Corporate Responsibility & Sustainability Report 2014/2015 Delivering on our commitment towards a sustainable future CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 01/30 About this report MATERIALITY ASSESSMENT In 2014, we held a series of stakeholder roundtables during which we discussed our material issues and Sustainability Plan commitments, updating the work that we first completed in 2011. As part of this assessment, our stakeholders asked us to highlight and explain our most material issues. In this year’s report, we include an overview of our six most material issues, and explain why these particular issues matter to us, and how we are responding to them. These issues comprise: • Wellbeing • Climate Change • Resource Scarcity • Water • Sustainable Sourcing This is Coca-Cola Enterprises’ (CCE’s) tenth annual Corporate Responsibility and Sustainability (CRS) Report, providing a progress update on our Sustainability Plan and replacing CCE’s 2013/2014 CRS Report. This report, made up of 30 factsheets, is our most recent CRS disclosure and contains a full year of data from January 1, 2014 to December 31, 2014 for our business operations covering eight Western European territories (Great Britain, France and Monaco, Belgium, Luxembourg, the Netherlands, Norway and Sweden) and our offices in the United States and Bulgaria. Also included are illustrative case studies and business activities from 2015. For news on our sustainability initiatives and further resources, see our website www.cokecce.com. • Employment and Diversity For our full Materiality Assessment, please see Factsheet 27. REPORTING BOUNDARIES AND STANDARDS At CCE, we have taken a value chain approach in considering our most significant impacts. To this end, where stated, our value chain data goes beyond our own operations. For our own operations, unless otherwise indicated, data in this report covers all operations (production, sales/distribution, combined sales/production facilities, administrative offices and fleet) owned or controlled by CCE, including our administrative offices in the Unites States and Bulgaria. Our carbon footprint is calculated in accordance with the WRI/WBCSD Greenhouse Gas Protocol and we use an operational consolidation approach to determine organizational boundaries. The water-use data in this report refers to production facilities where we have the greatest operational water use. All financial data in this report is in US dollars, unless otherwise stated. This report has been assured by DNV GL (see Factsheet 29) and is in accordance with the Global Reporting Initiative (GRI) G4 Guidelines at the Core level. The carbon footprint data of our core business operations has been assured by SGS Limited. The report also serves as our Communication on Progress (COP) for the United Nations Global Compact (UNGC). Our Water Factsheets 18 and 19 serve as our COP-Water, part of our endorsement of the UNGC CEO Water Mandate. ONLINE www.cokecce.com: Our corporate website includes a CRS section which further details our initiatives, our CRS commitments and targets, a full GRI Index and indices showing our compliance with the UNGC and its CEO Water Mandate, progress updates, details of awards and events, our governance structure and corporate CRS policies. Country reports: Each of CCE’s territories produces a Coca-Cola system report in conjunction with The Coca-Cola Company, giving local information on how CCE’s CRS commitments are being brought to life in our communities. These reports can be found online at each of the following websites: Great Britain: www.cokecce.co.uk France (including Monaco): www.cokecce.fr Belgium and Luxembourg: www.cocacolabelgium.be The Netherlands: www.coca-colanederland.nl Norway: www.cceansvar.no Sweden: www.cceansvar.se The Coca-Cola Company provides many sources of Coca-Cola system sustainability information. In particular, its website, www.coca-colacompany.com, contains corporate codes and policies which inform CCE’s own approach to CRS. Its 2014/2015 Sustainability Report, www.coca-colacompany.com/#sustainability, contains a summary of the global Coca-Cola system’s sustainability work. For further information, please contact crs@cokecce.com. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 02/30 CEO Statement Chairman and CEO, Coca-Cola Enterprises, Inc., John F. Brock Q. It’s been four years since the launch of your Sustainability Plan – what has changed in the past few years? A. John Brock: Our stakeholders’ expectations of us as a business, and as an industry, have significantly increased over the past few years. We have assembled roundtable discussions with stakeholders across our territories to better understand their evolving expectations. We take our responsibility to continue to push ourselves seriously, which is why we are proud to be launching an updated Sustainability Plan with challenging new targets. A. Hubert Patricot: The Sustainability Plan we launched in 2011 helped us drive some great successes. We set a target to reduce the carbon footprint of our core business operations by 15 percent. In just three years, we reduced it by 29 percent, and also exceeded targets for reducing the carbon footprint of our cold drinks equipment and transportation. We know that we have more to do, so our new plan includes revised targets in a number of areas. Q. H  ow have you incorporated stakeholder concerns into your Sustainability Plan? A. John Brock: Our stakeholders’ concerns are aligned to our key commitment areas. Issues such as climate change, resource scarcity and obesity are of big concern to our stakeholders; our revised targets reflect our goal to meet their challenges directly. However, we know that these issues cannot be solved by one company alone. We need to work in partnership to develop common solutions to problems, and we are committed to playing our role in this. A. Hubert Patricot: I believe that as stakeholder expectations increase, all organizations need to work in closer partnership with each other in order to create the big changes required. To be at the forefront of this movement, we will continue to work with stakeholders in areas where we are already active; for example, recycling and water replenishment, and will seek out new partnerships in order to meet our goals. We see this shift as a positive development which will drive increased sustainability and performance. Q. H  ow does the sustainability agenda shape your business strategy moving forward, given the pressure that the beverage industry is facing? A. Hubert Patricot: Social issues, as much as environmental issues, are driving our sustainability agenda – including the way we report our progress and set our objectives. In particular, our updated Sustainability Plan commitments and our issues reporting focus were directly influenced by the stakeholder roundtables we held. Engaging with our stakeholders on issues that concern them will drive improved performance, greater employee engagement, and stronger connections locally. A. John Brock: Forward-thinking businesses will be able to turn the societal and environmental challenges we face into an opportunity. We are proud of our environmental successes and the revised stretch targets in our new plan, and we want to make strides to become part of the solution on obesity. Our portfolio has the largest percentage of no- and low-calorie beverages that it’s ever had, and we’ve now set a target to get three million people moving by 2020, in line with the Coca-Cola system commitments. Q. W  hat’s next on your sustainability journey? How will you aim to meet your new sustainability targets? A. John Brock: Our new targets will not be easy to achieve – but that is exactly the point. We are responding to stakeholder expectations and challenging ourselves to improve our environmental and social performance. Over the coming years, we will continue our focus on reducing our energy and water usage and enhancing our sustainable sourcing efforts. We will continue to support and measure our sustainability progress against the principles outlined in the United Nations Global Compact. A. Hubert Patricot: We know that we need to accelerate our efforts and are determined to create value from collaboration and explore what true sustainability leadership means in the future. We’ll continue to review how to innovate further, and explore opportunities for collaboration across our value chain. John F. Brock Chairman and CEO Coca-Cola Enterprises, Inc. (CCE) (left) Q. W  hat are the trends that you see as shaping the future of sustainability? A. Hubert Patricot: I’m really inspired by the sustainability changes that have occurred in the past 10 years, and now we’re beginning to see the next evolution of what it means to be a sustainable business. Taking a holistic view of defining value for both shareowners and stakeholders will be critical. A. John Brock: The pace of change in innovation and technology allows us to progress even further in the future. Innovative and technological collaboration with other organizations will become increasingly important for businesses as they seek to create more sustainable products, packaging and services. We have partnered with OpenIDEO to crowdsource ideas to help improve home recycling, and have been working with partners to develop ways to use 3D printing in our business. As technology and our partnerships evolve, we’ll see more innovative solutions to sustainability. Hubert Patricot Executive Vice President and President, European Group Coca-Cola Enterprises, Inc. (CCE) (right) CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 2014 Performance Highlights FACTSHEET 02/30 PERFORMANCE HIGHLIGHTS 2014 Wellbeing Reduced the calories per liter across our portfolio by 5.4% since 2010 and engaged over 1 million people in Active Lifestyle programs. See Factsheets 6–8 Energy and Climate Change Achieved a 29 percent absolute reduction in the carbon footprint of our core business operations against our 2007 baseline. See Factsheets 9–13 Sustainable Packaging and Recycling Reduced our packaging use ratio by 20 percent against a 2007 baseline – a continued decrease from the previous year. See Factsheets 14–16 Water Stewardship Maintained our water use ratio of 1.36 – a reduction of 17 percent since 2007. Established three important water replenishment partnerships in water-stressed areas in Belgium, Great Britain and France. See Factsheets 17–19 Sustainable Sourcing 100 percent of our sugar beet suppliers have agreed to adopt our Sustainable Agriculture Guiding Principles by 2020. See Factsheets 20–22 Workplace Achieved 25 percent female representation at leadership level and 36 percent representation at management level. Hosted our first, award-winning Diversity & Inclusion Lab. See Factsheets 23–25 Community Reached more than 130,000 young people through local partnerships and our education programs and centers. See Factsheet 26 CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 03/30 Our Sustainability Plan COMMITMENT HIGHLIGHTS 10% Reduce the calories per liter by 10 percent across our portfolio by 2020.1, 2 3 million Enable three million people to be physically active by investing in grassroots programs which support active lifestyles.1 50% Reduction in the absolute carbon footprint of our core business operations by 2020. 40% Ensure that 40 percent of the PET we use is recycled PET and/or PET from renewable materials. 40% INTRODUCTION In September 2011, we launched our Sustainability Plan – ‘Deliver for Today, Inspire for Tomorrow’. We set challenging and measurable targets which represent a significant stretch for our business. STRATEGIC PRIORITIES Our Sustainability Plan includes three strategic priorities: • Deliver for Today – demonstrating best practice across all of our commitments. • Lead the Industry – in areas where we believe we can make the biggest difference: – Energy and Climate Change – Sustainable Packaging and Recycling • Innovate for the Future – Driving new opportunities for innovation, thought leadership, collaboration and partnership. We are proud of the progress we have made and in some areas we have met our initial targets ahead of schedule. But we know that we need to go further. We have to evolve our targets, reflecting not just the progress that we’ve made, but also to ensure that we continue to meet our stakeholders’ expectations. Sustainably source 100 percent of our key agricultural ingredients by 2020. We believe that our commitments and targets are feasible, but continue to represent a significant stretch for our business. We are determined to meet the targets we have set, yet we know that continued investment, ongoing innovation and strong collaboration will be critical in the years ahead. We will continue to report progress against our targets on an annual basis in our CRS Report. Our strategic priorities 40% 100% As a result, we have made significant changes to our Sustainability Plan, responding to challenges on many important topics including carbon emissions, renewable energy, calories and sustainable sourcing. SUSTAINABILITY PLAN Source 40 percent of our energy from renewable sources by 2020. Aspire to have a minimum of 40 percent of women in both management and leadership grades by 2025. In 2014, we undertook a comprehensive review of our Sustainability Plan. This included a review of our progress and a series of discussions with our stakeholders. They challenged us to go further, and we’ve listened. Deliver for today On our commitments and targets Our sustainability vision We will deliver for today, growing a low-carbon, zero-waste business, and inspire and lead change for a more sustainable tomorrow. Lead the industry In Energy and Climate Change and Sustainable Packaging and Recycling Innovate for the future Opportunities for innovation, collaboration and partnership CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/15 Our Sustainability Plan — continued OUR UPDATED COMMITMENTS: We have updated our targets across every one of our commitment areas. As before, we believe these targets are feasible, but stretching – and that we can achieve the majority of them by 2020 through a continued focus on innovation, investment and collaboration. Energy and Climate Change FACTSHEET 03/30 Our three priorities remain the same: Deliver for today, Inspire for tomorrow, and Lead the industry. Below, we have outlined the key focus areas in our updated Sustainability Plan, highlighting in particular where there has been a change. These updated targets are reported against in this year’s Corporate Responsibility and Sustainability Report. You will find progress against these targets on each of the relevant factsheets, and in our data tables. Our baseline year is 2007 unless otherwise stated. Sustainable Sourcing We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our value chain. We will sustainably source 100 percent of our key agricultural ingredients. Target By Sustainably source 100 percent of our key agricultural ingredients1 2020 Target By Carbon footprint Reduce the carbon footprint of the drink in your hand by a third 2020 Carbon footprint – core business Grow our business, but reduce the absolute carbon footprint of our core business operations by 50 percent 2020 Manufacturing Manufacture every liter of product with 50 percent less carbon emissions 2020 Transportation Deliver a case of product with 30 percent less carbon emissions 2020 Target By Cold drinks equipment Reduce the carbon emissions from our cold drinks equipment by an average of 50 percent 2020 Choice – calorie reduction Reduce calories per liter across our product portfolio by 10 percent1, 2 2020 Renewable and low-carbon energy Source 40 percent of our energy from renewable or low-carbon sources 2020 Choice – availability Offer a no- or low-calorie alternative whenever regular sparkling drinks are available Ongoing Supplier collaboration Work in partnership with our suppliers to reduce carbon emissions across our value chain Ongoing Choice – portion size Ensure that all sparkling soft drinks are available in small portion size choices, and increase the availability of small packs Ongoing Nutritional information Ensure clear nutritional labeling on front of pack across all our products1 Ongoing Responsible marketing Not market any of our products to children under 12 and not sell our products in primary schools1 Ongoing Active lifestyles Enable three million people to be physically active by investing in grassroots programs which support active lifestyles1 Ongoing Sustainable Packaging and Recycling We will support the development of the circular economy, use recycled and renewable materials and recycle more packaging than we use. Target By Lightweighting Reduce by 25 percent the amount of material we use across all packaging formats 2020 Recycled materials Include recycled aluminum, glass and steel in respective packaging formats Ongoing PET bottles Ensure that 40 percent of the PET we use is recycled PET and/or PET from renewable materials 2020 Recyclability Continue to ensure that 100 percent of cans and bottles are fully recyclable Annual Support the development of infrastructure and technology to enable recycling of all other packaging materials 2025 Manufacturing Send zero waste to landfill from our own manufacturing operations Recycling Inspiring consumers Packaging innovation Key agricultural ingredients Wellbeing We will play our part to promote wellbeing by reducing calories across our portfolio by 10 percent and enabling three million people to be active. Community We will make a positive difference in our communities, work with local partners and support the active involvement of our employees. Target By Social investment Invest 1 percent of our annual pre-tax profit to support charitable and community partners and make a positive difference in the communities in which we operate Annual Annual Employee volunteering Support the active involvement of our employees by encouraging them to volunteer Ongoing Recycle more packaging than we use, by championing improvements to collection schemes and supporting the recycling industry 2020 Supporting young people Support the skills development and learning needs of 250,000 young people each year 2020 Increase packaging recovery rates by using our brands to educate and inspire consumers to recycle more often Ongoing Support the wider packaging industry to explore next-generation packaging1 Ongoing Water We will minimize water impacts in our value chain, establish a water sustainable operation and set the standard for water efficiency. Target By Protect Protect the future sustainability of the water sources we use and safely return to nature 100 percent of the wastewater from our manufacturing operations 2020 Reduce Reduce the amount of water we use, aiming to manufacture every liter of product using an average 1.2 liters of water 2020 Replenish Return to nature the water used in our beverages, where it is sourced from areas of water stress by investing in community-based water programs1 2020 Value chain Minimize water impacts in our value chain through our sustainable sourcing programs 2020 Workplace We will attract, develop and motivate a highly talented and diverse workforce within a safe and healthy workplace. Target By Employee wellbeing Encourage participation in our employee wellbeing programs so that at least 50 percent of our employees take part 2020 Workplace safety Provide a safe and healthy work environment with a vision of achieving zero accidents and attaining world-class health and safety status 2020 Workplace diversity Attract, develop and motivate a highly talented and diverse workforce Ongoing Aspire to have a minimum 40 percent of women in both management and leadership grades 2025 1 In partnership with The Coca-Cola Company. 2 Against a 2010 baseline. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/15 FACTSHEET 04/30 Our Business HIGHLIGHTS 2014 170 million people served across eight territories in Western Europe. Coca-Cola Enterprises (CCE) is one of the world’s largest independent bottlers of Coca-Cola beverages. 17 manufacturing operations WHAT WE DO At CCE, we manufacture and distribute over 40 of the most popular beverage brands in the world. These include Coca-Cola, Coca-Cola Life, Diet Coke, Coca-Cola Light, Coca-Cola Zero, Fanta and Sprite1 as well as a growing range of water, juices and juice drinks, sports drinks, energy drinks and ready-to-drink teas. In 2014, we sold approximately 12 billion bottles and cans (or 600 million physical cases) through more than one million retail customers across our territories, generating approximately $8.2 billion in revenue and $1.019 billion in operating income. We are a public company, incorporated and headquartered in the United States and publicly traded on the New York Stock Exchange and the NYSE Euronext in Paris under the symbol, CCE. Our business makes a significant economic contribution to the countries and communities in which we operate. At the end of 2014, we employed approximately 11,6502 people, paying salaries and benefits of $1 billion. We also paid $1.4 billion in total taxes.3 An independent evaluation concluded that in Great Britain each job provided by Coca-Cola supports a further eight jobs, and that for every £1 of value CCE creates, an additional £8 is generated. We operate 17 manufacturing operations facilities in Western Europe. 40 beverage brands manufactured and distributed. OUR PRODUCT PORTFOLIO AS SOLD BY VOLUME E nergy drinks, sports and functional waters, water, ready-to-drink teas e.g. 12 billion bottles and cans sold. Juice drinks e.g. Key Regular sparkling soft drinks 58% N  o- and low-calorie sparkling soft drinks 27% 100 percent juice 1% Juice drinks 7% Energy drinks 2% Sports and functional waters 1% Water 3% Ready-to-drink teas and other 1% 100 percent juice e.g. Regular sparkling soft drinks e.g. No- and low-calorie sparkling soft drinks e.g. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/15 Our Business — continued FACTSHEET 04/30 OUR OPERATIONS AT A GLANCE We operate in Great Britain, France, Monaco, Belgium, Luxembourg, the Netherlands, Norway and Sweden, have offices in the United States and Bulgaria and employ approximately 11,6502 people. WHERE WE OPERATE COCA-COLA ENTERPRISES KEY STATISTICS 2014 Territory Key  CCE European Headquarters Country head offices Bottling plants US Headquarters Atlanta, Georgia Bulgaria Shared service center Employees2, 4 Manufacturing sites Carbon footprint (tonnes CO2e) Water use ratio (liters to make 1 liter product) Belgium & Luxembourg 2,400 3 78,142 1.57 France5 2,650 5 88,580 1.22 Great Britain6 3800 6 337,474 1.29 Netherlands 800 1 91, 783 1.65 7 Norway 700 1 5,756 1.34 Sweden 800 1 11, 911 1.80 USA 150 0 4,367 n/a Bulgaria 250 0 443 n/a 17 618,984 1.36 TOTAL 11,6502 A STRONG PARTNERSHIP The Coca-Cola Company is our primary strategic partner. While beverages owned by The Coca-Cola Company and its affiliates represent more than 90 percent of our volume, we also distribute brands for other franchise partners, including Capri Sun. Our people People 11,650 2 employees Our operations 8 employees Operations countries and territories in Western Europe Our customer focus – B2B 200 countries worldwide Consumer focus Bottler; distributer; market execution and innovation; community and customer brand marketing 1 2 3 4 5 6 7 130,600 Brand ownership; product development and innovation; brand marketing and advertising Coca-Cola, Coke, Coca-Cola Zero, Coke Zero, Coca-Cola Life, Coke Life, Coca-Cola Light, Diet Coke, Fanta and Sprite, and the design of the Coca-Cola Contour Bottle are registered trademarks of The Coca-Cola Company. As quoted in our 2014 10-K and Annual Report. Reduction in amount paid in USD vs 2013 is due to foreign currency exchange fluctuations, which are noted in our 2014 10-K and Annual Report. Rounded to nearest 50 employees (country employee figures do not include occasional workers in Norway and Sweden nor Belgian pre-pensioners. Including Monaco. Great Britain is our largest market and has carbon-intense electricity. Our Carbon Footprint in Norway: In April 2013 we completed a business transformation project in Norway which included a move to recyclable and non-refillable PET bottles and a significant change to our route to market operations. This has resulted in a significant change in emissions across our Norwegian value chain, only part of which is included within the boundaries of this carbon footprint. Additional emissions occur within our wider value chain, which we report on as part of our ‘Drink in your hand’ value chain commitment. We no longer operate a direct store delivery model and have eliminated the road kilometers associated with the collection and return of refillable packaging. Instead, our customers now collect finished product directly from CCE’s factory in Oslo for onward distribution. Any emissions associated with our customers’ transportation are outside of our operational control and are therefore not included in our carbon footprint. We will continue to review the carbon impact of this change across our value chain in the future. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/15 Our Value Chain FACTSHEET 04/30 Our Value Chain Our business has environmental and social impacts across the life cycle of our products – from the sourcing and use of raw materials and ingredients, to the manufacturing of our products, through to their disposal. We are committed to reducing our impact across the value chain – reducing the carbon footprint of the drink Supply chain in your hand by a third by 2020, and minimizing water impacts in our value chain. However, our biggest impact lies beyond our business operations – so we must collaborate with our suppliers, customers and other stakeholders to make a real reduction in our impact. Customers and consumers Packaging: 50 percent of the carbon footprint of our value chain comes from our packaging, which is also a large contributor to our water footprint. Our packaging materials come from a range of key suppliers with whom we work in order to reduce the impacts of our packaging materials. Ingredients: The majority of our water impact and 18 percent of our carbon impact comes from our ingredients. Approximately 95 percent 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). We are working to increase recycling rates across our territories. This will help us to generate more material to turn into new bottles and cans. The carbon footprint related to the recycling of our packaging is incorporated into the carbon footprint of our packaging.9 ST O AI Recycling C O 2e We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout e our value C0 chain. 2 down by 99% ERS a 10 UM W se r u te NS 50% SU CO PP Packaging9 D CH E AN LY M RS N 8 CU Customers and consumers 1/3 Our impact throughout the value chain Ingredients 18% 1% Core business operations 8% Our direct impact 6% Distribution Manufacturing 8 We have modeled emissions for ingredients and packaging using industry average conversion factors linked to our procurement data for each raw material. 9 As a result of carbon footprint methodologies. 10 Based upon multiple water footprinting programs since 2011. See Factsheet 19. 18% Refrigeration CO NS RE B U S I N E S S O P E R AT I O Our core business operations are made up of our manufacturing operations, transportation and distribution and cold drink equipment – in total making up 32 percent of our value chain carbon footprint. Although water is our primary ingredient, our core business operations account for only 1 percent of our overall water footprint. We work to reduce our impact as much as possible through minimizing our water usage in our manufacturing operations, and through collaboration with our key suppliers. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 05/30 Innovate for the Future Laura Storm, Sustainia, presenting at our second Future for Sustainability Summit. HIGHLIGHTS 2014 Summit We hosted our ‘Future for Sustainability Summit’ in partnership with the Financial Times. Profit and Purpose CCE commissioned Cranfield University to explore how business can successfully combine profit and purpose. INTRODUCTION Innovation will be critical if we are to meet the targets in our Sustainability Plan. We know that tackling the size and scale of the issues in our value chain will require collaboration, and that we will need to accelerate the pace of change. We cannot do this alone and will need to work with stakeholders to develop innovative new solutions to shared problems. Although we have made strong steps over the past few years, we know that we have a long way to go on our sustainability journey. Eight winners of the OpenIDEO Recycling Challenge crowdsourcing initiative, aimed at generating ideas to improve home recycling rates. Speakers at our Future for Sustainability Summit. OUR STRATEGY We are focused on collaborating with others to develop innovative solutions which will benefit ourselves, our industry and broader society. We will do this through: • Thought leadership to explore and develop solutions to new issues and challenges. • Collaboration and engagement with suppliers, customers and other stakeholders to drive innovation and unlock new ideas and opportunities. • Accelerating the pace of change by developing and harnessing innovation and technology. THOUGHT LEADERSHIP Sustainability summit In October 2014, we hosted our ‘Future for Sustainability Summit’ in partnership with the Financial Times, in order to generate a dialogue around the future of business. The Summit brought together over 250 delegates from diverse backgrounds to explore how business can redefine value beyond financial metrics, as well as to examine sustainability strategies and trends that are shaping future business models. We hosted a number of influential business professionals, entrepreneurs and academics, including members of the World Economic Forum’s Global Shapers program. The speaker line-up provided insights from a range of backgrounds including the financial, corporate, academic and not-for profit world. It included representatives from The Haga Initiative, Climate Change Capital, l’Institut de lèconomie Circulaire, Sainsbury’s, Green Alliance, Sustainia and Cranfield University. The Summit explored various themes including the business case for tackling natural resource scarcity and environmental challenges at a boardroom level, the importance of engaging the financial community in developing a new definition of business value, and the challenge of integrating sustainability into product design. In 2015, we plan to host a series of stakeholder roundtables, which will provide the opportunity for a more in-depth discussion with key stakeholders on a range of topics covering our key issues. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Innovate for the Future — continued Combining profit and purpose: a new dialogue on the role of business in society One of the key themes at the Summit was the important role that businesses have to play in combining profit and purpose – being clear that to be successful, companies need to ensure that profit and social purpose are fully complementary. Businesses today face significant pressure to deliver value beyond a return for investors. They must generate a profit while also addressing significant social and environmental challenges. We wanted to better understand whether today’s business leaders and those of the future think that the business community is currently doing enough to address global sustainability challenges and to combine ‘profit’ and ‘purpose’. We commissioned the Doughty Centre for Corporate Responsibility at Cranfield University, with support from FT Remark and Net Impact, to further explore this topic with current and future business leaders – including the millennial generation. Results revealed a strong alignment on the topic of ‘profit and purpose’ with 90 percent of future leaders and 88 percent of current leaders believing that business should have a social purpose. However, only one in five future business leaders thinks companies already have a clear focus on social purpose, compared with four in five current CEOs. This suggests that business either isn’t doing enough to address global sustainability challenges, or isn’t communicating its achievements to a global audience. The research was launched at our ‘Future for Sustainability Summit’ in partnership with the Financial Times. BUSINESSES HAVE A CLEAR SOCIAL PURPOSE Nearly 9/ 10 current leaders agree However only 2 / 10 future leaders agree FACTSHEET 05/30 CASE STUDY OpenIDEO Our recent online partnership with open innovation platform OpenIDEO.com allowed us to answer the question, ‘How might we establish better recycling habits at home?’ For three months, members of the online OpenIDEO community submitted creative ideas to address the challenge and inspire behavior change on recycling. Many of the ideas were tested and prototyped during this period with over 320 contributions received during an initial research phase and over 200 ideas submitted for consideration by the OpenIDEO community and a panel of recycling experts. Twenty-five ideas were then reviewed against a set of evaluation criteria with eight selected as the best winning ideas. We are currently working to further develop one of these ideas, a mobile phone app to help people understand what materials are recyclable where they live. This is being done in partnership with WRAP, the UK Government’s recycling agency. Baljinder Bansal Associate Director, IT Innovation EMPLOYEE SPOTLIGHT — The innovation process Within our Information Technology (I.T.) department we have adapted the Lean Startup methodology to support our innovation process, enabling ideas to be generated and developed quickly and cost-effectively. Colleagues are able to access our Ideation Platform, either from their laptop or via a mobile phone app, where they can post an idea. If their idea receives enough ‘likes’, it’s developed into a proof of concept, and presented to senior management for a decision on future investment. We have learned equally from our successes and our failures, and are building these insights into our processes. We have been trialing the use of a 3D printer within our business, as well as the use of beacon messaging. The idea generation process has also started to expand to other areas of our business such as with our Field Sales teams in Great Britain. I’m very excited to see what innovative ideas will be developed. COLLABORATION AND ENGAGEMENT Our Sustainability Plan commitments cover our entire value chain – and we know that in order to achieve our goals we will need to look outside our own operations and collaborate with all of our stakeholders. For this reason, we have developed many key partnerships over the past few years. Following research by the University of Exeter in 2014, which helped us understand recycling behavior in the home, we entered a new partnership with OpenIDEO as part of our ‘Recycle for the Future’ program. Together, we launched a recycling challenge to crowdsource ideas on how to promote recycling in the home (see case study). Partnerships with our retail customers have been very important in helping to improve consumer recycling behavior. During 2014, we increased our partnerships with retailers and held campaigns to encourage shoppers to recycle across Great Britain, France and Belgium (see Factsheet 16). We also work closely with our suppliers to encourage them to improve their own sustainability. Our Supplier Relationship Management (SRM) process helps us to collaborate with suppliers and provides a management framework whereby each supplier is evaluated on their sustainability performance (see Factsheet 22). We are also working closely with The Coca-Cola Company to develop our approach to sustainable agriculture and to ensure that by 2020 the global Coca-Cola system sources its key agricultural ingredients sustainably. As each supply chain for each commodity is different and complex, we are developing partnerships with our suppliers and with third-party organizations like the Rainforest Alliance and the Sustainable Agriculture Initiative to define what we need to do to sustainably source our ingredients. For more information see Factsheet 21. ACCELERATING THE PACE OF CHANGE In order to address the sustainability challenges we face, it is important that we accelerate the pace of change. We will achieve this by increasing our use of new technology and forging new partnerships with our stakeholders. Our joint business venture with APPE has helped us to create a step-change in recycling and support our commitment to reduce the carbon footprint of the drink in your hand by a third by 2020. We have invested over $12 million to create a state of the art recycling plant, Infineo, which produces enough high-quality recycled PET (rPET) to cover our requirements in France, Belgium and Luxembourg. As a result, at the end of 2014, we were able to include an average of 34 percent rPET in our packaging (see Factsheet 15). CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 ISSUE SHEET 06/30 Issue sheet: Wellbeing How can we be part of the solution to the challenge of obesity? ISSUE INSIGHTS 10% The World Health Organization recommends that added sugars should be less than 10 percent of total calorie intake.1 World Health Organisation “Efforts to encourage even small increases in activity in inactive individuals may be of public benefit.” Ekelund et al, American Journal of Clinical Nutrition4 1.9 billion In 2014, more than 1.9 billion adults were overweight (600 million of these were obese).2 World Health Organisation Doubled Worldwide obesity rates have more than doubled since 1980.3 World Health Organisation OUR COMMITMENT We will play our part to promote wellbeing by reducing calories across our portfolio by 10 percent and enabling 3 million people to be active by 2020.7 Obesity is a complex challenge with a significant cost to both society and individuals. Worldwide, over 600 million adults and 42 million children under the age of five were classed as overweight or obese in 2013.5 In Europe, 50 percent of people are overweight or obese and two-thirds are not meeting recommended levels of physical activity.6 We know that diet and calorie intake, including the calories in our products, can have a big impact on health and wellbeing and we want to be part of the solution. Obesity and inactivity combined have a profound impact on public health, on the economy and ultimately on the happiness of society as a whole. It will require multiple stakeholders across industry, government and civil society to work together to change behavior and support and inspire people to become more active. As a major manufacturer within the food and beverage industry, we understand the role that diet, including our products, can have on health and wellbeing. We know that we need to be part of the debate, and part of the solution on this issue. We have worked over the past years to increase the number of no- or low-calorie beverages in every market, and increase the range of portion sizes. However, we know that we need to go further, and have recently set new commitments to reduce the calories per liter across our portfolio by 10 percent by 2020.7, 10 We also aim to get three million people physically active by 2020, through supporting community-based physical activity programs.7 Solving a complex global challenge like obesity can’t be done by any one organization in isolation. We will continue to work in conjunction with partners in government, industry and civil society to continue to make significant progress on this issue. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Wellbeing — continued Hubert Patricot Executive Vice President and President, European Group, Coca-Cola Enterprises A VIEW FROM COCA-COLA ENTERPRISES Obesity is a serious and complex issue, and an important one for our business. According to the World Health Organization, 50 percent of people in Europe are overweight or obese, and two-thirds are not meeting recommended levels of physical activity.7, 8 As European President, I also know from my conversations with customers, colleagues and business partners that this issue is high on our shared agenda. As a business, we have a role to play in addressing obesity. Our wellbeing commitments will reduce the calories per liter across our portfolio by 10 percent7, 10 and enable three million people to become physically active by 2020.7 We offer our consumers a choice – whether among low-, mid- or no-sugar products, or through a range of pack sizes – and we are always exploring opportunities to expand the portfolio of products that we offer. Recent examples include Finley, a low-calorie fruit-based sparkling drink in France, and SmartWater, available in Great Britain. We will also continue to collaborate with The Coca-Cola Company to use innovative sweeteners to create further choice for consumers. We recently launched Coca-Cola Life, made with 30 percent less sugar than a regular Coca-Cola and partially sweetened by Stevia, a natural sweetener which comes from the stevia plant. In addition, we will provide consumers with the information they need on how much sugar and how many calories are in our beverages. I am confident that these steps will help the people who buy our products make the right choices for themselves and their families. We are addressing the issue of sedentary lifestyles by working with our local communities to encourage people to become more active. Programs like ParkLives, which provides free outdoor sporting activities in Great Britain, and Olympic Moves, an annual school sports competition in the Netherlands and in Belgium from 2015 are examples of how we have encouraged young people and families into sport over the past year – and we want to go even further in the years ahead. My job is to ensure that we grow our business sustainably and responsibly. To do so, we must work with our consumers and civil society to ensure we address the issue of obesity together. We are on a journey in this area, and I am confident that our new wellbeing commitments are a significant step in the right direction. 1 2 3 4 5 6 7 8 9 10 World Health Organization World Health Organization World Health Organization Ekelund, U et al World Health Organization World Health Organization In partnership with The Coca-Cola Company World Health Organization World Health Organization Against a 2010 baseline ISSUE SHEET 06/30 Mark Driscoll Head of Food, Forum for the Future A VIEW FROM FORUM FOR THE FUTURE Obesity, food security, inequality and resource scarcity are among the biggest challenges society faces today. The need to provide everyone with access to healthy and nutritious food within environmental limits has to be one of the key imperatives of our time. In 2013 around 62.1 percent of adults were overweight or obese in the UK. The costs associated with dealing with obesity are now estimated at more than £5 billion per year. At Forum for the Future, we believe it is crucial that the global food and drinks industry and businesses such as Coca-Cola Enterprises give more attention to what we call ‘sustainable nutrition’. This will enable all of us to tackle urgent challenges like obesity. If businesses don’t, then governments and consumer groups are likely to demand more regulatory action. Tackling these challenges requires collaboration across the food value chain. Coca-Cola Enterprises will need to work with others – businesses, NGOs, the academic community and governments – to solve these issues. Difficult choices may be required. For instance, we must ask, ‘should certain products be on the shelves at all?’ We believe that Coca-Cola and other brands have a responsibility to encourage and promote more healthy and sustainable eating patterns to their customers. This is where real leadership lies. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 07/30 Wellbeing: Product Portfolio HIGHLIGHTS 2014 5.4% reduction in the calories per liter across our product portfolio since 2010. 56% of our full sugar brands have a no- or low-calorie alternative.1 32% of the volume of our products in our portfolio are no- and low-calorie (40 calories/250ml).2 99% of our products have front-of-pack GDA labeling. SUSTAINABILITY PLAN COMMITMENTS Calorie reduction Reduce calories by 10 percent per liter across our product portfolio by 2020.3, 4 No-, low-calorie Offer a no- or low-calorie alternative whenever regular sparkling soft drinks are available. Small packs Ensure that all sparkling soft drinks are available in small portion size choices, and increase the availability of small packs. Labeling Ensure clear nutritional labeling on front of pack across all our products.3 Under 12 We will not market any of our products to children under 12 and will not sell our products in primary schools.3 OUR COMMITMENT We will reduce calories per liter across our portfolio of beverages by 10 percent by 2020.3, 4 INTRODUCTION As a manufacturer in the food and beverage industry, we understand the role that diet, including our products, can have on health and wellbeing. We believe all calories count, and are committed to playing our part to help address obesity. OUR STRATEGY We believe choice and information are important for consumers to be able to make the right decisions for them and their families. We also believe that it is critical to get more people active in our communities. By providing a wide variety of products, driving awareness of our no- or low-calorie options, and by supporting programs which get people in our communities moving, we are working to be part of the solution to obesity. Our wellbeing strategy has four key priorities: • No-/low-calories – We have taken steps to broaden the choice of drinks we offer and provide a variety of full, no- and low-calorie options, in a wide range of packaging and portion sizes. We will also drive awareness of these lower-calorie options. • Nutrition information – We aim to be clear and transparent in our labeling, ensuring clear front-of-pack Guideline Daily Amount (GDA) labeling on all of our packages, so that people can easily see how many calories they are consuming. • Responsible marketing – We will market responsibly across all channels where we sell our products. We will never market any of our products to children under 12. • Active lifestyles – We aim to get three million people moving by 2020, by supporting community based physical activity programs across our countries of operation.3 This factsheet focuses on the efforts we have made to adapt our product portfolio to provide a choice for our customers, and to ensure that our marketing and labeling continues to be responsible and transparent. For more information on our work to encourage active lifestyles, see Factsheet 8. NO-/LOW-CALORIES Calorie commitments We have set a new commitment as part of our revised Sustainability Plan, to reduce the calories per liter across our portfolio of beverages by 10 percent by 2020.3, 4 As of 2014, we have reduced the calories in our portfolio by 5.4 percent. In line with this new commitment, we have also developed targets within some of the individual countries in which we operate. For example, the Coca-Cola system in Great Britain was one of the first companies to sign up to the UK Government’s Responsibility Deal in 2011, and has voluntarily supported its calorie reduction initiative since 2012. This led to a commitment to reduce the calories in some of our leading soft drinks by at least 30 percent and reduce the average calories per liter of our sparkling drinks by 5 percent by the end of 2014. Thus far, we have reduced the calories in our portfolio in Great Britain by 5.3 percent since 2012, and aim to reduce by a further 5 percent by 2025. In France, in conjunction with our soft drinks association, we signed a collective charter with the French Ministry of Agriculture and Consumption to reduce the amount of calories by 5 percent in the Soft Drinks category in France by 2015. In the Netherlands, in conjunction with The Coca-Cola Company, we have developed a commitment to reduce the calories in our portfolio by 10 percent between 2012 and 2020. CHOICE We want to encourage choice within our portfolio, and have set new commitments which aim to offer a no- or low-calorie alternative every time a regular sparkling soft drink is available. Our product portfolio is already made up of a wide variety of products. These cover regular, no- and low-calorie options – including our core sparkling beverages such as Coca-Cola, Fanta and Sprite – which make up 58 percent of our CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Wellbeing: Product Portfolio — continued portfolio. Fifty-six percent of our full sugar sparkling soft drinks have a no- or low-calorie alternative such as Diet Coke and Coke Zero.1 No- and low-calorie sparkling soft drinks make up 27 percent of our total portfolio. The rest of our portfolio consists of non-sparkling drinks including waters, juices, sports drinks, functional waters and energy drinks. In addition, we have been working to reduce the sugar and calories in our portfolio through reformulation, reducing the sugar and calories in our beverages by up to 30 percent. In 2014, our reformulations included Fanta Fruit Twist and Dr Pepper in Great Britain, Monster in France, and Nestea in Norway. Package and portion sizes We aim to ensure that all of our regular calorie drinks are available in small portion sizes of 250ml or less, and to increase the availability of small pack sizes. In 2014, 19 percent of our regular calorie drinks were available in portion sizes of 250ml or less. We introduced the 250ml can in Great Britain, France, Belgium, Luxembourg and Sweden in 2013. We have also limited our cup sizes for fountain beverages in France and Belgium, where we no longer sell branded cups larger than 500ml in restaurants, leisure parks and most cinemas. Availability and promotions Within some of our territories, we have set specific commitments regarding our marketing spend. In Great Britain we have set a commitment to more than double our media investment in our no- and low-calorie variants of Coca-Cola. We have also been working to develop guidelines for our sales teams, to encourage the sale of no- and low-calorie beverages. For example, we have developed guidelines to make our no- and low-calorie beverages most prominent in any meal deal or snack promotion. CASE STUDY Finley In April 2014, we launched FINLEY, a new fruit-based sparkling drink to French consumers. The low-calorie drink for adults is available in four different flavors: Grapefruit & Blood Orange; Lemon & Elder Blossom; Orange & Cranberry; and Tonic. The drink includes fruit juice, natural aromas, natural sweeteners and no added preservatives and is 20 calories per 100ml serving. The launch is an important step in CCE’s diversification strategy aimed at meeting greater consumer needs as well as increasing our low-calorie beverage portfolio. In 2015 we have since expanded Finley to Belgium and Sweden. 1 2 3 4 5 This includes all CCE’s full sugar brands, excluding waters and hot drinks. Our most popular brands (Coca-Cola, Fanta, Sprite) all have low-calorie alternatives and together these make up 90 percent of CCE’s volume. Measured using unit cases. In partnership with The Coca-Cola Company. Against a 2010 baseline. 36 percent fewer calories vs full sugared colas in Great Britain due to a sugar reduction of 37 percent, involving reformulation with stevia leaf extract. NUTRITION INFORMATION We believe in the importance of helping people understand what is in our products so that they can make the right choices for their lifestyle. We have long been committed to providing clear and transparent nutritional labeling so that people can make informed choices about the products they buy and consume. We have voluntarily included ingredients and nutrition information on the labeling of all our products since 2003. In 2007, we led the development of Guideline Daily Amount (GDA) labeling across Europe and in 2013 we committed to move to the EU Reference Intakes (RI) label. In Great Britain, we signed up to the UK Government’s voluntary, color-coded, front-of-pack nutrition labeling scheme in 2014 – with the new labels starting to appear on Coca-Cola products in early 2015. We take advice from local and European Scientific Advisory Councils and make no health claims unless these are scientifically proven. Information about our products is also available through the websites, care lines and consumer information centers operated in all the countries where we do business. We also provide extra information about ingredients on pack labels to help consumers make the right personal choices. For example, our energy drinks carry a statement indicating that they are not suitable for children and pregnant and breast-feeding women, specific groups for whom caffeine is not recommended. Public campaigns More recently, we have been working with Public Health England, as part of its Change4Life campaign, to create marketing campaigns which will encourage consumers to try no- and low-calorie alternatives, such as Coca-Cola Zero, through vouchers, print-ads and in-store point-of-sale promotions with retailers. RESPONSIBLE MARKETING No marketing to children under 12 We respect the role of parents and guardians and believe that they should be able to choose the drinks that are right for their children. Since 2009, one of our core global commitments has been that we will not market to children under the age of 12. Through UNESDA, the European trade association representing the soft drinks industry, we have committed not to advertise in printed media, on websites or during broadcast programs specifically aimed at children. As a result, we do not advertise or market any of our products directly to children under 12. This means that our advertisements are never shown during children’s programing and we do not undertake promotional activities aimed at children under 12. We never provide free samples to children under 12 unless an adult or carer is present. At CCE, we recognize the growing use of digital and internet communications by children and support The Coca-Cola Company’s policies for responsible marketing of our products on the internet and via digital media. Our internet sites, content and related technologies are designed for visitors aged 12 or above, and we use features and elements on our websites that appeal predominantly to visitors over the age of 12. FACTSHEET 07/30 CASE STUDY Coca-Cola Life In 2014, Coca-Cola introduced Coca-Cola Life in Great Britain and Sweden. This lower calorie cola contains a third less sugar and a third fewer calories than regular cola.5 It features a blend of sugar and naturallysourced stevia leaf extract and a 330ml can contains 89 calories. In 2015 Coca-Cola Life was expanded to the remainder of our territories. As part of a global Coca-Cola policy and through UNESDA, we have committed not to undertake direct commercial activity in primary schools unless requested by school authorities or parents. Although each country in which we operate has different policies on the distribution of our products in secondary schools, our commitments can be summarized as follows: • To ensure that a full range of beverages (including waters, juices and lower, noand low-calorie products) is available in appropriate portion control sizes. • Non-branded vending: to include educational images and messages on vending machines to promote balanced diets and to respect the commercial-free character of schools. • Third-party distributors: to ensure that those responsible for the final distribution of our products to schools are aware of these commitments. We have also signed the UNESDA initiative to ensure that energy drinks are not marketed to under-16s. For more information see further reading below. Our products and alcohol We recognize that adult consumers may choose to drink our products in conjunction with alcohol, but actively support our products as a refreshing alcohol alternative. For the past seven years, we have worked in conjunction with the THINK! driver friendly program in Great Britain to offer a free second drink during Christmas when ordering a Coca-Cola, Diet Coke, Coca-Cola Zero and Schweppes product. In 2014, this program was supported by 12,500 bars and pubs across the country. Further reading: The Coca-Cola Company Global Responsible Marketing Policy The Coca-Cola Company Global School Beverage Guidelines The Coca-Cola Company Responsible Marketing Charter, Great Britain UNESDA Commitments to Act Responsibly UNESDA Code for Energy Drinks and Shots Coca-Cola Great Britain: Choice and Information CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 08/30 Wellbeing: Active Lifestyles HIGHLIGHTS 2014 1 million+ Over 1 million people engaged in active lifestyle programs. SUSTAINABILITY PLAN COMMITMENT 3 million OUR COMMITMENT We will enable three million people to be physically active by investing in grassroots programs which support active lifestyles by 2020.1 INTRODUCTION We are aware that physical inactivity is a significant problem across Europe, and we want to play our role in encouraging active lifestyles. This is one of the reasons we are investing in community-based physical activity programs across our countries of operation. ENCOURAGING ACTIVE LIFESTYLES IN 2014 Enable three million people to be physically active by investing in grassroots programs which support active lifestyles by 2020.1 6,300 Norway 27,000 150,000 Sweden Cityride Norway Great Britain 150,000 Special Olympics – Belgium, Great Britain, the Netherlands ParkLives Great Britain Netherlands Swimming Federation Sweden 23,000 Belgium 700,000 France Le Sport Ça Me Dit France In Europe, the Coca-Cola system has set a goal to get 10 million Europeans moving by 2020, through various initiatives and local sports programs. OUR STRATEGY We believe that along with providing a balanced portfolio that offers choice for consumers, we have a role to play in getting more people active in their communities. The Active lifestyle component of our Wellbeing commitment aims to enable three million people to be physically active by 2020, through investing in grassroots programs which support active lifestyles.1 We have a number of established programs throughout our territories, and these are covered in this factsheet. As we make progress towards this commitment, we will look to expand these programs and develop new partnerships. For more information on the Product Portfolio element of our Wellbeing commitment, please see Factsheet 7. ACTIVE LIFESTYLES At CCE, we have set a new commitment to get three million people moving by 2020.1 As part of this commitment, we have developed long-standing partnerships in conjunction with The Coca-Cola Company to support communitybased physical activity programs across our countries of operation. We have at least one major physical activity program in every country where we operate. In 2014, these included: Special Olympics We have a long-standing partnership with Special Olympics, the world’s biggest sports charity for children and adults with intellectual disabilities, giving them the chance to get active, learn new skills and build their confidence through sport. The Coca-Cola Company has sponsored the Special Olympics for 36 years and CCE is proud to add its support. Our partnership began in Belgium in 1990 and extended to Great Britain in 2010. Further partnerships were formed in 2013 in France and the Netherlands. In 2014, we supported a variety of events in each of our territories, in particular the European Summer Games in Antwerp, Belgium (see case study). CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Wellbeing: Active Lifestyles — continued CASE STUDY Special Olympics European Summer Games In September 2014, we were proud to support the Special Olympics European Summer Games. Held over five days at various venues across Antwerp, Belgium, the event saw 2,000 athletes from 58 nations competing in 10 different sports. The games were Europe’s largest sporting event for people with intellectual disabilities, and offered a life-changing opportunity for athletes to compete at European level. CCE supported the event with more than 200 employee volunteers helping athletes and encouraging consumers to recycle at 45 Coca-Cola branded recycling points. Mission Olympic, Belgium In 2011, Coca-Cola organized the first Mission Olympic event at the King Baudoin Stadium in Brussels. The fourth season of Mission Olympic took place in 2014. Every year, Mission Olympic encourages 23,000 Belgian students aged between 12 and 14 to get moving through showcasing and providing opportunities to try more than 50 sports. Through this initiative, Coca-Cola aims to familiarize young people with various sports and develop their enthusiasm for the Olympic spirit. During the 2015/2016 school year, Olympic Moves, currently running in the Netherlands, will be introduced in Belgium. Bloso and Adeps, Belgium We support two regional Belgian national sports associations, Bloso and Adeps, who are responsible for all aspects of sport development – from training coaches, to growing sports clubs and developing communal sporting functions. Royal Belgian Football Association, Belgium In 2014, CCE extended its more than 30-year partnership with the KBVB (the Royal Belgian Football Association) with another four-year collaboration. Half of the sponsorship budget will be invested in youth football activation programs, encouraging an active lifestyle among young people aged 12 and over. In 2014, in partnership with the Federation, we developed a customer activation linked to the 2014 FIFA™ World Cup. This activation resulted in a donation of $74,100 being made to G-Football, an organization for people with disabilities. 1 In partnership with the Coca-Cola Company. StreetGames, Great Britain With The Coca-Cola Company, Great Britain, we support StreetGames, a UK charity focused on making a wide range of sports and dance more accessible for young people in disadvantaged communities. The program includes improved coaching, a greater choice of local activities, sports festivals and training with high profile sportsmen and women. In 2014, we helped StreetGames hold four multi-sport festivals in London, Manchester, Cardiff and Glasgow. Each event involved more than 1,000 young people for a day of sport, music and learning skills. In 2014, StreetGames was also the major beneficiary of Coca-Cola’s FIFA™ World Cup on-pack promotion, raising a further $155,000 towards training young coaches and volunteers. ParkLives, Great Britain In 2014, Coca-Cola Great Britain launched a nationwide, long-term program of fun, free activities in parks in the heart of local communities in major cities. Partnerships were established with three local authorities in Birmingham, Newcastle and the London Borough of Newham. A wide range of free, informal sports activities were on offer throughout the summer in over 70 parks, from tai chi to rounders, Zumba and table tennis, with all ages and abilities welcome. Over 3,000 hours of activities were provided and the program will expand to more cities in 2015. Le Sport Ça Me Dit, France In France, we sponsor Le Sport Ça Me Dit (I Like Sport), created in 2008 with support from the Ministry of Sports and the French National Olympic Committee to provide simple ways for young people to take part in sports and games. Under the scheme, municipalities are provided with equipment for six different activities, all packaged in a one-meter cube. This cube is able to be set up very quickly in streets, parks and other urban spaces. The project involved approximately 600,000 young people in 2014 alone and currently operates in more than 1,000 municipalities. L dans la Ville, France In 2014, a new partnership was established with ‘L dans la Ville’, an NGO operating since 1998 to address access to sports and jobs in under-privileged areas. The program targets girls aged 12 -20 and focuses on four key areas: weekly sports sessions, holiday sports camps, support for professional integration, and support for entrepreneurs. In 2014, more than 1,000 girls took part in Lyon and Paris, and 80 percent of the 16–20 year olds taking part found a job at the end of the program. Olympic Moves, Netherlands Started in 2003 by the Coca-Cola system and the Dutch Olympic Committee, Olympic Moves is the biggest annual school sports competition in the Netherlands. Each year, it encourages more than 150,000 12 to 18-year-olds to discover sports in a fun way and to develop a lifelong interest in physical activity. In 2014, Olympic Moves involved 300 Dutch schools through a series of local, regional and national events. The Olympic Moves Final was held at the Olympic Stadium, Amsterdam. We are working to increase the number of students and schools participating in the next few years, by increasing the number of regional finals and the number of vocational high schools participating. FACTSHEET 08/30 Monique Maks Director of Jeugdsportfonds, Netherlands EXTERNAL SPOTLIGHT Jeugdsportfonds Taking part in sport with others is one of the best things there is. Sport helps to build self-esteem and enable young people to establish contact and friendship with others. Unfortunately, this is not always as easy as it sounds. In the Netherlands, thousands of young people are not able to become members of a sports club as it is too expensive. Together, with Coca-Cola, we are committed to helping underprivileged young people get more active. Jeugdsportfonds, Netherlands We have teamed up with The Coca-Cola Company in a three-year agreement which enables teenagers from low-income families to experience the joy of playing team sports. In 2014, nearly 30,000 young people were able to play organized sports and by 2016, the aim is to expand the program to support 40,000 teenagers each year (see external spotlight). JOGG, Netherlands In Dongen in the Netherlands, where our manufacturing operation is based, we are working with JOGG (Youngsters of a Healthy Weight), a community-based initiative helping young people lead healthy lives. Together with sports organizations, the local municipality, schools and local companies, the scheme develops and implements programs to encourage healthy lives. Puls, Norway In Norway, in 2104, we partnered with Puls and the Red Cross to help under-privileged young people get more active. More than 1,700 young people took part in activities including climbing, dancing, football and bowling, based in four Red Cross centers in Oslo. Cityride, Norway In 2013, CCE partnered with Cityride in Norway to promote the advantages of cycling and to encourage young people and their families to get involved. In 2014, Cityride events took place in 20 locations and involved 4,600 people. Swimming Federation, Sweden In 2013, CCE began a three-year partnership with the Swedish Swimming Federation to encourage exercise through swimming and improve the nation’s swimming ability. The program promotes swimming in cooperation with local associations, giving people tips and challenges from champion swimmers via digital channels. In 2014, more than 27,000 people benefited from the program. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 ISSUE SHEET 09/30 Issue sheet: Climate Change How can we tackle the issue of climate change? ISSUE INSIGHTS 2°C To avoid the most dangerous impacts of climate change, we need to limit global temperature rises to no more than 2°C above pre-industrial levels.1 IPCC Rising levels “Countries at all levels of income have the opportunity to build lasting economic growth at the same time as reducing the immense risk of climate change.4” Better Growth, Better Climate, The New Climate Economy Report, 2014. The rising levels of greenhouse gases from the burning of fossil fuels and land-use changes (such as deforestation) are causing a sustained and unequivocal rise in global temperatures.2 IPCC 40% The European Union has agreed a 40 percent greenhouse gas emissions reduction target by 2030 and a long-term target to reduce GHG emissions by 80-95 percent by 2050.3 European Union OUR COMMITMENT We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout the entire value chain by 2020. Climate change is one of the most serious and complex global challenges facing the world. Together with other related impacts including extreme weather events, biodiversity loss and water and food crises, it’s among the top global risks identified by the World Economic Forum. At Coca-Cola Enterprises we believe that urgent action must be taken to tackle climate change – one of the most significant risks for our business. Gradual rises in global temperatures, due to increased greenhouse gases in the atmosphere, are linked to changing weather patterns and extreme weather conditions around the world – both of which could have adverse impacts on our manufacturing operations and distribution network. Climate change may also impact water, our primary ingredient, exacerbating water scarcity and causing a further deterioration of water quality in affected regions. In addition, climate change could lead to decreased agricultural productivity in certain regions of the world and possibly limit the availability or increase the cost of the raw materials we use in our products. As a result, we have strengthened our commitments to reduce the greenhouse gas emissions associated with our own business and our value chain. It is also why we continue to support a progressive policy agenda on climate change and carbon reduction and have supported the work of the Prince of Wales’ Corporate Leaders Group on Climate Change and the Haga Initiative in Sweden. We believe that the impact of climate change is both dangerous and costly. Yet economic growth and action on climate change can be achieved simultaneously. Decarbonization and the transition towards a low-carbon economy can be a driver of green growth and deliver significant long-term economic benefits. These include improved energy security, new jobs in the low-carbon sector, reduced air pollution and protection of the biodiversity and ecosystems on which we all rely. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Climate Change — continued Nina Ekelund Programme Director, Haga Initiative, Sweden Rein de Jong Supply Chain Operations Director, Dongen, Netherlands, Coca-Cola Enterprises A VIEW FROM THE HAGA INITIATIVE A VIEW FROM COCA-COLA ENTERPRISES I believe climate change is the biggest threat to the survival of humanity. Among young people, particularly, it’s a cause of concern because it’s their future at stake. Companies like Coca-Cola Enterprises, that seek to be close to their consumers, have to take a lead on this issue – and be seen to be doing so. I’m passionate about the issue of climate change. As a father, I feel that it’s important to leave the planet in as good a state as it can be for our children. However, I know that everything I do on a personal basis – at home, on my way to work – can be done bigger and better at our factory in Dongen. By belonging to a company like CCE, I can make a big difference. That means having an ambitious climate agenda with clear targets. It means recognizing the link between climate change and issues such as water security and biodiversity and taking action accordingly. It means investing in innovation and working with others to promote recycling, develop sustainable packaging and advance the circular economy. Progressive companies also need to be transparent in communicating what they are doing and the progress they are making. I’m proud that at CCE we are looking at the opportunities and the longer-term picture rather than just managing the risks. Our new target to halve the carbon footprint of our business and our commitment to reduce the carbon footprint of the drink in your hand by a third are the right things to do. At Dongen I’m proud that we have reduced the energy that we use at the site by 19 percent since 2007. Sometimes it means that our investments have a longer payback – for example when we look to source our energy from low-carbon or renewable sources, such as wind. It also provides some great opportunities for collaboration. At Dongen, we are working with our neighbor and supplier, Ardagh Glass, to capture the residual heat from their facility and use it to power our Dongen site. As the site director for our Dongen factory, I see first-hand the impact that climate change can have and the risks we face as a business. For example, over the past three years, we have had much heavier rainfall and have had to deal with issues such as flooding for the first time. I believe that by working together we can all make a big difference. The benefits are clear – not just cost savings through greater energy efficiency, but a better brand reputation leading to greater consumer loyalty, employees (especially the younger generation) who are proud to work for the organization and investors prepared to look more favorably on the business. Given that the costs of such an agenda will change over time, companies that take ambitious action now will have an advantage over those that wait. With every step, CCE needs to be asking what it can do to be part of the climate change solution. That’s what tomorrow’s consumers will want to see. Wakefield packaging line. 1 2 3 4 ISSUE SHEET 09/30 IPCC IPCC European Union The New Climate Economy Report 2014 CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 10/30 Our Carbon Footprint Our cooling equipment. Production line at our Wakefield manufacturing operations. HIGHLIGHTS 2014 19% reduction in the carbon footprint of the drink in your hand since 2007. 29% reduction in the carbon footprint of our core business operations since 2007. OUR COMMITMENT We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our value chain by 2020. INTRODUCTION We recognize the part we must play in addressing climate change. We want to grow a low-carbon business and inspire our customers and suppliers to lead change for a more sustainable tomorrow. OUR STRATEGY 618,984 The carbon footprint of CCE’s core business operations in 2014 was 618,984 metric tonnes of CO2e. Our strategy to reduce the carbon footprint of our business operations focuses on three themes: • Measuring and managing our carbon footprint. • Setting supporting targets and developing carbon-reduction roadmaps. SUSTAINABILITY PLAN COMMITMENTS • Driving innovation, collaboration and technology. 1/3 Reduce the carbon footprint of the drink in your hand by a third by 2020. 50% Grow our business, but reduce the absolute carbon footprint of our core business operations by 50 percent by 2020. We are focused on reducing both the carbon footprint of our business and that of our entire value chain. Since 2007, we have reduced the carbon footprint of the drink in your hand by 19 percent, and have reduced the carbon footprint of our core business operations by 29 percent. As part of our updated Sustainability Plan commitments, we have set a goal to reduce the carbon footprint of our core business operations by half by 2020 in absolute terms. We have set carbon reduction targets for each key area of emissions within our operations. More detail on our transportation and distribution and cold drinks equipment can be found in Factsheets 12 and 13. Fifty percent of emissions from our value chain comes from our packaging: of this, 57 percent comes from cans and 20 percent from plastic (PET) bottles. For more information on our sustainable packaging and recycling work, see Factsheets 15 and 16. Information on the work with our suppliers to reduce our supply chain impacts can be found in Factsheet 22. We also provide more detail about the work that we are doing to source our key agricultural ingredients sustainably in Factsheet 21. This Factsheet will provide more information about the work we are doing to reduce the carbon footprint of our core business operations. OUR CARBON FOOTPRINT At CCE we measure both the carbon footprint of our business and that of our value chain. Our value chain carbon footprint is made up of six key elements, from the ingredients and packaging in our supply chain, through our core business operations (manufacturing, distribution) and our cold drinks equipment, to recycling once our product has reached a consumer. ESTIMATED CARBON EMISSIONS ACROSS OUR VALUE CHAIN IN 2014 SUPPLY CHAIN CORE BUSINESS OPERATIONS 1.32 million metric tonnes CO2e estimated1 CONSUMERS 618,984 metric tonnes CO2e Ingredients Packaging Manufacturing Distribution Refrigeration Recycling 18% 50% 8% 6% 18% Included in packaging2 1 We have modeled 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. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Our Carbon Footprint — continued In 2014, using the WRI/WBCSD Greenhouse Gas Protocol, we measured the carbon footprint of our core business operations at 618,984 tonnes of CO2e for the period January 1, 2014 through December 31, 2014. This was a reduction of 6.34 percent from 2013, and a 29.13 percent reduction from our 2007 baseline. FACTSHEET 10/30 Under the WRI/WBCSD Protocol, we measure our emissions in three ‘scopes’, except for CO2e emissions from biologically sequestered carbon, which is reported separately. MEASURING OUR CARBON FOOTPRINT • Scope 1: Direct sources of emissions such as the fuel we use for manufacturing and our own vehicles. Scope 1 also includes our process and fugitive emissions. CCE’s core business operations include our manufacturing processes, facilities, fleet, offices, cold drinks equipment and business travel. We measure emissions from these activities across our entire business in eight Western European territories (Great Britain, France, Belgium, Luxembourg, the Netherlands, Monaco, Norway, and Sweden) as well as for our offices in the United States and Bulgaria. Our core business operations make up 32 percent of our value chain carbon footprint. • Scope 2: Indirect sources of emissions such as the purchased electricity we use at our sites. • Scope 3: Indirect sources associated with the electricity used by our coolers and vending machines at our customers’ premises, our employee business travel by rail and air, emissions related to the 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 Gases (tonnes CO2e)3 We measure and seek to reduce our Scope 3 SCOPE 1. D  irect emissions (e.g. fuel) Carbon dioxide (CO2) Nitrous oxide (N2O) 104,044 307 102 680 79,117 0 0 434,052 659 617,212 966 2. Indirect emissions (e.g. electricity) 3. Related third-party emissions (e.g. from cold drinks equipment) TOTAL (GHG) TOTAL (SCOPE) (tonnes CO2e) Methane Hydro(CH4) fluorocarbons % Footprint 105,1338 17% 0 79,117 13% 24 0 434,734 70% 126 680 618,984 100% A variety of sources of energy are associated with our core business operations, all of which contribute to our carbon footprint. Our energy use in 2014 was as follows: CCE Energy sources and use – 2014 Direct energy consumption by primary energy source4 Total natural gas used Total LPG used MWh Gigajoules 150,668 542,405 26,952 97,026 875 3,151 126,205 454,336 3,319 11,949 Total direct energy consumption 308,019 1,108,867 Indirect energy consumption by primary source 306,593 1,103,735 Total light fuel oil used Total diesel and petrol used Total biofuel used Total electricity purchased and used Total heat purchased and used Energy used in cold drinks equipment5, 6 Energy from renewable or low-carbon sources 4 Total indirect energy consumption7 19,253 69,311 1,340,546 4,825,966 26,591 95,728 1,692,983 6,094,739 Our operational carbon footprint 2007–2014 by emission source7, 9 2007 2008 2009 2010 2011 2012 2013 Operations and commercial sites (tonnes CO2e) 196,800 195,110 192,070 190,673 177,593 170,708 160,584 Cold drinks equipment (tonnes CO2e) 532,434 557,010 512,715 505,017 432,835 411,082 361,944 344,058 CCE fleet (tonnes CO2e) 50,636 51,033 49,702 48,883 46,603 46,270 37,716 30,727 Third-party distribution (tonnes CO2e) 85,888 85,592 94,377 94,794 106,934 99,090 90,691 79,800 7,597 6,792 9,529 8,518 8,963 9,919 9,936 10,221 873 896 858 848 773 737 661 619 Other (including business travel) (tonnes CO2e) TOTAL (’000 tonnes CO2e) 3 4 5 6 7 Please note we do not have PFCs or SF6 emissions. Includes on- and off-site solar, geothermal, biomass and combined heat and power (CHP) generation. Refrigerant leaks for CDE equipment are not included in our Scope 3 calculations. This included energy consumed by our cold drinks equipment outside of CCE operations and within customer locations Due to a number of minor data recalculations including changes to emission factors, we have restated the carbon footprint of our core business operations in 2007 (our baseline year) as well as for subsequent years. 8 Please note that because we use anaerobic wastewater biogas at Wakefield, Great Britain, this generated emissions of 271 metric tonnes of CO2e in 2014. We do not include the associated CO2e emissions under Scope 1 of our footprint in alignment with the WRI/WBCSD Protocol 9 See footnote 3 on Our Business factsheet. 2014 154,1798 emissions (those that do not occur at our business operations but result from our business) because they are significantly greater than our Scope 1 and 2 (core) emissions. We use a baseline year of 2007, and our Scope 1 and 2 emissions are independent of any greenhouse gas trades. The carbon footprint of our business operations in 2014 is verified in accordance with the GHG Protocol by SGS. SOURCES OF DATA AND CALCULATION METHODOLOGIES We use an operational control consolidation approach to determine organizational boundaries. Data is consolidated from a number of sources across our business and is analyzed centrally. We use a variety of methodologies to gather our emissions data and measure each part of our operational carbon footprint, including: • Energy data: from metered sources, supplier invoices and estimates (e.g. our bottle sorting facility in Norway is estimated on the basis of its floor area in comparison to its main production facility). • Refrigerant gas losses from contractors’ re-gasing invoices. • CO2 fugitive gases from measuring our opening and closing stock levels and subtracting the quantity of CO2 used in our products as well as CO2 used in effluent wastewater treatment. • Calculations of cold drinks equipment emissions are based on average hourly supplier energy consumption rates and by subtracting any savings achieved through carbon reduction initiatives during the reporting period. • Transport fuel calculated according to actual liters used or kilometers recorded. • Supply of water, treatment of wastewater and waste management calculated by using liter and weight (kg) data respectively. • Energy, fuel and fugitive gas raw data, is collected and converted to carbon equivalents (CO2e), and multiplied by emission factors or Global Warming Potential factors: electricity (IEA 2012), non-electrical (DEFRA 2013) and district heating from suppliers. Approximately 2 percent of our operational carbon footprint is based on estimated emissions (e.g. leased offices where energy invoices are not available). More information on the methodologies used can be found on cokecce.com MANAGING OUR CARBON FOOTPRINT At CCE, we manage the reduction of our operational and value chain commitment through our CRS Advisory Council, and specifically our Energy and Climate Change Steering Group. This group is responsible for setting our carbon reduction targets, and the subtargets for each area under our operational control. In addition, since 2010, we have used a Carbon Allowance process under which each business unit sets annual carbon reduction targets in line with it’s business plans. Business unit level carbon reduction plans are developed, with progress monitored and reported quarterly. For more information on our energy and renewable energy, transportation and distribution and cold drinks equipment carbon reduction plans, see Factsheets 11, 12 and 13. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 11/30 Energy and Renewable Energy Production lines at our Wakefield manufacturing operations. HIGHLIGHTS 2014 28% reduction in the CO2e g/liter of product produced against our 2007 baseline. 5.5% of the energy we use for manufacturing comes from renewable/low-carbon sources. 74.14 OUR COMMITMENT By 2020, we will manufacture every liter of product with 50 percent less carbon emissions for every liter of product we manufacture and source 40 percent of our energy from renewable or low-carbon sources. INTRODUCTION In working towards a low-carbon future, we’ve set rigorous targets for reducing emissions across our value chain. Within our production plants, the focus is on making our manufacturing more energy efficient. In 2014, we invested $59 million in new energy-efficient production lines and equipment and $10 million in additional projects to reduce carbon emissions at our plants. 31.9g energy use ratio (kWh/1,000 liters).1 CO2e per liter of product 5.31% (2007 baseline) CO2e reduction in total energy use against 2007 baseline. 23.8g ENERGY USE RATIO PROGRESS 2007–20142 AND 2020 TARGET 90.83 89.78 88.20 88.37 81.69 81.87 77.24 74.14 2008 2009 2010 2011 2012 2013 2014 2020 target SUSTAINABILITY PLAN COMMITMENTS 50% Manufacture every liter of product with 50 percent less emissions by 2020. 40% (2014) 72.73 STRATEGY 2007 CO2e per liter of product per liter of product Energy consumed (kWh) per 1,000 liters of product Source 40 percent of our energy from renewable or low-carbon sources by 2020. Within our manufacturing operations, we aim to improve our energy efficiency and make greater use of alternative energy sources. This involves: • Managing the energy we use and adopting best practices and behaviors. • Investing in new and improved energy-efficient equipment. • Investing in renewable and low-carbon energy sources, where possible. ENERGY CONSUMPTION AND ENERGY EFFICIENCY The use of electricity and gas accounts for 90 percent of the total energy used in our manufacturing and distribution sites. In 2014, our manufacturing operations used a total of 461,095 megawatt hours (MWh)3 of energy, a decrease of 5.31 percent since 2007 despite a 5.44 percent increase in production volumes. This resulted in an average of 23.8 grams of CO2e per liter of product produced, a 28 percent reduction against our 2007 baseline. We monitor energy efficiency by calculating the energy use ratio, namely how much energy it takes to produce 1,000 liters of product. The calculation includes gas, oil, diesel, LPG, electricity bought from the national grid, and district heating.1 Our 2014 ratio of 74.14 kWh per 1,000 liters is 4.02 percent less than in 2013, and 18.38 percent less than our 2007 baseline. 5.5 percent of our energy use comes from renewable sources. We report our reductions in energy consumption and carbon emissions based against a 2007 baseline, in line with our Sustainability Plan. ENERGY MANAGEMENT Central to our approach is the effective management of energy and carbon emissions with energy management and monitoring processes in place across CCE. We use energy meters and inline monitoring and targeting systems to provide live data on the energy we’re using and to identify opportunities for improvement. In 2014, we continued the installation of more advanced systems which combine production data with information on water and energy consumption. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 Energy and Renewable Energy — continued Linked directly to our production software, these tools provide real-time reporting which help our line operators meet our energy-use targets. These new systems have so far been installed at Dongen in the Netherlands and Dunkerque and Grigny in France. More will follow in 2015. Six of our manufacturing operations (Antwerp, Gent and Chaudfontaine in Belgium, Marseille and Toulouse in France and Dongen in the Netherlands) hold the ‘Energy-Savers’ certificate awarded under the Energy Savers program run jointly by The Coca-Cola Company and World Wildlife Fund (WWF). Sixteen of our 17 sites are certified under the ISO 14001 environmental management standard and all meet the even more rigorous KORE requirement – The Coca-Cola Company’s internal certification linked to quality, environmental and safety performance. Four of our sites (Wakefield and East Kilbride in Great Britain, Dunkerque in France and Chaudfontaine in Belgium) have also achieved the energy management standard, ISO 50001. We have also been ranked as one of the most energy efficient bottlers in the Coca-Cola system. We have again been recognized as a leading manager of carbon with all our operations receiving the 2014 Carbon Trust Standard. In 2014, CCE became the first company to be accredited as a Low Energy Company (LEC). We achieved this accreditation through a training course run by the Energy Managers Association (EMA) which helped our IT managers understand the use of energy within our organization, the potential carbon impact of IT systems and how to increase our carbon and energy savings. INNOVATION AND TECHNOLOGY In our drive to conserve energy, we continue to invest in process innovation and energyefficient technologies. The work includes centrally led projects in areas of high energy use and site-specific initiatives to address local opportunities, including: Bottle blower optimization Following a series of initiatives in 2013 to reduce the energy needed to blow our PET bottles, we have now redesigned the base of the moulds in which the bottles are blown so that the process requires less air pressure, and therefore less energy. The new design was tested in 2014 at Grigny in France, Antwerp in Belgium and Sidcup in Great Britain and will be rolled out to 10 more sites in 2015. We expect that this will result in 2,500 MWh less energy used, equivalent to a reduction of 560 tonnes CO2.e. LED energy-efficient lighting We continue to install energy-efficient LED and intelligent lighting systems in our sites. In 2014 there was further work at Sidcup and Northampton in Great Britain and at Grigny and Clamart in France. New lighting projects were implemented at Dunkerque in France, Antwerp in Belgium and East Kilbride in Great Britain. These projects resulted in a 1 Includes sources: thermal energy – natural gas, heat or steam, electricity; LPG, oil, diesel and renewables – solar PV, geothermal. Does not include ‘output’ from CHP as natural gas ‘input energy’ is included. 2 Including Norway and Sweden from the year 2010 onwards. 3 Energy data expressed as MWh in line with CCE’s internal reporting processes and KPIs. Gilles Kalicki Technical Services Dunkerque, France EMPLOYEE SPOTLIGHT LED lighting project in Dunkerque. The aim of our ‘smart lighting’ project was to optimize the lighting in our Dunkerque manufacturing operation. This depended on the activity in each area, the contribution of natural light as well as the inclusion of motion sensors installed on each LED light. The project required close collaboration with LED light suppliers, so that the installation could take place without disrupting production, providing a safe working environment, and also ensuring the most energy efficient solutions were selected. Nearly 400 LED fixtures were installed to replace 600 light fittings. The complex installation had to be undertaken at heights of 10-12 meters, requiring the use of aerial work platforms and scaffolding. I was proud to be part of the installation team. As a result of this project, approximately 1,500 MWh are saved annually, about 7 percent of the electricity consumption of our Dunkerque manufacturing operations. reduction of 2,323 MWh in electricity usage, an equivalent of 760 tonnes of CO2e in 2014 (see employee spotlight). Packaging oven optimization Wrapping shrink film over packs of bottles or cans involves heating the film. Having previously used electricity for this purpose, we’re now converting our heating equipment to gas which is less carbon-intensive. This multi-site project continued in 2014 with packer ovens converted at Sidcup and Edmonton in Great Britain. Others will follow in 2015 at Milton Keynes and East Kilbride in Great Britain, Dongen in the Netherlands, and Marseille and Toulouse in France. The work so far has cut the carbon footprint of our ovens by approximately 25 percent. CASE STUDY CHP at Wakefield Combined heat and power (CHP) systems can cut carbon emissions by generating electricity and heat from natural gas and are practical as long as there is sufficient demand for both. A feasibility study across our sites identified our largest plant, Wakefield, as offering the best opportunity for CHP. Since the CHP started in July 2014, this equipment has delivered 4,785 MWh of electricity and 3,185 MWh of heat. This reduced the site’s carbon footprint by 770 tonnes of CO2e. On a yearly basis these figures will double. Plans are also under way for a CHP system at Milton Keynes in Great Britain and at Gent in Belgium. FACTSHEET 11/30 RENEWABLE AND LOW-CARBON ENERGY At present, approximately 5.5 percent of our manufacturing energy comes from renewable and low-carbon sources, saving more than 3,500 tonnes of CO2e a year. As a result, we were able to generate 26,444 MWh of energy in 2014 from renewable sources. We plan to further grow this area in the future, through investment in the following types of projects: District heating District heating provides efficiencies by enabling businesses and homes to use a centrally generated source of heat. However, this is only available in some of the areas in which we operate. Our manufacturing operations in Norway and Sweden are linked to district heating systems fueled by biomass, drawing approximately 23 percent and 37 percent of their energy respectively from this source. Turning waste heat into energy At Dongen in the Netherlands, we are working with the Ardagh Group to investigate whether we can capture and use waste heat from Ardagh’s glass production plant at our own manufacturing operations next door. Tests carried out in 2013 and 2014 have confirmed that it is feasible to recover the heat. In 2015, a detailed engineering study will indicate whether the project is financially viable. Combined heat and power Our first combined heat and power (CHP) system was installed this year at Wakefield in Great Britain (see case study). Solar photovoltaic We generated more than 150 MWh of electricity through solar photovoltaic panels in our operations in 2014. These panels have been newly installed at our manufacturing operations in Chaudfontaine, Belgium, and Marseille, France. These join previous installations at our manufacturing operations in Edmonton, Sidcup, Wakefield and our offices in Uxbridge in Great Britain. Wind Wind turbines require sufficient wind and land in order to be a viable source of energy. After surveying our sites we’ve developed plans for a five-turbine wind park at Dongen in the Netherlands. One or two wind turbines would be located on our site, the others would be located at another industrial plant in the area. The project is now subject to approval by the local authorities. CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2014/2015 FACTSHEET 12/30 Transportation and Distribution HIGHLIGHTS 2014 4.4% of the kilometers we drive use alternative technologies and fuels. 2.5 million kilometers saved due to backhauling initiatives. $132m invested in increased storage capacity at our manufacturing operations. 26% In 2014, we achieved a 26 percent reduction in CO2e per case delivered (145 g/case) since 2007. SUSTAINABILITY PLAN COMMITMENT 30% Deliver a case of product with 30 percent less carbon emissions by 2020. OUR COMMITMENT We will deliver a case of product with 30 percent less carbon emissions by 2020. INTRODUCTION The transportation of our products accounts for 6 percent of our carbon footprint, making it one of the smaller contributors in our value chain. However, it is critical that we continue to improve in this area. Delivering our products effectively and efficiently is central to our business, and we drive more than 102 million kilometers a year to achieve this goal. As our business grows, we will continue to find new ways to reduce the kilometers we drive and find new, less carbon-intensive ways of delivering our products. OUR STRATEGY We focus our efforts on three key areas: • Driving less: traveling fewer kilometers by optimizing our logistics network. • Driving greener: working with our customers and suppliers to remove road kilometers through techniques such as backhauling. • Collaborating with industry: promoting alternative technologies and greater vehicle efficiency so the industry as a whole emits less carbon for every kilometer driven. DRIVING LESS BY OPTIMIZING OUR NETWORK In order to reduce our carbon emissions, we need to make our distribution as efficient as possible. We do this by producing our products as close as we can to our customers, and delivering them directly from our production sites, rather than from external warehouses. In addition, we c...
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