Sharing our journey towards a sustainable business

Transcription

1 Sharing our journey towards a sustainable business Corporate Responsibility & Sustainability Summary 2013/2014 Report on the activities of the Coca-Cola system in Great Britain Introduction Sharing the journey A MESSAGE FROM THE LEADERS OF OUR BUSINESS Welcome to the 2013/2014 Corporate Responsibility and Sustainability Summary for the Coca-Cola system in Great Britain. Together, Coca-Cola Great Britain and Coca-Cola Enterprises (CCE) manufacture, market, sell and distribute some of the most popular drinks in the world. We are committed to achieving our vision for the business by growing responsibly and sustainably and doing so by using less. Here in Great Britain we are working hard to manage the impact we have upon our environment across energy and climate protection, packaging and recycling and water stewardship. We are focused upon improving the wellbeing of our consumers, particularly given the issue of obesity, which is complex and influenced by many factors. We are playing our part by offering a wide choice of drinks, with 39% of our business comprising our range of no- and low-calorie drinks. We also provide consumers with different portion sizes for different occasions and feature on-pack information to help consumers make informed decisions to suit their lifestyles. We made a commitment as part of the Government s Responsibility Deal that we would reduce the average calorie content per litre of our sparkling drinks by 5% by the end of As part of that commitment we are reformulating some of our brands to reduce calories by 30%. Over the last 12 months we have made good progress: we ve reformulated Sprite with stevia to reduce its calorie content by 30%; we ve introduced a 250ml can for Coca-Cola, Diet Coke and Coca-Cola Zero; and we ve increased our marketing investment in our no- and low-calorie drinks. We are also redoubling our efforts to support people to lead active healthy lives and so reduce inactivity. We believe that the more you move the happier you feel and we want to inspire people to move more, more often. We are investing more than 20 million to get one million people active between now and 2020 because the evidence shows active people are healthier and happier and that s something we all want to see. We know we can t achieve all this on our own and we are committed to finding innovative solutions through collaboration with a wide range of stakeholders. We look forward to sharing the journey. This report features a summary of our key achievements from 1 January to 31 December 2013 as well as some information on our key projects and initiatives in early For more information and data please go to or Jon Woods General Manager Coca-Cola Great Britain & Ireland Great British business Leendert den Hollander Vice President and General Manager, Coca-Cola Enterprises Sustainable Local manufacturing Supporting Jobs across GB Adding Economic value We are a local business with strong regional presence from Sidcup in Kent to East Kilbride in Scotland. We are proud to have been making soft drinks in Great Britain for over 100 years, with 97% manufactured in this country and each pack featuring a Made in GB stamp. Coca-Cola employs 4,000 people in the manufacturing, distribution, sales and marketing of more than 100 products. Recent research reveals that each job provided by Coca-Cola supports a further eight jobs. In addition, every 1 of value Coca-Cola creates adds an additional 8 of value elsewhere across the GB economy. This positive economic impact is spread across the country and benefits many sectors.

2 WE MAKE OUR PRODUCTS IN GREAT BRITAIN Our products We have 25 brands and more than 100 products sold in Great Britain, including no- and low-calorie drinks and juices. Top 5 In 2013, our top five brands by volume were Coca-Cola, Diet Coke, Schweppes, Fanta and Coca-Cola Zero m invested in our business in GB in the past four years. East Kilbride 6 manufacturing sites in Great Britain. 2,675 the number of our suppliers. Milton Keynes Morpeth Wakefield Edmonton Sidcup 4,000 the number of people employed by Coca-Cola in GB. How we operate THE MANUFACTURING AND DISTRIBUTION PROCESS CCE supply chain (1.4m tonnes CO 2 e estimated) 97% of everything we sell in Great Britain is made here, at one of six manufacturing sites located in East Kilbride, Morpeth, Wakefield, Milton Keynes, Edmonton and Sidcup. These products are then distributed, to be sold across Great Britain in almost 135,000 outlets of all sizes. We aim to be the best sales and customer service company. We won numerous accolades in all trade channels in 2013, including Best Sales Representation at Cash and Carry Management s annual Wholesale Achievement Reward and Development Scheme Awards, which recognise and reward the very best standards of service given to cash & carries and delivered wholesales in England, Wales and Ireland. CCE operations (658,203 tonnes CO 2 e) Ingredients Packaging Manufacturing Distribution Refrigeration Recycling % CCE value chain emissions (estimated) 17% 52% 7% 7% 17% Included in packaging 2 1 Nielsen 2013 data 2 As a result of packaging carbon footprint methodologies For over 100 years we ve been making soft drinks in Great Britain. Figures in this table are based on total CCE company data. We have modelled emissions for ingredients and packaging using industry average conversion factors linked to our procurement data for each raw material. This value chain footprint has not been audited by third-party independent verifiers.

3 Energy and Climate Change Sustainable Packaging and Recycling 50% less electricity used (approximately) since we refitted LED lighting within our distribution centre in Northampton. 68% of our eligible coolers are now fitted with energy management saving (EMS) devices. Nearly 9% reduction in carbon footprint vs % of the plastic bottles in the UK can now be reprocessed as a result of our Continuum Recycling joint venture with ECO Plastics. 27% less packaging used than in billion bottles sorted since the opening of Continuum. 6 weeks to turn used plastic bottles into new ones. THERMOGRAPHIC SURVEYS In 2013, CCE began a project to conduct full site infrared thermographic surveys at each of our six manufacturing plants. This survey is conducted using special cameras which can identify hot spots which can t normally be seen with the naked eye. This highlights where heat and energy is escaping from equipment and results in a remedial programme to install insulation where needed, and so reduce heat loss. Typical payback on investment is around two years. To date surveys have been completed at Sidcup, Morpeth and Edmonton and the other sites Wakefield, Milton Keynes and East Kilbride will follow in % new coolers purchased in 2013 were HFC-free. We are committed to reducing the carbon footprint of the drink in your hand by a third by To do this, we must deliver carbon reductions throughout our value chain and we are making good progress: installing a variety of energy-saving technologies to our cold drinks equipment; collaborating with our customers to make product deliveries more efficient; and developing and introducing new energy-efficient technologies, using low-carbon or renewable sources. At our Sidcup plant, we have installed heat exchangers on our low and high pressure air compressors. These remove wasted heat while reducing the energy needed and the heat is reused in preheating cleaning networks and for heating buildings. We signed up to the UK s Soft Drinks Sustainability Roadmap to help reduce the 4.5 million tonnes of greenhouse gases a year produced by the soft drinks industry. The plan includes the entire soft drinks production process, from sourcing ingredients to recycling packaging. In 2014, we will start installation of a Combined Heat and Power (CHP) system at our Wakefield site. The CHP system produces electricity and heat from one energy source with lower carbon emissions. It will save 1,500 tonnes of CO 2 e a year, a 5.6% reduction for the site. Packaging is important to ensure the quality and safety of our drinks as we deliver them to our customers and consumers. However, while the vast majority of our packaging can be recycled, much of it sadly still ends up in landfill. We are therefore working to increase awareness and reduce barriers to help people recycle more often. We established a unique recycling partnership with Sainsbury s and WRAP the Government s recycling agency creating a series of workshops for local authority recycling officers. In these we explored cost-effective ways to use communications, including social media, to increase participation in recycling. In partnership with Milton Keynes Council we developed and supported an ambitious project to improve local recycling through education and community participation. The Recycle for your Community scheme involved selected local groups and organisations from two areas of Milton Keynes engaging directly with friends, family and neighbours to share information and collect recycling pledges from households. We undertook a research study with Exeter University to better understand recycling behaviour in the home. Over six months, 10 households in Great Britain were observed to analyse the dynamics of recycling and waste disposal and explore ways of boosting home recycling rates. The next stage of the project is a partnership with the online innovation platform, OpenIDEO, to invite and develop ideas through crowdsourcing to encourage consumers to recycle more. RECYCLING PROGRAMMES WITH RETAILERS We have run a number of recycling partnerships with retailers, which help us to inspire and motivate consumers to recycle more at home. With Tesco we ran the Together We re Making Recycling Count online campaign, where Tesco Clubcard customers were invited to pledge to recycle. The Don t Waste. Create sustainability initiative was launched with Sainsbury s, designed to boost the creative reuse and recycling of plastic bottles. We also joined forces with Waitrose to boost at-home recycling by encouraging shoppers to pledge to recycle a selected material for one month. Spin to Recycle then rewarded those recyclers with a free gift after four weeks.

4 Water Stewardship Product Portfolio 1.26 litres of water used, on average, to make 1 litre of drink in bn litres of water used in nd most water-efficient bottler in the Coca-Cola system worldwide. 97% of our products are made in Great Britain. Sustainable Agriculture All our products contain agricultural ingredients and our business depends on the long-term availability of these crops. In particular, we rely on both sugar beet and sugar cane. We are working with stakeholders to understand the different environmental effects of these two ingredients and their supply chains, how these can be mitigated, and how to support the wider sugar industry in taking action. Coca-Cola and WWF are working on a set of Sustainable Agriculture Guiding Principles, specifically for suppliers of agricultural ingredients. We are also collaborating with Europe s sugar beet processors on a farm-level self-certification tool, part of the Sustainable Agriculture Initiative Platform, and with the Rainforest Alliance looking at sustainability risks and best practice. Water is a precious resource, the main ingredient in our products, central to our manufacturing and essential for growing many of the ingredients we use. We want to be the leader in water efficiency, with a target of 1.2 litres of water for every litre of product we make by Our business must be water-sustainable and have a minimal impact throughout our value chain. This can only be achieved through innovation and collaboration. We signed the Federation House Commitment (FHC) that set a target to reduce water not embedded in product by 20% by 2020 (cf 2007 baseline). By hitting this year s targets we will be delivering reductions in the region of 50% more than double the FHC commitment. Our Wakefield plant received the Chief Executive Award at Yorkshire Water s inaugural Taking Responsibility for Business Awards recognising our stewardship of the environment through our entire value chain. We continue to make progress in the second of our three-year partnership with the World Wildlife Fund (WWF) to measurably improve the quality and quantity of water in the River Nar, Norfolk and the River Cray, Sidcup, which are close to our business operations. We are working to restore river habitats and promote sustainable water management and agricultural practices. We have established specific targets for water replenishment and introduced three scientifically proven methodologies to measure our progress. NEW 250ml CAN We introduced a new slimline 250ml can across Coca-Cola, Diet Coke and Coca-Cola Zero. These are designed to provide on-the-go consumers with a greater choice of portion size and calorie content. 30 th anniversary of the launch of Diet Coke in Great Britain. 4 new permanent flavours launched: Oasis Mango Medley and Fanta Peach & Apricot, Red Fruits and Mango & Passion Fruit. 39% of our products sold in 2013 were no- or low-calorie. We re absolutely committed to making a wide choice of high-quality non-alcoholic drinks available to consumers, clearly labelled with simple nutritional information to help them make the right choices to suit their lifestyles. We are providing more pack sizes to suit every occasion, increasing our marketing focus on no- and lowcalorie products as well as making sure that our products are sold and marketed responsibly. For the sixth year, we launched our Designated Driver campaign with over 8,000 pubs taking part. Motorists were offered a Buy One Get One Free on Coca-Cola and Diet Coke in pubs over the festive period and encouraged to share a Coke or Diet Coke with friends and drink responsibly. Capri-Sun launched a brand new range of juice drinks Capri-Sun Fruit Crush a blend of 75% juice and 25% spring water containing one of your five a day. Since 2012, we have supported the Government s calorie reduction initiative, part of the voluntary Public Health Responsibility Deal. We have pledged that we will reduce the average calories per litre of our range of sparkling soft drinks by 5% by the end of In May 2013, Sprite was reformulated with an innovative ingredient stevia, which is a zero-calorie sweetener made from natural origins. As a result, calorie levels were reduced by 30%.

5 Active Healthy Living Community 1,700+ athletes took part in the Special Olympics Great Britain National Summer Games. More than ever, it s important for us to play our role in helping to tackle obesity, which is a hugely complex issue. We all know that physical activity is important and that we should be active on a regular basis to achieve energy balance. We continue to use our company, brands and unique assets to inspire more people to be more active, more often so that they create a positive habit for life. At the start of 2013 we launched Legacy 365, a new campaign recognising our extended partnership with UK charity StreetGames and the role they play in keeping the legacy of the London 2012 Games going in local communities, 365 days a year. Anthony Ogogo, Olympic medallist and now professional boxer, has been helping to inspire young people to join StreetGames, make new friends, boost their confidence and build a sporting habit for life. A StreetGames sports coach and mentor, Rachael O Brien, was nominated by peers to receive a personal visit by the iconic FIFA World Cup Trophy during a football training session in Southend, as part of the global FIFA World Cup Trophy Tour by Coca-Cola. 2,000 young people took part in our StreetGames summer festival in one of London s iconic Olympic venues, the Copper Box in Queen Elizabeth Park, Stratford. 1,000,000 We aim to get 1 million people active through our community physical activity programmes, investing 20 million between now and SPECIAL OLYMPICS GB NATIONAL SUMMER GAMES The Special Olympics GB National Summer Games was the biggest multi-sport disability event in the UK in 2013 with more than 1,700 athletes with learning disabilities competing in 12 different sports during the five-day event in Bath. We were proud to celebrate our 35 years of partnership with Special Olympics GB and sent 35 employees for an unforgettable Games Maker volunteering opportunity, supporting the athletes and officials throughout the Games. 30,000 visitors at East Kilbride education centre since it opened in REAL BUSINESS CHALLENGE AND SPECIAL OLYMPICS GB The Real Business Challenge, now in its 10th year, is an award-winning enterprise education competition for secondary schools. Each year students complete a business-relevant task with the opportunity of working alongside CCE volunteers on a live project. Over 560 schools competed and in the 2012/13 regional finals we tasked the teams to design awareness campaigns for our charity partner Special Olympics GB. The winning students from Strathaven Academy, Lanarkshire, presented medals at the National Summer Games in Bath. 33% increase in number of schools taking part in the Real Business Challenge since As a local business with offices and manufacturing plants across the UK we ve always invested in programmes that support our local communities. This includes direct investment in our education programmes as well as looking for opportunities to get our employees involved whether mentoring students, volunteering or fund-raising for local Special Olympics groups. At CCE, each year, every site across GB dedicates one week to fundraise and volunteer their services for local charities and community groups. In 2013, funds were raised during CRS in Action Week to support Special Olympics GB. Employability workshops held in Edmonton, East Kilbride, Wakefield and Sidcup helped over 60 jobseekers with interview and CV writing skills in support of IGD s Feeding Britain s Future initiative. We invested 850,000 in a new education centre at our Milton Keynes facility. The Food and Drink Federation launched its See Inside Manufacturing programme at our site in Edmonton. The programme involved over 1,600 students, teachers and careers advisors who visited behind the scenes at some of Britain s top food and drink manufacturing companies. 88,000 students took part in CCE s education programme, The Real Experience, in Nearly 3m invested in community projects in 2013.

6 Workplace Great Britain 35 Coca-Cola volunteers supported the Special Olympics GB National Summer Games during the 5-day event in Bath. It s the people who make a company successful and sustainable. Recruiting, developing and retaining a talented and diverse workforce is a fundamental part of our corporate responsibility and sustainability agenda. We focus on three priority areas: diversity and inclusion; health and safety; employee wellbeing; and, of course, we want to make Coca-Cola a great place to work! Sixteen candidates from South Lanarkshire schools took part in a Young Apprentice initiative over two weeks in October Held for a second year at CCE s education centre in East Kilbride, the young people, aged 15-18, participated in business related and entrepreneurial tasks which encouraged them to consider manufacturing as a career. The creation of women s networks has been successful in helping make our culture more inclusive. The Women s Network in CCE is typically oversubscribed, with events open to men and women. A similar network, Women s LINC, involves employees from CCGB and across North West Europe & Nordics, with the aim of creating a strong female community, providing opportunities to connect, share experiences and inspire each other and become a creative excellence women s network. In 2013, we held Move Week, a programme of special activities to give employees at Coca-Cola Great Britain extra inspiration to get active. This included a talk from Everest climber Jo Gambi, and a morning of fun sports with StreetGames. 6 Gold RoSPA awards for all our sites, which recognise our strong safety performance. 2 apprentices from CCE Wakefield won financial scholarship awards from the British Soft Drinks Association. NEW HEADQUARTERS 4 years and no Lost Time Accidents at our Schweppes Abbey Well site in Morpeth, a new GB supply chain record. Both CCE and Coca-Cola Great Britain have moved into new headquarters, providing employees with distinctive environments that include flexible and innovative working space. Both buildings have achieved BREEAM ratings of Very Good, as well as Ska awards for their internal and external environmental features. Coca-Cola Enterprises Ltd Enterprises House Bakers Road, Uxbridge Middlesex, UB8 1EZ beburnham@cokecce.com A JOINT CRS VISION Developing strong commitments together Active healthy living Product portfolio Community Workplace Water stewardship Energy and climate change Sustainable agriculture Sustainable packaging and recycling For more information and the background to our data please visit or Designed and produced by Salterbaxter. Printed by Duncan Print Coca-Cola Great Britain 1A Wimpole Street London, W1G 0EA lilowe@coca-cola.com Well-being Responsible marketing This report has been printed on Revive 100 Offset which is certified as FSC 100% recycled. Women Charitable contributions Human and workplace rights Water Climate protection Sustainable agriculture Sustainable packaging ME WE WORLD