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Product People Planet Product People 2019 Sustainable Development Report CONTENTS Message from our Managing Director 4 About this Report 6 Swire Coca-Cola Overview 11 Swire Coca-Cola 2030 SD Strategy 16 Climate 19 Water 43 Packaging & Waste 57 Product Choice 87 Sourcing 95 Our People 103 Community 121 Reporting Standards and Scope of Report 132 Awards and Recognition 141 GRI Standards Content Index 145 Performance Tables 149 Appendix 154 Menu Climate Water Packaging & Waste Product Choice Sourcing Our People Community MESSAGE FROM OUR MANAGING DIRECTOR Our mission at Swire Coca-Cola is to be the best SUSTAINABLE DEVELOPMENT 2030 employer, the best business partner and the best corporate citizen, wherever we do business, and How we act now will define our impact in the to deliver growth in a sustainable way. To achieve future. The compass to help us navigate the coming this, we must be prepared to tackle the tough decade is a clear goal, in mind and at heart, to make challenges head-on, and be honest not only about the right choices in how we act today to deliver a our successes, but also where we know we can do sustainable tomorrow. In 2019, we started shaping better. That is why we are committed to providing our sustainable development strategy – “Our Choice. stakeholders with a transparent and fact-based Our Future!”. It includes a set of resilient strategies, account of how we are performing on material long term commitments, and measurable impacts areas of sustainability. to guide our actions for the next decade. The world is facing serious environmental and social challenges and companies are expected to play a role addressing them. By proactively managing our impacts, by being open to stakeholder scrutiny, and by continuously benchmarking our performance to global leaders, we have been able to make a meaningful contribution to address these challenges. I am happy to share with you in this report the progress we have made in 2019. 4 2019 Sustainable Development Report Our strategy covers three aspects – Planet, no-sugar products, to reduce serving sizes and to Product, People – and is divided into seven key empower consumers to make informed choices by focus areas where we believe we can have the giving them accurate and clear information about greatest positive impact on our future. Our focus the nutritional content of our drinks. areas include: Climate, Water, Packaging and Waste, Product Choice, Sourcing, Our People, It is also important for us to be transparent and to and Community. Each pillar has 2025 and 2030 operate with integrity and quality along our value targets, which are underpinned by performance chain. We are collaborating with our suppliers to indicators we will use to report our progress deliver sustainable procurement practices. annually. We are excited to roll out the strategy and share our vision with our employees, business partners and other stakeholders. PEOPLE - Our People, Community PLANET We care for our people and the people in the - Climate, Water, Packaging and Waste communities we operate in. I am delighted that as a company, we have set a clear vision to embrace We are committed to minimising the impact of diversity and create a more inclusive workplace our business on the environment. We are eager for our people. We will also continue to encourage to share the results of our Science Based Target our people to engage with and support their local study in this report. We outline the initiatives we communities through volunteer service and our will need to deliver to reduce our carbon impact company CSR Fund. and meet the commitment we will make to the Science Based Target Initiative. We will address In my role as Managing Director of Swire Coca-Cola I the issue of packaging, in particular single-use fundamentally believe that sustainability has a place plastic packaging. We recognise that our business as a core pillar of our business strategy. We need has a significant impact in this area, and it is an to stretch ourselves to set and deliver challenging opportunity for us to make a real difference. In targets. We need to make the right choices to partnership with The Coca-Cola Company (TCCC) ensure we can deliver a truly sustainable future. we are committed to #WorldWithoutWaste. We are Each and every one of us will need to contribute putting in place actions to ensure all our packaging for us to deliver on our commitments. Our journey is recyclable, to support improved collection and to ahead will be challenging and rewarding. We will enable closed loop systems. recognize and celebrate the choices we make as we take purposeful actions to reach our 2030 targets. I Protecting water resources is a top priority for invite everyone to join me, to make the right choices us. The success of our business and the health for our future – our company, our environment and of our communities depends on access to clean, future generations. Every single choice matters. safe and affordable water. Working together with TCCC, we have achieved our goal of 100% water It is our choice to deliver a sustainable future for our replenishment, which means we have returned PLANET, our PRODUCT and our PEOPLE. at least one litre of clean water back to natural Our Choice. Our Future! water systems for every litre of water we use in our products. Karen So Managing Director, Swire Coca-Cola Ltd. PRODUCT - Product Choice, Sourcing We take care to ensure our products meet the needs and expectations of our consumers and customers. We are working with TCCC to develop new low- and Message from our Managing Director 5 Menu Climate Water Packaging & Waste Product Choice Sourcing Our People Community ABOUT THIS REPORT Swire Coca-Cola Limited (Swire Coca-Cola) is the fifth largest bottler by sales volume for The Coca-Cola Company, and is wholly owned by Swire Pacific Limited, a listed company on the Hong Kong Stock Exchange. Our Commitment to Transparency Swire Coca-Cola issues an annual Sustainable Development Report which aims to provide our stakeholders with a detailed, accurate and honest account of our performance and progress in the material areas of sustainability. This is our third report, covering the period 1 January to 31 December 2019. Report Structure Key chapters of this report reflect the seven focus areas of our 2030 Sustainable Development Strategy (Our Choice, Our Future!). For each of our seven key sustainability focus areas we present why the topic is important, and how we strive to make the right decisions that minimise negative outcomes and maximise positive ones. Details of our strategy can be found in the Sustainable Development Strategy 2030 section. Scope of Disclosure Unless otherwise stated, performance data in this report covers all Swire Coca-Cola wholly and majority owned bottling operations in our four markets: the Chinese Mainland, Hong Kong ,Taiwan and the United States. Given the different context in each market, we present performance data by market, where meaningful. Metrics – 2018 as our Baseline Year We have set 2018 as our baseline year (unless otherwise indicated) as this was the first year post refranchising that we had a full year’s worth of data. It is also the baseline year used in our Science Based Target project (Please see the Climate chapter). As this year see’s us launch our 2030 Sustainable Development Strategy (Our Choice, Our Future!), a full list of our KPIs for each target will be published in our 2020 Sustainable Development Report. 6 2019 Sustainable Development Report 2019 TCCC Business & Sustainability report The following link takes you to the integrated business and sustainability report for 2019 for The Coca-Cola Company. https://www.coca-colacompany.com/reports/business-sustainability-report-2019 The Coca-Cola System The below infographic taken from https://investors.coca-colacompany.com/about/coca-cola-system clearly explains The Coca-Cola System, which is referenced as a term frequently in this report. * The Coca-Cola Company and its bottling partners are collectively known as the Coca-Cola system. The Coca-Cola Company does not own, manage or control most local bottling companies. About this report 7 Menu Climate Water Packaging & Waste Product Choice Sourcing Our People Community Governance of Sustainable Development at the Corporate Level Swire Pacific’s highest governance body is its Board, led by an Executive Chairman. The Swire Pacific Board is responsible for overseeing sustainable development for all operating companies under Swire Pacific, including Swire Coca-Cola. Information on sustainability risks and performance is reported to the Board via the Group Risk Management Committee (GRMC), which has eight members and is chaired by the Finance Director. The GRMC is advised by the Swire Group Sustainability Committee and by six working groups (made up of sustainability personnel from all operating companies in Swire Pacific) covering each of the six focus areas of SwireTHRIVE* . The working groups meet three times a year to exchange information and best practices, with a view to developing specific policy recommendations, improving efficiency, reducing costs and engaging staff in sustainable development. To provide additional oversight and direction, the Head of Sustainable Development at Swire Pacific reports annually to the Board on the Group’s sustainability performance. Division heads meet twice a year on sustainability matters under the Chairman of the Board. In 2019, division heads discussed the findings of a materiality assessment, the Group’s sustainability performance, revisions to the HKEx listing rules relevant to ESG matters and approaches to carbon target setting. Managing Sustainable Development at Swire Coca-Cola Ltd At Swire Coca-Cola, we have an independent governance structure to manage and implement our own sustainable development initiatives and strategies.
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