Delivering on our commitments towards a sustainable future

Transcription

1 Delivering on our commitments towards a sustainable future Corporate Responsibility & Sustainability Summary 2014/2015 Report on the activities of the Coca-Cola system in Great Britain

2 Introduction Sharing the journey A message from the leaders of our business Jon Woods General Manager, Coca-Cola Great Britain and Ireland Leendert den Hollander Vice President and General Manager, Coca-Cola Enterprises 5.3% reduction in the average calories per litre in our sparkling drinks since m invested in reformulation, reducing sugar and calories, since m litres of water replenished through our partnership with WWF-UK 1m invested every week in British manufacturing Welcome to the 2014/2015 Corporate Responsibility and Sustainability Summary for the Coca-Cola system in Great Britain. Together, Coca-Cola Great Britain (CCGB) and Coca-Cola Enterprises (CCE) manufacture, market, sell and distribute some of the most popular soft drinks in Great Britain. As a significant British business responsible for global brands, we take corporate responsibility seriously. As we seek to grow our businesses sustainably we are continually looking for ways to help address the concerns of consumers and the societal issues we face. As a major food manufacturer we understand the vital role that a balanced diet and lifestyle can have on health and wellbeing obesity and inactivity concern many people and need addressing and we are committed to playing our part. In 2012, we promised to reduce the average calories per litre in our range of sparkling drinks by 5% by the end of We are pleased to say that we kept this promise through a combination of new product development and reformulation, increased choice in pack sizes, clearer labelling, and increasing the marketing investment in our lower and no calorie drinks. We also know that physical inactivity is a significant problem in Great Britain. Recent research suggests twice as many people die from a sedentary lifestyle as from obesity. 1 We are investing 20 million to help get one million people active by 2020, including initiatives such as ParkLives which was launched in 2014 and will expand year-on-year to We have made good progress, but know we can do more and we have committed to make Great Britain the first country in the world where 50% of the Coca-Cola we sell will be lower or no calorie. To help achieve this we are adopting an entirely new cola marketing strategy for Great Britain. For the first time, we will adopt a one brand strategy, uniting four separate brands as one Coca-Cola with four distinct variants. This is a major change that puts choice and information at the heart of our business strategy. Together, we believe all the actions we are taking will help more people make the right decisions for them and their families. We believe a successful and sustainable business is one that lessens the impact of its operations while continuing to grow in a sustainable manner. This report features a summary of our achievements from 1 January 2014 to 31 December 2014 as well as some information on our significant projects and initiatives in early For more information and data please go to: 1 Ekelund, U et al. Activity and all-cause mortality across levels of overall and abdominal adiposity in European men and women; the European Prospective Investigation into Cancer and Nutrition Study (EPIC). American Journal of Clinical Nutrition; Am Jr Clin Nutr March 2015 ajcn

3 Our business Where we operate Impacts across our valu We make 97% of our products in Great Britain. 2.4bn our worth to the British economy every year 4,000 people employed by Coca-Cola in Great Britain 2,436 suppliers used in Great Britain 13 locations including manufacturing and distribution sites and offices East Kilbride Morpeth Wakefield Supply chain Ingredients: The majority of our water impact and 18% of our carbon impact comes from our ingredients. Approximately 95% of our products are made from concentrates and syrups supplied by our brand owners. The rest are finished products that we distribute. We buy sugar, juices, mineral waters and carbon dioxide to make our products (low-calorie sweeteners are already contained in the concentrates). SU PPL Nottingham Coleshill Northampton Milton Keynes Peterborough Edmonton Ingredients Uxbridge London Sidcup Our products We are responsible for 19 brands and 96 different products, including low, lower and no calorie drinks and juices. We make 97% of our drinks in Great Britain at our six manufacturing sites. We sell more than four billion bottles and cans in Great Britain every year and distribute them to more than 169,000 outlets, large and small. In 2014, our top five brands by volume were Coca-Cola, diet Coke, Schweppes, Fanta and Coca-Cola Zero. We are committed to being the best sales and customer service company and we aim to grow more while using less. Core business operations Our core business operations are made up of our manufacturing operations, transportation and distribution and cold drinks equipment in total making up 32% of our value chain footprint. Although water is our primary ingredient, our core business operations account for only 1% of our overall water footprint. We work to reduce our impact as much as possible through minimising our water usage in our manufacturing operations, and through collaboration with our suppliers.

4 e chain Packaging: 50% of our value chain carbon footprint comes from our packaging, which is also a large contributor to our water footprint. Our packaging materials come from a range of suppliers with whom we work in order to reduce the impacts of those materials. Customers and consumers The carbon footprint of our 100% recyclable cans and bottles is incorporated into our packaging materials footprint. We are working to increase recycling rates wherever we operate, which will help us to generate more material to turn into new bottles and cans. Y CHAIN 1 18% Packaging 2 50% 99% 1% CO 2 e Wa t e r u s e 3 Recycling 1/3 Our impact throughout the value chain We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our value C0 chain. 2 e down by (2014: 299g CO 2 per litre sold) CUSTOMERS AND CONSUMERS Customers and consumers 8% O u r d 6% i r e c t t i m p a c 18% Manufacturing Distribution Refrigeration CO R E BUSINESS O PE R ATI O N S 1 We have modelled emissions for ingredients and packaging using industry average conversion factors linked to our procurement data for each raw material. 2 As a result of carbon packaging footprint methodologies. 3 Based upon multiple water footprinting programmes since Figures in this table are based on total CCE company data.

5 Energy and Climate Change Production line at our Wakefield manufacturing operations. 1m invested each week in British manufacturing 1st company to achieve Low Energy Company IT accreditation, globally 46% increase in the amount of freight backhauled in partnership with Tesco 337,474 tonnes of CO2e our carbon footprint in 2014 Climate change is the most pressing environmental issue of our generation and we are working hard to reduce the energy use and emissions across all of our operations growing our business, not our carbon emissions. We measure performance every month at our six manufacturing sites and invested an average of 1 million every week in 2014 in process innovation, energy-efficient technologies, developing and expanding local capacity and storage, reducing the need for long-distance freight as well as investing and exploring new solutions to reduce energy in our cold drinks equipment. We also plan to increase our use of renewable energy. We are leading the industry with a programme to introduce more energyefficient coolers. Since September 2014, our large open-fronted units (OFUs) are no longer refurbished but are upgraded to include the next-generation ICOOL range featuring energy management technology, LED lighting and electronically commutated (EC) fans and motors. These advanced coolers are 70% more energy-efficient than standard OFUs and 40% more efficient than OFUs retrofitted with doors. They are also more reliable and less costly to maintain. In 2015, we will invest 2.6 million to upgrade 1,280 OFUs in Great Britain. In 2014, CCE became the first company in the world to achieve a Low Energy Company (LEC) IT accreditation. The rigorous process involved a group of employees taking part in an IT-focused training course, developed to help IT professionals understand power usage within their organisation and the potential carbon impact of IT systems. In 2014, we partnered with Tesco to increase the percentage of freight backhauled from 14% to 46%. Backhauling reduces road miles and emissions by combining customer deliveries with collections. This enabled us to move nearly 10,000 orders to Great Britain s largest retailer, in a greener, more carbon-efficient manner. See more at

6 Sustainable Packaging and Recycling 175,171 tonnes of packaging used in 2014, 1.5% less than in % average amount of recycled PET plastic (rpet) in our bottles 100k worth of soft drinks donated to FareShare Packaging plays an important role in ensuring the quality and safety of our drinks as we deliver them to our customers and consumers and we are one of the UK s biggest users of packaging material. While most of it can be recycled, sadly too often it ends up in landfill. We are working to encourage people to recycle more, so we can re-use and reprocess old bottles and cans into new ones. In 2014, the House of Commons Environmental Audit Select Committee backed calls from Coca-Cola and others for positive changes to the UK s recycling system. MPs recommended that local authorities should move to standardise collections across the country to tackle the current confusing multiple regimes in operation. We gave evidence to the inquiry, demonstrating our commitment to help improve recycling rates. Active recycling partnerships with our retail customers have been very important in our efforts to improve consumer recycling behaviour. During 2014, we partnered with Tesco and their Recycling is the Answer campaign; Waitrose and their Spin to Recycle campaign; and ASDA as they gave consumers the chance to win tickets to The Highland Show, where we ran the Happiness Recycled initiative. March 2015 saw the launch of EKOCYCLE, a collection of sustainable lifestyle products, launched by global music artist and entrepreneur will.i.am together with Coca-Cola. The range of items made from recycled materials aims to push the boundaries on more sustainable fashion and design. Check out the range here We are always looking at innovative ways to avoid waste. In 2014, we established a partnership with the charity FareShare to ensure that surplus stock was donated to local projects and charities such as homeless hostels. Drinks worth an equivalent value of 100k were donated. See more at

7 Water Stewardship 1.29 litres of water used on average to make 1 litre of drink in 2014 (reduction of 16% since 2007) 3.1bn litres of water used in 2014 (reduction of 3% vs 2007) 286m litres of water replenished through our partnership with WWF-UK, exceeding our target by 36.3 million litres 100% of our key sugar suppliers are committed to comply with our Sustainable Agriculture Guiding Principles through the use of third-party frameworks such as the Rainforest Alliance Water is a precious resource, critical to our communities, our ecosystems and the sustainability of our business. It is also essential for growing many of the ingredients we use, central to our manufacturing and the main ingredient in our products. We are committed to being the leader in water efficiency and our target is to use 1.2 litres for every litre of product we make by The Coca-Cola system around the world is working to replenish the water used in its finished drinks through community projects such as river revitalisation in areas of water stress. As part of this global approach, we invested in a three-year replenishment programme in the South and East of England, in partnership with the World Wildlife Fund (WWF-UK). At the end of the programme we returned more than 286 million litres of water to the ecosystem, exceeding our target by 36.3 million litres. In 2014, technicians at our Wakefield plant identified three key projects to help us reduce or eliminate water, saving a total of 23,500m3 enough water to supply an average family household for 170 years! This included fitting new nozzles to the equipment used to rinse cans and bottles before they are filled; designing new micro filters to filtrate water collected from the bottle rinsing process before re-using it; and replacing water with ionised air to rinse bottles. As part of our focus on sustainable agriculture, we supported the Profiting from Sustainability conference, which marked the launch of an exclusive arable farming initiative, exploring ways to improve profitability by adopting innovative farming and supply chain practices. In November 2014, following our three-year replenishment programme, and in partnership with WWF-UK, we launched a report on the state of England s chalk streams. The event was attended by more than 100 people from Government, NGOs and business and highlighted that only a quarter of England s rivers are in good ecological health. See more at

8 Product Portfolio 43% of the cola we sell is now Coca-Cola Zero, diet Coke or Coca-Cola Life 15m invested in reformulation since 2012 and the same to be invested by % growth in sales of 250ml cans, giving consumers greater choice of portion size 39% of the drinks we sell in the UK are lower or no calorie 19 brands and 96 different products in our portfolio The Coca-Cola system was one of the first businesses to sign up to the UK Government s Responsibility Deal in 2011 and has voluntarily supported its calorie reduction initiative since This led to a commitment to reduce the calories in some of our soft drinks by at least 30% and reduce the average calories per litre of our sparkling drinks by 5% by the end of Since 2012, we have reduced the calories in our portfolio by 5.3% and aim to reduce them by a further 5% by Broadening our portfolio of lower and no calorie drinks, in 2014 we launched our new bottled water brand, glacéau smartwater. It is sourced from British spring water, which is vapour distilled before electrolytes are added to give the drink its crisp, clean taste. We believe it is important to help people understand the ingredients in our drinks so that they can make the right choices for their lifestyle. In 2014 we signed up to the UK Government s voluntary colour-coded, front-of-pack nutrition labelling scheme; this combines nutrient amounts and percentage Reference Intakes (RIs) with colour coding to show how much fat, saturated fat, salt, sugar and energy (calories) is in a product. The new labels started appearing on Coca-Cola products in March We have a long-standing commitment to responsible marketing and for the seventh year announced the launch of our Designated Driver campaign in partnership with THINK! the Department of Transport s road safety initiative. The 2014 campaign was bigger than ever, with the buy one, get one free Coca-Cola or diet Coke for drivers offer available in 12,500 pubs and bars nationwide. Coca-Cola Life, a lower calorie cola containing a third less sugar and a third fewer calories than regular cola, was introduced in June It is sweetened with a blend of sugar and naturallysourced stevia leaf extract. A 330ml can of Coca-Cola Life contains 89 calories and is the first new Coca-Cola variant to be launched in Great Britain since Coca-Cola Zero in See more at

9 Active Healthy Living 22,500+ visits to more than 70 local parks to participate in free ParkLives sessions 165,000 young people from disadvantaged communities have been helped to access sport on their doorsteps since 2010 thanks to our partnership with StreetGames 100k donated to StreetGames to help train the next generation of sports coaches following our 2014 FIFA World Cup promotion 1m footballs offered through our FIFA World Cup promotion, inspiring thousands of kick-abouts We are committed to play our part in tackling the global issue of obesity by offering people a greater choice of drinks and encouraging people to live more physically active lives. As part of this we have pledged to invest 20 million between now and 2020 in community-based activity programmes. In 2014 we launched a new, long-term national programme of free, informal activities in parks. ParkLives was delivered in partnership with local authorities in Newcastle, Birmingham and Newham, London, with organised activities taking place in more than 70 local parks. ParkLives is designed to appeal to a broad cross-section of the local community, particularly families and young people, and offers a wide range of fun sessions to encourage them to enjoy being active in a sociable inclusive atmosphere. Thousands of structured sessions were on offer last summer, including hula-hooping, table tennis, tai chi, badminton, canoeing, rounders, netball and Zumba. The activities available in each city were informed by local research and were led and delivered by trained session leaders. The programme is evaluated by the national physical activity experts, ukactive, to understand its effectiveness. Manchester, Nottingham and Glasgow will join the scheme in See more at In 2014, we continued our partnership with the charity StreetGames to host four mass participation festivals, exciting multi-sports and activity events allowing young people from disadvantaged communities to take part in new activities at top-quality sports facilities, providing them with a summer day out to remember and thereby helping to sustain their participation in sport. A 100k donation was given to StreetGames, to fund the training and development of doorstep sports coaches, as an outcome of our integrated marketing campaign around the 2014 FIFA World Cup. This included our most successful ever on-pack promotion giving the chance to win one of a million footballs to encourage people to enjoy a kick-about. See more at

10 Community 4m+ invested in education and community programmes 50th anniversary celebrated at our manufacturing plant in East Kilbride 5th education centre opened at Milton Keynes 78,000 students participating in Real Business Challenge We are a local business with a strong regional presence and we have a long history of supporting our local communities. We invest in education programmes for young people and encourage our employees to get involved, whether mentoring students or hosting factory tours at our education centres. Our latest education centre opened at Milton Keynes in October 2014, following an 800,000 investment. The centre will host six visits a week, a total of 4,000 students a year. With a curriculum-linked programme, visitors to the centre receive subject-related insight into manufacturing processes, alongside a guided tour of the factory. The centre is run by a General Teaching Council registered teacher, employed full-time by Coca-Cola, and gives students a unique opportunity to develop their knowledge of the world of work. The Real Business Challenge competition was the largest to date with more than 78,000 students participating. Aimed at year olds, this national enterprise competition is open to all secondary schools in Great Britain. We partnered with Special Olympics GB, with students tasked to develop a campaign to raise funds and support for athletes attending the Special Olympics World Games in July Special Educational Needs students were invited to take part in the competition for the first time. We also held a Parliamentary Reception the day before the national final, enabling students to meet their local MPs and other VIP guests. In March 2014, we supported the Food & Drink Federation on their Taste Success stand at the Big Bang Fair, the UK s largest celebration of science, technology, engineering and maths for young people. The event provided an opportunity for industry to demystify manufacturing and generate excitement and interest in engineering in particular. See more at

11 Workplace 5 years no lost-time accidents at our manufacturing plant in Morpeth 1,000 days with no lost-time accidents at our manufacturing plant in Sidcup 1,566 hours volunteered by our employees, supporting Special Olympics, our education programme and local initiatives People are the key to our success as a vibrant and sustainable company. We must create a diverse and inclusive culture, provide a safe working environment and support the health and wellbeing of our employees in order to make Coca-Cola a great place to work. We encourage our employees to get involved in our community projects through volunteering or fund-raising as well as supporting them with their own initiatives to help charities in their local community. We encourage our employees to volunteer their time, get active and fund-raise for charity. In 2014, across the country, people took part in cycling events, were encouraged to Love Food, Hate Waste and hosted a wide range of fund-raising activities. A large group spent a morning taking part in a series of fun ParkLives games and activities hosted by ActiveNewham session leaders. During 2014, we hosted a series of Ambassador Roadshows involving more than two-thirds of our employees, with the aim of building their knowledge and confidence about our business and products. In 2014, CCGB moved into its new headquarters which retained the company s ISO accreditation for sustainability with a host of resource-saving design features. The building won an award for the sustainable design of its roof terrace which includes a living wall and rainwater collection as well as providing a practical space for meetings, dining and exercise classes. We are committed to creating a diverse and inclusive culture and have set up initiatives that support women in manufacturing, for example providing mentors to support the Brunel University mentorship scheme for female engineering students. We hosted our first Unified Sports Tournament with Special Olympics Great Britain (SOGB), bringing together competitors with and without a learning disability to compete on the same teams. People from our sites at Morpeth, Wakefield and East Kilbride and 25 SOGB athletes took part in 5-a-side football, badminton, carpet bowls and boccia. It was a fun, uplifting and inspirational day. See more at

12 Great Britain Coca-Cola Enterprises Ltd Enterprises House Bakers Road, Uxbridge Middlesex, UB8 1EZ Coca-Cola Great Britain 1A Wimpole Street London, W1G 0EA A JOINT CRS VISION Developing strong commitments together Active healthy living Product portfolio Well-being Responsible marketing ME Community Women Charitable contributions WE Workplace Human and workplace rights Water stewardship Energy and climate change Sustainable agriculture Sustainable packaging and recycling Water Climate protection Sustainable agriculture Sustainable packaging WORLD For more information and the background to our data please visit Designed and produced by SALTERBAXTER MSL GROUP Printed by Newman Thomson Ltd This report has been printed on Amadeus 100 Offset which is certified as FSC 100% recycled.