packaging materials used were technically recyclable
• Water Use Ratio decreased year-on-year from 1.81 to 1.75 L/L
• Developed new CDE that use 50% less electricity
• Patented new technology to reduce greenhouse gas emissions associated with cold drink equipment (CDE)

Social Achievements

• Reduced total injury rate by 20% since 2018
• Reduced lost time injury rate by 26% and lost day rate by 27%
• Proportion of female managers: 30%
• Proportion of female staff: 29%
• Invested over HK$20 million and donated more than 8 million bottles of beverages in supporting communities
• More than doubled the Average Volunteering Hours per employee to 1.88 hours
• Launched the world’s first individual sale label-less bottled water in Hong Kong

Governance Achievements

• Enhanced Sustainable Development Governance with two new group-level committees to drive diversity and inclusion and safety, chaired by our Managing Director
• Linked Executive Compensation to safety targets including reductions in total injury rate (TIR) and lost day rate (LDR)

Climate Goals & Targets

Environmental Challenges

• Achieving 100% RE in our U.S., Hong Kong and Taiwan markets will be difficult, given the limited current and projected availability of local RE.
• Newly acquired operations in Vietnam, Cambodia and the Chinese Mainland have implications for our projected absolute emissions.
• Regulations in the Chinese Mainland limit recycled material applications in food-grade packaging, and our ability to meet our packaging recycled content target and SBT is dependent on these regulations changing.
• Our supplier base consists of diverse industries, business models, and levels of maturity and ambition regarding sustainability.
• While we are looking for ways to reformulate recipes and exploring different sugar alternatives to reduce sugar in our beverages, it is challenging for us to maintain the taste consumers love so that the low- or no-sugar products can be widely accepted by consumers and become their preferred beverage choice.
• Meeting our collection and recovery target requires a more efficient recycling value chain, especially in the Hong Kong SAR and U.S., and more reliable data on collection and recovery rates.

Mitigation Strategies

• Exploring the most credible options for achieving 100% RE.
• Reviewing their performance and integrating them into our targets is a priority for 2023.
• Working with suppliers to increase their awareness of our corporate target and support them to reduce emissions.
• Reformulating 22 beverages in the U.S. to reduce sugar content.
• Introducing and promoting low- and no-sugar options.
• Supporting and facilitating EPR schemes.

Supply Chain Management

Supplier Audits: 85 suppliers reviewed for compliance with the SGP and PSA

Responsible Procurement

• Supplier Guiding Principles (SGP)
• Principles for Sustainable Agriculture (PSA)
• The Coca-Cola Operating Requirements (KORE)
• Swire Pacific Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Coastal flooding
• Fluvial flooding
• Drought
• Wildfire
• Tropical cyclones
• Extreme temperatures and heat stress
• Water stress

Transition Risks

• Carbon pricing
• More ambitious national decarbonisation plans
• Tighter building energy codes
• Increase in insurance premiums
• Reputational damage

Opportunities

• Use of more efficient production and distribution processes
• More use of green and low-carbon technology
• More use of renewable energy
• Changing customer preferences
• Sustainable finance

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD

Certifications: ISO 14001, ISO 45001, FSSC 22000

Third-party Assurance: Deloitte Touche Tohmatsu

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 12 (Responsible Consumption and Production)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

The report highlights how initiatives contribute to these goals throughout the document.

Sustainable Products & Innovation

• Label-less Bonaqua mineralised water
• New lightweight returnable glass bottles
• DASANI in 100% rPET bottles
• Sprite bottles changed from green to clear
• Aquarius in recyclable pouches
• 330ml sleek can in Taiwan

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change and GHG Emissions
• Water Stewardship
• Packaging and Waste
• Sugar Reduction
• Responsible Production and Marketing
• Ethical and Sustainable Sourcing
• Safety
• Empowering Employees
• Community Engagement

Environmental Achievements

• Year-on-Year Reduction in Scope 1 and 2 GHG emissions despite significant business expansion
• Electricity used in core operations was from 26% Renewable Sources
• Shanghai Shenmei Jinqiao plant was the 1st Swire Coca-Cola plant to receive Zero Waste to Landfill Certification
• Reduced Average Sugar Content per 100mL of beverages in the Taiwan market by 23% from our 2018 baseline
• All CDE purchased in Chinese Mainland are 50% More Energy Efficient

Social Achievements

• Reduced Total Injury Rate by 10.4% from 1.72 to 1.54
• Increased the proportion of Women in our Overall Workforce to 32.5%
• Increased the proportion of Women Managers to 32%
• Average Volunteering Hours per employee, amounting to >150,000 Hours of Service
• Contributed in Cash Donations and Cases of Beverages Donated with a value >HK$13 million

Governance Achievements

• Incorporated Two New Markets, Convened a Sustainable Development Expert Panel
• Engaged >1,200 stakeholders for their views on SD topics through a Consumer and Employee Sentiment Review

Climate Goals & Targets

Environmental Challenges

• Realising ambition for growth whilst also reducing environmental footprint
• Waste management infrastructure in Cambodia and Vietnam is challenging
• Pricing pressure: Increasing competition, limited resources and disruptive business models like DIY sodas may impact slim profit margins
• Health: Increasing competition and health consciousness require innovation to meet changing consumer demands
• Reaching our RE Goals across the Group
• Maintaining Momentum across an Expanding Business
• Tracking our Performance: Water withdrawal is influenced by a variety of factors
• Driving the Business Case: Water utility charges do not reflect the true cost of water
• Physical Constraints: Space constraints at some of our facilities limit some of the initiatives we could implement to improve our WUR
• Competitive Landscape for PET
• Developing Collection and Recovery Systems
• Conflict between Guidelines and Local Practices
• Limited Influence on Intermediaries
• Addressing Local Community Needs
• Responding to Cultural Contexts
• Increasing the Number of Women in Executive Leadership Roles

Mitigation Strategies

• Working towards fully integrating our new businesses into our goals and targets
• Working with recyclers and increasing recycled content in packaging in Southeast Asia
• Working with suppliers on an innovative semi-chemical PET recycling solution for packaging
• Investigating the adoption of the IFRS Sustainability Disclosure Standards
• Incorporating feedback into our next materiality assessment exercise
• Piloting an ICP and requiring teams to incorporate environmental factors in CAPEX decisions
• Recalculating our Baseline GHG Emissions to factor in our business expansion and resubmit our SBT with an updated FLAG target
• Continuing to roll out our Internal Carbon Price pilot
• Working with our consultant to help us develop a Roadmap for RE Options in our SEAHKT Region
• Engaging suppliers to develop Supplier-specific Emission Factors
• Leveraging tools developed by TCCC and a recent water roadmap study initiated by our parent company, Swire Pacific, to Review and Refine our Approach to water stewardship
• Continuing to use the Six-step Approach to support our suppliers in the Chinese Mainland to reduce by at least 30% GHG emissions across their own value chains by 2030
• Empowering and educating procurement category managers in Scope 3 Emissions and SBTs
• Promoting and collaborating with suppliers on the LCA Platform
• Improving the AD Tracker
• Continuing to promote the use of Recycled Material in Food Packaging
• Promoting our sustainable development requirements to suppliers in our Supply Agreements
• Working with our community partners to create Customised CSR Projects
• Organising a greater variety of Volunteer Activities
• Enhancing Collaboration by encouraging all markets to engage in volunteer activities under a similar theme

Supply Chain Management

Supplier Audits: 460 suppliers audited in 2023

Responsible Procurement

• Supplier Guiding Principles (SGP)
• Principles for Sustainable Agriculture (PSA)
• The Coca-Cola Operating Requirements (KORE)
• Sustainability clauses in supply agreements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Water stress and drought

Transition Risks

• Changes in demand
• Policy & Legal changes
• Increased scrutiny of Scope 3 GHG emissions

Opportunities

• Development of energy-efficient products
• Improved financing and insurance arrangements

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, FSSC 22000

Third-party Assurance: Deloitte Touche Tohmatsu (Limited Assurance)

Sustainable Products & Innovation

• Bonaqua mineralised water in RGB
• 100% rPET Bonaqua bottles
• Next-generation CDE
• Recyclable EVOH bag-in-box packaging

Awards & Recognition

• Best Energy Efficiency plants (CBIA)
• Recycler of the Year – Community Impact award (Washington State Recycling Association)
• Leading Environmental Practices Award (Association of Washington Business)
• Best Companies to Work for in Asia (Hong Kong) (HR Asia)
• 2022-2023 Healthiest Workplace in China (Mercer China)
• Great Place to Work® in Cambodia and Vietnam