Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Resources Management
• Packaging and Recycling
• Energy Consumption Management
• Employment Compliance and Anti-Discrimination
• Occupational Health and Safety
• Training and Development
• Compliance Management
• Intellectual Property Protection
• Food Quality and Safety
• Customer Service and Communication
• Responsible Marketing
• Development of New Low-sugar and Healthy Products
• Supplier Audit Procedures
• Green Procurement
• Digital Transformation and Reform
• Information Safety and Privacy Protection
• Rural Revitalization
• Community Development and Public Welfare and Charity
• Waste Management
• Wastewater Management
• Waste Gas Management
• Biodiversity Protection

Environmental Achievements

• Reduced water consumption by 146,800 tons.
• Reduced energy consumption per ten thousand yuan (output value) by 5.65% compared to 2020.
• Achieved 100% water return.
• Reduced carbon emissions per ten thousand yuan (output value) by 24.55% compared to 2020.
• 20 COFCO Coca-Cola bottling plants obtained ISO 14001 certification.
• 14 bottling plants received the title of "Green Factory" at or above the provincial level (7 national level).

Social Achievements

• Maintained 100% compliance with wastewater discharge standards.
• Achieved 100% compliant disposal of hazardous waste.
• Achieved 100% harmless disposal of kitchen waste.
• Overall employee engagement rate of 94.1% and overall satisfaction rate of 94.7%.
• No workplace fatalities.
• No confirmed violations of laws or regulations concerning employment compliance and anti-discrimination.
• No incidents of employing child labor or forced labor.
• 100% settlement rate of consumer complaints.

Governance Achievements

• Established a "3+1" ESG governance structure.
• Established a compliance risk identification and reporting mechanism.
• Revised the COFCO Coca-Cola Compliance Management Regulations.
• Published the COFCO Coca-Cola Compliance Management Interim Measures and COFCO Coca-Cola Anti-monopoly Compliance Guidelines.
• Conducted over 20 compliance management training sessions.
• No incidents of corruption, bribery, extortion, fraud or money laundering.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (e.g., extreme cold, extreme heat, typhoons) impacting operations and supply chain.
• Climate warming and sea level rise affecting water resources and coastal operations.
• Policy and legal risks related to carbon quota, carbon pricing, and carbon-related disclosure requirements.
• Technological risks related to the need for energy-efficient and low-carbon technologies.
• Market risks related to consumer awareness of environmental impact.
• Reputation risks related to climate change issues.

Mitigation Strategies

• Improved information access and timely adjustments to production strategies.
• Regular equipment maintenance and enhanced disaster resistance.
• Improved energy conservation and emission reduction management systems.
• Increased use of renewable energy (PV power).
• Active participation in carbon emissions trading and carbon footprint investigations.
• Development of low-carbon products and green materials.
• Strengthened research and development of green and low-carbon drinks.
• Increased communication with stakeholders.
• Public service activities to enhance the Company’s green and healthy corporate image.

Supply Chain Management

Supplier Audits: 118 suppliers audited

Responsible Procurement

• Three-level supplier audit (business, technical, social responsibility).
• Use of China Foods Procurement Management Platform (CPMS).
• Promotion of green procurement.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Climate warming
• Sea level rise

Transition Risks

• Policy and legal risks related to carbon pricing and emissions.
• Technological risks related to the need for energy-efficient and low-carbon technologies.
• Market risks related to consumer awareness of environmental impact.

Opportunities

• Improved resource efficiency.
• Energy transition to renewable sources.
• Development of low-carbon products and services.

Reporting Standards

Frameworks Used: GRI Standards (2021), Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001

Sustainable Products & Innovation

• Low-sugar and sugar-free products.

Environmental Metrics

ESG Focus Areas

• Green initiatives
• Sustainable high-quality development
• Employee wellbeing
• Corporate Governance

Environmental Achievements

• Prioritising the reduction of unit energy consumption and emissions to strive for “zero deaths, zero serious injuries, zero exceedances, zero pollution” throughout the year.

Social Achievements

• Employees are paid according to their positions, performance, experience and prevailing market practices, and are provided with management and professional training. Employees in Hong Kong are provided with retirement benefits, either under a Mandatory Provident Fund exempted ORSO scheme or under the Mandatory Provident Fund scheme, as well as life insurance and medical insurance. Employees in Mainland China are provided with pension insurance, medical insurance, work injury insurance, unemployment insurance, maternity insurance and housing fund contributions in compliance with the requirements of the laws of China.
• The Group emphasizes a “contributor-oriented” talent development concept and provides employees with a robust career development platform and a comprehensive training system.

Governance Achievements

• Adhere to corporate governance standards as mandated by law, and focus on continuously improving compliance across all operational aspects.
• Persistently optimising the organisational structure and salary incentive mechanism based on the contributor-oriented principle to ensure a solid foundation for the rapid, healthy and sustainable development of the business.

Climate Goals & Targets

Environmental Challenges

• Overall softening demand in the sparkling drinks category leading to a year-on-year decline in sales revenue.
• Increased procurement price of cans due to higher international and domestic aluminum prices.
• External instability and uncertainty, compounded by numerous domestic challenges.

Mitigation Strategies

• Actively implemented a series of optimisation and integration measures to improve efficiency, which effectively reduced sales and management expense rates while enhancing the operating profit margin.
• Maintained a strong emphasis on managing capital expenditure and operating cash flow to mitigate risks effectively.
• Enhancements to product structure and optimisation of the business mix, aimed at boosting the gross profit margin.

Supply Chain Management

Responsible Procurement

• Perform thorough analysis of raw material price trends, broaden the scope and scale of centralised procurement, and enhance the accuracy and effectiveness of resource allocation to maximise returns.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKFRS

Third-party Assurance: Baker Tilly Hong Kong Limited