Stakeholder Progress Report 2016

Delivering sustainable business growth Our Cover: Our cover features Lucía Pérez Segura, a waitress at Bar Escuela, part of a Lizarran franchise, in Madrid. Since 2012, through The Coca-Cola Foundation in Spain, we have supported the GIRA Youth programme in Spain, which improves the social skills and employability of young people. Since 2013, people from the GIRA project team have been placed at the Bar Escuela to learn skills in the kitchen, bar, and as wait staff for three- month placements. Lucia helps support the people from the GIRA project, giving them advice so they can get the best of themselves during their training. A time of opportunity

A TIME OF OPPORTUNITY

When I became CEO of Coca-Cola European Partners partnerships that we have developed (CCEP) one year ago, two motivations propelled me. First, with our suppliers and customers. In particular, we have: I wanted to grow this new company in a way that fulfilled • Reduced the calories per litre across its potential while respecting its shared heritage. Second, our portfolio by 7.9 percent since I wanted to do it in a way that would make me proud along 2010. Together with The Coca-Cola with all our employees and every one of our stakeholders. Company, we are working to transform our entire portfolio so that we can offer an even wider We have created the world’s us taking a lead on our packaging, the range of drinks to our consumers. largest Coca-Cola bottler and put sugar and calories in our beverages sustainability, in its broadest sense, and the impact we have on our • Reduced the carbon footprint of at the heart of the business. From communities. We are hard at work our core business operations – our earliest days, CCEP established transforming these expectations into which includes our manufacturing, strong fundamentals about how we a set of targets and commitments that our cold drinks equipment and our hold ourselves accountable to each we will publish this autumn. This will be transportation – by 42.6 percent other and to the outside world and our first sustainability strategy for the since 2010. how we create an environment Coca-Cola system in Western Europe. • Continued to ensure that all of our where people want to work and But first we had to know where packaging is recyclable. In 2016, believe in what we are doing. We also we were coming from. With three 21 percent of the polyethylene developed an operating model that merging bottling organisations, it terephthalate (PET) we used was better reflects how people choose has taken us a year to consolidate recycled PET. to enjoy and buy our beverages. our data to establish the baseline • Donated approximately €6.6 million, And now the next phase begins. for our first full-year performance. or 0.5 percent of our pre-tax profit, Over the past year, we have seized the In making this Stakeholder Progress to our local communities in 2016. chance to talk to people about what Report available to you now, we aim they expect from this new company to show the foundation on which While we are encouraged by what that has such deep roots. With our we will build in the areas that all of we have accomplished, there is still colleagues at The Coca-Cola Company, you expect – from governance to considerable work to be done. we have listened to customers, environmental performance, from Ultimately, you will be the ones to consumers, employees and our transforming our drinks portfolio judge our success. And when we leadership about the issues facing and packaging to diversity. publish our strategy later this year, we our business and the wider world, I am proud that we have been able hope we’re taking a meaningful step and what is expected from us. The to do so much since forming CCEP. forward in meeting your expectations. feedback was clear. You want us, The credit for the progress in this fundamentally, to be a good business, Damian Gammell report rests with the passion and but one that more meaningfully Chief Executive Officer commitment of 24,500 employees, influences some of the biggest issues Coca-Cola European Partners and the great collaborative we face as a society. You want to see June 2017

02 Being a good business

BEING A GOOD BUSINESS

WHO WE ARE Coca-Cola European Partners (CCEP) is the world’s largest independent Coca-Cola bottler based on revenue. 300 million consumers. Coca-Cola European Partners We are proud of the rich heritage of We know that there is more work 2.5 our business and of the work that we to do. With the support of our billion unit cases sold annually. have done within our first year as a employees, our suppliers and combined organisation to continue to our stakeholders, we also know 14.2 reduce the sugar and calories in our we'll be able to achieve it. drinks, the weight of our packaging, billion litres of our world-famous and our carbon and water footprints. brands sold every year. 13 % countries. 7.9 % reduction in the total 35 calories per litre across of our drinks are 24,500 our portfolio since 2010. no- and low-sugar. employees. 21% 42.6% of the PET we use is reduction in the carbon recycled polyethylene footprint of our core business terephthalate (rPET). operations since 2010.

64% 23% of our sites send of our leadership zero waste to landfill. is female.

10.3% 75% What does reduction in our total water of the electricity we use is CCEP do? use ratio since 2010. from renewable sources. 80% Discover more at of our goods and services €6.6 m ccep.com are sourced through suppliers donated to our that abide by our Supplier communities in 2016. Guiding Principles (SGPs). Mikel López de Turismo, Key Account Manager Nacional Iberia, Spain

03 Being a good business

A strong partnership A rich history The Coca-Cola Company is our We are proud of the local nature of our business and have operated in primary strategic partner. While some of our communities for many generations. Combining the bottling beverages owned by The Coca-Cola operations of Coca-Cola Enterprises, Coca-Cola Iberian Partners and Company and its affiliates represent Coca-Cola Erfrischungsgetränke, CCEP builds on more than 60 years the majority of our volume, we also of European heritage with histories dating back to 1919. distribute brands for other franchise partners, including Capri-Sun.

Our operations at a glance 1919-1931 Europe welcomes the We offer consumers some of the first Coca-Cola bottling plants in France, followed world’s leading brands, including by Belgium, Germany and Coca-Cola, Coca-Cola Life, Diet Coke, the Netherlands. 1953 Coca-Cola Light, Coca-Cola zero TCCC and the Daurella family come together to sugar, Fanta and Sprite as well as a create the first Spanish growing range of water, juices and bottling plant in Barcelona. Over the next decade, juice products, sports and energy further bottling plants drinks and ready-to-drink teas. In open in Valencia, Madrid, 2016, we sold approximately Tenerife, Palma de Mallorca 1977 and Bilbao. 2.5 billion unit cases, generating Portuguese bottler approximately €10.9 billion in revenue Alfagide is founded and €1.4 billion in operating income. with bottling plants 1986 in several locations TCCC merges numerous The company is listed on Euronext around Portugal. bottling operations to create Amsterdam, the New York Stock Coca-ColaEnterprises (CCE), listed on the NYSE. Exchange, Euronext London and the 1990 Spanish stock exchange, and trades Coca-Cola under the symbol CCE. We are Erfrischungsgetränke GmbH is founded headquartered in London, UK. for bottling and distribution in the 1993-1999 We operate in Andorra, Belgium, east of Germany. CCE acquires Coca-Cola bottling operations in the France, Germany, Great Britain, Netherlands, Belgium, Iceland, Luxembourg, Monaco, the 2007 Great Britain, France, Luxembourg and Monaco. Netherlands, Norway, Portugal, All remaining, independent German bottlers merge Spain and Sweden, with a further with Coca-Cola office in Bulgaria. We employ Erfrischungsgetränke AG. 2010 CCE sells North America approximately 24,500 people. operations to The Coca-Cola 2013 Company and acquires We proudly contribute to our local Coca-Cola Iberian the Coca-Cola bottling Partners is formed businesses in Norway communities, and maintain a strong through the merger and Sweden. commitment to their economic and of eight Spanish and social wellbeing. Our contribution to Portuguese bottlers. 2016 the local economy in 2016 included Coca-Cola Enterprises, approximately €1.4 billion in salaries, Coca-Cola Erfrischungsgetränke benefits, and related social-security and Coca-Cola Iberian contributions, received by our Partners merge to create employees, and €1.4 billion in total the world’s largest independent Coca-Cola taxes paid across our territories. We bottler by revenue. also contributed nearly €6.6 million to our local communities.

See more: For further See more: www.ccep.com/ information on CCEP’s pages/our-heritage 2016 results, visit WATER ir.ccep.com

04 Being a good business

Our local contribution

74.9 percent of the drinks we sell are produced and marketed in the country in which they are consumed. Our economic impact where we operate goes far beyond the investment we make in our operations or the taxes we pay. We have 53 manufacturing operations located across our territories. In 2016 we invested over €407 million in our facilities, improving our operating infrastructure and supporting local jobs.

Norway The first country in the Coca-Cola system to introduce PlantBottle™ on all locally produced The Netherlands products. We support a total of 11,700 direct and indirect jobs, representing 0.2 percent of Dutch employment.

Sweden Iceland 90 percent of the 100 percent of our products we sell manufacturing in Sweden are operations are produced locally. powered by geothermal sources. Belgium and Luxembourg For every job in CCEP in Belgium and Luxembourg, we create six others.

Great Britain 97 percent of the products we sell in Great Britain are produced locally. Portugal contributed €219 million to the local Germany economy. First CCEP location to achieve 99 percent recycling of manufacturing waste in our Genshagen facility.

France and Monaco 90 percent of our products are made in France.

Spain and Andorra For every job at CCEP, we create 16 indirect jobs. See more: More about the contribution we make in each country can be found here.

05 ccep.com Operating with integrity

OPERATING WITH INTEGRITY

CCEP’s Board of Directors.

OUR PROGRESS Our business is built on trust. Being accountable and transparent is central to the way in which we operate, We are establishing a new CCEP and we are working to strengthen our processes to Code of Business Conduct. ensure our business always operates with integrity. We have established a new Corporate Social Responsibility Board of Directors Committee. Corporate governance Sustainability governance CCEP has a robust corporate Chaired by CCEP Board Director, governance structure with a Board Alfonso Libáno, the CSR Committee of Directors overseeing the interests meets five times a year and is of the company and its shareholders. primarily responsible for overseeing Of the five committees that support our progress on sustainability. the Board, the Corporate Social The Committee manages our Responsibility (CSR) Committee CSR risks and issues and approves oversees our sustainability strategy our sustainability commitments and while our Audit Committee oversees targets, ensuring that stakeholders’ risk management and CCEP’s Ethics views are taken into account. How does CCEP and Compliance programme. In accordance with the precautionary approach risk and At CCEP, we hold ourselves principle, sustainability is taken into governance? accountable to the highest account in the development process standards of corporate governance for any major project, product or Discover more at and public access to information new investment, and is built into ccep.com about our company. our annual and long-range business planning processes. Progress against our sustainability commitments and targets will be reported each year.

See more: Further information about our approach to risk and

María García, governance can be found on E&C Senior Legal Advisor, Spain www.ccep.com

06 Operating with integrity

units and functions. These risk assessments will inform CCEP’s annual and long-range business plans.

Principal risks CCEP’s Enterprise Risk Assessment process is a key component of our governance routines. Through interviews with members of the Board and the Audit Committee, and a risk survey to our top 250 leaders, we have identified CCEP’s eight principal risks. Each of these is assigned to a specific Board committee and a member of the Leadership Team. All the Risk management principal risks are assessed by the apply to all employees. Until this Board and the Audit Committee. time, the COBCs of the three bottlers Our approach to Enterprise Lauren Sayeski is the Leadership which formed CCEP remain in force. Risk Management Team member responsible for CSR, Our risk management programme reporting to the CSR Committee. CCEP’s new COBC acts as a road helps us to understand our enterprise map for its employees on how to risks and to manage them effectively. See more: More information do things the right way, and how to on our risks can be found in report if things are not done the To ensure that we have sufficient CCEP’s Annual Report. right way. oversight of the risks that could affect our strategic priorities, we CCEP’s COBC will cover, among other have established an Enterprise Risk Ethics and Compliance items, share dealing, anti-corruption, Management programme that data protection, environmental Our Ethics and Compliance reviews both enterprise risks and regulation and managing gifts and framework local operational risks. Strategic hospitality. It will also align with the risks are reported to our corporate CCEP’s Ethics and Compliance UN Global Compact, the US Foreign Compliance and Risk Committee, programme is based on our commitment Corrupt Practices Act, the UK Bribery chaired by the Chief Compliance to conduct our operations in a lawful Act, the UK Corporate Governance Officer and made up of members and ethical manner, and upon the Code and Sapin 2. Related Ethics and of our Leadership Team (LT) and integrity of each and every one of Compliance programme policies will other senior leaders. Local our employees. be approved by a member of the operational risks are managed Leadership Team. by local Compliance and Risk We have established a company-wide Committees within each of our Ethics and Compliance programme, We expect our customers and business units. overseen by CCEP’s Audit Committee. suppliers to respect the business This programme is applicable to our principles in our COBCs. Our Supplier CCEP’s Enterprise Risk Management employees, our officers and our Guiding Principles reflect and department coordinates risk directors. It also supports how communicate our principles and assessments for each of our business we work with our customers, our emphasise to our suppliers the suppliers and other third parties. importance of responsible workplace In 2016, CCEP’s Board of Directors policies and practices, and respect established a fully dedicated for human rights and environmental Ethics and Compliance department, protection. We also ensure that CCEP approved the key elements for and its suppliers respect the UK’s CCEP’s Ethics and Compliance Modern Slavery Act. framework and agreed CCEP’s key compliance risks. In 2016, we received no fines for COBC violations. Code of Business Conduct See more: To download the In 2017, CCEP will issue a new CCEP’s COBC and key Ethics Code of Business Conduct (COBC), and Compliance policies, please approved by our Board of Directors visit www.ccep.com and overseen by our Ethics and Compliance department. This will

07 Operating with integrity

Code of Business Conduct violations reported in 2016 by type Training In 2016, CCEP had 171 reported violations of our existing COBCs. Our employees undergo COBC

Number of confirmed incidents of corruption 0 0% training regularly and new recruits receive training as part of their Maintaining accurate records1 71 42% induction. The launch of the new Protecting company assets 31 18% COBC in 2017 will be supported by Working with each other 21 12% training and awareness programmes

Working with customers and suppliers 14 8% for all employees. Training in 2016 consisted of COBC e-learning and Promoting health and safety in the workplace 9 5% anti-corruption courses for former Preventing substance abuse 8 5% CCE employees. In the former Integrity in the company 7 4% Coca-Cola Iberian Partners countries, employees received criminal risk Avoiding conflicts of interest 5 3% prevention training (covering Substantive matters: commitments 3 2% compliance policies). For CCEP, share Guiding principles for actions with third parties 1 1% dealing training was completed for those employees on the black-out list. Total number of reported violations 171 100%

Number of confirmed incidents resulting in termination of contract 72 42%

Number of confirmed incidents resulting in employee disciplinary action 54 32%

1. ‘Maintaining accurate records’ breaches were related to non-financial misstatements.

Raising concerns At CCEP, retaliation for whistle- blowing is prohibited. In each of our territories, we have established a way for employees to raise concerns about breaches to their local COBCs. This includes processes for employees to contact a line manager, and provides information through a dedicated complaints channel. Information about the whistle-blowing channel in each territory is made available on local How can we 2 intranet sites and is shared during encourage employees training programmes3. to raise concerns? Potential violations are dealt with See more: To view our statement by local COBC Committees, chaired on the UK’s Modern Slavery Act, Discover more at by the VP Legal for each country. In please visit www.ccep.com/ ccep.com a process now harmonised across modernslavery CCEP, local COBC Committees investigate cases and submit an anonymous monthly report to the company-wide COBC Committee, which is chaired by CCEP’s Chief Compliance Officer. This has oversight of all (potential) COBC violations and is able to address trends with senior leadership and review whether the COBC is being applied consistently. An overview of all reported incidents is provided to the Audit Committee.

2. Not available in Germany in 2016. Hilmar Geirsson, 3. Not available in Germany, Iberia and Iceland in 2016. Marketing specialist, Iceland

08 ccep.com LISTENING TO OUR STAKEHOLDERS

Our stakeholders have high expectations We speak regularly with a wide range of stakeholders, of CCEP, and want us to address many including our local communities, customers and suppliers, NGOs and other members of civil society. of today’s social and environmental Over the past year, we’ve had a unique opportunity challenges. We value the insight that we to incorporate their views into our new sustainability gain from discussions with our stakeholders plan. We’ve spent time listening to their feedback and understand that stakeholders expect us to develop and have specifically sought their input as strong commitments to reduce the sugar and calories we develop our new sustainability strategy in our products, make our packaging as sustainable as for Coca-Cola in Western Europe. possible and contribute in a meaningful way to the communities in which we operate.

Developing our sustainability plan We’ve sought the opinion of a wide range of stakeholders over the past year and are working to incorporate their views into our new sustainability plan. We aim to be able to release the plan, together with The Coca-Cola Company in the last quarter of 2017.

Listening to our stakeholders Material Issues We are currently “Coca-Cola has to start 1. Our drinks developing a set thinking on how it can 5 25 12,000 2. Packaging of commitments recover raw materials stakeholder interviews with consumer insights 3. Climate and targets which (e.g. recycled plastics) roundtables in major customers gained in six countries 4. Water will become and bring these back Brussels, London, and external through research 5. Sustainable sourcing part of our new into the value chain.” Madrid, Paris and stakeholders with The Coca-Cola 6. Our people sustainability plan. Roundtable participants, Rotterdam Company 7. Our communities Belgium

May 2016 June 2017 Q4 2017 CCEP formed CCEP’s first We plan to “Coca-Cola should define its Stakeholder “Improving skills of issue a new vision of its products in Progress Report youth through training sustainability 2025 or 2030 and start on our first year’s and youth employment plan for the building a new and innovative performance in 2016. are two of the more Coca-Cola system model with the lowest important issues where in Western environmental impacts, the an effort of the company Europe. best nutritional effects and would be most valued taking into account new by society.” consumption behaviours.” Roundtable participant, Key customer, France Spain 09 Listening to our stakeholders

We have been listening closely to the concerns of our stakeholders on the issues that matter most to them and our business. We are now working on a new sustainability plan for Coca-Cola in Western Europe, to be published in autumn 2017. This will set out how we will respond to our stakeholders’ expectations in the future.

Our drinks Through engagement with 2015 and 2020. Since 2010, we customers, governments, regulators, have reduced the added sugar per NGOs and trade associations, we litre across our portfolio by 8.2%. know that our stakeholders’ main Since 2010, we have also reduced concern is the amount of sugar the average calories per litre in our and calories in our beverages. products by 7.9 percent.

• Product reformulation: In 2016 Key concerns 9.2% of the drinks we sold had • That we reduce the amount of their recipes changed to reduce sugar and calories in our products. sugar and calories.

• That we adopt responsible • Responsible marketing: We have marketing and advertising practices, a long-standing commitment to especially in relation to children. never market our products to • That we include easy-to-understand children under 12 years of age. information about our ingredients • Labelling: 100 percent of our and nutrition on our labelling. products have GDA labelling and Our 2016/2017 response 98 percent have front-of-pack Reference Intake (RI) nutrition • Calorie reduction: In 2016, as labelling. In 2017, through The part of an industry-wide pledge Coca-Cola Company, we joined led by the European soft drinks a multi-company task force association, UNESDA, committed reviewing the development of to reducing added sugar in our a consistent and single nutrition portfolio by 10 percent between labelling scheme across Europe.

Packaging Our stakeholders want our • That we support the circular packaging to be as sustainable as economy by using recycled possible. We are working with materials including recycled PET national and local governments, (rPET), aluminium and glass in our with our packaging suppliers and bottles and cans. with packaging recovery Our 2016/2017 response organisations in all our markets (e.g. Eco-Emballages in France • Recyclability: In 2016, 100 percent and Fost Plus in Belgium) to ensure of our cans and bottles remained that our packaging is sustainable fully recyclable and 16 percent of and to respond to concerns about our PET bottles and 88 percent litter, collection and recycling. of our glass bottles were refillable. • Using recycled materials: In 2016, Key concerns 21 percent of the plastic we used • That our soft drinks packaging was rPET. does not end up as litter, or • Recycling: We have been working in the oceans. with local governments to improve • That all our packaging is the way in which packaging waste fully recyclable. is collected and recycled in many of our markets.

10 Listening to our stakeholders

Climate Our stakeholders want us to Key concerns contribute to global efforts to • That we reduce greenhouse reduce greenhouse gas emissions gas emissions across our entire and tackle climate change. In value chain. particular, they want us to set science-based greenhouse gas • That we set science-based emission reduction targets that carbon-reduction targets. are in line with the Paris Climate • That we use renewable electricity Change Agreement. We work with in our manufacturing operations a wide range of stakeholders and and offices. NGOs such as the Haga Initiative in Sweden and ZERO in Norway to Our 2016/2017 response reduce our direct greenhouse gas • The majority of our electricity emissions. We are also working with contracts have now been suppliers to reduce greenhouse gas switched to electricity from emissions resulting from the value renewable sources. chains of the drinks we produce. • We provide full transparency and disclosure of our greenhouse gas emissions through the Carbon Disclosure Project and our Annual Report and Accounts.

Water Our stakeholders want us to Our 2016/2017 response take responsibility for the future • Water use: In 2016, we used sustainability of the water sources an average of 1.61 litres of water that are critical to our business. to make one litre of product. We work closely with a wide range of stakeholders, including our • Protect: All our facilities have suppliers, local municipalities and undertaken Source Vulnerability NGOs (e.g. WWF and SEO/Birdlife) Assessments and have Source to ensure that we are protecting Water Protection Plans in place. and replenishing the water sources • Wastewater: 100 percent of our we rely on. wastewater is safely returned to nature. Key concerns • Replenish: We are working • That we protect local with The Coca-Cola Company watersheds and use water and many local NGOs to replenish as efficiently as possible. 100 percent of the water that • That wastewater is treated to we use in areas of water stress. a standard that can support In 2016, we replenished 89 percent aquatic life. of this water. • That we reduce water use across our value chain, particularly in areas of water stress.

11 Listening to our stakeholders

Sustainable sourcing Our customers, consumers and Our 2016/207 response the NGOs with which we engage • Supply chain: In 2016, want to be sure that the key 79.6 percent of our goods agricultural ingredients and raw and materials were sourced materials that we use in our from suppliers that complied products and packaging are sourced with our Supplier Guiding sustainably. In partnership with Principles (SGPs). NGOs, our suppliers and industry organisations like the SAI Platform, • We continue to work with we are working to achieve this third-party certification bodies objective for key agricultural (including SAI Platform, UTZ and ingredients, such as sugar beet. FSC/PEFC) to ensure that our suppliers can provide agricultural Key concerns ingredients which comply with our Sustainable Agriculture • That our key agricultural Guiding Principles. ingredients are sourced sustainably and do not • Modern slavery: We have damage the environment. published our first statement in response to the UK’s Modern • That our supply chains are Slavery Act. free of child labour, forced labour or modern slavery and support local livelihoods.

Our people Along with stakeholders such as Our 2016/2017 response suppliers, customers, employees • Women in leadership: In 2016, and NGOs, we believe that building 23 percent of our leaders and a diverse workforce, that reflects the 37 percent of our managers communities in which we operate were female. is critical for a thriving business. • Diversity and inclusion: We Key concerns have established diversity programmes to address all • That we build gender diversity the diversity priorities raised within our workforce, particularly by our stakeholders and in manufacturing and within our are beginning to roll these management and leadership. out across our territories. • That we broaden our focus to • Safety: In 2016, we had a include generations, cultural Lost-time Incident Rate of diversity, disability, and sexual 1.66. We are now working to orientation. establish a new cross-CCEP • That we ensure our employees safety programme to continue continue to work in a safe to improve our performance. environment.

12 Listening to our stakeholders

Our communities Stakeholders, including our Our 2016/2017 response employees and local communities, • Community investment: In 2016, want us to continue to support we invested €6.6 million to national and local charitable support local charitable and and community initiatives while also community programmes across supporting local livelihoods by our territories. providing employment opportunities. • Local employment: We have Key concern strong relationships with the local communities in which we • That we make a proactive, positive, operate, providing employment local economic contribution by for 24,500 people across our offering apprenticeships and job territories. opportunities and by supporting charitable and community causes.

13 ccep.com Tackling obesity, reducing sugar OUR DRINKS

14 ISSUE Our drinks

OUR DRINKS: TACKLING OBESITY, REDUCING SUGAR

Obesity is a complex, global challenge with a significant % cost to both society and individuals. Worldwide, over 50 of people are overweight 600 million adults and 41 million children under the or obese in Europe.2 Source: WHO age of five were classed as obese in 2014.1

We understand that many people We will also expand the availability want to eat and drink less sugar of smaller, more convenient pack in order to moderate their calorie sizes and invest more in making 10% intake. Together with The Coca-Cola sure consumers are aware of We support the WHO Company, we are taking steps to no- and low-calorie options. recommendations that support these changing tastes people should limit their intake of added sugar and preferences. As we develop our sustainability to no more than plan for Western Europe, we are 10 percent of their total daily calorie We are listening carefully to our listening to what stakeholders consumption. consumers and evolving our portfolio expect of us and how they would Source: WHO to give people more of the drinks like to see our products evolve in they want, enabling them to control the future. Commitments and targets their consumption of added sugar. for reducing the sugar and calories We are committed to becoming a in our drinks will be set accordingly. total beverage company, reshaping our portfolio in line with changing UN SUSTAINABLE consumer tastes and focusing on DEVELOPMENT GOALS ‘consumer-centric’ brands including We support UN Sustainable no- and low-sugar options and Development Goal #3, ensuring drinks in emerging categories good health and wellbeing. such as organic drinks and ready-to- Together with the European drink teas. beverage association, UNESDA, we aim to help reduce non-communicable diseases, such as obesity, by reducing the average added sugar content of our still and sparkling soft drinks by 10 percent between 2015 and 2020 in support of the global 1. www.who.int/mediacentre/factsheets/fs311/ 2. www.euro.who.int/en/health-topics/noncommunicable-diseases/obesity/data-and-statistics/infographic-over-50- fight against obesity. of-people-are-overweight-or-obese-download

15 TOPIC Our drinks

OUR DRINKS

OUR PROGRESS Introduction We know our stakeholders have We’re also giving people % high expectations about efforts to straightforward, accessible 7.9 reduce the sugar and calories in our information to help them make reduction in the average calories portfolio. We are listening – and are informed choices through front-of- per litre across our portfolio taking action. Together with The pack nutritional labelling. Finally, since 2010. Coca-Cola Company, we are evolving we’re continuing to follow our our long-term business strategy to long-standing policy not to target % 35 provide a greater range of no- and advertising to children under 12. of the volume of our drinks in our low-calorie products. We’re doing portfolio are no- and low-calorie. this by changing the recipes in our Reducing sugar drinks to reduce sugar and calories, introducing smaller packaging to We are taking multiple steps to help 180 help people control their sugar reduce sugar in people’s diets. Along We have introduced intake, and developing new no- with The Coca‑Cola Company, we approximately 180 no- or and low-calorie products. support the WHO recommendation low-sugar products since 2010. that people should limit their intake of added sugar to no more than % 10 percent of their daily calorie 98 consumption. Through our of our products have membership of the European soft front-of-pack Reference Intake drinks industry association, UNESDA, (RI) labelling. CCEP has committed to reducing its % average sugar content per litre of 10 product by 10 percent between 2015 We have signed up to UNESDA’s and 2020. In addition, we have set commitment to reduce added calorie reduction pledges in most of sugar by 10 percent between 2015 the countries where we operate. and 2020. First, through The Coca‑Cola Company, How are we changing we are reducing the sugar in our our drinks to reduce products by using sugar alternatives that help retain the great tastes that sugar and calories? people love, but with less sugar and fewer calories. In 2016, 9.2 percent Discover more at of the drinks we sold have had their ccep.com recipes changed to reduce sugar Marta Isabel Nunes Hermenegildo, and calories. Public Affairs and Communications – Portugal

16 TOPIC Our drinks

Overall, we have reduced the average range of zero-calorie options across Where it is not possible to provide calories per litre of our products by our territories. front-of-package labelling (for 7.9 percent since 2010. We have also example, on returnable glass bottles reduced the added sugar per litre Convenient, smaller packaging in some countries), we make this across our portfolio by 8.2 percent We are also working to provide a information available on our websites since 2010. That’s equal to removing greater range of smaller, more or by other easily accessible means. 74,000 tonnes of sugar or convenient packages which make 290 billion calories. it easier for people to control their Together with The Coca‑Cola sugar intake. In 2016, 5.6 percent Company and five other FMCG We also know that not everyone of our products were sold in pack companies, we are taking steps to drinks sparkling soft drinks. As a sizes of 250ml or less. In 2016 we promote healthier diets and balanced result, we are also working hard to introduced a single-serving 250ml lifestyles to tackle obesity. This introduce new products and flavours can for Finley in France. multi-company task force is looking such as no- and low-calorie soft at the development of a meaningful, drinks, waters, teas and juices. Responsible marketing consistent and single nutrition Since 2010, we have introduced labelling scheme across Europe, approximately 180 new no- or Providing clear and in compliance with existing low-calorie products and formulas accessible information EU legislation. and are aiming to increase the We are also making sure that number in the coming years. In 2016, consumers are clear on the amount 35 percent of the sales volume of our of calories in our products, so that See more: UNESDA Sugar drinks were no- or low-calorie. they can make informed choices. reduction commitment

During 2016, we introduced organic Since 2009, we have voluntarily products, – Honest Tea in Great included Guideline Daily Amount Britain and Capri-Sun Bio in France (GDA) labelling on 100 percent of and Sweden – and organic products our packaging. We have also included now represent 0.2 percent of our front-of-pack Reference Intake (RI) total volume. We also introduced new information on approximately no- and low-calorie products in all our 98 percent of our packaging since countries. These include a flavoured 2013. In 2014, we joined the UK water, Chaudfontaine Fusion, in Government’s voluntary colour- Belgium and the Netherlands, Finley coded, front-of-pack nutrition mocktails in France, Belgium and labelling scheme. Luxembourg and the Monster Ultra

COCA‑COLA ZERO SUGAR: BETTER TASTE AND NO SUGAR CCEP-WIDE Over the past year we’ve released a new version of Coca‑Cola Zero called Coca‑Cola zero sugar. The new recipe more closely matches the taste of Coca‑Cola Classic while the name and redesigned packaging make it even clearer to consumers that the drink is sugar-free. The launch in Great Britain was backed by an investment of £14 million – the largest in a decade – as part of a strategy to increase the growth of no-sugar options.

17 TOPIC Our drinks

Our product portfolio Product portfolio by unit case volume – 2016 We offer a wide range of drinks in a variety of package sizes for our consumers. Approximately 35 percent of our volume is no- or low-calorie, and 5.6 percent of our volume is sold in small portion sizes of 250ml or less.

7% Water

65% Coca-Cola Trademark 7% Juices, isotonics, and other

21% Sparkling flavours and energy

Reduce calories We are working to reduce calories across our entire portfolio. 9.2% 35% 5.6%

of the drinks1 we sold in of our drinks, by of our drinks, by volume 2016 have had their recipes volume, is no- and is available in small changed to remove sugar low-calorie. portion sizes of less and calories. than 250ml.

1. By brand.

18 TOPIC Our drinks

Information about our products is available through the websites, care % lines and consumer information 98 centres that operate in all our countries. of our packaging has had Reference In 2016, we received 1.12 consumer Intake (RI) information since 2013. complaints per million units sold.

We take advice from local and Responsible marketing European Scientific Advisory Councils We’re working with The Coca‑Cola and make no health claims unless Company to shift some of our these are scientifically proven. We marketing spend towards making also provide extra information about people more aware of the no- and ingredients on pack labels to help low-sugar options in their local consumers make the right personal markets. In 2016, for example, we choices. Our energy drinks, for invested £14 million in promoting example, carry a statement indicating Coca-Cola Zero Sugar in Great Britain that they are not suitable for children under The Coca‑Cola Company’s of the German football association, and pregnant and breast-feeding ‘One-Brand’ strategy. In Germany, Bundesliga. women, specific groups for whom Coca‑Cola Zero has been made the caffeine is not recommended. star brand in all packaging and We also have Responsible Marketing advertisements for our sponsorship Guidelines in place. These provide guidance for our sales teams on how our products should be marketed. For example, we provide advice on how REDUCING CALORIES to collaborate with customers to BY 20 PERCENT BY 2020 develop meal and snack promotions SWEDEN that showcase healthier food choices and smaller portion sizes. We aim to In May 2016, the Swedish Health make our no- and low-calorie Minister called for cooperation beverages most prominent in our between society, government and meal deal or snack promotions. food and drink manufacturers to address the high levels of sugar in No marketing to children people’s diet. Coca-Cola responded under 12 with a pledge to reduce the We have a long-standing policy not average amount of calories in our to advertise or market any of our drinks by 20 percent by 2020, from products to children under the age a 2010 baseline. of 12. While we can’t control everything every child sees, we are Over the last few years, we have working with The Coca‑Cola Company made great efforts to address the to proactively push the industry to issue through no- and low-calorie advertise responsibly. We do not product innovations, clear place advertising in media where nutritional labelling and the the audience is under 12 years old, introduction of smaller package and do not design our marketing sizes. CCEP in Sweden sells communications in a way that approximately 400 million litres of directly appeals to children under non-alcoholic beverages per year, 12. We also participate in audits by of which 24 percent consists of external organisations that monitor no- and low-calorie drinks. Between our advertising to demonstrate 2010 and 2015, we reduced the compliance. Through UNESDA, we average amount of calories in our are also committed not to advertise in product portfolio by 10 percent printed media, on websites or during through a variety of new no- and broadcast programmes aimed low-calorie drinks. We continued specifically at children. We do not this work in 2016-2017 with the undertake promotional activities introduction of Sprite Mint, Fanta aimed at under-12s and we never Pineapple, Coca-Cola Zero Sugar provide free samples to this age group Cherry, Fanta Zero Pink Grapefruit unless an adult or carer is present. and Sprite Zero Cranberry.

19 TOPIC Our drinks

We believe in commercial-free Our products and alcohol classrooms for children. As part of a Most of the products in our portfolio ADDITIONAL INFORMATION global Coca‑Cola policy and through are non-alcoholic. In two of the More information about UNESDA, we have committed not countries where we operate, however, joint commitments with to offer our beverages for sale in we do produce or distribute alcoholic The Coca‑Cola Company and primary schools unless requested by drinks such as beer, wine and spirits, through UNESDA, as well as school authorities or parents. While making up 0.1 percent of the volume our Responsible Marketing each of our countries has a different of our portfolio. In Iceland, our Guidelines can be found on policy on the distribution of our Akureyri facility near the Arctic Circle www.ccep.com. These include: products in secondary schools, we produces its own Viking brand of aim in every case: beer, as well as brewing other beers • UNESDA Commitment to under licence. We also act as the Reduce Added Sugar To provide a full range of beverages distributor for premium spirit brands • The Coca‑Cola Company (including waters, juices and including Edrington, Illva Saronno, Global Responsible no- and low-calorie products) in Buss Spirits and Berry Bros. & Rudd Marketing Policy smaller portion sizes. in Belgium and Luxembourg. In each of these countries, we respect the • The Coca‑Cola Company • To include educational images and local code of practice for the Global School Beverage messages on vending machines responsible marketing and promotion Guidelines to promote balanced diets and to of alcoholic drinks. This includes • UNESDA Commitments to respect the commercial-free nature providing messages on responsible Act Responsibly of the school environment. drinking, and only marketing • UNESDA Code for Energy • To ensure that those responsible products through channels aimed at Drinks and Shots for the final distribution of our adults over local legal purchase age. products to schools are aware of these commitments. We know that our non-alcoholic drinks are often consumed on social We have also signed the UNESDA occasions where alcohol is involved initiative to ensure that energy and that they can be mixed with drinks are not marketed to children alcoholic beverages. We have under 12 years of age. issued guidelines to our sales teams to ensure that any association of our products with alcohol is communicated in a way that encourages moderate and responsible drinking, and which complies with all relevant laws, regulations and industry codes on the marketing and sale of alcohol.

We also promote our drinks as a non-alcoholic alternative. In Great Britain, for example, we work in conjunction with the THINK! driver-friendly programme to offer a free second non-alcoholic drink at Christmas when ordering a Coca‑Cola, Schweppes or Appletiser product. In 2016, we distributed approximately 4,700 buy-one-get-one-free kits to bars How can we evolve and pubs across Great Britain. the drinks we offer to help consumers reduce their sugar intake?

Discover more at ccep.com

Céline Rød, Manager, Sales Development, Digital@work, Norway

20 ccep.com Making our packaging more sustainable RECYCLING SUSTAINABLE SUSTAINABLE PACKAGING AND

21 ISSUE Sustainable packaging and recycling

SUSTAINABLE PACKAGING AND RECYCLING: MAKING OUR PACKAGING MORE SUSTAINABLE

Our packaging plays an essential role in maintaining the quality of our drinks and ensuring they reach our customers and consumers safely. But the glass, aluminium, paper and plastic that we use depends on natural 65.5% resources and accounts for approximately 40 percent of packaging waste in of the carbon emissions in our value chain. Once used, the EU 28 is recycled. Source: Eurostat 20141 our packaging is not always recycled and too often ends up in landfill, being incinerated, littering the streets or in our oceans.

Resource efficiency has long been We are open to engaging in % at the heart of our thinking on constructive dialogue and to working 29 sustainable packaging. Although we with others to create effective, of municipal waste in the EU 28 is recycled. have made strong progress in recent long-term solutions to make our Source: Eurostat 20152 years, we know there is much more packaging as sustainable as possible. to be done on tackling litter, on improving packaging recovery and recycling rates in many of our markets and on using more recycled We have listened to our and renewable materials. stakeholders, and know that we need to do more to recover our UN SUSTAINABLE Our stakeholders also expect us packaging, and use more recycled DEVELOPMENT GOALS to go further, faster. Having listened content. We will be developing to their expectations, we are reviewing new commitments and targets We support UN Sustainable our sustainable packaging strategy about our packaging as part Goal 12, ensuring sustainable and will be setting new packaging of our upcoming sustainability consumption by helping to targets and commitments as part strategy for The Coca-Cola substantially reduce waste of our upcoming sustainability plan. system in Western Europe, to generation through waste be released later this year. reduction, recycling and reuse. We support the circular economy and aim to use as little packaging material as possible, while also using recycled and renewable materials. All our cans and bottles 1. ec.europa.eu/eurostat/statistics-explained/index.php/Packaging_waste_statistics are fully recyclable. 2. ec.europa.eu/eurostat/statistics-explained/index.php/Municipal_waste_statistics

22 TOPIC Sustainable packaging and recycling

SUSTAINABLE PACKAGING AND RECYCLING

OUR PROGRESS Introduction Managing the sustainability of our

% packaging is one of the most critical 132g/litre 100 issues facing our business. of our bottles and cans 2016 packaging use ratio. are recyclable. We work with our packaging suppliers to minimise the impact of We are also working to increase the % our packaging on the environment recycled and renewable content of 21 by designing it for recyclability, all our packaging, and are continually of the PET used in our packaging continually trying to reduce its working with our suppliers to use in 2016 was recycled PET. weight and increasing its recycled less material overall. We monitor our % and renewable content. We are also progress on reducing the amount 7.6 working with customers to improve of material we use through our of our PET bottles in 2016 consumer awareness of recycling, packaging use ratio – the average were PlantBottle™. and with local governments and weight of packaging per litre of stakeholders to improve local product. In 2016, we used 663,516 % recovery and recycling rates. tonnes of material across all our 18 packaging types, and 27 percent reduction in our packaging of this was recycled material. Our use ratio (g/litre) since 2010. Sustainable packaging packaging use ratio was 132g/litre. We offer our products in many different packaging formats, and aim to ensure that these are designed for recyclability from the start. All of our aluminium, steel, plastic and glass primary packaging is 100 percent recyclable, as is the board and paper we use in some of our packaging. Some packaging such as cartons or pouches can only be recycled where How are we working specific recovery facilities exist. We to ensure our packaging are working with local organisations is sustainable and to improve the recovery and recycling rates for these types of packages. recovered for recycling? Discover more at ccep.com

Danny Brando, Senior Manager, Central QESH, Great Britain

23 TOPIC Sustainable packaging and recycling

Plastic Bottles – PET PlantBottle™ packaging for brands Our polyethylene terephthalate (PET) such as Smart Water and Honest Tea, 100 PERCENT bottles are one of our most popular as well as for 500ml Coca‑Cola PET PLANTBOTTLE™ bottles in the Netherlands, Norway packaging types. To make it a PORTFOLIO and Sweden. We also use sustainable packaging choice for NORWAY our consumers, we are working to PlantBottle™in some of our ViO increase the amount of recycled and brands in Germany, as well as in renewable material contained in our Bonaqua in Sweden. bottles. In 2016, 21 percent of the plastic we used in our bottles was recycled PET (rPET). % Introduced by The Coca‑Cola 16 1 Company in 2009, PlantBottle™ of our PET is refillable PET . uses PET derived from sugar cane and molasses. The resulting material In addition to one-way PET, we looks and functions like traditional also offer refillable PET packaging In 2012, we switched our PET and is fully recyclable, but is not in some of our markets, representing packaging in Norway from made entirely from a fossil-fuel base. 16 percent of our PET bottles. refillable to non-refillable bottles. In 2016, 7.6 percent of our bottles Germany, which has offered refillable These non-refillable lines were were PlantBottle™. We use PET bottles since 1990, is our largest switched to solely producing market for these packaging types. products which use PlantBottle™, Available in the 1.5, 1 litre and 500ml such as 500ml Coca-Cola. sizes in Germany, these bottles are PlantBottle™ packaging in collected by retailers and returned to PACKAGING INNOVATION Norway is made with up to our manufacturing operations where GREAT BRITAIN 22.5 percent plantPET and they are washed and refilled. Each 25 percent rPET, allowing us to We are continually testing new bottle will be refilled between 12 and halve our annual consumption of types of lightweight packaging 15 times before it is recycled. In 2016, virgin plastic. in order to reduce the amount we refilled more than 1.5 billion of resources that we use. In PET bottles. Great Britain, we launched a See more: For more information newly redesigned plastic bottle on CCEP’s packaging and for our Abbey Well Spring Water recycling, please see our brand. The ‘twistable’ design environmental data tables. uses up to 32 percent less plastic than previously, and carries a prominent ‘Recycle Me’ message to remind consumers that the bottle is recyclable. Its design also makes it easy for consumers to crumple it down before disposing of it.

24 TOPIC Sustainable packaging and recycling

Cardboard and corrugated support the development of a circular packaging economy model whereby resources % Our cardboard and corrugated are recycled and re-used for as long 88 packaging is used as a secondary as possible, feeding back into the of our glass bottles were refillable packaging material to help transport economy and maximising the re-use in 2016. cans and bottles to our customers. of finite resources. Every new paper, pulp and cardboard Aluminium, steel and glass contract now includes a requirement Supporting national collection, for third-party certification through One of the best ways that we can sorting and recycling schemes the Forestry Stewardship Council reduce the carbon footprint of our There are different collection, sorting (FSC) or a certification endorsed by packaging is to increase the recycled and recycling schemes in place across the Programme for the Endorsement content of our aluminium and all the countries we operate in. While of Forest Certification (PEFC). In steel cans (it takes approximately some focus on household kerbside Spain, the paper labels used on all our 95 percent less energy to produce collection and recycling, others have bottles are FSC certified and include recycled aluminium than virgin). In well-established deposit systems the FSC logo. We are also currently 2016, 33 percent of our aluminium, for beverage packaging. In some collecting FSC certification from our steel and glass materials were made European countries, it’s our experience existing suppliers, who have until of recycled content. that deposit schemes can play a 2020 to comply with these standards. positive role and be an effective way We also offer refillable glass bottles to encourage the recovery of more in Belgium, Luxembourg, France, Recycling beverage packaging. Germany, the Netherlands, Norway, A critical part of our sustainable Portugal, Spain and Sweden. In 2016, packaging strategy is ensuring that For a deposit system to be successful, 88 percent of CCEP’s glass bottles as much of our packaging as possible however, it must work for all were refillable. can be recovered and recycled. We stakeholders across the value chain, and be underpinned by a circular economy strategy. We are willing to support the trial of well-designed 99 PERCENT RECYCLING OF MANUFACTURING WASTE deposit return schemes to understand GERMANY the role they could play in increasing the recycling of our packaging and In 2016, we worked with recycling To support the change in the reducing litter. expert, Interseroh, to increase the process, Interseroh worked amount of recyclable materials with the site to provide training resulting from the production and workshops to ensure that process at our manufacturing employees were involved and operation in Genshagen. The motivated to change their project identified more than 50 behaviours. As a result of recyclable materials, including this project, 99 percent of all our four types of paper and eight types production waste at the site is of foil and plastics. We installed being recycled. This best practice approximately 300 recycling bins will now be extended to our other to better separate these materials. German facilities, starting with our site in Karlsruhe.

25 TOPIC Sustainable packaging and recycling

In Spain and Portugal we also have Cutting manufacturing waste a partnership with Nosoplas to Our manufacturing operations provide high-quality rPET. As a result continue to reduce the amount of we are able to use up to 15 percent waste they send either to landfill or rPET in all our sparkling soft drink for incineration. In 2016, 92.6 percent and water packaging. of this waste was recycled and 34 of our 53 plants sent zero waste to Influencing consumer behaviour landfill. To achieve this, we work hard Working with our customers and at each of our manufacturing sites other stakeholders, we have worked to reduce and recycle our waste to raise awareness and to encourage as much as possible. Our facility consumer recycling. in Genshagen, Germany has been able to recycle 99 percent of its In France, we spread the recycling production waste (see case study). message at the EURO 2016 football In partnership with our recycling championships, encouraging fans to partner, Viridor, our SmartWater We will continue to work with NGOs, recycle their packaging in the eight facility in Morpeth has reduced its policymakers, industry bodies, local host cities during the event. The waste by approximately 40 tonnes authorities and national recovery campaign was seen by approximately per year through a new programme schemes to reduce the amount of 4.8 million people. which recycles the PET liner that soft drinks packaging not being carries the SmartWater labels. recycled. To this end, we have In Belgium, we provided recycling Recycling these liners reduced the partnered with Eco-Emballages points during the Tour de Wallonie carbon footprint by approximately in France, Fost Plus in Belgium, cycling event and the Special 180-200 tonnes of CO2e in 2016. Nedvang in the Netherlands, Olympics National Games. We Returpack and REPA in Sweden, also sponsored the recycling booth Infinitum and Rentpack in Norway, and toolkit for campers at the Ecoembes in Spain and Valpak in Tomorrowland music festival. This Great Britain. We also worked with resulted in 15 percent less litter on Every Can Counts on recycling the campsite and 40 percent less campaigns in Great Britain and with litter in the festival area compared Chaque Canette Compte in France. to the previous year.

Investing in re-use We supported the Tilburg Fair in How can we make sure and reprocessing the Netherlands, the largest public all of our packaging event in the country with more than To ensure reliable supplies of one million visitors. During the is re-used or recycled, high-quality rPET, we’ve helped to one-week event, our Coca‑Cola and none of it ends develop, and continue to support, recycling stand informed consumers the PET collection and reprocessing up as litter? in a fun and engaging way about the infrastructure in France. Here we’ve Discover more at importance of recycling. We also invested in plastics reprocessing at ccep.com support Nederland Schoon which Infineo Recycling, our joint-venture aims to make the Netherlands cleaner with Plastipak. Infineo can process and reduce waste on the streets. up to 1.5 billion PET bottles a year Nederland Schoon ran a successful and produces enough high-quality pilot in 2016 to collect small bottles rPET to meet our needs in Belgium, and cans with the help of local Luxembourg, France and the schools, sports clubs and Netherlands. In Great Britain, we municipalities. More than 80 have invested to establish Europe’s communities took part in the pilot. largest and most sophisticated bottle reprocessing plant in Lincolnshire. This plant is now also run by Plastipak, and we’ve been using material from the plant in our bottles for the past five years.

Doreen Selmke, Finance, Germany

26 ccep.com Reducing our greenhouse gas emissions, supporting the Paris Climate Agreement CLIMATE

27 ISSUE Climate

CLIMATE: REDUCING OUR GREENHOUSE GAS EMISSIONS, SUPPORTING THE PARIS CLIMATE AGREEMENT

Net-Zero Climate change is one of the most serious and complex The Paris Climate Change Agreement aims to limit challenges facing the world. At Coca‑Cola European global warming to ‘well below’ 2°C and sets a Partners (CCEP), we believe that urgent action must be long-term target of net- zero emissions. taken to tackle the issue. Source: Paris Climate Change Agreement

Political and scientific consensus We have already made significant indicates that increased progress in reducing greenhouse concentrations of carbon dioxide gas emissions related to both our and other greenhouse gases (GHGs), core business and our value chain. which can be attributed in part to However, we need to do more 2°C emissions generated from businesses and are determined to meet our To avoid the most dangerous impacts of such as ours, are leading to gradual stakeholders’ expectations on climate change, we need rises in global average temperatures. key topics including renewable to limit global temperature electricity use and GHG emissions rises to no more than 2°C above pre-industrial levels. This is influencing global weather from transporting and chilling Source: Intergovernmental patterns and causing extreme our products. Panel on Climate Change (IPCC) weather conditions around the world. Climate change has also been linked We will establish new carbon to greater water scarcity and a reduction and renewable energy worsening of water quality. It can also targets as part of our new reduce agricultural productivity which sustainability plan for the Coca-Cola could affect the availability and cost system in Western Europe. UN SUSTAINABLE of the key ingredients that we use in DEVELOPMENT GOALS our products. An increase in extreme We also believe that full We support UN Sustainable weather such as storms or floods transparency about our GHG Development Goal 13, and are could also impact our manufacturing emissions is important. As a result, committed to playing our part and distribution network. we have included information on in global efforts to tackle climate risks and our GHG emissions climate change, in line with This is a critical issue for our business in CCEP’s first Annual Report and the 2015 Paris Climate Change and we are committed to playing Accounts, as well as in this report. Agreement. Since 2010, we our part in global efforts to tackle We also share this information have reduced the carbon climate change in line with the 2015 through our response to the Carbon footprint of our core business Paris Climate Change Agreement. Disclosure Project. operations by 42.6 percent, and our carbon footprint across our value chain by 25 percent versus 2010.

28 ISSUE Climate

Reducing carbon emissions across our value chain We are committed to reducing the impact of our business across our value chain – from the sourcing of our ingredients and the production and distribution of our products to their eventual disposal. The majority of our carbon impact lies beyond our direct control. Collaborating with our suppliers, customers, consumers and other stakeholders therefore, will be critical in reducing our carbon impact.

26.1% 21% rPET Ingredients Supply Chain 16% Refillable PET 88% Refillable glass 2,724,325 metric tonnes CO₂e 33% Recycled aluminium, 39.7% steel and glass Packaging

7.0% Manufacturing

Core business 7.8% operations Distribution

1,416,151 metric tonnes CO₂e

19.4% Cold drinks equipment (CDE)

Recycling Consumers Included in packaging1

Total Carbon Emissions 4,140,476 CO e across our value chain 2

1. As a result of carbon footprint methodologies.

29 TOPIC Carbon and energy

CARBON AND ENERGY

OUR PROGRESS Introduction drinks equipment and transportation figures). We also report additional We measure the carbon footprint Scope 3 emissions (e.g. for our % both of our core business operations packaging and ingredients) in our 42.6 (our manufacturing, distribution and value chain carbon footprint and our reduction in the carbon footprint cold drinks equipment) and of our publicly available CDP responses. of our core business operations wider value chain including our In addition, we disclosed our GHG since 2010. ingredients and packaging. We emissions within CCEP’s Annual work within our own operations, Report and Accounts. % as well as with our suppliers and 24.6 customers to reduce their reduction in our value chain In 2016, the carbon footprint of our carbon footprint. carbon footprint since 2010. core business operations was 1,416,151

metric tonnes of CO2e, a 42.6 percent % GHG emissions – core reduction since 2010 and a 7.4 percent 98.4 business operations reduction versus 2015. of our cooler purchases in 2016 were HFC-free. We report the carbon footprint of Across our value chain, the carbon our Scope 1, 2 and 3 greenhouse footprint of the ‘drink in your hand’ gas (GHG) emissions in tonnes was 290.7 g/litre, a reduction of of CO equivalent, from our core 2 24.6 percent since 2010, and a business operations, for the calendar 4.8 percent reduction since 2015. year ended 31 December 2016. Our GHG emissions are calculated in accordance with the WRI/WBCSD See more: See our Greenhouse Gas Protocol, using an methodology page for operational consolidation approach more information on to determine organisational how we calculate our boundaries. We disclose the Scope 1, carbon footprint. 2 and 3 emissions which make up our core business operations (this includes our manufacturing, sales offices, distribution centres, cold How are we reducing our carbon footprint? Discover more at ccep.com

Adjan van den Broek, Manager, Plant Engineering, Dongen, the Netherlands

30 TOPIC Carbon and energy

2010 2015 2016

Emission sources Tonnes CO2e Scope 1 Direct emissions 326,762 265,863 260,105 (e.g. fuel used in manufacturing, own vehicle fleet, as well as process and fugitive emissions) Scope 2 Indirect emissions 242,104 51,934 28,197 (market-based) (e.g. electricity)

Scope 2 Indirect emissions 260,103 195,370 190,294 (location-based) (e.g. electricity)

Scope 3 Third-party emissions included 1,898,699 1,211,811 1,127,849 in our core business operations. (e.g. cold drink equipment, third-party transport). Total core business 1,416,151

Note on sources of data and calculation methodologies

Under the WRI/WBCSD Greenhouse Gas (GHG) Protocol, we measure our emissions in three ‘scopes’, except for CO2e emissions from biologically sequestered carbon, which is reported separately. In 2016, CCEP’s biological sequestered carbon was 7,968 tonnes of carbon. (The figures in the above table for 2015 incorporate data from the bottlers from which CCEP was formed). Data is consolidated from a number of sources across our business and is analysed centrally. We use a variety of methodologies to gather our emissions data and measure each part of our operational carbon footprint, including natural gas and purchased electricity data, refrigerant gas losses, CO fugitive gas losses and transport fuel, water supply, wastewater and waste management. We use Reducing the carbon 2 emission factors relevant to the source data including DEFRA 2016 and IEA 2014 emission factors. Scope 1 figures include: Direct sources of emissions such as the fuel we use for manufacturing and our own vehicles plus our process footprint of our and fugitive emissions. Scope 2 figures include: Indirect sources of emissions such as the purchased electricity we use at our sites. We report against this on manufacturing operations both a location-based and a market-based approach. Scope 3 figures include: Indirect sources associated with the electricity used by our cold drinks and coffee equipment at our customers’ Our manufacturing operations premises, our employee business travel by rail and air, emissions related to the supply of water and treatment of wastewater, emissions from the treatment of waste, fuel used by our third-party distributors, other energy-related emissions not already accounted for under and commercial sites represents Scope 1 and 2 (e.g. emissions from well-to-tank and transmissions and distribution). Additional Scope 3 from our ingredients and packaging will also be included in our 2017 CDP response. 21 percent of the carbon footprint Approximately 1.38 percent of our operational carbon footprint is based on estimated emissions (e.g. leased offices where energy invoices are not available). Our Scope 1 and 2 emissions are independent of any greenhouse gas trades. of our core business operations, and 7 percent of our value chain carbon footprint. To reduce the Moves are under way to monitor the 52 of our 53 sites are certified carbon footprint of our factories energy lost in our manufacturing under the ISO 14001 environmental and warehouses, we are primarily processes when no production is management standard. Several of focusing on reducing the amount taking place – for example, at our sites have also achieved the of energy we use and switching to weekends. A plan for reducing these energy management standard the use of renewable electricity. losses was introduced in 2016 at our ISO 50001, including our Reykjavik manufacturing operations, manufacturing operations at Reducing the energy and similar plans have been rolled-out Wakefield and East Kilbride in we use to the majority of our other facilities. Great Britain, Dunkerque in France, Chaudfontaine in Belgium, and Lisbon In 2016, our manufacturing operations The attitude and behaviour of in Portugal. All of our 23 production used a total of 1,143,549 MWh of employees can play a large part plants in Germany, as well as our energy. We are working hard to reduce in reducing consumption of water German Cold Drink Equipment (CDE) the energy we use by investing in and energy. In Germany and France, operations and warehousing and new equipment and in training we have introduced an employee distribution sites, have also achieved programmes for our employees. These behaviour-change training the ISO 50001 standard. efforts are working. In 2016, we had an programme, to help them be more energy use ratio of 0.32 MJ/litre of aware of how to reduce their use In 2016, our sites in Great Britain, product produced, a 17.2 percent of energy and materials in their France, Belgium and Luxembourg, reduction versus our 2010 baseline. daily routines. the Netherlands, Norway and Sweden received the Carbon Trust Standard In the majority of our manufacturing We continue to invest in process certification for carbon management operations, we use monitoring innovation and new, energy-efficient for the fourth consecutive year. systems to help control our energy technologies and are looking to roll-out use. By combining production data best practices across our territories. In with live information on our energy 2016, we invested €3 million in energy use, they enable line operators to and carbon-saving technologies. In make real-time adjustments to Germany, for example, ceramic mirrors reduce our energy use. This are used in our bottle-blowing machine transparency is key to managing ovens to reduce the energy used for energy consumption. In 2016, we heating our pre-forms. These mirrors installed more meters at our have now been introduced to our sites Reykjavik plant, and online energy in Bilbao and Fuenmayor in Spain. management systems at six of our sites in Germany.

31 TOPIC Carbon and energy

HYDRO-ELECTRIC POWER AT CHAUDFONTAINE BELGIUM In December 2016, we opened a new, fish-friendly, hydro-electric turbine on the Vesdre River near our natural mineral water site at Chaudfontaine in Belgium. This project will produce 330 MWh a year, enough to power the equivalent of 94 households, and

will save 170 tonnes of CO2e a year.

The turbine is the latest in a series of initiatives that have reduced Chaudfontaine’s overall energy consumption by two-thirds since 2005. The combination of previously installed solar panels, geothermal heat captured from the water source and now the turbine, means that Chaudfontaine is now producing more than 10 % percent of its electricity through 75 renewable sources. of our electricity was from renewable sources in 2016.

hydropower and geothermal sources Combined heat and power (CHP) Renewable and of energy gives our Reykjavik facility systems can cut carbon emissions low-carbon energy a remarkably low-carbon footprint. by generating electricity and heat on Most recently, we have contracted site from low-carbon energy sources, Electricity and gas use accounts with a solar farm near our Wakefield e.g. natural gas. Having installed for 92.9 percent of the total energy operations in Great Britain to supply our first CHP system in Wakefield in used in our manufacturing and up to 15 percent of the site’s total 2014, we are now looking at other distribution sites. In 2016, 75 percent electricity use as part of a long-term economic opportunities to use this of our purchased electricity came Power Purchase Agreement (PPA). technology where feasible. from renewable sources, and we are The project will help to reduce the aiming to switch the remainder of our site’s operational carbon footprint by purchased electricity contracts to 8.6 percent. renewable sources by 2020. Our manufacturing operations in In addition to changing our energy Norway and Sweden and our office in purchasing strategy, we are also Bulgaria use biomass district heating investing in renewable and low-carbon which allows homes and business to energy projects at our own share a centrally generated renewable manufacturing operations. For source of heat. Collectively, they draw example, solar photovoltaic panels on approximately 4.6 percent of their our sites generated more than 311 MWh total energy use from this source. In of electricity in 2016. Our site at Germany our Fürstenfeldbruck Chaudfontaine is leading the way with manufacturing site uses a biomass the use of both solar photovoltaic burner to source its heat from old and water turbines (see case study). wooden pallets. In Iceland, the country’s abundance of

32 TOPIC Transport

TRANSPORT

Introduction Cutting the distances Avoiding wasted journeys We drive over 270 million kilometres we drive In several of the countries in which a year to distribute our products. As We continue to optimise our we operate, we run front-hauling a result, transportation accounts for distribution network to make it and back-hauling programmes in the second-largest percentage of as efficient as possible. We’ve cut collaboration with suppliers the carbon footprint of our core further road-kilometres by adding and customers. business operations – approximately warehouse capacity at some of our 22 percent and for 8 percent of our manufacturing plants, allowing us to Front-hauling involves working value chain carbon footprint. deliver directly to our customers from with suppliers to rationalise the our manufacturing sites rather than flow of materials into our plants. Although most of our deliveries are via external warehouses. Working A rail-based system is particularly made by third-party hauliers, we with our suppliers, we’ve also cut the well established in Sweden. monitor the emissions attributable to distances that materials have to travel our distribution and count them as to reach our factories. Many of our Back-hauling combines customer part of CCEP’s carbon footprint, in sites are located next to our can deliveries with collections to ensure line with our operational consolidation suppliers, and some, such as our full loads on both the outward and approach to calculating our carbon sites at Grigny, Wakefield and Halle return journeys. We currently have emissions. Working with our logistics in Germany have the capability to back-hauling arrangements with partners, we’re improving routes manufacture their own PET bottle customers including Casino and across all our territories in order to pre-forms, reducing the need for Carrefour in France, and Tesco in cut the distances we drive. We are these goods to be transported. Great Britain. also promoting the use of carbon- reducing technologies, fuels and In Spain, we have developed an modes of transport. initiative called Ecoplatform. This centralises our distribution system, bringing together 150 trucks and 20 vans along with the development of a new semi-automated warehouse 270m km in Madrid. We drive approximately 270 million kilometres a year to distribute our products.

33 TOPIC Transport

BIOFUELS TRUCK PILOT THE NETHERLANDS

In 2016, in partnership with DAF trucks, Nijhol oil company and three logistics contractors, CCEP in the Netherlands began a pilot project on the use of biodiesel in trucks. The pilot demonstrated that by using biofuel, CCEP can reduce

CO2e carbon emissions from transportation in the Netherlands by at least 24 percent. Following positive feedback from stakeholders, customers, government and NGOs, we aim 62 percent of our trucks run on to expand the pilot to nine trucks Working with the industry biofuel, we’re testing the use of in the Netherlands in 2017. hydrogenated vegetable oil as a We collaborate with industry diesel alternative. Here we also groups and stakeholders across operate dual-fuel delivery trucks our territories to advance the use of low-carbon vehicles and fuels. Alternative fuels powered by a mix of liquid natural gas/liquid biogas and regular diesel. Initiatives in which we are involved and technologies include the Belgian Lean & Green programme, the Centre for We’re expanding our use of ‘Eco- In France, we’re increasing the Sustainable Freight Transport in Combi’ trucks in the Netherlands. number of vehicles running on Great Britain and the Haga Initiative Longer than conventional trucks, compressed and liquefied natural gas. in Sweden. these can carry up to 38 percent more per journey, resulting in fewer Our company car and van fleet trips and lower emissions. In Sweden, includes fuel-efficient hybrid models for the same reason, we use larger and a small number of electric trucks known as ‘road trains’. vehicles. We also use electric vehicles for deliveries on short, inner-city Across our territories, the majority routes in Paris and Oslo. Our of our main hauliers are moving to company car tailpipe emissions fell the latest EURO VI emission standard by 2 percent in 2016, and are down and intend that all their diesel trucks by 30 percent since 2010. should meet this standard by 2018. Where long-distance transport is We continue to use biofuel to power unavoidable, we use a combination some of our trucks. The eight trucks of rail and road with trailers loaded that we own and operate in Iceland all onto trains and needing only short run on biodiesel. In the Netherlands, truck journeys at each end of the we’ve just completed a pilot project route. This method is increasingly on the use of renewable diesel (see used in France and Germany. case study). In Sweden, where

34 TOPIC Cold drinks equipment

COLD DRINKS EQUIPMENT

Introduction equipment when it is returned to us We work with The Coca‑Cola at the end of its life. Company to continually review our The 1.1 million coolers, vendors and refrigeration standards. Wherever fountain machines that CCEP installs possible, our policy is only to on its customers’ premises make up Purchasing new, more efficient equipment purchase HFC-free coolers, vendors the largest percentage – 56.8 percent and fountain machines. In 2016, – of the carbon footprint of our core Our coolers, fountains and vending 98.4 percent of the new coolers we business operations. It also represents machines are one of the primary purchased were HFC-free, making the the third largest part of our value ways that consumers can purchase a cooler fleet as a whole 40.7 percent chain emissions. cold, refreshing drink, on the go. In HFC-free. If an HFC-free solution is many of our territories we are using not available for purchase, we work Given that we are responsible for different makes and models of with our suppliers to develop one. placing our cold drinks equipment equipment. One of our key priorities We also only buy new equipment (CDE) with our customers, we are is to review the most energy-efficient which comes with LED lighting, also responsible for ensuring that coolers across our territories and and every unit over 250 litres includes it is as energy efficient as possible. harmonise our plans in order to buy an energy management system This includes purchasing the most the best models. By streamlining the (EMS) device. energy-efficient models and number of models and suppliers in improving the efficiency of our portfolio, we’re cutting the costs equipment already in our fleet by of procurement, servicing and repairs installing energy-saving devices. Our and making it easier to roll-out % responsibility extends to the eventual innovations such as cooler internet -46.6 recycling and safe disposal of connectivity (see case study). In 2016, We have reduced the carbon we purchased 63,000 units of new footprint of our cold drinks equipment cooler equipment, including units by 46.6 percent versus 2010. from the iCOOL range, which features energy management technology, LED lighting and electronically commutated (EC) fans and motors.

35 TOPIC Cold drinks equipment

INVESTING IN NEW TECHNOLOGIES CCEP-WIDE One of the most important ways to reduce our carbon footprint is by working with The Coca‑Cola Company, our suppliers and other partners to develop and purchase innovative equipment for our cold drinks and hot beverage products. Innovations include purchasing equipment with internet-connected energy-management systems, allowing data from each machine to be captured centrally. Among other benefits, this technology allows us to track the location of each piece of equipment and Adding energy-efficient Some of our older equipment monitor its performance – ensuring that repairs are anticipated in technology to existing includes open-fronted units (OFUs) which have no doors. After several advance and completed more equipment years of installing doors on as much efficiently. Connected equipment We also aim to make our existing of this equipment as possible, we are can also record door openings to coolers, vendors and fountains more now beginning to replace them with measure sales volume and energy efficient by refurbishing more energy-efficient options as engage directly with consumers them either on our customers’ they reach the end of their useful through their mobile phones. We premises or at one of our operation lives. Across all CCEP territories, we piloted this programme with ten centres. The energy efficiency of our reduced the number of OFUs by coolers in 2016, and plan to equipment substantially improves approximately 74 percent in 2016, expand to 500 internet- when energy-efficient technology since 2010. connected coolers in 2017. such as LED lighting or EMS devices is installed. When a unit reaches the end of its working life, we recycle it under Replacing fluorescent lights with controlled conditions, re-using as LED lighting can reduce the energy much as possible so that nothing from lighting by up to 80 percent goes to landfill. High standards of and the total energy consumption maintenance and disposal prevent of the machine by up to 20 percent. HFCs leaking from our equipment After several years, the retrofit both during and after its lifetime. programme in Belgium and Luxembourg, France, Great Britain, How can we address the Netherlands, Norway and climate change over Sweden, has reached most of the % the next ten years models that can be upgraded. We 98.4 and beyond? are now reviewing ways to improve of new coolers purchased the energy efficiency of existing were HFC-free in 2016. Discover more at equipment in Spain, Portugal, Iceland ccep.com and Germany as part of our overall cooler harmonisation project. See more: More information about our carbon and energy use can be found on our environmental data pages.

Marta Font, Environment Lead, Spain

36 ccep.com Protecting and replenishing the water we use WATER

37 ISSUE Water

WATER: PROTECTING AND REPLENISHING THE WATER WE USE

Water is the lifeblood of our business – the main ingredient in our products, essential to our manufacturing processes and critical to ensuring a sustainable supply of the 3% agricultural ingredients we use in our products. of the water on the planet is fresh water, and only about 1 percent is readily available for human use. Source: WWF Water is also one of the world’s most our production costs, limit our precious resources. In many regions, production capacity, jeopardise our however, water resources have been deliveries or affect the agricultural affected by over-exploitation, the crops and ingredients we rely on. growing demand for food, poor water 1.2 bn management and the impacts of Our stakeholders have strong Approximately 1.2 billion people – almost one-fifth climate change. This has led to severe expectations regarding our use of of the world’s population – consequences including droughts, water, and rightly so. We’ve been live in areas of water scarcity. floods and changes to the freshwater listening, and will be setting targets Source: The United Nations habitats of many species, all of which and commitments as part of our have had negative impacts on the sustainability plan later this year. surrounding societies and economies. We will continue to take a value-chain Water scarcity and the deteriorating approach to water stewardship, quality of some of the water sources focusing on water-efficiency within in our own territories and supply our own operations and working hard chains are a major issue for to protect the future sustainability Coca-Cola European Partners (CCEP). of the water sources which we, and Even if temporary, a reduction in our local communities, rely on. UN SUSTAINABLE water quality or supply could raise DEVELOPMENT GOALS We support UN Sustainable Development Goal 6, contributing to global efforts to protect the future sustainability of our water resources. We will improve our water-use efficiency by reducing our water usage within our manufacturing operations, and will replenish the water that we use in areas of water stress.

38 ISSUE Water

Water stress in our territories While some of our territories such The main areas facing stress in our Water stress can also affect the as Iceland, Norway and Sweden business include the south-east of sourcing of our ingredients. By water are water abundant, others can England, the south of France, the footprinting our value chain, we have experience water stress due to over Flanders region of Belgium, parts identified sugar and juice processing exploitation, over population and of Germany and parts of Spain. as potential hot spots. climate-change-related drought. We operate 21 manufacturing sites Together with The Coca-Cola in these areas. Together, these Company, we have identified such operations account for 41 percent areas within our business through our of our total production volumes Source Vulnerability Assessments (5.9 million cubic metres). (SVAs) and by using water stress mapping from global surveys such as the World Resources Institute’s (WRI) Aqueduct project.

Water-stress map Degree of water stress CCEP territories – 2016 <10% Low Number of CCEP facilities 10 – 20% located in areas of water stress Low to medium Great Britain Belgium 2 20 – 40% France 1 Medium to high Germany 3 40 – 80% Great Britain 3 High Portugal 1 Spain 11 > 80% Extremely high Outside CCEP territories data coverage

Germany 5.9 million m3 Total production volume of water sourced from water-stressed areas

France

Belgium Spain

See more: www.wri.org/ Portugal our-work/project/aqueduct

39 TOPIC Water stewardship

WATER STEWARDSHIP

Dry lubricant machine.

OUR PROGRESS Introduction Drawing on the findings of their SVAs, all our manufacturing We are committed to being responsible operations now have Source Water water stewards, efficiently managing Protection Plans (SWPPs) that take 1.61 litres the water we use. In particular, we are account of future water needs and of water used to make each working to reduce the water we use in identify any required mitigation plans. litre of product in 2016. the production of our products, and These plans are reviewed and are safely returning all our wastewater updated as necessary. 89% to nature. of the water used in our drinks, Becoming more Protecting our where it was sourced from areas water-efficient of water stress, was replenished water sources in 2016. In 2016 our manufacturing operations Most of the water we use comes from withdrew a total of 20.7 million cubic % municipal sources. The rest is drawn metres (m3) of water. We aim to make 100 mainly from on-site wells, all of which our plants as water-efficient as possible of our manufacturing operations are licensed. and we measure performance through have implemented Source Water our water-use ratio – the amount of Protection Plans. To help protect our water sources, water we need to produce a litre of all our manufacturing operations product. In 2016, the water-use ratio have carried out Source Vulnerability for CCEP was 1.61 litres/litre. While we Assessments (SVAs) to assess can’t reduce the amount of water in potential risks in terms of water our products, we are working hard to quality and its future availability to make our manufacturing and cleaning our business, the local community processes more water-efficient. and the wider ecosystem. Within each catchment, SVAs evaluate We monitor our company-wide local water resource systems, past water use, setting annual targets and present water quality, current and identifying opportunities to How are we water stresses and potential risks reduce our consumption. protecting, reducing arising from extreme weather or and replenishing the natural disasters. water that we use?

Discover more at ccep.com

Kris Sabbe, Senior Manager Engineering, Chaudfontaine, Belgium

40 TOPIC Water stewardship

MES MONITORING CCEP-WIDE Manufacturing Execution Systems (MES) linked to our production processes can track how much water is being consumed in real time. In 2016, we installed MES monitoring in Reykjavik and introduced online water and energy management systems at six of our manufacturing operations in Germany. These join MES systems already installed at our Dunkerque, Grigny, Dongen, Antwerp and Barcelona operations.

In 2016, we again achieved the While most of our manufacturing Investing in water-saving Carbon Trust Water Standard and our operations pre-treat wastewater on technology plants at Dongen and Chaudfontaine site and then send it to municipal retained the gold-level European water treatment plants, 13 of our In 2016, we invested approximately Water Stewardship Standard. Issued manufacturing operations carry out €2.7 million in new technologies and under the European Water full wastewater treatment on site. In processes to make our plants more Framework Directive, the Standard Reykjavik and Barcelona, the methane water-efficient. Many of our projects recognises excellence at every stage gas generated by the treatment is involved sharing best practices of water management from the recycled to heat the process itself. between our manufacturing protection of water sources, through operations. Where it is necessary efficient use of water, to the quality Of our total wastewater volume to use water to rinse our bottles (a of wastewater we release into the (7.9 million m3) in 2016, 4.6 million m3 process we avoid where possible), environment. The Standard is granted was treated by municipal wastewater we are installing new bottle washers for three years and confirmed each treatment stations and 3.3 million m3 which use less water. We are also year by a follow-up audit. by our own treatment plants. In 2016, introducing monitoring systems to we invested €296,800 in wastewater track water use in real-time, installing treatment technology. new air rinsers which use air rather Treating and returning than water to clean our PET bottles, our wastewater pre-forms and cans before they are filled, and re-using the water from our We ensure that 100 percent of our processes to rinse resin granules. wastewater is safely returned to nature. Before water is discharged from any of our plants, we apply the highest standards of treatment – in % every case equal to, or exceeding, the 100 standard set by local regulations. of our wastewater was safely returned to nature in 2016.

41 TOPIC Water replenishment

WATER REPLENISHMENT

Minimising the water BELGIUM impact of our value chain 3 Around 80 percent of the total water 30,000m footprint of our products comes Water replenished in 2016. from our agricultural supply chain, including sugar beet grown in our FRANCE countries of operation. To lighten this 3 footprint, we’ve been working with 1,920,000m our European sugar beet processors Water replenished in 2016. to develop bespoke standards that support our Sustainable Agriculture GERMANY Guiding Principles. 37,300m3 Since 2009, together with The Water replenished in 2016. Coca-Cola Company, we have sought to understand the impact we have on Replenishing our watersheds GREAT BRITAIN water supplies across our value chain. 3 The Coca-Cola system around the This work has involved four water 268,800m world is replenishing the water used footprinting studies, including a Water replenished in 2016. in its beverages through projects such project with the University of Twente as reforestation, protecting aquifers, SPAIN to understand the water footprint of revitalising rivers and restoring a 0.5 litre PET bottle of Coca-Cola 3 wetlands and natural habitats. In 3,050,000m produced in Dongen, as well as conjunction with The Coca-Cola Water replenished in 2016. projects with Denkstatt and the Company, we have set up multiple Technical University of Vienna to replenishment programmes across understand the water footprint of our territories in recent years. In 2016, sugar beet. We have also reviewed these programmes allowed us to the water footprint of the cane sugar replenish 5.3 million m3 or 89 percent imported into Europe, and developed of our production volume where the a better understanding of our own water used was sourced from areas water footprint in line with the of water stress. ISO 14046 methodology, through a project with the Water Footprint Network and the University of Twente. We will continue to develop our understanding of our water footprint through further projects in the future.

42 TOPIC Water replenishment

Peter Easton Belgium France Germany In partnership with The Coca-Cola Through The Coca-Cola Company, In collaboration with Company and a local NGO, we’re working with WWF-France The Coca-Cola Company and Natuurpunt, we’re involved in and other conservation bodies in EUROPARC, we’ve been working to restoration at Stappersven Lake in the Camargue, a wetland region dredge and restore the water storage the De Zoom-Kalmthoutse nature close to our Marseille plant where and filtering capacity of the Alte Elbe reserve. Fens, dunes and heathlands the River Rhône flows into the Klieken river oxbow. The aim of the are being restored, habitats are being Mediterranean. This three-year project was to restore a part of the improved, previously planted foreign programme will help restore oxbow that had become silted up by species are being replaced by the natural flow of the Rhône, removing sediment and allowing indigenous trees and groundwater is re-establish lagoons and marshes water from the Elbe River flood flows being replenished by improving the and improve the region’s ecosystems to refill it. This increases biodiversity penetration of rainwater. and biodiversity. and benefits the natural habitat for protected species and general wildlife. It also helps to restore some of the natural flood retention volume WATER REPLENISHMENT of the Elbe river basin. SPAIN Tancat de la Pipa is an artificial wetland system built in 2008 in the Albufera de Valencia National Park, a member of the EU Natura 2000 network. The lake has suffered from pollution and a lack of ongoing maintenance. Together with The Coca-Cola Company and SEO/ Birdlife, the project has worked to restore the area’s vegetation and habitats and to improve the flow and quality of water. This has been achieved through replanting new aquatic plants, reinforcing dykes, installing floodgates and adding biodiveristy and water quality monitoring equipment. The project has enhanced the habitat for birds and aquatic life and has improved the quality of the water entering the Mediterranean. We expect the lessons learned to be applied to other wetland programmes in the future.

43 TOPIC Water replenishment

Great Britain Spain Guadiana River by regenerating Following a successful project to In Spain, we have established eight wetland vegetation to provide protect and replenish the Rivers Nar water replenishment programmes new wildlife habitats and by and Cray in South East England, in conjunction with The Coca-Cola working with farmers to reduce we’re now working with WWF-UK, Foundation. Partners include demand on the park’s aquifer. The Coca-Cola Company, local WWF-Spain, Ecodes, SEO/Birdlife, Thanks to the introduction of more farmers and others on a three-year Accionatura and Jaume I University. efficient irrigation techniques, less project in the Cam-Ely-Ouse and Two of the largest programmes are groundwater is now being withdrawn Broadlands river catchments in East a project in the Tancat de la Pipa and the natural supply to the Anglia. Intensively used for growing wetland system in Valencia (see case wetlands has been improved. sugar beet, these areas suffer from study) and another to restore the 3 agricultural pollution and many of natural water supply to Las Tablas In 2016, we replenished 3,050,000m their rivers fail to meet European de Daimiel National Park and other of water through these eight projects, Water Directive targets. As well wetlands in La Mancha. In partnership equal to 95 percent of our total as replenishing water in these with WWF-Spain, we’ve helped to production volume in Spain. catchments, we hope to learn more restore the Tablas de Daimiel’s about the water footprint of sugar beet production and to reduce the impact by developing more sustainable farming practices.

How are we protecting the future sustainability of our water sources? Discover more at ccep.com Reinier Jansen Senior Manager, Plant Engineering, Dongen, the Netherlands

44 ccep.com

Creating a sustainable supply chain SOURCING SUSTAINABLE SUSTAINABLE

45 ISSUE Sustainable sourcing

SUSTAINABLE SOURCING: CREATING A SUSTAINABLE SUPPLY CHAIN

As a business, we rely on a sustainable supply of agricultural crops such as sugar cane and sugar beet for sweetening, pulp and paper for our packaging and % labels, and coffee and juices as the main ingredients 70 in some of our products. As a key consumer of these Globally, the agricultural sector consumes about ingredients, we recognise our role in making sure they 70 percent of the planet’s accessible fresh water. are sourced sustainably. Source: WWF

While populations continue to As much of our purchasing, grow and demand for food increases, particularly of our key agricultural climate change is affecting the ingredients, is done together with % quality and quantity of supplies. other members of the Coca-Cola 36 Agriculture represents We recognise that changing weather system, we have made a joint 36 percent of the world’s patterns, rainfall and soil quality in commitment with The Coca-Cola land surface which is estimated to be suitable different parts of the world may, Company to source 100 percent for crop production. in the future, limit the availability of our key agricultural ingredients Source: Food and Agriculture or increase the cost of some of the sustainably by 2020. We have set Organisation (FAO) agricultural ingredients we rely on, up rigorous processes to embed as well as other key materials such sustainability across our value as the packaging we purchase. chain. We also have joint Sustainable Agriculture Guiding Principles We have a responsibility to hold (SAGPs) for our agricultural UN SUSTAINABLE ourselves and our suppliers to high ingredients, as well as Supplier DEVELOPMENT GOALS sourcing standards – ensuring that Guiding Principles (SGPs) which We support UN Sustainable the agricultural ingredients we use apply to all our suppliers. Through Development Goal 2, are sourced sustainably, in a way The Coca-Cola Company, our promoting the development which respects human and labour primary packaging and ingredients of sustainable agriculture. The rights, minimises environmental suppliers also undergo a rigorous long-term availability of our key impacts, supports farmers and audit process. agricultural ingredients is crucial sustains local livelihoods. We also to our business – every bottle of have a responsibility to ensure that Coca-Cola contains agricultural our suppliers are employing workers ingredients that start on a farm. in a legal way – avoiding any form of See more: You can access our We will source 100 percent of slavery, forced or child labour or SGPs, SAGPs and Human Rights our key agricultural ingredients human trafficking. Policy at www.ccep.com/ sustainably by 2020. sustainability/downloads

46 TOPIC Suppliers and sustainability

SUPPLIERS AND SUSTAINABILITY

OUR PROGRESS Introduction Our procurement processes We know that our greatest We seek to ensure that our suppliers % environmental impacts occur understand and adhere to CCEP’s 79.6 outside our own business in our sustainability standards – these of our 2016 spending in value chain. It’s therefore essential being aligned, where possible, to The Great Britain, France, Belgium and that we collaborate with our Coca-Cola Company’s standards. We Luxembourg, the Netherlands, suppliers and seek to improve our uphold our standards through our Norway and Sweden was covered partners’ performance as well as CCEP Code of Business Conduct, our by contracts containing our our own. Sustainability is embedded Supplier Guiding Principles (SGPs) Supplier Guiding Principles. in, and supported by, our and our Sustainable Agriculture procurement strategy, processes Guiding Principles (SAGPs) as well % and supplier relationships and is as through regular audits. 100 enhanced by joint projects with of our sugar suppliers are suppliers in areas such as agriculture, Supplier Guiding Principles committed to complying with packaging and transportation. our SAGPs by 2020. All bottlers within the Coca-Cola system follow The Coca-Cola Our people Company’s Supplier Guiding Principles (SGPs). These set out Our procurement teams have a the minimum requirements we major role to play in making our expect of our suppliers in areas such value chain more sustainable. as workplace policies and practices, They work with suppliers, identify health and safety, human rights, opportunities for improvement and environmental protection and build long-term relationships so business integrity. We work with that we can work towards common suppliers to build SGPs into all objectives. We make sure every buyer new contracts and into multi-year is aware of CCEP’s expectations of contracts as they renew. In 2016, suppliers, knows how to evaluate contracts incorporating SGPs them under our Supplier Relationship How are we working accounted for 79.6 percent of Management (SRM) process and is with suppliers to our spending with suppliers, in familiar with the sustainability issues ensure sustainability Great Britain, France, Belgium related to specific commodities. throughout our and Luxembourg, the Netherlands, value chain? Norway and Sweden. Discover more at ccep.com

Amélie d'Harcourt, Apprentice, See more: Our SGPs and SAGPs Public Affairs and Communications, France are available on ccep.com.

47 TOPIC Suppliers and sustainability

€5 bn Over €5 billion spent with suppliers in 2016.1

Audits Over the past five years, The Coca-Cola Company has commissioned a series of independent audits to monitor supplier compliance with the Coca-Cola system’s SGPs. These have so far covered over two-thirds of our suppliers of ingredients and primary packaging.

Along with The Coca-Cola Company, CCEP is a member of the AIM- PROGRESS forum, a global group promoting responsible sourcing practices and the harmonisation of supplier audits as a way of reducing duplication and costs for suppliers. Our SGP audits are aligned with AIM-PROGRESS and are recognised by its members. Similarly, we recognise audits carried out on with different degrees of emphasis We are retaining a strong emphasis behalf of other signatory companies. on sustainability prior to the merger. on a supplier’s sustainability score These processes continue to be in as part of the SRM process, ensuring Managing our suppliers place until a new CCEP-wide process that it will receive the same weighting is established. as other SRM criteria including CCEP’s Supplier Relationship quality, service, value and innovation. Management (SRM) processes In Belgium and Luxembourg, provide a framework for evaluating France, Great Britain, the Netherlands, each supplier’s performance in terms Norway and Sweden, where the of quality, cost and value, service, sustainability component is innovation and sustainability. Each well established, each supplier’s of the companies which made up sustainability score is made up CCEP – Iberian Partners, Coca-Cola of two inputs. Erfrischungsgetränke and Coca-Cola Enterprises – had different processes The first is a sustainability rating from for managing its supplier relationships the independent evaluation company, EcoVadis, which evaluates suppliers 1. Data not available for Germany, Iberia and Iceland. against four criteria – environmental, social and ethical performance and supply chain management. Suppliers’ scores are used to develop action RECOGNISING OUR plans which help to improve their SUPPLIERS rating and reduce their risk levels. Outstanding performance is recognised through our annual Secondly, 140 of our suppliers in Supplier of the Year Awards. Belgium, France, Great Britain, the In 2016, Frigoglass, one of our Netherlands, Norway and Sweden cooler suppliers, was named took part in our Carbon Challenge CCEP’s ‘Best Supplier’ and programme which encouraged them Bericap, one of our closure to make progress towards their suppliers, won the ‘Best CRS carbon-management goals. Supplier’ award.

48 TOPIC Sustainable agriculture

SUSTAINABLE AGRICULTURE

Introduction Sustainable Agriculture Sustainable sugar Our products contain agricultural Guiding Principles Sugar is one of the agricultural ingredients grown on farms. The One of the main ways we are ingredients in some of our products. production of these ingredients is making progress is through our Through water footprint analysis, we one of the heaviest users of water Sustainable Agriculture Guiding know that the farming, processing and the second-largest source of Principles (SAGPs). Developed in and production of sugar can account carbon emissions within our value partnership with The Coca-Cola for approximately 80 percent of a chain. To source our ingredients Company and covering 14 of the product’s total water footprint. It is sustainably and ensure their long- Coca-Cola system’s agricultural therefore essential that the beet term availability, we need to work ingredients, they define what we and cane sugar we use in Europe is with our suppliers to improve mean by sustainable sourcing and sustainably sourced. We also need to agricultural practices so that soil is include standards that agricultural understand the sustainability issues protected, water is conserved and suppliers are expected to meet in and supply chains of these two very greenhouse gas emissions are terms of human and workplace different crops. minimised. We also have to ensure rights, the environment and farm that our ingredients are grown and management systems. Within CCEP Our beet and cane sugar suppliers harvested in ways that protect the they apply to key agricultural are all aware of our SAGPs and working conditions and workplace ingredients such as beet and cane we’re working together to develop rights of those involved. sugar, orange, apple and lemon juice, plans for meeting these principles coffee, and pulp and paper. by 2020. Compliance with our SAGPs will be validated through third-party standards such as the Sustainable Agricultural Initiative Platform (SAI), Farm Sustainability Assessment and Bonsucro.

See more: www.coca-colacompany.com/ sustainable-agriculture/sourcingmap

49 TOPIC Sustainable agriculture

Beet sugar Cane sugar Most of the sugar we use at CCEP Even though cane sugar makes comes from sugar beet grown in up only a very small percentage of North West Europe and Spain. In the sugar we buy, we’re determined partnership with The Coca-Cola to source it sustainably. Company, we offer several routes by which beet sugar suppliers can Through The Coca-Cola Company, comply with our SAGPs and meet there are multiple third-party third-party standards. standards under which a supplier can be certified as meeting our SAGPs. Our preferred method is the SAI’s These include the Rainforest Alliance Farm Sustainability Assessment Standard, Fairtrade and Bonsucro (FSA) whereby farmers can self- which The Coca-Cola Company assess the sustainability of their helped to establish and through agricultural practices against a which it is now Chain of Custody range of environmental, social and certified. This certification allows economic indicators. Also applicable Coca-Cola system bottlers, including to other agricultural ingredients such CCEP, to accurately trace the origins as juices, the FSA provides farmers of their cane sugar. with the information they need to make their operations more sustainable. It also enables them to share their progress with customers and suppliers within their own supply chains. We intend that all our sugar beet suppliers should achieve compliance with our SAGPs through the FSA or similar programmes by 2020.

CHAQWA: SUSTAINABLY SOURCED COFFEE CCEP-WIDE Chaqwa coffee is a growing brand for CCEP in Belgium, Germany, Iceland, Norway and Sweden. The coffee we use for the brand is jointly sourced with The Coca-Cola Company from a variety of suppliers, and we’re aiming to increase the percentage that meets our SAGPs. The certification methods for coffee are well established, with producers able to demonstrate their compliance through a number of internationally recognised schemes including UTZ, Rainforest Alliance and Fairtrade. We continue to work with The Coca-Cola Company and our suppliers to ensure that 100 percent of our coffee purchases are verified as being sustainable by 2020.

50 TOPIC Sustainable agriculture

GROWING CITRUS MORE SUSTAINABLY SPAIN In 2014, we produced The Fanta Guide to Good Sustainable Practices in the Cultivation of Citrus, a series of recommendations to help growers in Valencia to operate more sustainably. To test their effectiveness, we partnered with two farms that grow citrus for our main Spanish supplier, FRUSA. In partnership with FRUSA and with funding from The Coca-Cola Foundation, we applied two of the Guide’s recommendations on irrigation and fertilisation. The results showed that the same amount of crop could be produced with 30 to 50 percent less water and up to 70 percent less fertiliser. Both farms improved their Sustainable Agricultural Initiative (SAI) score and the small up-front investment in new irrigation equipment proved it could pay for itself in three to four years. We plan to expand the project to further citrus farms in the region.

Other agricultural Pulp and paper are used in much ingredients of our packaging and point-of-sale material. Suppliers can attain a We also use other agricultural Sustainable Forest Management ingredients such as juices, coffee, accreditation such as the Forest and pulp and paper. Stewardship Council (FSC) or a certification endorsed by the For orange, lemon and apple juice, Programme for the Endorsement How can we sustainably we’re working with The Coca-Cola of Forest Certification (PEFC). The source our agricultural Company, our juice suppliers and FSC-certified logo, or those from the ingredients and other third-party frameworks to PEFC, represent a global chain of raw materials? establish programmes to ensure custody system, supported by a chain compliance with our SAGPs. Similar of custody certification process and Discover more at work is under way to make sure independent inspections. Every new ccep.com the coffee we buy for our Chaqwa paper, pulp and cardboard contract brand is sustainably produced (see now includes a requirement for case study). third-party certification and suppliers have until 2020 to comply.

Olivia Walz, Manager Shopper Marketing Design, Sweden

51 ccep.com Building a safe, diverse and inclusive workplace OUR PEOPLE OUR PEOPLE

52 ISSUE Our people

OUR PEOPLE: BUILDING A SAFE, DIVERSE AND INCLUSIVE WORKPLACE

As a local business, it is critical that our workforce reflects the increasingly diverse communities that we serve. At CCEP, we believe in promoting diversity across all areas of our business and in providing a 45% safe and healthy workplace for all our employees. Diverse companies are 45 percent more likely to improve their market share. Companies that build a diverse, We agree with our stakeholders Source: Boston Consulting Group inclusive environment are 45 percent and will be setting new diversity more likely to deliver financial returns and safety commitments later this 40m By 2020 there will be above industry average. We know year. We will also continue to uphold a global shortage of that greater diversity of ideas, our Human Rights policy, our Code of 38 to 40 million of the highly skilled workers thinking and experience across our Business Conduct and our Coca-Cola needed to raise business will lead to better ways of Company-aligned safety standards productivity and drive growth. working and better business results. across all our operations. Source: McKinsey Global Institute Our stakeholders expect us to help bridge the diversity gap. They also, rightly, expect us to ensure that our employees are safe, and that we actively uphold the rights of our customers and suppliers at all times.

UN SUSTAINABLE DEVELOPMENT GOALS We support UN Sustainable Development Goal 8, promoting inclusive and sustainable economic growth, employment and decent work for all. We aim to achieve world-class safety standards and build a diverse and inclusive workplace. Our SGPs and SAGPs ensure that our suppliers respect human and workplace rights across our value chain.

53 TOPIC Employee wellbeing

EMPLOYEE WELLBEING

OUR PROGRESS Introduction Safety Our people are key to our business Working towards 1.66 and CCEP is committed to providing world-class safety them with a safe and healthy work We aim to achieve world-class Our lost-time incident rate in 2016. environment. To support this safety standards with zero incidents objective, we have a strong health % in the workplace and a consistent 23 and safety programme which aims approach and level of safety of our total workforce was female to reduce our incident level to zero. performance across our territories. in 2016. We also offer a variety of benefit To ensure strong safety governance, packages and programmes to help we operate Business Unit Safety 23% employees to manage and improve Councils at a national level and their health and wellbeing. health and safety committees at of our leaders were female in 2016. each of our manufacturing operations Each of our businesses has % and sales and distribution sites. 37 historically taken its own approach Our standards apply equally to of our management was female to employee wellbeing. Following the employees and contractors. in 2016. creation of CCEP, we’re developing an employee wellbeing strategy that will draw on best practice across our territories.

How are we building a safe and diverse workforce?

Discover more at ccep.com

Stephanie Oueda-Cruz, Associate Director, Diversity and Inclusion, Great Britain

54 TOPIC Employee wellbeing

2016 safety performance Safety initiatives In 2016, 50 of our 53 manufacturing We have recently launched a operations and all our regional CCEP-wide safety training distribution centres were certified framework and developed a new to Occupational Health and Safety safety monitoring plan to govern management system OHSAS 18001. the frequency with which we test our equipment, processes Our 2016 lost-time incident rate and procedures. (LTIR) was 1.66 lost-time incidents per 100 full-time equivalent In 2015, we launched a tool to employees. In the majority of our measure the relative maturity territories, performance is slightly of each site and function with better in our manufacturing regards to safety. Based on the operations than among commercial initial assessment, we then develop and sales people in the field, due site-specific plans for improving to the fact that safety practices safety at each location. CCEP has led The safety performance of our can be better controlled on our this approach and the tool is now contractors has continued to improve own premises. being trialled by other bottlers in the as we’ve sought to make them more Coca-Cola system. In parallel, we have aware of their responsibilities, the Tragically in 2016, one contractor continued to develop our health and behaviour they need to demonstrate died as a result of an industrial safety training curriculum in order and our own safety standards. accident at our Antwerp plant. The to consolidate and standardise our incident was investigated with the approach across our territories. local authorities and we reviewed Employee benefits and adapted our safety procedures We are also improving our safety Benefits are available to all employees to avoid any recurrence data by recording potential or ‘near and vary according to the employee’s miss’ incidents as well as those that country and level in the organisation. Among our contractors, there result in treatable injuries, so helping They can include medical or dental were 18 lost-time incidents to avoid more serious incidents. insurance, life insurance, eye-care 1 across CCEP in 2016 . During the vouchers, vacation time and leave year we focused on improving our packages to cover sickness, the birth management of contractors and of a child, bereavement or a long- developing monitoring systems for term illness in the family. Depending tracking contractor accidents. upon the country, level and grade; pension plans and stock-purchase plans are also offered to employees. Employees can find information on all the benefits that apply to them, 1.66 including those available as optional Lost-time incident rate 2016. extras, on the HR portal for their particular country. Prospective employees can also view some of these options in the careers section of our corporate website.

1. Excluding Spain and Portugal.

55 TOPIC Employee wellbeing

In Belgium, our new Vitality sustainable employability programme aims to keep employees aged 45 and older, fit, mobile and motivated over the longer term.

Our wellbeing programme in Germany provides national activities such as health and safety days, as well as over 300 local activities adapted for local employee groups. Major initiatives in the year include the Vorleben programme (see case study) and a national programme for apprentices to help instil good health habits at an early point in their careers. Wellbeing programmes Wellbeing programmes in Belgium and Luxembourg, France, Great Britain, the Netherlands, Norway and Sweden, include online health risk assessments, free flu vaccines, access to health and fitness centres and an employee assistance programme to help with personal difficulties VORLEBEN PROGRAMME such as stress or bereavement. GERMANY The Vorleben (Lead by Example) programme in Germany provides employees and managers with training and support to help them better understand the social and psychological factors essential to a safe and healthy working environment. Risk factors are identified through questionnaires and workshops, and executives are given guidance and training on how to influence the health and safety of their employees – including, conducting one-to-one conversations on the subject. The result is an action plan specific to each department.

After the project began in February 2016, on-site incidents fell from 20 in 2015 to two in 2016, with sickness rates also declining. The programme won the 2016 Demography Excellence Award in Germany. The programme will be implemented in further locations in Germany.

56 TOPIC Diversity and inclusion

DIVERSITY AND INCLUSION

Introduction Governance To help female university students develop the kind of skills we need, We regard every employee as a valued Corporate accountability for diversity we provide mentors to the Brunel member of CCEP. We’re committed rests with our Corporate Diversity University mentorship scheme for to fostering a diverse and inclusive and Inclusion (D&I) Council. This is female engineering students. In 2016, (D&I) culture in which each individual chaired by three members of our we also took part in a careers fair in can achieve their potential. At CCEP, Leadership Team and comprises London directed at future leaders we focus our efforts on five areas of senior members of each business from under-represented groups such diversity – gender, generations, unit and function. There are also as ethnic minorities and people with cultural diversity, disability, and sexual local D&I councils in each country disabilities. We further demonstrated orientation. Each country concentrates where we operate, each chaired by our commitment by signing two on at least two of these areas the local member of the Corporate diversity charters, the Brussels- including gender and one other that D&I Council. Capital Region Diversity Charter in is most relevant locally. Belgium and the Charter Diversiteit A detailed D&I scorecard allows us in the Netherlands – each a public One key priority across our business to measure and benchmark progress. declaration that CCEP is working to is to increase female representation Every quarter, our Leadership Team create an inclusive workplace and is at management and leadership levels, (LT) reviews the progress of each non-discriminatory. where women currently make up business unit and function against its 37 and 23 percent of the total, D&I action plans. In addition, each During the year we continued respectively. member of our LT has their our partnership with JUMP, an own D&I performance objectives. organisation working for greater female representation in the Recruitment workplace in Belgium. Our collaboration included sponsorship Our work on D&I begins even before of JUMP’s ‘Woman at Work’ award we bring people into the organisation. which recognises Belgian leaders When we recruit, we aim for gender and companies making progress balance in our candidate lists and in gender balance and equality. interview panels. Job advertisements are worded to make them gender neutral and we’re seeking to build See more: More information pipelines of female talent in areas of is available on our social the business where it’s hardest to data pages. attract women.

57 TOPIC Diversity and inclusion

Female diversity At CCEP, we are working to broaden our diversity not only on gender, but also in the areas of generations, cultural diversity, disability and sexual orientation. To address these gaps, we have developed a robust D&I strategy that includes recruitment, apprenticeships and graduate programmes that seek to address the gender imbalance and attract more diverse talent into all levels of our business.

18% of our Board of Directors are women (3 out of 17). % 12% 23 of our executives are women. of our total workforce % are women. 23 of our leadership are women. 37% of our management are women.

58 TOPIC Diversity and inclusion

Pay equity methodologies defined by local laws To support female middle managers, and regulations. we have partnered with the Women CCEP is committed to gender for the Future organisation. We will equality and we do not make also expand our mentoring programme employment-related decisions, Diversity within the organisation and offer training intended to stretch including pay decisions, on the basis our manager-level female employees. of legally or company-protected Within the organisation, we promote characteristics, including gender. D&I in all five of our focus areas with At the same time we are building To ensure that line managers make a range of internal initiatives. our pipeline from the bottom up appropriate pay decisions, we provide with female-targeted recruitment training and support during the salary Gender campaigns and programmes to review process and when employees We have dedicated training and improve youth employment are being hired or promoted. More mentoring programmes to build and employability. specifically, we monitor pay equity our female leadership pipeline. Our within our territories through annual Women in Leadership series of Employees are also encouraged to or biannual reviews. These take programmes is tailor-made to create an Individual Development account of additional factors such address the needs of our female Plan (IDP) which helps them focus as performance over time which employees at different stages of their on their development goals. In 2016, can affect the pay of both men careers. For example, our LIFT and 25 percent of employees had and women. We publish our pay Achieve Your Best Self programmes an IDP. Our online CCEP Academy ratio in each of our countries of support women in mid-career while offers training across all areas of operation where required, using the 1 our Signature programme helps our our business, offering 1,580 courses senior professional women forge in 2016, with 29,250 delegates 2 contacts from different industries. completing online courses in 2016 .

GENDER EQUALITY See more: For more information FRANCE on our employment and diversity data, please see our Social Recent years have seen a number Data tables. of employee networks dedicated to gender and other forms of equality. As these evolve, there’s 1. Data for Germany not available. a recognition that they need 2. Data for Iberia and Iceland not available. to reach beyond their own constituencies. In France, for example, the women’s network previously known as Elles@Coke was relaunched in October 2016 as WoMen@Coca-Cola. It now includes 40 men among its 140 members and on its steering committee, drawn from across the Coca-Cola system in France. The group aims to share gender diversity values and focuses on four areas: helping to bring inspiration to the workplace internally and externally; encouraging personal development; bringing a positive influence to the business; and ensuring communication and links across the system and externally. The result is a programme organised by employees for employees and delivering a more effective partnership for change.

59 TOPIC Diversity and inclusion

Generations We began to address generational diversity in 2016 with an internal video designed to break down stereotypes. Produced as a follow-up to our 2015 D&I Lab on age diversity, the video was used by our local D&I councils to promote the advantages of a mixed-age workplace. In a sign of progress, we’re now seeing employee networks for different age groups holding joint meetings.

We are also beginning work on our other diversity priority areas of disability, sexual orientation and Sexual orientation cultural diversity. We have established a new partnership with the LGBT-rights Disability organisation, Stonewall, and have Over a billion people in the world supported employees in Germany have some kind of disability, making launching an internal LGBT them the largest minority group. Rainbow Network. Accordingly, we have started developing an action plan on Cultural diversity improving employment for people Europe is becoming increasingly with disabilities. diverse and we are working to build this diversity into our workforce. In France, for example, we launched In 2016, we developed a Cultural an intranet-accessible online game Diversity Toolkit which raises to help employees break down their awareness on how different cultures stereotypes about disabilities. can work better together. We have also established a cultural diversity At our Belgian sites in Antwerp, network in Great Britain which will Ghent and Anderlecht, we work with better support our connection to our local shelters which provide work customers and consumers. In Belgium for mentally and physically disabled and Sweden we have established people. In 2016, 36 disabled people How can we attract, mentoring programmes to increase worked a total of 56,000 hours develop and motivate the representation of cultural with CCEP, helping, to prepare a talented and minorities. Cultural diversity will also retail displays, hang tags on gadgets be the focus of our D&I Lab in 2017. diverse workforce? and prepare goodie bags for promotional campaigns. Discover more at ccep.com

Clemens W. Krebs, Sales Training Manager, Germany

60 ccep.com Supporting our local communities OUR COMMUNITIES OUR

61 ISSUE Our communities

OUR COMMUNITIES SUPPORTING OUR LOCAL COMMUNITIES

Our products are made locally by local people. We are proud to be a local business with communities at the heart of what we do. From our manufacturing sites to our 12,000 strong sales force, we aim to provide great service to local customers and to be a force for good, making a strong economic contribution and supporting our local communities wherever we are.

Our local communities face We are currently reviewing significant challenges including the wide range of community high levels of youth unemployment partnerships in which we are involved in many of our territories. Our and the impact that we’ve been able stakeholders want to see companies to achieve so far. As part of our % like our own help young people – forthcoming sustainability plan, 18.7 particularly 16-30 year olds – to we aim to set out the role we intend Youth unemployment rate in the EU in 2016. gain the skills, confidence and to play in supporting our local Source: Eurostat/Statistica1 opportunities they need to succeed. communities in the future.

UN SUSTAINABLE DEVELOPMENT GOALS We support UN Sustainable Development Goal 11, supporting the communities in which we operate, particularly with programmes that support giving young people the skills, confidence and opportunities they need to succeed. 1. Statistica, 2017

62 TOPIC Our communities

OUR COMMUNITIES

OUR PROGRESS Introduction Young people and For many years, across all our social inclusion territories, we’ve been supporting % Across our territories we support a 0.5 a wide range of charitable and wide range of initiatives to support In 2016, we spent €6.6 million community partnerships involved young people and help them acquire – 0.5 percent of our pre-tax in helping local communities. Our the skills, knowledge and training to profit – supporting local community programme currently gain employment. community activities. focuses on four main areas: • In Antwerp, Belgium, our Coca-Cola 9,775 • Supporting the skills development Visitors Center provides an insight of young people and enhancing into modern manufacturing and hours volunteered by our social inclusion. the world of work for young people. employees to support local It offers a digital, interactive community projects. • Women’s economic empowerment. experience which helps to inform • Community participation and young people about our products, engagement through active manufacturing and distribution. lifestyles, culture and music. Around 18,000 people, mostly • Protecting our local environment schoolchildren over the age of 12, by helping to keep our communities visit the Center every year. clean and litter-free. • Through our Passport to Employment initiative in France, we provide interview training and mentoring support for young How are we supporting people from underprivileged backgrounds. We also support local livelihoods Charte Entreprises et Quartiers, a in our communities government-led initiative through across Europe? which we recruit unemployed people from disadvantaged areas Discover more at in France, and L dans la Ville which ccep.com helps girls and young women aged 12 to 20 in underprivileged areas of Lyon and Paris to access sports and jobs.

Igencio-Mendoza, Senior Legal Advisor, Spain

63 TOPIC Our communities

• In the Netherlands, in partnership • Since 2012, through The Coca-Cola with the youth-support Foundation, we have supported GIRA: EMPOWERING organisation, JINC, we took part the GIRA Youth programme in WOMEN IN SPAIN in CEO for a Day, a scheme that Spain which helps to improve the offers disadvantaged young people social skills and employability of the chance to experience running vulnerable young people. The a company. programme provides training and mentoring and includes a four-day • For the past 15 years, CCEP in Campus GIRA experience during Norway has been a strong partner which participants live together of the Red Cross, providing and receive personal empowerment financial support and voluntary training. Since the beginning of support to their four youth clubs the programme, GIRA Youth has in Oslo. provided nearly 2,100 young people with more than 145,000 hours of training. As a result of the programme, 73 percent of The GIRA Women programme is participants have returned to part of The Coca-Cola Company’s complete their education while 5by20 women’s empowerment the remaining 27 percent have initiative, providing knowledge sought employment. and tools to enable women entrepreneurs to advance personally and professionally. Launched in November 2016, GIRA Women offers personal 3,000 and professional training to help young people supported through women to identify and deliver our GIRA Youth programme. an entrepreneurial project or reinvent an existing business.

The programme includes ten hours of face-to-face training and 30 hours of online training through a digital platform which provides guidance on starting a business. The ten most promising entrepreneurs are given professional support and mentoring to incubate their project and the top three are provided with an additional six months of mentoring. During the first year of this initiative, we aim to support 4,000 women of whom three will be provided with €3,000 in seed capital.

64 TOPIC Our communities

Community investment 2016 In 2016, we invested €6.6 million (0.5 percent of pre-tax profit) in community initiatives across our territories.

Total €6.6 million

Red Cross Provides financial and voluntary support to four youth clubs. Passport to Employment Norway Provides interview training and mentoring support for young people from underprivileged backgrounds. France Toppur Through sales of our Toppur water brand, provided 30,000 people in Malawi with clean drinking water. Iceland Special Olympics Financial support and volunteers for the world’s largest sports organisation for people with intellectual disabilities. Multiple countries

Total ParkLives cash Brings communities together through Olympic Moves free outdoor family Supports 137,500 young people friendly activities. through school sports competitions. Great Britain Belgium and the Netherlands

GiRA Supports the social skills and employability of young people and women. Spain Stadsmissionen Donated 100,000 meals to people in Sweden as part of a Christmas campaign. Ecomar Sweden Supports communities through coastal clean-up work, and % donations to local food bank. 79 Portugal

Total in kind 12% Our community investments Geh Deinen Weg also supported the contribution Total time Supporting integration and inclusion (management and of approximately €480,000 % of refugees and migrants in partnership volunteer time) 6 of leveraged funding from with one of our key retail customers. Management other organisations. % Germany costs (cash) 3

65 TOPIC Our communities

Women’s economic Community participation empowerment and engagement SPECIAL OLYMPICS MULTIPLE COUNTRIES Securing equality and empowerment We provide support for many for women not only benefits the programmes which help bring individual, but is also good for society communities together through as empowered women invest in the physical activity. Our Olympic Moves health and education of their children programme in the Netherlands and and in their local communities. Belgium encourages 12-14 year olds Recognising both the challenges to discover and enjoy sports. In the faced by women and their economic Netherlands, 380 schools and over potential, The Coca-Cola Company’s 122,500 young people participated 5by20 initiative aims to enable the in the programme in 2016. In Belgium, economic empowerment of five the 2016-2017 school year has seen Sponsored by The Coca-Cola million women entrepreneurs across over 100 schools and 15,000 people Company since 1979, Special the company’s value chain by 2020. taking part. Olympics is the world’s largest sports organisation for people CCEP supports the 5by20 initiative In France we continue to run our with intellectual disabilities. It through projects such as GIRA Le Sport Ça Me Dit initiative which organises sports events at local, Women in Spain (see case study) provides local communities with national and international level. and through partnerships with conveniently packaged sports Force Femmes, a charity helping equipment that can quickly be set At CCEP, we provide financial unemployed women in France. up in public spaces to encourage support and volunteers to In Dundee, Scotland, we are also young people to take part in sports. ensure the success of the involved in a pilot scheme with Special Olympics national games Showcase the Street, a charity Since 2010, in partnership with – the biggest national sports which supports young people who The Coca-Cola Company, we have event for people with an struggle in life through poverty or supported the StreetGames charity intellectual disability in Spain, lack of opportunity. in Great Britain which helps to make Great Britain, France, the sport and activities more widely Netherlands and Belgium. available for young people in disadvantaged communities. During In 2016, the Special Olympics that time, we have helped bring sport Summer Games in Belgium to the doorstep of more than 165,000 attracted more than 3,000 young people. athletes and participants, over 3,000 volunteers and more than For the past four years in Great 10,000 visitors. Britain, in partnership with The Coca-Cola Company, we have also In many of our countries, our supported ParkLives which brings employees also raise funds to communities together and promotes support the participation of sociability and wellbeing by offering athletes in local and national free outdoor family friendly activities events. As part of Special in local parks and green spaces. Olympics Play Unified, an Participants have the chance to initiative that brings together try new activities ranging from people with and without a den building to circus skills. Run in disability, 50 CCEP employees partnership with local authorities ran the Rotterdam Marathon and our charity partner, StreetGames, together with Special Olympics Park Lives attracted over 250,000 runners to raise funds to support participants in 2016. In 2017, ParkLives Special Olympics. will offer activities in 46 locations and over 250 parks across the UK. In France, employees raised money and volunteered their time through our Adopte un Cause initiative.

66 TOPIC Our communities

Protecting our local Elsewhere, we support organisations environment such as Stada Sveriga in Sweden, the KEEPING OUR ECOMAR Foundation in Spain and COASTS CLEAN In many of our local communities Portugal and the Surfrider Foundation PORTUGAL we know that litter – including in France to clean up coasts, beverage packaging – is a growing waterways and other natural sites problem. We are helping to address with the help of employee volunteers. the problem through campaigns which encourage people to recycle We also support programmes to and through the efforts of our own reduce litter and recycling in Great business and employees. Britain. These include Keep Britain Tidy, Hubbub’s Neat Streets campaign During the Euro 2016 football and Keep Scotland Beautiful. championship, our French business mounted a major anti-litter campaign with volunteers and recycling booths In 2016, Coca-Cola partnered in the ten cities where matches with the ECOMAR Foundation were taking place. In Belgium, The 250,000 to organise coastal clean-up Coca-Cola Recycling Tour involved participants in ParkLives in 2016. activities and raise young people’s 250 employees spending time awareness of the importance of clearing litter from the streets around keeping our seas and coastlines our seven sites and offices. clean and litter free.

In the town of Carcavelos, close to Lisbon, a group of 25 young people collected more than 21kg of waste during a day-long litter clean-up, during which they learnt the importance of recycling waste into the correct containers. For every kilogram of waste collected, Coca-Cola donated a case of INTEGRATION product to the local food bank, Banco Alimentar. AND INCLUSION GERMANY In Germany, one of the main focuses of our community activity is the integration and inclusion of refugees, migrants and others excluded from mainstream life. After stepping in with emergency aid during the influx of refugees in 2015, we and The Coca-Cola Company in Germany, decided to take action with the aim of reducing prejudice and supporting longer-term integration. In 2016, we joined the German Foundation for Integration, in a scheme called Geh Deinen Weg, which provides scholarships and mentors for talented young people from immigrant backgrounds. Along with our main retail customer, EDEKA, we now provide volunteer mentors from among our employees.

67 TOPIC Our communities

TOPPUR PROVIDING CLEAN WATER IN MALAWI ICELAND In a three-year programme, we supported a project by the Icelandic Red Cross to provide clean water to people in the Masanje region of Malawi. For every bottle of our Toppur water brand sold in Iceland, we made available three litres of clean water by supporting the construction of wells and sanitation facilities in Malawi. Our campaign resulted in 11 new boreholes and provided over 30,000 people with access to clean drinking water and sanitation facilities. In addition, each new well has women on its management committee. Thanks to the new facilities, girls no longer have to spend hours every day collecting water, so are able to go to school.

Supporting communities In Spain we support more than through brand and 14,000 local community-based cultural, sporting, music and customer partnerships gastronomic events each year. We also support community initiatives through brand and We have also developed several customer partnerships. In partnerships with our customers How can we build strong collaboration with Special Olympics including a programme to support and inclusive communities in Germany, the Lift brand sponsors local employment and training in the countries where Lift Unified Running Groups which opportunities for waiters in the we operate? bring together athletes with and hotel/restaurant/café (HORECA) without disabilities to take part in industry which represents 7.6 percent Discover more at combined events – including of Spanish GDP. In partnership with ccep.com carrying the Special Olympics torch the Basque Culinary Centre in San to the opening ceremony of the Sebastian and the Spanish HORECA German games. Federation, we launched Bartalent Lab, a digital training platform for In France we support the waiters which has reached nearly international children’s charity, 2,000 people. SOS Villages d’Enfants, through a partnership with Capri-Sun.

In Sweden, through an on-pack Christmas promotion, we supported the donation of 100,000 meals for people in Sweden through Stadsmissionen.

Hilda Bjørk Linberg, Quality control specialist, Iceland

68 ccep.com About this report

ABOUT THIS REPORT

This is Coca-Cola European Partners’ first annual See more: Full disclosure on Sustainability Report, providing an overview of our progress against the UNGC and CEO Water Mandate our progress on corporate sustainability in 2016. can be found online at www.ccep.com

Coca-Cola European Partners Reporting boundaries The report has prepared in (CCEP) was formed through a merger and standards accordance with the Global Reporting between Coca-Cola Enterprises, Initiative (GRI) principles for defining Coca-Cola Erfrischungsgetränke At CCEP, we have taken a value- report content and report quality, and Coca-Cola Iberian Partners in chain approach in considering our and is in accordance with the GRI May 2016. This report contains a most significant impacts. To this end, Standards at Core level. The carbon full year of data from 1 January, where stated, our value-chain data footprint data of our core business 2016 to 31 December, 2016 for our goes beyond our own operations. operations, and this report, has been business operations covering For our own operations, unless assured by DNV GL. 13 Western European territories otherwise indicated, data in this (Andorra, Belgium, France, Germany, report covers all undertakings The report also serves as our Great Britain, Iceland, Luxembourg, (production, sales/distribution, Communication on Progress (COP) Monaco, the Netherlands, Norway, combined sales/production facilities, for the United Nations Global Portugal, Spain and Sweden) and administrative offices and fleet) Compact (UNGC) and our COP- our offices in the United States and owned or controlled by CCEP, Water, part of our endorsement Bulgaria. Also included are illustrative including our former administrative of the UNGC CEO Water Mandate. case studies and business activities offices in the United States and from 2017. Historical and baseline shared-service centre in Bulgaria. data has been calculated using historical data and/or estimations Our carbon footprint is calculated for the legacy businesses, including in accordance with the WRI/WBCSD time periods prior to the merger. We Greenhouse Gas Protocol and we have included 2010 as our baseline use an operational consolidation year as this was the year we could approach to determine organisational reasonably source data for all three boundaries. The water-use data in merging entities. More details can be this report refers to our production found on our Methodology page. facilities, where operational consumption is greatest. All financial data in this report is in euros, unless otherwise stated.

69 About this report

Country reports The Coca-Cola Company provides many sources of sustainability A data sheet for each of the information for the Coca-Cola countries where we operate is system. In particular, its website, available on www.ccep.com. In www.coca-colacompany.com, addition, some of our countries contains corporate codes and provide local information on how policies which inform CCEP’s CCEP’s sustainability commitments own approach to sustainability. are being brought to life in our Its 2016/2017 Sustainability communities. These can be Report, which contains a summary found online at each of the of the global Coca-Cola system’s following websites: sustainability work, can be downloaded from: Belgium (including Luxembourg): www.coca-colacompany.com/ www.cocacolabelgium.be sustainability. France (including Monaco): Online www.cokecce.fr See more: If you have any Germany: questions about CCEP’s Further details about our current www.cceag.de work on sustainability, and past reports, full GRI index, please contact us via Great Britain: UNGC COP and CEO Water www.ccep.com/contact www.cokecce.co.uk Mandate progress updates, as well as information on our corporate Iceland: policies, can be found on our www.ccep.is corporate website. The Netherlands: www.cocacolanederland.nl See more: You can download Norway: the full report at www.ccep. www.coca-cola.no com/sustainability Portugal: www.ccepiberia.com/pt Spain (including Andorra): www.ccepiberia.com/es Sweden: www.coca-cola.se

70 ccep.com Independent assurance statement

INDEPENDENT ASSURANCE STATEMENT

Scope of engagement ––Manufacturing water use ratio Our conclusion (litre/litre of product produced); DNV GL Business Assurance Services Based on the procedures we have UK Limited (‘DNV GL’ or ‘we’) were ––Total manufacturing waste performed and the evidence we have engaged by Coca-Cola European produced (metric tonnes); obtained, nothing has come to our Partners Great Britain Limited to ––Percentage of waste recycled attention that causes us to believe provide limited assurance to (%); that the Selected Information is Coca-Cola European Partners plc not fairly stated and has not been (‘CCEP’) over Selected Information ––Percentage of PET that is rPET prepared, in all material respects, presented in CCEP’s Stakeholder (%); in accordance with the Criteria. We Progress Report 2016 (the ’Report’), ––Percentage reduction in total believe that the Report is prepared for the year ended 31 December 2016. calories across portfolio since in accordance with the ‘Core’ option 2010 (%); and of the GRI Standards 2016. Selected information ––Percentage reduction in total This conclusion relates only to the The scope and boundary of our calories per litre of product since Selected Information, and is to be work is restricted to (collectively 2010 (%). read in the context of this Assurance the ’Selected Information’): B Preparation of the Report in Statement, in particular the inherent accordance with the ‘Core’ option limitations explained below. A The data included within the of the Global Reporting Initiative Report, marked with the symbol (GRI) Standards 2016. in the Report and listed below: To assess the Selected Information, ––Scope 1 GHG emissions for CCEP which includes an assessment of the – stationary combustion, mobile risk of material misstatement in the combustion, process emissions, Report, we have used the following and fugitive emissions (tonnes reporting criteria (the ‘Criteria’): of CO2e); ––the About this Report section ––Scope 2 GHG emissions for of the Report; CCEP – purchased electricity, heat and steam, market and ––the Data Sources and

location based (tonnes of CO2e); Methodology section of the Report; and ––Scope 3 GHG emissions for CCEP – from cold drinks ––the Reporting Principles for equipment, third party defining report quality as distribution by rail and road, set out by the GRI Standard business travel by rail, air and GRI 101: Foundation 2016. road, waste and water (tonnes The Selected Information should be of CO e); 2 read together with the Criteria. We ––Percentage of electricity from have not performed any work, and renewable sources (%); do not express any conclusion, on any other information that may be ––Manufacturing energy use ratio published in the Report or on CCEP’s (MJ/litre of product produced); website for the current reporting ––Total water withdrawn in period or for previous periods. manufacturing (million cubic litres);

71 Independent assurance statement

Standard and level of Basis of our conclusion Inherent limitations assurance We are required to plan and perform Our assurance relies on the premise We performed a limited assurance our work in order to consider the risk that the data and information engagement in accordance with the of material misstatement of the provided by CCEP to us as part International Standard on Assurance Selected Information; our work of our review procedures have Engagements (ISAE) 3000 revised included, but was not restricted to: been provided in good faith. Because – ‘Assurance Engagements other than of the selective nature (sampling) Audits and Reviews of Historical • Assessing the appropriateness of and other inherent limitations of Financial Information’ (revised), issued the Criteria for the Selected both procedures and systems by the International Auditing and Information; of internal control, there remains Assurance Standards Board. This the unavoidable risk that errors or standard requires that we comply with • Conducting interviews with CCEP’s irregularities, possibly significant, ethical requirements and plan and Management to obtaining an may not have been detected. Energy perform the assurance engagement to understanding of the key processes, use data used in GHG emissions obtain limited assurance. systems and controls in place to calculations are subject to inherent generate, aggregate and report the limitations, given the nature and the DNV GL applies its own management Selected Information; methods used for determining such standards and compliance policies for data. Finally, the selection of different quality control, in accordance with • Selecting sites based on materiality but acceptable measurement ISO/IEC 17021:2011 - Conformity and conducted site visits to the techniques may result in materially Assessment Requirements for bodies CCEP manufacturing facilities in: different measurements. providing audit and certification of Barcelona, Spain; Lisbon, Portugal; management systems, and and Dorsten, Germany, to review DNV GL expressly disclaims any accordingly maintains a process and systems for preparing liability or co-responsibility for comprehensive system of quality site level data consolidated at any decision a person or an entity control including documented corporate level; may make based on this policies and procedures regarding Assurance Statement. compliance with ethical requirements, • Performing limited substantive professional standards and applicable testing on a selective basis of the Our competence, legal and regulatory requirements. Selected Information to check independence and that data had been appropriately quality control The procedures performed in a measured, recorded, collated limited assurance engagement vary in and reported; DNV GL established policies and nature and timing from, and are less procedures are designed to ensure in extent than for, a reasonable • Reviewing the supporting evidence that DNV GL, its personnel and, assurance engagement; and the level for key claims and data in the where applicable, others are subject of assurance obtained is substantially Report. Our checking processes to independence requirements lower than the assurance that would were prioritised according to (including personnel of other have been obtained had a reasonable materiality and we based our entities of DNV GL) and maintain assurance engagement been prioritisation on the materiality independence where required by performed. We planned and of issues at a consolidated relevant ethical requirements. This performed our work to obtain the corporate level; engagement work was carried out by evidence we considered sufficient to an independent team of sustainability provide a basis for our opinion, so • Reviewing that the evidence, assurance professionals. DNV GL that the risk of this conclusion being measurements and their scope holds other audit and assurance in error is reduced but not reduced to provided to us by CCEP for the contracts with CCEP, none of which very low. Selected Information is prepared conflict with the scope of this work. in line with the Criteria; Our multi-disciplinary team consisted of professionals with a combination • Assessing the Report against the of environmental and sustainability GRI Standards 2016; and assurance experience.

• Reading the Report and narrative accompanying the Selected Information within it with regards to the Criteria.

72 Independent assurance statement

Responsibilities of the • The Report provided a good For and on behalf of Directors of CCEP and overview of performance across DNV GL Business Assurance Services the organisation, at both corporate UK Limited DNV GL and operational levels, and 13 June 2017 The Directors of CCEP have sole considered the CCEP’s value responsibility for: chain by including the upstream and downstream impacts of its • Preparing and presenting the operations and products. We Selected information in accordance observed a good level of Gareth Manning with the Criteria; stakeholder engagement at both Principal Consultant the corporate and operational and Lead Assuror • Designing, implementing and levels that considers the views UK Sustainability, DNV GL maintaining effective internal of a wide range of internal and – Business Assurance controls over the information and external stakeholders and is clearly data, resulting in the preparation disclosed in the Report through of the Selected Information that is examples and case studies. free from material misstatements; • As CCEP continues to develop • Measuring and reporting the its processes and systems, we Kate Bruintjes Selected Information based on recommend that the calculation Principal Consultant and Reviewer their established Criteria; and methodology and basis for UK Sustainability, DNV GL preparation used for reporting • Contents and statements contained – Business Assurance within the Report and the Criteria. its key performance indicators is formally disclosed. Our responsibility is to plan and perform our work to obtain limited • For total waste generated, we assurance about whether the found that the data collection Selected Information has been systems in most legacy entities prepared in accordance with the were not set up to distinguish Criteria and to report to CCEP in product liquid waste. Consequently, the form of an independent limited data for this waste stream was only assurance conclusion, based on the included for Iberian manufacturing work performed and the evidence sites. CCEP have acknowledged this obtained. We have not been in their Report, and we understand responsible for the preparation the data collection systems are of the Report. being reviewed to better align the reporting and disclosure of waste Observations in the future, especially since this source may contribute a significant Our detailed observations and proportion of total waste. areas for improvement will be • Across CCEP’s sites, we observed raised in a separate report to varying quality and detail in the CCEP’s Management. Selected electricity certificates used for observations are provided below. calculating market-based Scope 2 These observations do not affect emissions. In subsequent reporting our conclusion set out above. periods, as more sites begin reporting their Scope 2 emissions • This is the first year of reporting following the market-based for CCEP, and we observed good method, we recommend CCEP processes for compiling data from seeks consistency in the quality its operations to corporate level of information used in all its systems, and calculating the sites’ certificates. Selected Information. We found a limited number of errors and omissions and these were corrected prior to inclusion in the Report. DNV GL Business Assurance Services UK Limited is part of DNV GL – Business Assurance, a global provider of certification, verification, assessment and training services, helping customers to build sustainable business performance. www.dnvgl.co.uk/BetterAssurance

73 Key performance data summary

KEY PERFORMANCE DATA SUMMARY

n/a – Not applicable ENVIRONMENTAL INDICATORS SUMMARY Units 2010 Baseline 2016

CLIMATE Our carbon footprint Carbon footprint core business operations ’000 tonnes 2,467,566 1,416,151 (market based approach) CO2e Reduction in carbon footprint of core business operations, % n/a 42.6 since 2010 baseline

Reduction in total value chain CO2e emissions % n/a 24.6 (per total number of products, (since 2010 baseline) Energy and Energy use ratio MJ/1,000 litres 0.38 0.32 renewable energy Electricity sourced from renewable/low-carbon sources % – 75 Cold drinks equipment Total number of CDE equipment in fleet Number – 1,143,455

Average CO2e per unit of equipment CO2e kg/per 983 703 unit

Reduction in average CO2e per unit of equipment % n/a 39.8 vs 2010 baseline CDE fleet that is HFC-free % – 40.7

SUSTAINABLE PACKAGING AND RECYCLING

Sustainable packaging Packaging use ratio g/litre product 160 132 Total weight of packaging used tonnes n/a 663,516

Recycled aluminium, steel and glass % – 33

Total recycled materials used tonnes – 181,008

PET that is rPET % – 21

PET that is refillable PET % – 16

Glass that is refillable glass % – 88

PET bottles that are PlantBottle™ % – 7.6

Cans and bottles that are recyclable % 100 100 Manufacturing waste Total manufacturing waste No. – 95,051.9 Manufacturing waste recycled % n/a 92.6

WATER Water stewardship Water use ratio litres/litre 1.80 1.61 product Total water withdrawn million cubic 23.5 20.7 metres Wastewater treated and safely returned to nature % 100 100

Manufacturing plants with Source Water Protection % 100 100 Plans implemented Water replenishment Percentage volume of water replenished % vs litres in n/a 89 our beverages where sourced from areas of water stress Number of projects/partnerships established No. n/a 12

SUSTAINABLE SOURCING

Percentage of spending with suppliers covered % n/a 79.6 by contracts containing our SGPs1

See more: Methodology page for more information Indicates independent assurance by DNV GL. on our calculation methods and data sources. 1. Data only available for Great Britain, France, Belgium and Luxembourg, the Netherlands, Norway and Sweden.

74 Key performance data summary Stakeholder Progress Report 2016

SOCIAL INDICATORS SUMMARY Units 2010 2016

OUR DRINKS

Reduction in average calories per litre (since 2010 baseline) % n/a 7.9 Products which are no- or low-calorie 35 % n/a (>20 calories per 100ml) Products in packs that are 250ml or less % n/a 5.6

Products with on-pack GDA labelling % n/a 100

Facilities accredited to ISO 9001 % n/a 100 Number of consumer product quality complaints Number n/a 1.12 per million units sold

OUR PEOPLE

Diversity Females on Board of Directors % n/a 18 Females in executive grades % n/a 12

Females in leadership grades % n/a 23

Females in management grades % n/a 37

Females in workforce % n/a 23 Employment CEO/employee pay ratio n/a 124 Voluntary turnover rate % n/a 5.4

Absentee rate n/a 14.6 Percentage of workforce covered by collective % n/a 84 bargaining agreements Employees with individual development plans % n/a 25.2 Safety Lost-time incident rate (number of lost-time incidents n/a 1.66 per 100 full-time equivalent employees) Number of fatalities n/a 11

OUR COMMUNITIES

Total value of community contributions Millions € n/a 6.5

Pre-tax profit invested % n/a 0.5

Number of hours volunteered by CCEP employees hours n/a 9,775

See more: Information per country is provided in our country data tables. 1. Tragically, in 2016, one of our long-term contractors died at our Antwerp facility.

75 Key performance data summary

ENVIRONMENTAL DATA

CLIMATE Our carbon footprint Greenhouse gases – 2016 (tonnes CO₂e)1,2 Carbon Nitrous Hydro- Percentage Total 22.46 g/litre dioxide oxide Methane fluoro- of (tonnes Scope (CO₂) (N2O) (CH4) carbons footprint CO2e) of product produced 1. Direct emission 258,042 665 358 1041 18.37 260,105 GHG Scope 1 & 2 emissions per litre (e.g. fuel) of product produced (market-based 2a. Indirect 28,027 143 27 0 1.99 28,197 Scope 2 approach). emissions – market-based approach3 (e.g. electricity) 26.45 g/Euro 2b. Indirect 189,149 965 180 0 12.06 190,294 emissions of revenue location-based GHG Scope 1 & 2 emissions per approach3 (e.g. electricity) Euro of revenue (market-based Scope 2 approach). 3. Related third- 1,125,758 2,021 70 0 79.64 1,127,849 party emissions (e.g. from cold drinks -42.6% equipment) reduction in CO e emissions in our 2 4 core business operations since 2010 Our operational carbon footprint – 2016 (tonnes CO₂e)

Metric tonnes CO2e by emission source 2010 2015 2016 Cold drinks equipment 1,506,897 899,731 804,032 Operations and commercial sites 556,348 318,247 291,184 Third-party distribution 268,069 207,240 223,281 CCE fleet 121,960 88,616 83,299 Other (including business travel) 14,291 15,772 14,356 Total (’000 tonnes CO₂e) 2,467,566 1,529,607 1,416,151

1. Under the WRI/WBCSD Greenhouse Gas (GHG) Protocol, we measure our emissions in three ‘scopes’,

except CO2e from biologically sequestered carbon, which is reported separately. In 2016, CCEP’s biologically sequestered carbon was 7,968 tonnes. 2. Please note we do not have PFCs or SF6 emissions. 3. Includes on- and off-site solar, geothermal, biomass, and combined heat and power (CHP) generation. 4. Calculated using the Scope 2 market-based approach.

See more: Methodology page for more information on our calculation methods and data sources.

76 Key performance data summary

ENVIRONMENTAL DATA continued

CLIMATE continued Energy and renewable energy Energy use ratio – 2016 1 2010 2015 2016 MWh 1,543,904 Energy consumed (MJ) per 1,000 litres 0.382 0.326 0.317 Total energy consumption of product (Direct and indirect). CCEP energy sources and use – 2016 % Direct energy consumption by Primary Energy Source (Scope 1) –17.2 Source MWh GJ reduction in energy use ratio Natural gas 466,892 1,680,812 vs 2010 baseline. Diesel (CCEP fleet) 274,850 989,460 Propane and LPG 54,961 197,859 % Light fuel oil/site diesel 42,834 154,204 75 Other (jet-fuel and CNG) 15,307 55,104 Geothermal 10,553 37,991 renewable electricity as percentage Electricity CHP 6,826 24,574 of total electricity consumed. Petrol (CCEP fleet) 3,951 14,222 Biodiesel 2,805 10,098 1. Manufacturing sites only. Electricity solar 311 1,120 Ground source heat 107 385 Electricity water turbine 22 79 Heavy fuel oil 0 0 Total direct energy consumption 879,419 3,165,909

CCEP energy sources and use – 2016 Indirect Energy Consumption by Primary Energy Source (Scope 2) Source MWh GJ Electricity purchased and consumed 636,356 2,290,880 Heat and steam purchased and used 28,129 101,265 Total indirect energy consumption 664,485 2,392,146

Renewable energy – 20162 Source MWh GJ Renewable purchased electricity (Grid) 477,195 1,717,902 Renewable Non-Grid/onsite electricity 333 1,199 (Solar PV and water turbine) Renewable heat and steam (Biomass – district heating, 38,789 139,640 Geothermal & Ground source heat pump) Total renewable energy 516,317 1,858,741

Non-renewable energy – 20162 Source MWh GJ Low carbon purchased electricity (Grid) 91,571 329,656 Fossil fuel electricity (Grid) 67,590 243,324 Natural gas 466,892 1,680,812 Light fuel oil/ site diesel 42,834 154,204 Propane and LPG 54,961 197,859 Total non-renewable energy 723,848 2,605,855

Cold drinks equipment Energy used in cold drinks equipment – 2016 See more: Information per country is provided in our Source MWh GJ country data tables. Energy used in customer locations for cold drinks equipment 4,479,268 16,125,365

2. Manufacturing and non-manufacturing sites. Does not include transportation vehicle usage. 77 Key performance data summary

ENVIRONMENTAL DATA continued

SUSTAINABLE PACKAGING Sustainable packaging AND RECYCLING Packaging footprint – 2016 Packaging % Total weight of material used Metric Tonnes footprint % –18 PET 223,193 35 Glass 130,117 20 reduction in packaging Steel 86,803 13 use ratio vs 2010. Aluminium 79,771 12 Other (primary) 40,525 6 % –11 Secondary packaging 88,267 13 Tertiary packaging 4,840 1 reduction in packaging Total 2016 packaging weight 663,516 use ratio vs 2015. Recycled, refillable and renewable material use – 2016 Percentage Percentage of packaging that is refillable glass 88 Percentage of PET that is rPET 21 Percentage of packaging that is refillable PET 16 Percentage of PET bottles that are PlantBottle™ 7.6 Total weight of recycled packaging weight (metric tonnes) 181,008

% Manufacturing waste 64.1 Waste – 2016 sites sending zero waste to landfill. Percentage of Waste by disposal type Metric tonnes total waste Recycled 88,051.0 92.6 Composting 1,131.1 1.2 Incineration 258.3 0.3 Waste to energy recovery 3,745.7 3.9 Landfill 1,865.9 2 Total waste produced at CCEP manufacturing operations 95,051.9

Hazardous/non-hazardous waste – 2016 Percentage of Waste type Metric tonnes total waste Hazardous waste 502.7 0.6 Non-hazardous waste 94,549.2 99.4

See more: Methodology page for more information on our calculation methods and data sources.

78 Key performance data summary

ENVIRONMENTAL DATA continued

WATER Water stewardship Total water withdrawals by volume and type – 2016 Volume 1.61 3 (1,000m ) % Water use ratio 2016. Municipal 14,936 72.06 Borehole 5,789 27.93 % Rainwater 1 0.01 -10.3 Total water withdrawn 20,726 improvement in water use ratio vs 2010. Water in water-stressed areas – 2016 % of total % production -1.9 Volume (m3) volume Total production volume in areas of water stress 5,946,045 41 improvement in water use ratio Total water withdrawal from sites in areas of water stress 9,746,000 n/a vs 2015. Total wastewater – volume by discharge % 89 Volume (m3) of total production volume, where Discharged for treatment by municipal water treatment works 4,596,327 sourced from areas of water stress, Treated onsite 3,276,378 replenished in 2016. Surface water 73,642 Total wastewater discharged 7,946,347 13 Number of sites with onsite Water replenishment wastewater treatment. Water replenishment – 2016

Volume (m3) Belgium 30,000 France 1,920,000 Germany 37,300 Great Britain 268,800 Spain 3,050,000 Total volume replenished 5,306,100

See more: Information per country is provided in our country data tables.

79 Key performance data summary

SOCIAL DATA

OUR DRINKS OUR PEOPLE

% Safety -7.9 Lost-time incident rate by country 2016 Reduction in average calories Number of lost-time incidents per 100 full-time equivalent employees. per litre vs 2010. Commercial Operations and sales Total % Belgium and Luxembourg 0.71 1.79 1.12 9.2 Bulgaria n/a 0.00 0.00 France 1.86 1.61 1.67 Products that have had recipes Germany 2.97 0.15 2.77 changed in 2016 to remove Great Britain 0.2 0.48 0.31 sugar/calories. Iceland 5.26 1.35 3.72 The Netherlands 0.0 0.30 0.14 % 35 Norway 0.0 0.44 0.29 Sweden 0.66 1.03 0.80 Volume of no- and Spain and Portugal 1.97 0.6 1.27 low-calorie products. CCEP Total 1.66

% 5.6 Diversity and employment Products under 250ml. Workplace profile Diversity profile 2016 2016 Total employees 24,504 Females on Board 18 of Directors (%) Full-time employees 23,316 Females in executive roles 12 Male (number/%) 18,404/79 (%) Female (number/%) 4,912/21 Females in leadership roles 23 Part-time employees 1188/4.8 (%) Male (number/%) 447/1.8 Females in 37 Female (number/%) 741/3 management roles (%) Permanent contract 22411/91.5 Females in 21 non-management roles (%) Male (number/%) 17,216/70.2 Females in workforce (%) 23 Female (number/%) 5,195/21.2 Board of Directors 100 Temporary contract 2093/8.5 members over 40 (%) Male (number/%) 1,635/6.7 Equal remuneration Female (number/%) 458/1.9 (median compensation of men vs women)2 Voluntary turnover rate (%) 5.4 Executive and 104 New hire rate (%) 8.0 Management Absentee rate (%)1 14.55 Management 98 Employees with Individual 2,912 1. Excludes Germany and Iberia. Development Plans 2. Pay ratio is an average upon a sample size of Average training days 14.4 89 percent of our total workforce. Methodologies per employee (hours) vary for calculation between individual countries. Age profile of workforce

20–29 (number/%) 3,419/14 30–50 (number/%) 14,171/58 50+ (number/%) 6,914/28 Employees covered by 84 collective bargaining agreements (%)

Percentages represent percentage of total workforce.

See more: Methodology page for more information on our calculation methods and data sources.

80 Key performance data summary

SOCIAL DATA continued

OUR COMMUNITIES Community Investment – 2016 Contribution Percentage % Type of investment € of total 0.5 Cash contribution 5,213,317 79 In-kind contribution 797,804 12 of pre-tax profit donated in 2016. Management costs 202,500 3 Employee time (includes volunteer and management time) 384,868 6 9,775 Total contribution 6,598,489 100 volunteer hours. Community investment by country – 20161 Total €6.6 million Community Investment Volunteer in total community investment. € Hours Belgium and Luxembourg 996,088 250 France and Monaco 500,173 3,091 Germany 511,817 2,256 Great Britain 1,782,361 2,302 The Netherlands 181,483 1,087 Norway 259,000 160 Spain and Portugal 1,487,324 n/a Sweden 751,407 448 United States (Former Corporate CCE HQ pre-merger) 128,837 180 Total contribution 6,598,489 9,775 1. Data for Iceland not captured in 2016.

See more: Information per country is provided in our country data tables.

81 Data sources and methodology

DATA SOURCES AND METHODOLOGY

2010 Base year selection Carbon and energy • Scope 1 figures include: Direct sources of emissions such as the Unless otherwise stated, 2010 has GHG Emissions fuel we use for manufacturing and been selected as the base year for (Core Business Operations our own vehicles plus our process the majority of our key environmental and Drink in Your Hand) and fugitive emissions. and social KPIs. Due to the merger We disclose the Scope 1, 2, and 3 • Scope 2 figures include: Indirect which formed CCEP, 2010 is the carbon emissions of our core sources of emissions such as the earliest date for which we can business operations, and those of our purchased electricity we use at consolidate, or reasonably estimate full value chain. GHG Emissions from our sites as well as heat and steam data for all three legacy bottlers. our core business operations include energy imports. We report against 2010 is also the baseline year used those from our manufacturing, sales this on both a location-based, by The Coca-Cola Company, and offices, distribution centres, cold and a market-based approach we have sought to align with this drinks equipment and transportation. in-line with the GHG Protocol’s as far as possible. Our value chain emissions include all Scope2 standard. Data is reported of the emissions from our core as market-based for the purposes business operations, as well as those of reporting CCEP’s performance associated with the manufacturing against target. or production of our packaging, our ingredients, and some other scope 3 • Scope 3 figures include: Other emissions. Disposal by consumer is indirect sources associated with captured via recycling rates. the electricity used by our cold drinks and coffee equipment at our Our Scope 1 and 2 emissions are customers’ premises, our employee independent of any greenhouse gas business travel by rail and air, trades. The carbon footprint of our emissions related to the supply core business operations is calculated of water and treatment of waste in accordance with the WRI/WBCSD water, emissions from the treatment Greenhouse Gas (GHG) Protocol, of waste, fuel used by our third using an operational control approach party distributors, other energy to determine organizational related emissions not already boundaries. Our 2016 figures have be accounted for under Scope 1&2 ( independently assured against the e.g., emissions from well-to-tank ISAE 3000 standard by DNV GL. and losses from transmissions & We report the carbon footprint of distribution of electricity to site). our Scope 1, 2 and 3 greenhouse gas Additional Scope 3 emissions from

(GHG) emissions in tonnes of CO2 our ingredients and packaging,

equivalent (stated as CO2e). We which form the largest percentage measure our emissions in three of our value chain carbon footprint

‘scopes’, except for CO2e emissions are included in our Drink in Your from biologically sequestered carbon, Hand figure. which is reported separately outside Data is consolidated from a number of these scopes. In 2016, this of sources across our business and is amounted to 7,968 tonnes of CO e. 2 analysed centrally. We use a variety Our 2010 baseline, 2015, and some of of methodologies to gather our our 2016 data incorporates data from emissions data and measure each the bottlers from with CCEP was part of our core business operations formed, prior to the merger. carbon footprint, including natural

82 Data sources and methodology

gas and purchased electricity data, Value Chain (Drink in your Hand) ENERGY refrigerant gas losses, CO2 fugitive In addition to the emissions within Energy calculations gas losses, and transport fuel, water our core business operations, we also supply, wastewater and waste seek to measure and reduce the GHG Energy consumption is based upon management. We use emission emissions across our full value chain; procurement data from each site, factors relevant to the source data including Scope 3 emissions from our supported by monthly site invoices. including BEIS (UK’s department of packaging and ingredients, as these Data is captured as part of our Business, Environment and Industrial are the greatest source of emissions carbon calculation model. Energy, Strategy) 2016 and IEA 2014 emission across our value chain; and fuel and fugitive gas raw data, is factors. These are as follows: significantly greater than our Scope 1 collected and converted to carbon equivalents (CO e), and multiplied by • Energy data: from metered sources, and 2 emissions. 2 publicly available and supplier based supplier invoices and estimates greenhouse gas emission factors e.g., where data is not measured (e.g. Emissions are calculated in line for electricity. Emission factors used our bottle sorting facility in Norway with the GHG Protocol, as outlined include supplier data, BEIS 2016 and is estimated on the basis of its floor above. The carbon footprint of our IEA 2014 emission factors. area in comparison to its main packaging was calculated using production facility) annual unit case sales volume data by country; multiplied by standard Percentage of total • Refrigerant gas losses from primary, secondary and tertiary electricity use sourced contractors’ re-gasing invoices packaging specifications, at product from Renewable Sources SKU level. GHG emissions associated Calculated as the quantity of electricity • CO2 fugitive gases from measuring our opening and closing stock with packaging recycling content and used (in MWh) from renewable levels and subtracting the quantity recycling rates are also included in sources divided by total electricity line with GHG Protocol as well as used. The quantity of renewable of CO2 used in our products various Life-Cycle Analysis (LCA) electricity was verified through • Calculations of cold drinks methodologies. We use a range of renewable electricity Guarantees of equipment emissions are based on global and regional industry emission Origin (GOO’s) from our electricity weighted average hourly supplier factors, including EAA 2008 and suppliers in each country, and through energy consumption rates and by PETCORE - PlasticsEurope EPD 2011. meter readings of renewable electricity subtracting any savings achieved generated on site. through carbon/energy use Emissions associated with our reduction initiatives during the ingredients were calculated using Manufacturing Energy use ratio reporting period (e.g. retro-fitting annual unit case sales volume data CCEP’s manufacturing energy use doors to maintain the equipment by country, multiplied by the types of ratio is calculated in line with the temperature) ingredients at product SKU level, for Coca-Cola Company’s common • Transport fuel is calculated example the ingredients included in KORE manufacturing standards. All according to actual litres used or our concentrate together with the sites calculate manufacturing energy kilometres recorded juices and sweeteners also used to use ratio as the total of all energy procedure our products. Emissions consumed (MJ), divided by • Supply of water, treatment of factors used include World Food LCA Production volume (litres). This wastewater and waste management Database, EcoInvent and bespoke includes the use of diesel and natural are calculated by using litre and LCA studies e.g. EU Study (Klenk et gas, where used in our manufacturing weight (kg) data respectively al. 2012) operations (e.g., heating, forklift • Energy, fuel and fugitive gas raw trucks). The fuels used in our data, is collected and converted to distribution fleet (e.g., diesel used in

carbon equivalents (CO2e), and our trucks and vans) are not captured multiplied by publicly available and/ in the manufacturing use ratio. or supplier based greenhouse gas emission factors e.g., for electricity. Emission factors used include supplier data, DEFRA/BEIS 2016 and IEA 2014 emission factors. • Approximately 1.38 percent of our core business operations carbon footprint is based on estimated emissions (e.g. leased offices where energy invoices are not available).

83 Data sources and methodology

WATER WASTE Packaging Total Manufacturing Water Use Total Manufacturing Waste Percentage of PET that is rPET CCEP’s total manufacturing water CCEP’s Total Manufacturing Waste is CCEP’s packaging data is calculated use is calculated in line with The calculated in line with The Coca-Cola based upon 2016 sales volume Coca-Cola Company’s common KORE Company’s common KORE data, and standard packaging manufacturing standards. All sites manufacturing standards. The specifications, material types and calculate all water used by the facility, calculation includes all waste weights by product SKUs. The from all sources, including municipal, generated at site due to production, calculation of the percentage of PET groundwater (well/borehole), surface office & food service etc. In every used within our PET bottles that is water and collected rain water, and country where we operate, except for rPET (recycled PET) is calculated excluding treated wastewater and in Spain and Portugal, liquid product based on the total weight of rPET replenished water returned safely to waste is not currently captured as used in 2016 divided by the total nature and the community. part of our total manufacturing waste weight of PET (virgin, plant-based figure. Waste data is provided PET and rPET) used to produce our Water Use Ratio through site waste contractor PET Bottles, as calculated using our CCEP’s water use ratio is calculated monthly invoices. sales volumes and packaging data. in line with The Coca-Cola Company’s common KORE manufacturing Percentage of Waste Recycled standards. Water use ratio is CCEP’s Total Waste Recycled figure is calculated as the total water calculated in line with The Coca-Cola (withdrawals divided by total Company’s common KORE production volumes) in CCEP’s manufacturing standards. The figure manufacturing operations. includes the quantity of the waste recovered through recycling, incineration with energy recovery, composting or land application; divided by total manufacturing waste produced. The disposal method is determined through site waste contractor invoices.

84 Data sources and methodology

Our Drinks People Communities Total Calories Total Employee Figures Total Communities Contribution Calculation is based upon 2016 unit Calculations based upon data as CCEP uses the LBG methodology case sales volume data, and on the of 31 December, 2016; excluding all to measure its total community basis of product calorie information, contractors, pre-pensioners, CCEP contributions. Data is captured per SKU. For all of the below, data is approvers and any board members. via survey within each country. The sourced from product formulations As of the time of calculation, total value of employee time is measured provided by The Coca-Cola Company corporate employee figures did as both volunteering time and and our other cross franchisors and not include employees from Iceland, management time, and is valued at through estimates where data is not as data was not available. These a cost of €25.30 per hour, based on available (e.g., data for products out employees are therefore not total employee OPEX and CAPEX of production.) Calorie calculations included in any subsequent costs, on an average day of 7.5 hours. exclude Hot Coffee, Milk, Alcohol breakdowns of data. Where community partnerships are and Beer products. Due to different commercial projects that have a systems in place prior to the merger, Male/Female Pay Ratio community benefit; e.g., recycling different calculation methods have The country male/female pay partnerships with customers, 50% been used for prior year data. ratios calculated for the purposes of the contribution is counted. Calculations for legacy CCE countries of this report differ in calculation have been done by SKU only from methodology to those that may be 2014 onwards. For years 2010-2013, required by law within each country. calculations were done per brand and For the purposes of this report, flavour. The calculations for Spain and country pay ratios were calculated Portugal, Germany and Iceland for based upon base pay, on an FTE 2010-2016 were done solely by brand basis, excluding contract types such and flavour. as apprenticeships and internships. Calculation was based upon 89% of Calorie reduction since 2010 total FTEs. For GB/Bargained across entire portfolio employees, production site data has Calculation is based upon 2016 and been excluded as shift-payments may 2010 unit case sales volume data, be included in base pay, and can and on the basis of product calorie distort the ratio. We are unable to information, per SKU. The reduction provide a ratio for Management in calories per litre since 2010 is Portugal for confidentiality purposes. calculated as the difference between Corporate male/female pay ratios are Total UC volume 2010 multiplied by the average of these country ratios. kcal per UC volume 2010 and Total UC volume 2016 multiplied by kcal LTIR (Lost-Time Incident Rate) per UC volume 2016. Calculations based upon number of lost time incidents in 2016 per 100 Calorie reduction in calories full-time equivalent employees. per litre since 2010 Calculation is based upon 2016 and Sourcing 2010 unit case sales volume data, and on the basis of product calorie Suppliers which comply information, per SKU. The reduction with SGPs in calories per litre since 2010 is In 2016, we are only able to measure calculated as the Total kCal 2010 / the percentage of suppliers that Total UC volume 2010 vs. Total kCal comply with SGPs from legacy CCE, 2016 / Total UC volume 2016. and our figures reflect this scope. From 2017 onwards, we will be able Percentage Reformulation to capture this data across CCEP. in 2016 Calculation based upon the total number of products that have been reformulated to reduce sugar and/or calories, as a percentage of total products on the market in 2016.

85

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