Sustainable Sourcing. PJ Newcomb Coca-Cola North America. August Internal Use

Transcription

1 Sustainable Sourcing PJ Newcomb Coca-Cola North America August 2017 Internal Use 1

2 TCCC Sustainability Framework ME WE WORLD WELL-BEING WOMEN WATER Shape Choice Innovate Promote Clear Facts Market Responsibly Lead Engagement Community Foundations Human and Workplace Rights Safety 2 Recovery Carbon Sustainable Agriculture

3 2020 World (Environmental) Focus Areas Water Stewardship Packaging Energy and Climate Sustainable Sourcing

4 Approximately 95% of Agricultural Spend focused on 14 commodities Sweeteners: Fruit: Lemon Orange Sugar (Cane) Sugar (Beet) Corn (HFSS) Other: Stevia Mango Apple Grape Tea Pulp & Paper Coffee Soy Palm Oil (Forestry products)

5 Sustainable Agriculture Guiding Principles LAY THE FOUNDATION FOR SUSTAINABLY SOURCED EXPECTATIONS 1. Freedom of Association and Collective Bargaining 2. Prohibit Child, Forced or Abuse of Labor 3. Eliminate Discrimination Human and Workplace Rights 4. Work Hours and Wages 5. Safe and Healthy Workplace 6. Community and Traditional Rights 7. Water Management 8. Energy Management and Climate Protection Environment 10. Soil Management 11. Crop Protection 9. Conservation of Natural Habitats and Ecosystems Farm Management Systems 12. Harvest & Postharvest Handling 13. Reproductive Material Identity, Selection & Handling 14. Management Systems, Record Keeping and Transparency 15. Business Integrity Classified - Internal use 5

6 Expectations of our Direct (Tier 1) Suppliers Our suppliers of agricultural ingredients/commodities must have full transparency of their supply chain to the farm (producing) locations. Direct Suppliers SGP - - Green GFSI - Certified Intermediaries SGP Compliant Farms SAGP Validated Validation: Certifications and Audits Tier 1 suppliers must: Have Supplier Guiding Principles (SGP) Green rating and current, valid GFSI certification. Ensure that all intermediary processors of agriculture-based ingredients to The Coca-Cola System (TCCS) have policies and practices in place in compliance with our Supplier Guiding Principles (SGP). Have a full line-of-sight to the farm locations and ensure that all producing locations meet TCCC s Sustainable Agriculture Guiding Principles (SAGP) minimum expectations. We expect our Tier 1 direct suppliers to provide 3 rd -party validation documentation (audit results and/or certifications) of their and their supply chain compliance with these expectations. Classified - Internal use Page 6

7 We have simplified validation pathways SAGP is the fundamental building block of our global sustainable sourcing strategy. Compliance can be shown in a number of ways. Beet Guidelines Wheat/ Corn/Soy Sugar (cane) Orange/Apple/Lemon Mango/Grape Tea Coffee Forest Products Palm Oil Rotational Crops SAI, Global Gap, RTRS Field to Market Bonsucro RFA FairTrade or eqiv. Fruit SAN, SAI, Global Gap + SAN, ETP, Fairtrade, GlobalGap SAN, 4C+, Fairtrade, CAFE PEFC, SFC RSPO Sustainable Agriculture Guiding Principles Coca-Cola System Internal Across all geographies Across all commodities and ingredients 7

8 Field to Market A collaborative and diverse stakeholder group focused on row crop agriculture Field Print Calculator helps producers farm management decision-making to ultimately increase agricultural efficiency, water quality and source water quantity protection across the watershed Our Goal: 1,000,000 acres of corn enrolled in FtM by 2020; Our Progress: ~500,000 acres enrolled 8

9 7-stage implementation process Not started 1 Not in progress Preparation Validation in progress Validated 2 Awareness Supplier is informed about SAGP 3 Path selection Supplier select path to validate (e.g., certification or 3 rd party audit 4 Embarking validation Selfassessment Certification membership (if applicable) or audit firm identified 5 Validation audit Audit carried out by 3rd party auditor against approved standards or SAGP 6 Part of supply validated Audit meeting satisfactory level has been carried out for part of suppliers volume to Coca-Cola Group 7 Entire supply validated Audit meeting satisfactory level has been carried out for suppliers entire volume to Coca-Cola Group 9

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