OUR 2011 CARBON FOOTPRINT
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1 OUR 2011 CARBON FOOTPRINT OUR VALUE CHAIN FOOTPRINT We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our entire value chain We set this new goal for our business in late 2011 and have estimated our emissions throughout our entire value chain based on a range of data sources available to us. We are now working to enhance the accuracy of these data so we are better able to report the emissions in our value chain with confidence. As a result, our value chain footprint has not been audited by third party independent verifiers, but we estimate it to be as follows: OUR OPERATIONAL CARBON FOOTPRINT Supporting our goal to reduce the carbon footprint of the drink in your hand by a third, we have set ourselves a target to reduce the absolute carbon footprint of our business operations by 15% by Our business operations include our manufacturing processes, facilities, fleet, offices, cold drinks equipment and our business travel. We measure emissions from these activities across our entire business in eight European territories: Great Britain, France, Belgium, Luxembourg, The Netherlands, Monaco, Norway and Sweden and also for our offices in the United States. This is the first year that we have included emissions from our newly acquired businesses in Norway and Sweden, and also our United States offices. As a result of these additions, we have re-calculated all our carbon footprint data from 2007 to 2011 to ensure fair comparisons.
2 In 2011, using the WRI/WBCSD Greenhouse Gas Protocol, we measured the carbon footprint of our business operations at just under 769,000 metric tons of CO 2 e for the period January, 1, 2011 to December, 31, This shows that we are growing our business but not the carbon it produces. During 2011 we reduced our footprint by 8.4 percent, or around 70,000 metric tons CO 2 e in comparison with 2010, while increasing sales volume by 3.5 percent. We have also reduced our footprint by 84,000 metric tonnes CO 2 e, or 10 percent from our 2007 baseline. OUR OPERATIONAL CARBON FOOTPRINT BY EMISSION SOURCE Operations and 193, , , , ,507 Commercial sites Cold Drinks 532, , , , ,484 Equipment CCE Fleet 47,548 51,033 49,702 48,883 46,603 Third Party 74,002 85,592 94,377 94, ,934 Distribution Other (including 6,015 5,517 8,113 3,864 8,853 business travel) TOTAL ( 000 tonnes CO 2 e) OUR EMISSIONS BY SCOPE Under the WRI/WBCSD Protocol, we divide our emissions into three scopes except for CO 2 emissions from biologically sequestered carbon which is reported separately. Reporting Scope 3 emissions (those that do not occur at the sites of our business operations but that result from our business) is optional, but we measure and seek to reduce our Scope 3 emissions because they are significantly greater than our Scope 1 and 2 (core) emissions. Our Scope 1 and 2 emissions are independent of any greenhouse gas trades. Scope 1: the fuel we use for manufacturing and our own fleet of trucks, vans and cars, process and fugitive emissions. Scope 2: the electricity we use at all our sites. Scope 3: the electricity used in our coolers and vending machines at our customer s premises, our employee business travel by rail, air and road 2, emissions relating to the 1 [Please note that because we use anaerobic waste water biogas at Wakefield, Great Britain, this generated emissions of 158 metric tonnes of CO 2e in We do not include the associated CO2 emissions under scope 1 of our footprint in alignment with the WRI/WBCSD Protocol.
3 supply of water and treatment of wastewater, emissions from waste to landfill and solid incinerated waste where energy has been recovered, and the fuel used by our third party distributors. Greenhouse Gas 3 Carbon Dioxide (CO2) Nitrous Oxide (N2O) Methane (CH4) Hydrofluorocarbons (HFCs) TOTAL (SCOPE) (tonnes CO2e) % Footprint SCOPE 1. Direct emissions (e.g. fuel) 2. Indirect Emissions (e.g. Electricity) 3. Related third party emissions (e.g. from cold drink equipment) 125, , , , , ,188 1, , TOTAL (GHG) 766,240 1, , , % ENHANCEMENTS We are enhancing our data collection processes all the time. Our 2011 data include our Norwegian, Swedish and US operations, which we have added in the past year. These additions triggered a recalculation of our base year and interim year emissions in line with our 'Base year recalculation policy' under the Greenhouse Gas Protocol. We have also included new indirect emissions from our manufacturing facilities for waste, water supply and wastewater and business travel by employee vehicles in GB. In addition, we have included estimated emissions for from newly insourced activities such as preform manufacturing at Wakefield. Other key reporting enhancements include: Morpeth (Abbeywell) bottling plant in Great Britain included Current Cold Drinks Equipment energy consumption rates applied to prior years data. Improved raw data Updated emission factors 2 Road travel is GB only 3 Please note we do not have PFCs or SF6 emissions
4 Refrigerant gas loss - R-22 GWP was set to zero as this refrigerant was regulated and phased out by the Clear Air Act (US). The GWP has now been set to IPCC standard. Improved calculation methodologies and correction of errors Corrections made to emissions previously reported under the wrong scope. US air travel included SOURCES OF DATA AND CALCULATION METHODOLOGIES We use an operational control consolidation approach to determine organizational boundaries. Data are consolidated from a variety of sources, including our manufacturing facilities, fuel use information and calculated Cold Drinks Equipment energy use, then analyzed centrally. We used a variety of methodologies to gather data and measure each part of this footprint, including some estimation such as energy from offices that we lease and share with other companies or indirect emissions from some 3 rd party hauliers. Approximately 2% of our footprint is based on estimated emissions. Energy data: from metered sources, supplier invoices or estimated (e.g. our bottle sorting facility in Norway is estimated based on its floor area in comparison to Norway s main production site). Refrigerant gas losses: from contractors re-gassing invoices CO 2 fugitive gasses: from measuring our opening & closing stock levels and subtracting the quantity of CO 2 in our products and CO 2 used in effluent waste water treatment. Cold drinks equipment: emissions are derived from using average hourly model type energy consumption rates and subtracting any CRS initiative savings over the reporting time period. Transport fuel: measurements based on actual liters used or calculated based on kilometers recorded. Energy, fuel and fugitive gas raw data have then been multiplied by emission factors or Global Warming Potential factors: Electricity (IEA 2009), non-electricity (DEFRA 2011) and District heating from suppliers. Emissions relating to the supply of water and treatment of wastewater by the supplier: have been calculated using water liters multiplied by emission factors from DEFRA. Emissions for waste to landfill and solid incinerated waste where energy has been recovered: have been calculated using the waste in kg multiplied by the emission factors from DEFRA.
5 ENERGY USE We use a variety of sources of energy in our operations which all contribute to our carbon footprint. Our energy use in 2011 was as follows: CCE Energy Sources and Use 2011 Direct energy consumption by primary energy source Indirect energy consumption by primary source Energy used in Cold Drinks Equipment Total energy purchased and consumed by source (MWh) Natural gas 166,865 LPG 32,470 Light Fuel Oil 3,212 All Diesel & Petrol 198,596 Biofuel 4,023 Total electricity purchased and used (MWh) 363,894 Total heat purchased and used (MWh) 17,849 Energy Used in Cold Drinks Equipment (MWh) 1,636,589
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