Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace
• Environment
• Marketplace
• Community

Environmental Achievements

• 52 of 85 CCHBC bottling facilities implemented ISO 14001 compliant environmental management systems.
• Reduced water consumption ratio per litre of beverage produced by an unspecified amount.
• Reduced energy consumption ratio per litre of beverage produced by an unspecified amount.
• Reduced solid waste generation from operations ratio per litre of beverage produced by an unspecified amount.
• Increased waste recycling in operations by an unspecified amount.

Social Achievements

• Launched an open, interactive discussion group involving employees at every level in Austria.
• Implemented a new Graduate Trainee Programme in Greece.
• Won the Coca-Cola Company President’s Quality & Environmental Award in Poland.
• Won the UK Charity Times Award for Corporate Community Involvement in Northern Ireland.
• Implemented a comprehensive programme in Poland reducing water use by as much as 17%.

Governance Achievements

• Established three sub-committees under the Board of Directors: Human Resources Committee, Audit Committee, and Social Responsibility Committee.
• Implemented various measures to enhance internal control and management.
• Linked executive compensation to Corporate Social Responsibility activities such as environmental, occupational, and health & safety.

Climate Goals & Targets

Environmental Challenges

• Water resource management in countries with low water resources and low technicity in water treatment.
• Energy consumption due to fossil fuel reliance.
• Solid waste generation from operations and consumer behavior (littering).
• Inadequate recycling capability in several countries.
• Limited infrastructure for energy recovery.

Mitigation Strategies

• Implementing water recovery projects, re-using clean cooling water.
• Implementing energy saving projects (capturing excess heat, re-using hot air, energy-saving lighting).
• Implementing waste separation and collection procedures, increasing recycling ratio.
• Working with suppliers to reduce packaging material weight and quantity.
• Working with Packaging Associations and Recovery Organizations to improve collection and recovery of packaging materials.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requiring suppliers to be more involved in Coca-Cola HBC’s environmental endeavors.
• Using supplies of raw materials from suppliers approved by The Coca-Cola Company.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2000, ISO 14001, OHSAS 18001

Third-party Assurance: Denkstatt

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight PET bottles
• Single piece closures
• Reduced weight glass bottles
• Aseptic PET lines for non-carbonated beverages

Awards & Recognition

• Coca-Cola Company President’s Quality & Environmental Award (Poland)
• UK Charity Times Award for Corporate Community Involvement (Northern Ireland)
• Best Employer in the Food Industry in Poland (Poland)
• Outstanding Performance award from the Croatian Association for Development of Protection at Work (Croatia)

Environmental Metrics

ESG Focus Areas

• Environment
• Marketplace
• Community
• Workplace

Environmental Achievements

• Improved water efficiency by 18% since 2002
• Improved energy efficiency by 21% since 2002
• Increased recycling in bottling plants by 35% since 2002
• Reduced solid waste ratio by 11% in 2006
• Increased waste recycling by 10% in 2006
• 81% of volume produced in plants with ISO 14001 certification
• Energy savings of 40% and CO2 reductions of about 10,000 tonnes in Hungary due to tri-generation power plant

Social Achievements

• Implemented UNESDA commitments to responsible marketing
• Broadened product range to include juices, waters, and other health and functional beverages (representing almost one-third of sales by the end of 2006)
• Supported multi-stakeholder initiatives to address obesity
• Implemented action plans in response to an employee engagement survey
• Provided 17 hours of training per employee on average in 2006
• Launched new leadership development program "A Passion to Lead"

Governance Achievements

• Established clear accountability for social and environmental performance at both Executive and Board levels
• Implemented certified management systems (ISO 9001, ISO 14001, OHSAS 18001) in a high proportion of facilities
• Integrated CSR into business objectives of almost all managers and employees
• Introduced a management information system for operational, regulatory, and compliance risks

Climate Goals & Targets

Environmental Challenges

• Health and wellness concerns (obesity debate)
• Energy use and climate change
• Water risk management
• Packaging waste
• 19 fatalities in the course of work in 2006 (15 from road accidents)
• Water availability
• Corruption in 19 of 28 territories

Mitigation Strategies

• Implemented UNESDA commitments
• Broadened product range to include healthier options
• Assessed carbon footprint and implemented measures to reduce impacts (energy management devices, new cooler technology, internal carbon tax on air travel)
• Implemented certified management systems
• Launched concerted efforts to address causes of fatalities (driver safety programs)
• Established a water risk team to analyze and mitigate risks
• Educated employees about Code of Business Conduct and disseminated the importance of business ethics in communities

Supply Chain Management

Supplier Audits: 650 audits globally by 2006

Responsible Procurement

• Inclusion of social, ethical, and environmental criteria in contracts
• Supplier Guiding Principles programme of The Coca-Cola Company

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI (2002 Guidelines)

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Denkstatt Umweltberatung und Management GmbH

Sustainable Products & Innovation

• New flavoured mineral waters and juices fortified with vitamins or antioxidants

Awards & Recognition

• Chambers Ireland President's Award for best environment programme
• Awards and citations for workplace environment in six countries
• Named number one destination for Irish and Polish graduates
• Ranked among top three workplaces in Italy
• One of the most inspiring companies in Ukraine
• Green Danube programme won awards in Hungary and Bulgaria

Environmental Metrics

ESG Focus Areas

• Water Stewardship
• Energy & Climate Change
• Packaging & Recycling
• Consumer Health
• Employee Development
• Supplier Engagement
• Community Involvement

Environmental Achievements

• Reduced water ratio by 3.4% (25% below 2002 levels)
• Reduced energy use by 4.2% (-31% vs 2002)
• Completed 3 CHP units
• Purchased more than 10,000 coolers with energy management devices
• Safe&Eco-Driving cut fleet emissions by 6,600 tonnes
• Packaging efficiency improved 9% vs 2008
• Avoided more than 4,500 tonnes of packaging through lightweighting
• Recycled equivalent of 66% of bottles and cans (exceeding 2015 goal)

Social Achievements

• 3-year safety plan underway, 26% fewer serious accidents than previous year
• Leadership Pipeline expanded to 50% of front-line managers
• Average employee training rose to 20 hours/year
• 35 additional suppliers jointly audited
• Community investment increased to 1.9% pretax profit
• Launched first impact assessments

Governance Achievements

• Adopted UNGC anti-corruption reporting guidance
• New anti-corruption training programme

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting business and workforce
• Need to reduce budget cuts while maintaining sustainability commitments
• Addressing environmental impacts of supply chain
• Improving safety performance
• Maintaining support to suppliers during economic downturn

Mitigation Strategies

• Cost-saving measures applied across the business while maintaining sustainability commitments
• Developed corporate water footprint to address supply chain impacts
• Implemented 3-year safety plan
• Joint auditing with The Coca-Cola Company to reduce burden on suppliers
• Continued support to suppliers through economic downturn

Supply Chain Management

Supplier Audits: 35 additional suppliers jointly audited in 2009

Responsible Procurement

• Supplier Guiding Principles built into supplier contracts and audited
• Sustainable procurement focusing on products with greatest environmental impacts
• Collaboration with suppliers to develop resource-efficient and low-carbon technologies

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Adverse weather conditions

Transition Risks

• Regulatory changes affecting packaging, product delivery, and distribution

Opportunities

• Increased returns on investments in energy efficiency and renewable power generation
• Competitive advantage with customers seeking to reduce their carbon footprint

Reporting Standards

Frameworks Used: GRI G3 (Level B-), AA1000 (principles), Greenhouse Gas Protocol, Water Footprint Network, London Benchmarking Group (LBG)

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

Third-party Assurance: Third-party assurance for environmental, quality, and health & safety management systems; LBG for community investment; UNESDA for compliance with commitments; independent auditors for supplier compliance

Sustainable Products & Innovation

• HFC-free cold drink equipment
• Reduced-calorie beverages
• Nutritionally enhanced beverages

Awards & Recognition

• Listed on Dow Jones Sustainability Indexes (World and European STOXX)
• Listed on FTSE4Good Index
• Official Partner of European Commission’s Sustainable Energy Europe Campaign
• Various awards for water stewardship, consumer health, and community programmes

Environmental Metrics

ESG Focus Areas

• Community Trust
• Consumer Relevance
• Customer Preference
• Cost Leadership
• People

Environmental Achievements

• Reduced operational carbon emissions by 11.7% vs. 2014 (634,910 tonnes)
• Reduced global carbon footprint of products by 3.6% (4.175 million tonnes of CO2)
• Reduced water consumption by 5.5% compared with the prior year (1 million cubic meters)
• Improved water use ratio by 5.5% compared with the prior year
• Improved energy use ratio by 7.2% compared with 2014
• Avoided 1,597 tonnes of PET material (incremental volume) which led to 4,000 tonnes of CO2 avoidance
• Increased total usage of recycled PET material by 19.4% vs. 2014 which saved 31,200 tonnes of CO2
• Increased Plantbottle™ quantity by 254% and now use it in 10 countries
• Four production sites send 0 waste to landfill

Social Achievements

• Employee engagement index of 87% (up from 82% in 2014)
• 79% of key people in key positions (up from 78% in 2014)
• 23% of total workforce, 33% of managers, 34% of senior leaders, and 15% of the Board of Directors are women
• Lost-time accident rate of 0.43 (12% improvement on 2014)
• Invested €8.2 million (2.3% of reported pre-tax profit) in community programs
• 1.4 million people participated in physical activity programs we sponsored
• Invested €2 million in support of youth development

Governance Achievements

• Board effectiveness evaluation conducted
• New Board-endorsed Risk Management policy rolled out
• Enhanced enterprise-wide risk management process
• Implemented a new performance share plan replacing the stock option plan
• Introduced clawback and malus provisions in incentive plans
• Introduced shareholding guidelines for the CEO and senior managers

Climate Goals & Targets

Environmental Challenges

• Currency depreciation and economic weakness in some large markets (Russia, Nigeria)
• Deflation in Established and Developing markets
• Affordability concerns in specific markets
• Shift in demand towards water in the summer
• Significant currency headwinds and higher operating and overhead costs in Emerging markets
• Weak sales in Russia
• Volatile currencies in Emerging markets
• Rising input costs (sugar)
• Ongoing instability in Ukraine and Russia
• Fragile macroeconomic and financial environment in Greece
• Depressed oil price, tight capital controls, and risk of Nigerian Naira devaluation in Nigeria

Mitigation Strategies

• Targeted initiatives in all markets
• Discipline and systems to control costs and reduce working capital
• Restructuring efforts to improve efficiency
• Consolidated bottling plants and improved logistics network
• Migrated back office processes to Shared Services Centres
• Revenue growth management initiatives
• Further efficiencies in cost base
• Pricing initiatives in countries facing currency headwinds
• Cost savings
• Rolling hedging policy to limit transactional impact of currency differences
• Price increases
• Investments in energy efficiency and low-carbon technologies
• Internal water and carbon prices
• Science-based carbon reduction targets
• Water conservation and carbon reduction initiatives in business plans
• Investments in water and energy saving initiatives
• Accounting for Sustainability methodology
• Focus on product innovation and expanding range of low- and no-calorie beverages
• Clearer labelling on packaging
• Promoting active lifestyles

Supply Chain Management

Responsible Procurement

• Supplier Guiding Principles
• Sustainable Agriculture Guiding Principles (by 2020)
• Membership in SEDEX

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on consumption of cold beverages

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Comprehensive, AA1000AS Assurance Standard, UN Global Compact, International Integrated Reporting Council’s (IIRC) framework, Climate Change Reporting Framework (CDSB)

Third-party Assurance: Independent organisation (for carbon emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 6 (Clean water and sanitation)
• Goal 3 (Good health and well-being)
• Goal 8 (Decent work and economic growth)
• Goal 4 (Quality education)

Initiatives contribute to these goals through water stewardship, carbon reduction, community investment, youth development, and employee well-being programs.

Sustainable Products & Innovation

• Coke Zero
• Coke Life
• Cappy Pulpy juice
• Moya Semya juice

Environmental Metrics

ESG Focus Areas

• Health and nutrition
• Packaging
• Youth development
• Environmental and water stewardship
• Community well-being
• Employee well-being and engagement
• Climate change
• Water stewardship
• Sustainable sourcing
• Human rights and diversity

Environmental Achievements

• 9% reduction in carbon emissions from operations in 2017 compared to 2016 levels
• 6% reduction in water use to produce a litre of beverage
• 4% reduction in energy consumed to produce a litre of beverage
• 41% of total packaging recovered for recycling (exceeding 2020 target)
• 18% less packaging per litre of beverage produced

Social Achievements

• #Youth Empowered program launched in 21 markets, engaging over 21,500 young people
• Employee engagement score increased to 89%
• Number of employee workplace accidents fell for the eighth consecutive year
• 56% improvement on fleet accidents over the last five years

Governance Achievements

• Successful CEO succession plan implemented
• Board diversity improved with increased number of women

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions in Nigeria and Russia
• Evolving consumer preferences
• Increased cost of commodities (e.g., PET resin)
• Pressure on packaging and recycling
• Currency depreciation in some markets

Mitigation Strategies

• Portfolio revitalization with low/no sugar launches
• Route-to-market changes (e.g., Poland)
• Price pack architecture changes in Nigeria
• Production and distribution center consolidation (Russia, Nigeria)
• Efficiency gains in administration and warehousing
• Pre-buying key raw materials (Nigeria)

Supply Chain Management

Supplier Audits: More than 120 critical suppliers assessed using Ecovadis CSR platform

Responsible Procurement

• Supplier Guiding Principles (SGPs), Sustainable Agriculture Guiding Principles (SAGPs), local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions

Transition Risks

• Increased energy costs, carbon taxation, reduced access to water

Opportunities

• More efficient and sustainable value chain

Reporting Standards

Frameworks Used: GRI, IIRC

Certifications: European Water Stewardship Standard

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 3, SDG 6, SDG 7, SDG 8, SDG 9, SDG 11, SDG 12, SDG 13, SDG 16, SDG 17

Initiatives contribute to these goals as detailed in the report

Sustainable Products & Innovation

• Low- and no-calorie beverages, smaller packages, eco-friendly coolers

Awards & Recognition

• Global beverage industry leader in Dow Jones Sustainability Indices for four consecutive years, leader in food, beverage and tobacco industry group, A rating from CDP for Climate and Water

Environmental Metrics

ESG Focus Areas

• emissions reduction
• water use and stewardship
• World Without Waste
• ingredient sourcing
• nutrition
• people and communities

Environmental Achievements

• Carbon emissions reduced across the value chain by 25% compared with 2010 baseline
• 41% of total energy used came from renewable and clean sources
• 45% of primary packaging recovered for recycling
• 19% reduction in the amount of material used for main primary packaging

Social Achievements

• More than 64,000 young people participated in #Youth Empowered programmes
• More than 34,000 hours volunteered by employees
• Women make up 37% of managers

Governance Achievements

• Improved customer satisfaction
• Implemented a Smart Risk programme to encourage informed risk-taking

Climate Goals & Targets

Environmental Challenges

• Sluggish growth and intense competitive dynamic in Nigeria
• Higher aluminium and PET resin prices
• Rising transport costs in certain Central and Eastern European countries
• Depreciation of the Russian rouble
• Plastic pollution
• Youth unemployment

Mitigation Strategies

• Improved flexibility to manage challenges
• Hedging policies to insulate cost base from fluctuations
• Cost discipline
• New sustainability commitments for 2025
• Investments in technology to use more recycled content in packages
• #Youth Empowered programme

Supply Chain Management

Supplier Audits: More than 280 critical suppliers assessed by EcoVadis in 2018

Responsible Procurement

• Supplier Guiding Principles
• EcoVadis assessments
• Sustainability criteria for supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, Sustainability reporting standards

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 6
• Goal 13
• Goal 8
• Goal 5
• Goal 11
• Goal 14
• Goal 15
• Goal 3
• Goal 17

Initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

• FUZETEA
• AdeZ
• GLACÉAU smartwater

Awards & Recognition

• Silver Talent Management Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Packaging Waste
• Sustainable Sourcing
• Nutrition
• People and Communities

Environmental Achievements

• Reduced carbon emissions intensity across the value chain by 31% (2018: 25%)
• Recovered 48% of primary packaging (2018: 48%)
• Launched four water brands across five markets in 100% recycled PET packaging
• Replaced plastic shrink film on can multi-packs with recyclable paperboard (planned completion by end of 2021)
• 42% of total energy used came from renewable and clean sources

Social Achievements

• Improved employee engagement score by 2pp to 90%
• Increased community investment by 34% to €10.6 million
• Engaged over 118,053 young people through #YouthEmpowered program
• Secured water supplies for one million people in Nigeria

Governance Achievements

• Updated Code of Business Conduct
• Implemented a new performance management system focused on results, behaviors, and mindset

Climate Goals & Targets

Environmental Challenges

• Unfavorable weather in many markets constraining consumption
• Increased regulation of product packaging
• Discussions about discriminatory taxation of added-sugar beverages
• Limited supply and high cost of high-quality recycled PET
• Employability of young people in many markets

Mitigation Strategies

• Leveraging unique 24/7 portfolio with targeted execution excellence
• Committed to help collect 75% of primary packaging, use more recycled materials, and make 100% of packaging recyclable by 2025
• Investing in KeelClip packaging technology (€15 million)
• Exploring investment opportunities in PET recycling facilities
• #YouthEmpowered program to provide training for one million young adults by 2025
• Investing in innovative technology to produce 100% recycled PET cost-effectively

Supply Chain Management

Supplier Audits: More than 450 critical suppliers assessed using EcoVadis in 2019

Responsible Procurement

• Supplier Guiding Principles
• Sustainability criteria for supplier selection
• Sustainable Agriculture Guiding Principles for agricultural ingredient suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts
• Consumer pressure

Opportunities

• Development of energy-efficient products and processes
• Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI, IIRC, TCFD

Certifications: ISO 27001

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• 100% recycled PET bottles
• KeelClip packaging
• Low- and no-sugar beverages

Awards & Recognition

• Europe’s most sustainable beverage company by the Dow Jones Sustainability Index (9th consecutive year)

Environmental Metrics

ESG Focus Areas

• Climate change
• Water stewardship
• Packaging waste
• Ingredient sourcing
• Nutrition
• People and communities

Environmental Achievements

• Reduced absolute carbon emissions in operations by 23% compared with 2017.
• Recovered 44% of primary packaging for recycling.
• Increased renewable and clean electricity share in operations to 44% (96.7% in EU and Switzerland).
• Installed solar panels in three plants in Nigeria, saving 690 tonnes of CO2 emissions in 2020.
• Launched KeelClip™ paperboard solution for can multi-packs in several markets.

Social Achievements

• Trained 134,548 young people through #YouthEmpowered program.
• Invested €8 million in local community initiatives.
• Maintained high employee engagement scores (88%), despite the pandemic.
• Reduced Lost Time Accident Rate by 30% compared to 2019.

Governance Achievements

• Started reporting against the SASB framework.
• Appointed Anna Diamantopoulou to the Board, bringing expertise in regulatory matters and stakeholder relations.
• Created the role of Chief Operating Officer.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting out-of-home channel and supply chains.
• Supply chain disruptions due to movement restrictions.
• Changing consumer preferences and increased price sensitivity.
• Challenges in packaging collection and recycling due to lockdowns.
• Water scarcity in some operating areas.

Mitigation Strategies

• Implemented COVID-19 Operational Task Force and best practices to ensure business continuity.
• Shifted production to meet changing consumer needs (at-home occasions).
• Supported customers with flexible supply and merchandising services.
• Invested in digital platforms to enhance customer service and e-commerce.
• Supported collection modelling studies to improve recycling systems.
• Reduced water consumption in priority plants.
• Invested in in-house recycled PET production.

Supply Chain Management

Supplier Audits: Over 800 critical suppliers assessed using EcoVadis platform in 2020.

Responsible Procurement

• Supplier Guiding Principles
• Sustainable Agriculture Guiding Principles
• Stricter rules on human rights, ethics, and compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Impact on ingredient availability

Transition Risks

• GHG regulations
• Changes in consumer perceptions
• Water regulations

Opportunities

• Cost savings from new technologies
• Development of sustainable products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 27001 (IT centers)

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 6 (Clean water and sanitation)
• Goal 8 (Decent work and economic growth)
• Goal 3 (Good health and well-being)
• Goal 4 (Quality education)
• Goal 5 (Gender equality)
• Goal 11 (Sustainable cities and communities)
• Goal 17 (Partnerships for the goals)

The report links its sustainability initiatives to the UN SDGs.

Sustainable Products & Innovation

• KeelClip™
• Recycled PET bottles
• Paper straws

Awards & Recognition

• Europe’s most sustainable beverage company (Dow Jones Sustainability Index)
• ‘A’ score in CDP ratings for climate change and water
• ‘Best coaching and mentoring initiative’ (CIPD People Management Awards)
• Global Association of Talent Development ‘Excellence in Practice’ award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Sourcing
• Water Stewardship
• Packaging and Waste Management
• Nutrition
• Our People and Communities

Environmental Achievements

• Reduced absolute emissions from direct operations by 6 kilo tonnes, achieving a cumulative 24% reduction against the 2017 baseline.
• Increased the use of renewable and clean electricity in EU and Switzerland operations to 99%.
• Italy became the first Coca-Cola HBC market to launch a 100% rPET bottle for sparkling brands.
• Reduced food loss from finished beverages to 0.14% in 2021, compared with 0.23% in 2020 and 0.17% in 2019.

Social Achievements

• #YouthEmpowered programme reached more than 210,000 young people in 2021, bringing the cumulative total to 548,000.
• 56% of all appointments were women in 2021.
• Employee Engagement Index score remained steady at 88%.

Governance Achievements

• Announced NetZeroby40 commitment to reduce carbon emissions to net zero across the value chain by 2040.
• Completed acquisition of Coca-Cola Bottling Company of Egypt.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic continued to impact operations.
• Global commodity price volatility.
• Supply chain disruptions.
• Increased costs of key commodities.
• Shortages of some ingredients and supplies.
• Rising cyber-attacks.
• Geopolitical tensions between Russia and Ukraine.
• Increased resignation rates.

Mitigation Strategies

• Maintained agile operating model, adjusting channel mix and customer support.
• Contracted volumes of key ingredients and packaging materials.
• Expanded supplier base.
• Hedging/fixing forward prices.
• Strengthened cybersecurity programme.
• Implemented contingency plans to maintain business operations.
• Upgraded Employer Value Proposition and Employer Brand.
• Developed leaders and people for key positions internally.

Supply Chain Management

Supplier Audits: Over 1,100 critical suppliers assessed using EcoVadis in 2021.

Responsible Procurement

• Supplier Guiding Principles
• Principles for Sustainable Agriculture (PSA)
• EcoVadis platform for supplier monitoring

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting manufacturing and distribution
• Water scarcity
• Impact on cost and availability of ingredients

Transition Risks

• Increased costs from GHG regulations
• Increased cost of packaging
• Increased costs and disruptions due to water regulations
• Damage to reputation of the beverage sector

Opportunities

• Cost savings from investments in new technologies

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: AWS

UN Sustainable Development Goals

• Goal 7
• Goal 13

Initiatives contribute to goals for good health and wellbeing, innovation, responsible production and consumption, partnerships, clean water and sanitation, clean energy, economic growth, industry innovation, sustainable communities, responsible production, climate action, life below water and life on land.

Sustainable Products & Innovation

• 100% rPET bottles
• KeelClip™

Awards & Recognition

• Europe’s most sustainable beverage company in the 2021 Dow Jones Sustainability Index
• ‘A’ ratings from the 2021 Carbon Disclosure Project (CDP) for climate change and water

Environmental Metrics

ESG Focus Areas

• Climate change
• Packaging and waste management
• Sustainable sourcing
• Water stewardship
• Biodiversity
• Nutrition
• Our people and communities

Environmental Achievements

• Reduced absolute carbon emissions in operations by 21% compared with 2017
• Reduced total value chain emissions by 15% against 2017 baseline
• 100% rPET transition in Switzerland for locally produced portfolio
• Recovered 48% of primary packaging put in the marketplace
• Introduced the first label-free branded water packaging in Switzerland
• Reduced CO2 emissions by more than 9,000 metric tonnes annually through BALL's use of renewable electricity

Social Achievements

• #YouthEmpowered program trained over 790,000 young people since 2017
• Invested €7.4 million in local community initiatives
• Improved rate of consumer complaints by 11% compared to 2021
• Women held 39.6% of management roles

Governance Achievements

• Issued first green bond for €500 million
• Ranked as the world’s most sustainable beverage company according to Dow Jones Sustainability Index

Climate Goals & Targets

Environmental Challenges

• War in Ukraine impacting business and supply chain
• High inflation across COGS lines
• Supply chain disruptions
• Commodity price increases
• Water scarcity in certain regions
• Maintaining product relevance and acceptability
• Competition in the digital marketplace
• Cybersecurity threats
• Talent retention

Mitigation Strategies

• Implemented price increases and mix initiatives
• Invested in new and upgraded production lines
• Expanded use of digital tools to improve efficiencies and reduce costs
• Developed revenue growth management capabilities
• Implemented water usage reduction plans
• Invested in in-house rPET facilities
• Developed digital commerce platforms and solutions
• Enhanced cybersecurity measures
• Improved people management skills and leadership development programs

Supply Chain Management

Supplier Audits: Over 1,400 critical suppliers assessed using EcoVadis in 2022

Responsible Procurement

• Supplier Guiding Principles
• EcoVadis platform for supplier monitoring
• Sustainability risk assessment tools for supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Impact of extreme weather on production and distribution
• Water availability and usage
• Impact of climate change on the cost and availability of ingredients

Transition Risks

• Cost and availability of sustainable packaging
• Managing our carbon footprint
• Impact of climate change on our reputation

Opportunities

• Developing innovative, profitable sustainable solutions
• Increased consumer intent to purchase

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 27001, ISO 14001, ISO 50001, FSSC 22000, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Initiatives contribute to various SDGs through water stewardship, emissions reduction, waste reduction, youth empowerment, and community development.

Sustainable Products & Innovation

• 100% rPET bottles
• Label-free bottles
• KeelClip™ for can multipacks
• Tethered caps

Awards & Recognition

• World’s most sustainable beverage company (Dow Jones Sustainability Index)
• Industry Mover (S&P Global Sustainability Yearbook 2023)

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Community

Environmental Achievements

• Reduced CO2 emissions by 38% vs 2010 (Scope 1 and 2, market-based)
• Achieved 100% renewable electricity from the grid in 2023
• 63% of total energy used in 2023 came from renewable and clean sources
• All beverage bottles produced with 100% recycled plastic (rPET), excluding cap and label
• 99.97% of waste from bottling processes destined for recycling
• Introduced tethered caps across the beverage portfolio

Social Achievements

• Launched Coca-Cola HBC Welfare platform offering various employee benefits
• Achieved IDEM certification for gender equality
• Implemented the “Zero is possible” program to ensure safer work environments
• Provided over 57,000 hours of employee training

Governance Achievements

• Adopted a Code of Conduct, Anti-Corruption Manual, and Supplier Guiding Principles
• Implemented a 231 Organizational Management and Control Model
• Established a “Speak Up!” ethics and compliance hotline

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability affecting supply chain and inflation impacting consumers, clients, and suppliers
• Increased costs of raw materials, utilities, and energy
• Limited distribution capacity at the Nogara hub
• Implementation of new European regulations on waste management and recycling

Mitigation Strategies

• Developed plans and strategies to absorb the impact on revenue and profits
• Revised price lists and contracts with strategic suppliers
• Consolidated reviews of logistics and warehouse management to stabilize the distribution network
• Implemented new technologies and procedures

Supply Chain Management

Supplier Audits: 6 suppliers assessed for environmental criteria (5%); 130 suppliers assessed for social criteria (100%)

Responsible Procurement

• Supplier Guiding Principles (environmental, social, human rights, labor laws); compliance with local, national, and European laws; adherence to ILO's 8 fundamental conventions; Code of Conduct in Business

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (In accordance option), Food Processing Sector Disclosures

Certifications: ISO 50001:2018 (energy management), ISO 45001 (health and safety), IDEM (gender equality), FSSC 22000 (food safety), AWS Gold (water stewardship)

Third-party Assurance: Deloitte & Touche S.p.A. (Limited assurance)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• 100% rPET bottles, KeelClip™ packaging, energy-efficient refrigerated display cases

Awards & Recognition

• Coca-Cola HBC recognized as the world's most sustainable beverage company by the Dow Jones Sustainability Index for the 7th year; top 3 ranking for 13 consecutive years.