Sustainability Report 2016 Table of Contents

Sustainability › Puede acceder al Reporte de Susten- Report tabilidad descargando el PDF de la publicación online desde nuestra página web www.koandina.com o escaneando el código QR que se incluye aquí y en la 20 Memoria. Sustainability Report 2016 Table of contents

4 Message from the Chairman of the Board of Directors

10 Our Company • Andina in numbers • Our value chain • Management and Corporate Governance we value your opinion 43 Beverage benefits 57 Healthy Active Lifestyle For us, it is important to have your opinion to improve our sustainability management. 65 Water Stewardship 75 Energy management and climate protection We invite you to send us your suggestions, questions or any comments related to this 89 Sustainable packaging Sustainability Report or our work at Coca-Cola Andina via email: [email protected] 105 Work environment as well as to the offices of our operations. 127 Community • Our customers For more information on this Report or to see our previous reports please go to: • Our suppliers www.koandina.com • Social investment in the community

150 Challenges for the upcoming years

153 Report Characteristics

155 GRI-G4 table of contents

177 Verification letter

178 We value your opinion

Company Identification

Embotelladora Andina S.A. Open stock corporation Chilean Tax ID (RUT): 91.144.000-8 Address: Miraflores 9153, Comuna de Renca, Santiago de Chile This year Coca-Cola Andina saw its GRI Message from the Chairman of 70th anniversary and we fully celebrated G4-1 GDMA the Board of Directors it, strengthening our role as one of the region's largest bottlers.

n behalf of the Board I preside, I am Macroeconomic context in the region Financial challenges and results O pleased to submit the Annual Report It is important to review the macroeco- 613 million unit cases of soft drinks and and Financial Statements of Coca-Cola nomic situation of the countries where 166 million unit cases of other beverages volume Andina S.A and its subsidiaries, along we operate, in order to place this year’s were sold in 2016. This represented a drop Paraguay with the Sustainability Report for the 2016 results into context. of 8.8% compared to the previous year, 8% Fiscal Year. attributable to the slowdown in regional In Argentina we saw a strong adjustment economies, since approximately 60% Argentina En At Coca-Cola Andina, we are in a process after the change of Government. 2016 was of our volume comes from Argentina 28% of constant innovation and growth in each complex in macroeconomic issues with a and Brazil, both countries that suffered Chile of our markets. Team work, perseverance year-on-year inflation around 40%, while, consumption declines. Simultaneously, and openness to new and innovative ideas in terms of growth and consumption, the there was a stronger trend to consume 30% have been the drivers in this task within our year was negative, significantly impacting categories different from soft drinks, which group. 2016 was marked by a permanent our volumes. In addition, the exchange include juices, waters, isotonic and energy effort with our different partners on a ste- rate devaluation considerably affected our drinks. Taking this into account, we see a Brazil ady path to profitability and sustainable cost structure. great opportunity to keep on growing these 34% growth. This way of working allows us to segments. Along with that, we have the sales face adverse macroeconomic and political Brazil suffered the deepening of a ma- challenge of maintaining soft drinks growth, Paraguay contexts and even so continue delivering croeconomic and political crisis. In terms which continues to be our main category. 8% positive results. of growth, 2016 was a negative year for the Brazilian economy, which translated Our EBITDA reached 311,004 million Chilean Argentina This year Coca-Cola Andina saw its 70th in an approximate 3.5% decline in GDP. pesos, representing a variation of -1.7% with Chile anniversary and we fully celebrated it, Unemployment exceeded 10%, hitting respect to the previous year. This resulted 30% 29% strengthening our role as one of the region's consumption. Political uncertainty has from the strong impact of the translation of largest bottlers. Much has changed since affected all social strata, and has delayed figures mainly from Brazilian reais to Chilean the beginning of the 20th century: the new economic recovery. pesos, due to the 54.2% devaluation of consumption trends, the role of technology the Brazilian currency against the Chilean Brazil in society, among others aspects; but what Chile did not experience the macroeconomic peso. Operating income was 213,670 million 33% has not changed is that we continue to face impacts of the other countries. However, Chilean pesos. However, EBITDA margin ebitda each challenge eagerly and with a sense of the country continues with low growth rates improved by 1.4 percentage points and Paraguay urgency, seeking excellence in everything and increased unemployment. The main operating margin by 1.2 percentage points, we develop, maintaining a positive perfor- challenges were posed by the Labelling reflecting the excellent work performed 11% mance, capturing opportunities, anticipating Law, where we became leaders in the im- on cost and price management. Despite Argentina adverse environments and delivering value plementation of Government regulations.In the strong impact of volumes, net income 23% to our stakeholders. We are convinced Paraguay GDP and consumption remained reached 92,049 million Chilean pesos, Chile that we will continue doing so every year. stable, without negative relevant impacts representing a 4.5% growth compared to 35% the previous year.

Brazil Juan Claro González 31% Chairman of the Board of Directors

4 • Coca-Cola Andina • Sustainability Report 2016 5 argentina

Main achievements of our operations 219 517,059 In Argentina, we exceeded the expecta- An important part of the sustainability of our results is a tions of our results thanks to the great consequence of the strengthening of our corporate governance 71,302 work accomplished in optimizing costs and revenue management. The increase in margins reflects a significant operating Volume Sales EBITDA (MUC) (Ch$ M) (Ch$ M) improvement within an adverse scenario. We consolidated the new Hot Fill line to brazil continue strengthening the growth of the juice and isotonic categories. At the same time, we inaugurated a new deposit for raw materials that allows us to optimize procurement logistics and processes of Commercial challenges and results 266 590,146 key supplies. Paraguay recorded the best EBITDA margin We received the second place in the ALAS20 The commercial aspect is one of our vital in the history of the operation, portraying the recognition of leadership in corporate activities. We had the opportunity of putting 96,957 In Brazil, we continue consolidating and focus and excellence in the work on costs, governance, which takes into account our operation to test during the Olympic improving our efficiencies. The project for achieving a 10.3% EBITDA growth compared corporate governance principles involving Games in Rio de Janeiro, once again taking our new plant in Duque de Caxias is stron- to the previous year. Simultaneously, we recognition of shareholders, consideration part in one of the most important events in Volume Sales EBITDA gly moving forward and seeks to change carried out a process of managing customers of the interests of the various stakeholders the world, exceeding our expectations. The (MUC) (Ch$ M) (Ch$ M) the production paradigm, modernizing directly through our route to market team, (communities, shareholders, workers, etc.) Games were a success, our collaborators chile the productive system and reducing our allowing us to improve service levels and and the outlining of Board responsibilities. carried the torch and participated in com- environmental footprint. This plant will margins in all of our categories, as well as Together, all of these seek to ensure an mercial activities, once more demonstrating enable us to significantly increase our increase our market share. ethical and transparent behavior as a com- that working at Coca-Cola Andina and in returnable PET offer, and thus we will be pany, one of the strengths that we learned the Coca-Cola System is a reason to make able to extend this format to all our fran- Strengthening corporate governance to develop in an environment where there them proud. These Olympic Games were 232 chise, reaching our consumers with more An important part of the sustainability of our has been significant questioning regarding definitely a chance to leave our mark and 540,427 attractive price points. results is a consequence of the strengthe- this aspects. we did it successfully. ning of our corporate governance, receiving 112,499 In Chile the new Labelling Law became major awards and honors this year on this This was a very special year since new On the other hand, we faced major cha- effective during 2016, which we addressed matter. For starters, we were recognized members were incorporated to our Board llenges, the main exponent is the Labelling Volume Sales EBITDA more as an opportunity rather than as a for our third party and suppliers’ code of of Directors, who have a broad and renow- Law in Chile. As a company we adopted (MUC) (Ch$ M) (Ch$ M) problem. In that sense, we reformulated the ethics practices, in the SIPP Global Compact ned experience in issues such as ethics, Government measures with responsibility portfolio in all categories and capitalized Research, Chile chapter. We distinguish the social performance and actions with and initiative, becoming leaders in the paraguay the light segment through Masterbrand. We value of our partners and therefore we put the community. One of our goals was to implementation of labels ordered to be lead changes as protagonists, achieving a special focus on developing relationships achieve greater diversity throughout the placed on products; we seek to always be record 26.5% sales mix in the zero calories with suppliers and outsourced personnel; we Company, an ongoing process that we will proactive and show our goodwill with the beverages within the soft drinks category. understand that without the development be consolidating into the Board of Directors community and policy makers, understan- of these partners we could not be what and hierarchic positions in the organization ding the objectives of common good and 62 Also in Chile, we renewed a significant we are today and, therefore, our Board of in the coming years. well-being of our consumers. part of our fleet of distribution trucks, Directors gives vital importance to building 132,006 35,351 incorporating 151 Euro V Bluetec 5 units, growth relationships and synergies with all In 2016, The Coca-Cola Company announ- with eco-friendly technology, minimizing of our suppliers. ced the purchase of AdeS, reinforcing the impacts in the communities where our growth tendency of new categories; we Volume Sales EBITDA (MUC) (Ch$ M) (Ch$ M) trucks circulate. expect to begin marketing these products in our four franchises during 2017. In addi- MUC: million unit cases

6 • Coca-Cola Andina • Sustainability Report 2016 7 Coca-Cola Andina was distinguished as the 2016 ALAS20 performance-related compensation strate- stand in an excellent position to increase We hope that the contents of the Annual gies were developed. Our work environment our profitability once the region returns to Report and Sustainability Report are to your Company in Chile. This is the most important category to which management and development of human economic growth. liking. In these pages you can find more a company can aspire in ALAS20 nationwide, and only one capital agenda involves a balanced offer details to understand how our company is of labor well-being, a key factor to ensure facing challenges with the strength of the company by country obtains this distinction that the best people want to develop their Coca-Cola brand, a focus on innovation careers at Coca-Cola Andina. In the coming years, I am certain that we will and a group of collaborators committed face many more challenges. Taking this into to helping grow in a responsible manner. Within the challenges for the coming consideration, we work on developing our I appreciate the confidence of our share- year, we seek to continue expanding the capabilities to keep on improving. Under the holders, more than 15,000 collaborators tion, we successfully launched Monster in and supply chain processes, we carried out and contribution to social and economic incorporation of handicapped people. As 2020 vision we continue with management and everyone involved in this great group Chile and Brazil, showing the ability to work simultaneous implementations based on development were measured. We are proud an agent of change, we recognize that it of excellence, maintaining clear guidelines of people we call Coca-Cola Andina. together. We recognize that teamwork is not the invaluable contribution of our workers, to be one of the 5 Chilean companies that is key to give opportunities performing in the achievement of results, ethical work a zero-sum game, and thus we coordinate in each operation. So the countries with were included in this index. inclusive engagements, offering conditions and social responsibility. Growth projections internally and with our external partners. greater expertise in certain topics support so they can be professionally productive, are positive and our teams are capable of and share their knowledge with the rest of Another positive result was that Coca-Cola and form a part of this more diverse and crossing all terrains, so we expect to deliver To deepen our coverage and scope of the Organization, standardizing practices Andina was distinguished as the 2016 valuable great team. better results each time, with an inclusive returnable packaging is a challenge we of excellence in all the territories where ALAS20 Company in Chile. This is the most vision of Coca-Cola Andina’s role within our maintain in all our territories, since it Coca-Cola Andina operates. important category to which a company can Looking at a year with many changes and communities, generating a positive impact enables us to reach different sectors of aspire in ALAS20 nationwide, and only one an adverse context in our environment, we for our more than 250,000 customers, the society and continue reducing the Sustainability challenges and company by country obtains this distinction. can say that the results were very positive. consumers, shareholders, suppliers and impact on the environment and, at the results The ALAS20 recognition is granted to those Not only did we sail the troubled waters collaborators. same time, allowing cost reductions of our In socio-political terms, the world has enterprises that demonstrate leadership, of the macroeconomic and political envi- Juan Claro González raw materials. During 2016 we increased dramatically changed in the last years, and consistency and excellence in its public ronment of 2016 in Latin America, but we Chairman of the Board of Directors market penetration of returnable packaging it is not the same scenario as that of 10 disclosure of information regarding their in Argentina. We capitalized the learnings years ago. The markets have also drastically practices on investor relations, sustainable achieved and translated them into initiatives changed and the trends giving relevance development and corporate governance. in all countries, being an excellent platform to sustainability aspects were reinforced. to anticipate and proactively manage the As a company we do not only want to It is important to point out that these re- framework of the REP law, Extended Liability generate good financial results, but also sults are attributed to strategic guidelines Growth projections are positive and our of the Manufacturer in Chile. We continued have a positive social impact, and perform accompanied by the design of comprehen- teams are capable of crossing all terrains, to increase the focus on the development actions that improve the world. This led to sive processes, executed by each one of of returnables, we implemented plans to begin implementing a quarterly review of our contributors that work to achieve the so we expect to deliver better results each enhance coverage and growth of these the performance in terms of sustainability improvements and accomplish our goals time, with an inclusive vision of Coca-Cola packages, and we also launched initiatives for each operation, discussing these issues throughout all of our territories. for the optimization of packaging design, at thoroughly in our Board of Directors. Our Andina’s role within our communities, the same time reducing the use of materials. greater focus on sustainability is reflected As a company we have drawn a strategic in that we became part of the Dow Jones agenda that seeks to attract, develop and generating a positive impact for our more In the framework of the development of Sustainability Chile Index and Vigeo Eiris retain the best talent to meet the challenges than 250,000 customers, consumers, capabilities and knowledge management “Emerging 70 Ranking”. The latter is a lea- of the business. Numerous performance process, we planned and were able to ding indicator and we were selected among assessment initiatives, leader-development shareholders, suppliers and collaborators. coordinate the work of our 4 operations 842 companies worldwide to integrate it. in all levels, succession programs and career in an orderly and synergistic fashion. With Criteria of human rights, decent employ- plans, development plans, improvement of the development of multi-operation work ment practices, environmental protection, organizational climate, design of optimal teams, focused on the commercial, industrial corporate governance, business ethics and flexible structures, competitive and

8 • Coca-Cola Andina • Sustainability Report 2016 9 GRI: One Company, one team Scope of the operation G4-3 G4-6 Given the scope of operations, the quality of the products, the professionalism Our operations G4-8 and passion of our people, Coca-Cola Andina is a huge company that walks G4-9 G4-13 towards the goal to lead the beverage market, being recognized for management G4-DMA excellence, people and welcoming culture.

Argentina Brazil Chile Paraguay

Embotelladora del Río de Janeiro Embotelladora Paraguay Atlántico S.A. / Refrescos Ltda. Andina S.A. ⁄ Vital Refrescos S.A. Andina Empaques Jugos S.A. ⁄ Vital Argentina S.A. Aguas S.A. ⁄ Envases Central S.A.

2015 2016 2015 2016 2015 2016 2015 2016

Km2 franchise extension (thousands) 1,892 1,892 165 165 398 398 407 407 Franchise inhabitants (in millions) 13.9 13.9 21.9 21.9 9.5 9.5 6.9 6.9

Customers (in thousands) 66 64 97 79 65 63 53 53 t Coca-Cola Andina we produce and tles for soft drinks and REF PET packaging Thus, ensuring water supply of the Coca-Cola distribute the products licensed by The in various formats for our operations and Andina Brazil operation, until our new plant Unit cases – sales volume A (in millions) 234 219 291 266 234 232 61 62 Coca-Cola Company in franchised territories sale to other bottlers. in Duque de Caxias comes into operation. in Argentina, Brazil, Chile and Paraguay Market share – Soft drinks 61.6% 61.6% 62.3% 63.4% 69.3% 68.2% 65.3% 67.7% servicing almost 52 million inhabitants. In addition, we are supplying 1 liter glass operation in brazil bottles from Riberao Preto to Espirito Santo Market share – Juices and others 30.5% 33.3% 38.2% 47.0% 34.8% 35.3% 38.2% 41.4% We position ourselves as the 2nd Coca-Cola area, allowing us to better service the market, bottler in South America and are among In line with our strategy of rationalization segmenting customers and offering them Market share - Water 13.0% 14.5% 6.9% 8.2% 42.5% 42.9% 49.4% 44.5% the three largest in Latin America. in the use of resources, during the second an attractive value proposition. quarter of 2016 we closed our Vitoria plant Collaborators 3,369 3,328 8,039 7,918 3,324 3,485 1,076 1,527 We are the sole producer of Coca-Cola in Brazil, industrially reorganizing our op- Looking to the future, the strict control of soft drinks in Paraguay, the second largest eration in that country. costs and expenses will allow us to keep Bottling facilities 3 3 3 2 4 4 1 1 producer in Brazil and the largest producer us on the path of creating value for our in Chile and Argentina. The rationale behind the closure of the plant customers, consumers, collaborators and Other plants 1 1 4 0 0 0 0 0 is given because the cost of production in shareholders. Within the beverages licensed by The our plants in Rio de Janeiro and Riberao Distribution centers 26 23 13 16 17 17 3 3 Coca-Cola Company, we produce and dis- Preto was less than the cost of production tribute carbonated soft drinks, fruit juices, in Vitoria, and this compensates for higher San Juan, Mendoza, San Luis, Part of the states of Río Antofagasta, Atacama, All of the Paraguayan Córdoba, Santa Fe, Entre Ríos, de Janeiro, Espirito Santo, São Coquimbo, Región territory. mineral and purified water, flavored water transfer freights we will have to pay due to La Pampa, Neuquén, Río Negro, Paulo and Minas Gerais. Metropolitana, San Antonio, isotonic and energy drinks. the centralization of production. Chubut, Santa Cruz, Tierra Cachapoal, Aysén and Regions reached del Fuego and the Western Magallanes. province of We distribute beer in Brazil and in southern This reorganization project also included Buenos Aires. Argentina, and liquors in the South of Chile. the transfer to Riberao Preto of the PET line In Argentina and Chile we produce PET bot- that we had in Vitoria, allowing us to begin the production of mineral water at the site.

1 Refillable PET: Polyethylene terephthalate bottle that supports reuse in a safe manner, since the material possesses adequate density to tolerate the processes of returnability and sanitization.

10 • Coca-Cola Andina • Sustainability Report 2016 11 We achieved a net income of

GRI: Andina in numbers MUSD G4-8 We are the We delivered more than 2.627 G4-9 G4-12 nd in 2016. G4-EC7 2 G4-EC8 Coca-Cola bottler in 4.4 More than South America. billion liters 16,258 of beverages in 2016. collaborators make up our family. We have We have presence in 59 4 countries, distribution centers. We reached Argentina, Brazil, Chile and Paraguay. 258,807 customers. market beverage portfolio work environment community • 779 million unit cases (UC) in • More than 38 brands. environment • 100% of the packaging of the • 100% of waste water at our • ThCh$ 322,286 paid in taxes sales. • 39,033 hours of safety training. products we offer is recyclable. plants is treated and becomes during the last year. • 36% of the product portfolio is suitable for human life. • Franchise extension of 2,862 low in calories or zero calories. • 275,944 hours of training inves- • We performed inclusive recycling • 8,927 suppliers, 97% local. Km2. ted in 2016. programs in Argentina, Brazil • We recycle 82.9% of solid waste • 19 new products. • 66% of customers are small and Chile. generated across the company. • We are one of the largest bott- • ThCh$ 210,546 paid in salaries and medium-sized enterprises • 38.5% of sales in returnable lers in the region. and social benefits to collabo- • 2,431 tons of post-consumption • 75% less particulate emissions (SMEs), kiosks, mom & pops and formats. rators. PET recovered. in 151 trucks with BlueTec 5® self-service. • 10 bottling plants. • 6.7% of sales are products technology. • 173 socio-labor underprivileged • 2.63% of PET raw material used • We promote our products • Franchised territories with 52 containing vitamins, minerals or people are part of our team of for our packaging is of recycled • 600,000 kwh/year lower con- responsibly. We do not direct million inhabitants. added nutrients. collaborators. origin. sumption due to Energy Reduc- advertising to children under 12 • We provide clear and accurate tion in Blowing Air. years of age. • 10% of our collaborators are • 5.34% of the raw material used nutritional information. women. in our glass bottles is of recycled origin. • 197 tons of PET reduced in 2016.

12 • Coca-Cola Andina • Sustainability Report 2016 13 GRI: Our value chain Code of Ethics, G4-2 G4-12 G4-56 e are part of The Coca‑Cola System Risks in the value chain are managed by a guide to action On the path toward G4-57 Wand we are proud of that. As bottlers the procurement areas of each country, excellence, we base our we operate according to their world-class on the basis of corporate policies and a activities on the world- standards and interact with an extensive permanent relationship and exchange with At Coca-Cola Andina we encourage good practices and act based on principles class standards that regional value chain, promoting mutually the industrial chambers. Dealing with issues and ethical conduct described in the policies of our Company. characterize beneficial links that allow creating shared such as fraud, business practices, human value and more sustainable operations. rights and sustainability risk. The Coca-Cola System, promoting sustainable he Code of Ethics is a set of principles operations and the T and business conduct that guide the creation of shared value. behavior of all employees, contractors, consultants and members of the Board OPERATION of Directors in the exercise of their duties. AND LOGISTICS It relies on the maintenance and internal- SUPPLIERS OF RAW MATERIALS ization of corporate policies that respond UPSTREAM AND SERVICES to issues such as compliance with legal and • Includes suppliers that provide raw COCA-COLA ANDINA materials and services to the BOTTLING PACKAGING regulatory standards; conflicts of interest; • Bottling, packaging and all various operations in Brazil, transparency and accuracy of accounting Argentina, Paraguay and Chile. administrative and logistic • Implementation of sustainable tasks. Relieving and information; fraud, corruption and money minimizing impacts packaging. laundering; dealings with public officials, customers and suppliers; political and humanitarian contributions.

THE COCA-COLA COMPANY In this context is that in 2016 we launched (TCCC) "Coca-Cola Andina’s Program of Policies", •Supplier of concentrates and an initiative consisting of a set of online syrups. DISTRIBUTION • The Coca-Cola System • Includes distribution (Own courses and interactive experiences which Operating Standards (KORE). Distribution Centers). - through the platforms installed in the • Standards for suppliers of raw • Optimization of routes in order materials. to reach everyone. four countries - will allow contributors to • 2020 Sustainability Goals - know in detail the content of the policies Sustainable Agriculture. of our Company to make them part of the daily work. A commitment to Integrity as a fundamental pillar to move forward on CONSUMERS RECYCLING AND the path of transparency. RECOVERY • Involves recycling and recovery strategies in conjunction with the CUSTOMERS community. • Includes the wide network of • Improvements in reverse logistics. customers, mostly small kiosks and • Accompaniment to recyclers. mom & pops. • Consumer awareness. • New cooling technologies that reduce energy consumption.

DOWNSTREAM

14 • Coca-Cola Andina • Sustainability Report 2016 15 supplier and third party code of business conduct GRI: We live by our values, G4-56 G4-57 t outlines the minimum principles of on grounds of race, color, religion, gender, compliance. We also reserve the right to G4-58 business conduct in which actions by age, physical ability, nationality and sexual terminate the relationship with any supplier consolidating our identity I G4-DMA suppliers, contractors and subcontractors orientation. that does not comply. During 2016, we continued enhancing the internalization process of our G4-SO4 of Coca-Cola Andina and each of its sub- Mission, Vision and Values, a stage proposing us to identify, live and spread sidiaries must be framed, as well as those It sets compliance with labor law, respect for We have an independent whistleblower of their respective employees, agents, and human rights, and freedom of association, channel to offer interested stakeholders a the guiding principles that lead us to further consolidate as one company, one intermediaries. and offering workers a safe working envi- simple and risk-free way to anonymously team. ronment, to prevent accidents or harmful and confidentially report activities that may These guiding principles are the basis of effects on health. involve irregularities, inappropriate use of t Coca-Cola Andina, we know what we We are a great team with its own identity, them to the specific needs of each region, the relationship with our value chain and the goods or resources of the Company, A want to achieve and how to become which guides our actions and enriches is the one that we continued strengthening include the compliance with legal, admin- Each supplier acknowledges its exis- abusive conduct, violation of applicable a world-class company with presence in our work with a deep sense of belonging. in 2016 through different activities and istrative and regulatory standards in each tence, contents and enforceability at the law or of our corporate policies. Argentina, Chile, Brazil and Paraguay. We campaigns of Mission, Vision and Values country, especially those concerning money beginning of the relationship. We seek to are united by the same passion, the same This compass that we began re-outlining that invite us to internalize the principles laundering, terrorist financing and bribery. constructively collaborate with suppliers commitment and the desire to do and grow. three years ago in a unified manner in all that govern our daily work, which identify who show commitment, application checks of our operations, following the precepts and distinguish us. The Supplier and Third Party Code of Busi- are performed periodically and according of The Coca-Cola Company, but adapting ness Conduct prohibits forced labor and to criticality criteria. If any action or op- the work of minors, discrimination in the posite condition is identified, we have the practices of recruitment and employment right to take corrective measures to ensure Mission Vision Add value growing sustainably, refreshing our Lead the beverage market, being recognized for our consumers and sharing moments of optimism with management excellence, people and welcoming In the first our customers culture. e-learning course of Corporate Governance and our values Code of Ethics carried out, we

achieved a rate Team Work Focused on our customers Oriented on results of adherence of We promote trust, cooperation, respect We know the needs of our customers and We approach our energies on an efficient and diversity in our work environments, concentrate our efforts to fully fulfill the work in order to achieve the proposed goals. 71.75%. adding the personal contribution to the promise of service and dedication to the joint creation. market.

Attitude Integrity Austerity

We are moved by passion, commitment We believe in honesty, transparency and We take care of the resources as if they > See more: and perseverance, confirming our desire coherence as a basis for our behavior, were ours, responsibly orienting costs to https://secure.ethicspoint.com/ to always do our job better at all times. respecting the Company’s values. the Company’s needs and requirements.

16 • Coca-Cola Andina • Sustainability Report 2016 17 GRI: G4-56 G4-57 G4-58 Coca-Cola G4-SO4 G4-DMA Andina, BIRTH OF 70 years EMBOTELLADORA ANDINA Embotelladora Andina is born of a with license to manufacture and distribute Coca-Cola 1946 1981 products in Chile. Sales went 1984 collective from the individual bottle to Diet Coca-Cola is the case of 24 – 8 oz bottles launched in 1984. dream (today” the unit case”). Sprite Light is launched in 1981.

Entry into the Brazilian 2002 EDASA centralizes market acquiring Rio de productive operations in Inauguration of the San 1960 Janeiro Refrescos, a Córdoba, closing the Joaquín Plant in Santiago. 7,076,700 American bottler in the city of Rio fter 70 years of inspiring stories, full of 1994 plants in Mendoza and Depositary Receipts de Janeiro, with a plant in effort and commitment, we became Rosario. A (ADRs) placed on the Jacarepaguá. one of South America's largest bottlers New York Stock Exchange and a relevant global actor. We are proud (NYSE), raising USD 127 to grow together with collaborators, com- million. munities, and our value chain; with whom we learn to make our positive impact on the things we do. 1978 1979 The Vital mineral water Entry to the Argentinean 2000 plant began operating on market continues with the acquisition of Embotelladora Acquisition of the Termas July 1st 1979 and the del Atlántico, controlling Minerales de Chanqueahue Schweppes franchise was 1995 The company was shareholder of the bottler of and the Vital mineral water granted to Andina in awarded third place in the Coca-Cola products for the brand. September 1979. Operations of Latin America total territories of Rosario and Envases Central quality index in the begin. Coca-Cola System. 1981 The most modern non-returnable container in 1999 The Coca-Cola bottler the world “plastishield” is The Montecristo for Niteroi, Vitoria and introduced in Chile. production plant is Governador Valadares inaugurated in Córdoba, is acquired in Brazil. Argentina. > See more: www.koandina.com/

18 • Coca-Cola Andina • Sustainability Report 2016 19 GRI: Sustainability, G4-DMA a transverse axis

Sustainability management and governance are the 2011 Andina celebrates 65 Speciﬁc and functional years and the new plant core of our culture. They lead internal and external in Chile begins operating. 2006 products were integrated relations involving suppliers and contractors. to the great family of They allow us to lead the market, adapt, innovate products. and grow as a great company, one team.

2012 ONE COMPANY, ONE TEAM.

ptimism is our inspiration at Coca-Cola ›› We promote a safe and comfortable ›› We seek to contribute to the progress of The merger with Change of corporate image Andina and we communicate it to all working environment because we believe the communities where we develop our Embotelladoras Coca-Cola to Coca-Cola Andina. O our stakeholders. This inspiration helps us that motivated people are the basis of activities, through programs that promote Polar materializes, and the to grow in a sustainable way, i.e. to meet corporate sustainability, allowing to build local economies, create opportunities Company has the franchise in the present needs ensuring that future a better company. and improve the quality of life of people. 2008 Andina incorporates the the entire territory in Paraguay generations can meet theirs with equal Benedictino Brand to its Acquisition of 40% of availability of resources. ›› We encourage the growth of our industrial Coca-Cola Andina’s sustainability vision is water portfolio in Chile. Sorocaba Refrescos in Brazil. The Sucos del Valle brand and commercial activities in harmony constructed from the requirements of The is acquired in Brazil 2013 Materialization of the Our development is based on ethical conduct with the environment being proactive Coca-Cola Company as well as from the through the Mais joint acquisition of 100% that guides our value chain. The quality of and innovative. surveys carried out to our stakeholders. venture, a leading Brand of the shares of our operations seeks to simultaneously serve in the juice segment in Companhia de our customers, consumers, shareholders, ›› Water is a vital resource for life and Within the framework of our permanent this Market. Bebidas Ipiranga in employees, suppliers and the community aware of this we seek a responsible use, improvement process, the risks and op- Brazil. in general, on the basis of these principles: we develop processes that allow greater portunities of the business throughout its consumption efficiency and we return value chain are continuously assessed, ›› Always focused on the needs of our this vital resource to nature. which allows the development of strategy, consumers, we concentrate on offering formulate objectives, targets and indicators. a broad portfolio of beverages of the ›› Our packages are designed to reduce, Measurement and accountability is a key 2016 highest quality. recycle and reuse the materials, in order and very enriching fundamental stage for to preserve natural resources. sustainability management. 70 years of ›› In this way we provide alternatives for spreading joy. proper hydration according to every ›› We work to minimize carbon emissions lifestyle. from the optimization of energy consumption and the implementation of ›› Our commitment is to promote active and renewable energy. healthy lifestyles for both our employees and the community.

20 • Coca-Cola Andina • Sustainability Report 2016 21 Our Sustainability Business risk analysis, GRI: G4-2 strategy and anticipation G4-45 management focal points G4-46 G4-DMA In conjunction with The Coca‑Cola Company we have defined four work areas To correctly manage our Company requires to and seven priority focal points in our commitment to the path of sustainable anticipate and foresee possible risks that could alter development. business execution. This contributes to strengthen the development of activity and increase the credibility and confidence in the brand. Market Active, healthy living Beverage Benefits We promote a healthy and active lifestyle We want to satisfy the consumption needs offering a wide range of beverages, providing in the market, offering a quality beverage nutritional information and encouraging oca-Cola Andina manages business operation of processes reported by the portfolio, in which consumers can trust. Market physical activity and healthy habits. risks by establishing principles, basic Risk Committee. The Integrated Management System,

elements and the general framework for containing the risk matrixes of legal

ts ctive

efi ,H their administration, in order to ensure The Risk Committee is composed of the compliance, environmental impact,

en ea

lth

ge y

a i the proper governance of the process, Chief Executive Officer, the Chief Financial safety and occupational health, were

Community er vi Environment

v ng

We seek to contrib- Water i.e., identification, measurement, control, Officer, the Chief Legal Officer, the Chief incorporated to Coca-Cola Andina’s

ute to the develop- stewardship mitigation and monitoring of relevant risks Human Resources Officer, and acting as risk management. The result arising

ment of the com- Our goal is to safe- that may adversely affect the goals of the executive secretary, the Manager of Corpo- from the annual risk review is submit-

y W

munities where we t ly return to nature i Company and those of shareholders and rate Management Control and Sustainability, ted to the Audit area, which will verify

t conduct our activi- n y e and communities

t r i stakeholders. who should report to the Board of Directors the effectiveness of the mitigation

u n S

t ties through various u an amount of water

e on a quarterly basis. plans described by the operations. m w m programs to develop equivalent to what a

m r Since December 2015 we have a new policy o

d local economies, we use in all of our o C

h and procedures that allow us to ensure the Its management is aimed at mitigating the

C create opportunity i beverages and their

safety of our processes and the quality of risks that may arise in the development of

and improve the production.

our products. The construction of the new the Company’s activities and which may quality of life of

matrixes was performed seeking the partic- affect the goals established by the Board people. t ipation of expert areas and benchmarking of Directors, of: g n n i e W g between the different countries. This new o a r k k c m methodology, validated by third parties, ›› Achieve the Company’s strategic ob- E a n W n vi le o allows the collaborative construction and jectives. ro b r o n a i r m in v raise control standards. k en ta t us n S E ›› Protect the Company’s results and En nt ergy anageme and tion The Board of Directors continues to be reputation. Climate rotec primarily responsible for safeguarding the

value of the Company's potential losses, ›› Defend the interests of shareholders and

enhance Risk Management culture in the stakeholders. organization, know and understand the Work environment relevant risks that may affect it; approve ›› Ensure the economic, social and envi- We promote a safe and diverse work en- Energy management and climate Sustainable packaging the strategy and general guidelines for Risk ronmental sustainability. vironment that enhances the individual protection We strive to reduce, recycle and reuse Management, and monitor the continuous qualities of people, to inspire them to give We work to minimize greenhouse gas materials and preserve the resources. emissions of our operations. the best of themselves. We adhere to the > See more: international principles of human rights. www.koandina.com/

22 • Coca-Cola Andina • Sustainability Report 2016 23 GRI: Analysis and G4-24 G4-25 sustainable Ingredients: Manufacture: G4-26 G4-37 Our products are made from We guarantee the quality and safety of G4-DMA management of concentrates and syrups supplied by our products. We improve technology in our brand-owners. As a bottler, we the processes to reduce environmental the lifecycle of add sugar, water and carbon dioxide impacts within a process that meets the highest our products standards. INGREDIENTS, PACKAGING Actions: Reduce water consumption. MANUFACTURING From the raw materials to the disposal process, at Minimize the environmental impact Actions: Guarantee the quality of packaging. and safety of our products. Use Coca-Cola Andina we care about every phase of the technology with the least possible Packaging: impact on the environment. lifecycle of the beverages we produce, seeking to Distribution: generate the energy required without depleting the We work with our packaging suppliers to Ch. 4 and 6 resource, protecting the community, the economy reduce impacts on the carbon footprint We monitor the delivery routes. We Ch. 2 and 5 and the environment. as well as water consumption. improve distribution technology to LANDFILL, RECYCLING reduce the carbon footprint. Actions: use returnable DISTRIBUTION and eco-friendly bottles. Actions: Diagnose the carbon footprint.

Landfill: Ch. 6 Ch. 5 We seek to minimize the presence of our bottles in landfills, even in cities where

differentiated urban waste management CONSUMERS Cooling & does not exist. Actions: Deliver better information to our customers and contribute to their VENDING, customers: well-being with our products. CLIENTS Actions: Actions: contribute to the development of our network of We invest in the latest technology small customers. in coolers to reduce environmental impacts. We train our customers to Ch. 2 and 8 Recycling/Reuse: Ch. 2 and 3 incorporate them as an essential part of our sustainability. We develop our We promote the use of returnable network of small customers. bottles and activate post-consumer waste recycling initiatives. Consumers:

We deliver the best information to our consumers and contribute to their well- being with our products.

24 • Coca-Cola Andina • Reporte de Sustentabilidad 2016 25 Participation and dialogue Issues relevant to with stakeholders Sustainability management We value the opinions of major public with whom we interrelate and promote honest Consultation and the permanent exchange with our stakeholders is what allows and transparent dialogue through multiple communication channels to address us to nourish us as a company, identify needs and set priorities to make relevant issues that bring us together. possible the objectives that we set in the sustainability field.

art of our sustainability management ensure their representativeness, in order to depending on the relevance of issues for the P involves addressing issues that matter achieve continuity year after year, checking sustainable management of the business. to us as well as identifying and treating if there were variations in their expectations. those that are key to the stakeholders that There is a permanent feedback with cus- uring 2016 our Company updated to raise awareness and get information During 2016 we reaped the fruits of the make up our System. The multiple two-way communication tomers, suppliers, shareholders, workers D the perception studies on different from the presentation of representatives efforts made every year by being recognized channels we have allow us to empathize and consumers, who also have access to stakeholders and held the first meeting of different Latin American countries, to as one of the five best Chilean compa- We annually review the audience identified with them and better understand what a whistleblowing channel with the sustainability leaders of each then more closely analyze the actions nies by joining "The Emerging Market 70 in each operation through sustainability their interests are, thereby assigning priority operation, which allowed to validate the implemented by country, the proposals Ranking", an index prepared by the Vigeo committees and seek different tools to material issues and understand the reality for the medium-term and the degree of rating agency, and becoming part of the of each community in which we operate, response to the material issues. select group of 21 companies in Chile to redefine the direction and priorities of that integrate the Sustainability Index of Suppliers and Consumers and the planned initiatives. By sharing action plans and debating the the Santiago Stock Exchange (Dow Jones Shareholders Coca-Cola Governance Collaborators contractors Customers community relationship with the sustainability axes Sustainability Chile Index). ›› Define mission, vision ›› Franchisor ›› Regulator - Promoter. ›› One of the basic pillars ›› Provide raw materials ›› Strategic partners in ›› Our Company’s source In the framework of the workshop which allowed us to grow as a company and gave and strategy ›› Supplies concentrate ›› Legal operating of the business and and services required the development of our of motivation and of its ›› Investors and promoters and syrups. framework. success factor. for operations and business. sustainable growth. was held in Buenos Aires, Argentina, we rise to the assembly of an internal network This not only motivates us to continue of growth and ›› Coca-Cola operating ›› Partners in public- compliance of goals of ›› Among them, small ›› They define our offer, participated as a Coca-Cola Andina team for sharing best practices, reduce barriers to growing and improving in response to the innovation. requirements (KORE). private alliances. the different operations. grocers make up an changes in market ›› Custodians of the ›› Standards for raw ›› They are strategic essential link of our preferences (cooling, representative at the International Confer- change and contribute to the achievement different stakeholders, but it also confirms company’s value and material suppliers partners for the supply value chain, since in nourishing, contribution ence of the Argentinean Institute of Social of objectives. that we are on the right track. its value creation for ›› 2020 Sustainability and quality of products addition to the social to healthy living); and the Responsibility. This conference served society. Goals. and packaging. impact they generate satisfaction of present ›› Area dedicated to ›› Sustainable agriculture. ›› They have a great on the development of needs, ensuring those of the relationship with indirect economic local economies, they the future generations. shareholders. impact on the local are responsible for a ›› They are strategic economy, since a significant proportion of allies for contributing great percentage of the Company's sales. to progress and purchases is regional environmental care and local. (post-consumer: recycling and recovery) of the communities where we develop our activities.

Communication channels ›› Regular communication ›› Regular communication ›› Regular ›› Regular communication ›› Regular communication ›› Means of regular ›› Digital channels. / digital channels. / digital channels. communication / / digital channels. / digital channels. communication (visits ›› Relationship activities. ›› Meetings with the CEO. ›› Meetings. digital channels. ›› Work environment and ›› Periodic meetings. of developers) / Digital ›› Participation in ›› Shareholders’ meetings. ›› Participation in joint ›› Meetings with different satisfaction analysis ›› Interviews. channels. organizations. ›› Andina Day (event with initiatives. governmental levels. and surveys. ›› Surveys. ›› Surveys and ›› Perception analysis and visit to facilities). ›› Direct relationships with ›› Annual Report. ›› Performance ›› Audits. satisfaction analysis. surveys and assessments. ›› Annual Report. specific areas. assessments. ›› Plant visits. ›› Service and customer ›› Plant visits. ›› Construction of joint ›› Internal magazine. development centers, plans. ›› Annual Report. call centers. ›› Audits. ›› Plant visits. ›› Annual Report.

26 • Coca-Cola Andina • Sustainability Report 2016 27 GRI: G4-19 G4-20 G4-21 G4-26 G4-27 G4-37 At Coca-Cola Andina we consider the issues that are a priority for The list of issues arising from the above mentioned sources will material issues of sustainability management our shareholders and for The Coca-Cola Company: those coming be again consulted during 2017 with the principal groups with according to 2015 survey from communication channels with our main stakeholders, which whom we interrelate. The purpose of the consultation is to verify are key to the sustainability of the companies in the food and bev- its validity and importance and give the opportunity to add new erage sector, and those suggested by international organizations topics that should be taken into consideration by the Company with influence in the sector. or its internal and external audiences. Product quality, VERY HIGH Client development. excellence and wellness. In addition, we consider the issues arising from the Sustainability It should be noted that issues relating to human rights and diversity Management of internal work environment, platform "Live Positively"; those coming from other internal sources and equal opportunities are considered as cross-cutting aspects quality of life and people development. that highlight economic, social or environmental aspects that of the Sustainability Axes (specifically in the Work Environment; Suppliers´development. Business management can influence our stakeholders, and indicators for the Sector's Community; Beverage Benefits and Healthy and Active Life) de- transparency. Global Report, the Global Reporting Initiative – GRI G4 version fined by the Company. The implemented actions can be seen in for the food industry. the next chapters of this report. Sponsor healthy and active living. HIGH STAKEHOLDERS

Development of local communities FOR

NO ZERO GOOD HEALTH QUALITY GENDER CLEAN WATER MEDIUM Ef cient distribution POVERTY HUNGER AND WELL-BEING EDUCATION EQUALITY AND SANITATION Packaging and waste management

RELEVANCE Energy management

Water stewardship

AFFORDABLE AND DECENT WORK AND INNOVATION AND REDUCED SUSTAINABLE CITIES RESPONSIBLE Responsible marketing CLEAN ENERGY ECONOMIC GROWTH INFRASTRUCTURE INEQUALITIES AND COMMUNITIES CONSUMPTION AND PRODUCTION Relationship with stakeholders (Coca-Cola, clients, communities, etc.) LOW

CLIMATE LIFE BELOW LIFE PEACE, JUSTICE PARTNERSHIPS IMPORTANCE IN THE COMPANY'S STRATEGY ACTION WATER ON LAND AND STRONG FOR THE GOALS INSTITUTIONS

28 • Coca-Cola Andina • Sustainability Report 2016 29 Priority material issues How we monitor and In this report we Chapter in which information can highlighted 2016 report on performance: inform about: be found: GRI: Key Sustainability G4-19 ›› Company G4-20 Quality, excellence and well- ›› Customers ›› Product quality* ›› Beverage Benefits G4-21 being of products ›› Community performance indicators ›› Suppliers G4-26 G4-27 ›› Company G4-37 Customer development ›› Customer satisfaction* ›› Beverage Benefits ›› Customers We constantly monitor more than 40 indicators that are part of our ›› Company Supplier development ›› Report ›› Community ›› Customers operation metrics, but 10 of them are key in responding better to our ›› Company Economic and social ›› Community sustainability performance for the development of local ›› Report ›› Consumers ›› Community issues that are relevant to companies communities ›› Customers ›› Suppliers of the sector, The Coca-Cola

Efficient distribution of our ›› Company ›› Energy Management and Company, shareholders and major ›› Report products ›› Customers Climate Protection stakeholders.

›› Solid waste recycling * ›› Company ›› Sustainable Packaging

Sustainable packaging and waste management n addition to our Company’s own key positions us within the 21 companies that Becoming part of the Global Pact Chile ›› Company ›› Packaging quality * ›› Sustainable Packaging performance indicators, we perform integrate the Sustainability Index portfolio. made us mature as a company and during ›› Suppliers I measurements with tools of international 2016 we trained to begin to analyze our scope, such as the Global Reporting Ini- As part of the measurement, we conducted sustainable performance in light of the ›› Company ›› Energy Management and Energy management ›› Energy consumption efficiency * tiative), CSR ETHOS-IARSE indicators of perception studies in order to monitor the objectives of Sustainable Development. ›› Customers Climate Protection the CSR-PLARSE Latin American program, opinion of stakeholders on our performance, Therefore, in this report we will find all the along with others of nationwide scope in including surveys on the local community, initiatives that bring us closer to this chal- ›› Company Water management ›› Water consumption efficiency * ›› Water Stewardship each country. working environment measurement (bi-an- lenging mission to join the United Nations ›› Community nual) and customer satisfaction surveys. in building a better world. We also comply with the standards of ›› Labor safety * ›› Company Internal work environment Chile’s Superintendence of Securities The performance results of key indicators It should be noted that the operations of management, quality of life ›› Employee turnover * ›› Company ›› Work environment and Insurance, with respect to corporate in each one of the operations are presented Coca-Cola Andina report monthly on the and development of people ›› Favorable internal climate * ›› Company governance practices adopted by listed throughout the various chapters in this performance of key sustainability variables companies (Chile’s General Standard Nº report. Each one of them also incorporates to the Chief Executive Officer of the Group. Responsible MKT ›› Report ›› Company ›› Beverage Benefits 385). In 2016 for the second consecutive secondary indicators that help validate and year we responded to the requirements of satisfactorily respond to the above-men- the Dow Jones Sustainability Index Chile tioned requirements. (DJSI Chile) and the good result achieved Promoting healthy active life ›› Report ›› Company ›› Healthy Active Life

›› Report ›› Company Relationship with ›› Corporate Governance stakeholders (Coca-Cola, and Sustainable customers, community etc.) ›› Annual Report ›› Company Management

›› Report ›› Corporate Governance ›› Annual Report ›› Company Business management and Sustainable transparency ›› Stock Exchange reports ›› Suppliers Management ›› SEC reports 20F

* Key Sustainability Performance Indicators

30 • Coca-Cola Andina • Sustainability Report 2016 31 Key Sustainability Performance Indicators

Argentina Brazil Chile Paraguay

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 Efficiency in water consumption 2.03 2.02 2.22 1.76 1.73 1.70 2.70 2.61 2.51 2.14 2.19 2.10 Number of liters of water needed to produce one liter of beverage Efficiency in energy consumption Energy used per liter of produced 0.34 0.33 0.34 0.33 0.38 0.23 0.28 0.28 0.29 0.59 0.60 0.54 beverage - ThJoules / liter of produced beverage Solid waste generation Grams of solid waste generated per 13.76 12.96 13.98 11.76 10.86 6.49 15.42 14.75 19.09 23.30 25.99 25.65 liter of produced beverage Recycling of solid waste 91.00 92.20 89.71 91.00 90.10 88.73 82.90 83.30 82.95 80.00 75.30 71.86 Percentage of recycled waste in relation to generated waste Industrial Safety 215.01 202.10 143.08 7.30 6.94 6.61 62.58 52.99 47.95 4.08 3.84 3.73 LTISR Severity in accidents LTIR Number of accidents 8.45 6.14 5.07 0.75 0.53 0.58 6.50 4.19 2.60 0.82 0.59 0.46 Customer satisfaction Bi-annual measurement with all of 85.00% 85.00% 86.30% 70.80% 70.80% N/A 61.00% 75.00% 75.40% 83.00% 83.00% 86.80% Coca-Cola Andina's operations in scope Product quality Beverage Product Quality Index 93.50% 91.60% 92.10% 96.80% 94.10% 93.30% 95.20% 96.20% 86.20% 94.60% 97.60% 93.80% (BPQI) Rating Packaging Quality Packaging Quality Index (PCQI) 90.00% 89.60% 93.70% 94.40% 86.10% 94.90% 87.60% 90.00% 83.50% 81.80% 79.70% 94.50% Rating Employee turnover 0.41 0.49 0.38 3.55 2.84 2.71 1.93 2.04 2.6 0.62 0.50 0.45 Favorable internal environment Bi-annual survey (2013 data) 63.00% 64.00% 64.00% 60.00% 66.00% 66.00% 59.00% 60.00% 60.00% N/A 66.00% 66.00% territories prior to merger with Coca-Cola Polar

32 • Coca-Cola Andina • Sustainability Report 2016 GRI: G4-26 G4-49 G4-DMA G4-EC1 Consolidated Our economic performance State Contributions (THCH$) 2016

Income tax 22,702

Customs duties 5,649 The flow of capital he disclosure of economic indicators The following charts show the distribution of Net VAT paid 283,056 between our T is part of the information we report value between our major stakeholders and stakeholders and the every year that reflects the socio-economic the economic impacts on the communities Real estate tax 1,301 economic impact of our contribution of Coca-Cola Andina. where we operate. Rejected expense tax 135 Financial credit tax 0 operation on society are Suppliers, carriers, distributors, customers For more information on our economic other variables which and consumers are part of the system of performance please access our 2016 Foreign services paid 1,270 are reported within our Company and they are the ones who Annual Report. Payment of commercial and industrial patents 1,179 the framework of the collaborate in order to leave a positive Less franchises and tax credits -10,011 footprint creating value with commitment > See more: Others (Specify) 17,005 Sustainability Report. and optimism. www.koandina.com/ Total State Contributions 322,286

Penalties and fines Payment of labor, tax and fines to Seremi Consolidated (Ministry’s Regional Office) 66 Economic Value Generated (THCH$) 2016 eop Payments of judgments 443 Revenues: includes CF lines: sales receipts from goods and services + other operating receivables 2,415,467 Total 509 Sales of fixed assets and others: includes CF lines: sales receipts from fixed assets and loss of control in subsidiaries 70 Subtotal 2,415,538 Net effect of financing activities: Total CF financing activities excluding dividends paid -30,633 Total Economic Value Generated 2,384,905 ECONOMICECONOMIC VALUEVALUE DISTRIBUTEDDISTRIBUTED BYBY COUNTRYCOUNTRY Purchase of property Distributed Economic Value plantPurchase and equipment of property plant and equipment Salaries Suppliers, contractors, distributors 1,644,728 Salaries Purchase of property, plant and equipment 128,217 State contributionsState Salaries 210,546 contributions State Contributions 322,286 Dividend payments 67,592 Dividend paymentsDividend Social investment 230 payments Total Distributed Economic Value 2,373,599 Suppliers, Salaries. State Suppliers, Purchase of Salaries. State Total net flow for the period 11,306 contractors, Purchase property, of contributions. distributors. contractors, property, contributions. distributors. plant and Suppliers, equipment. plant and contractors,Suppliers, equipment. distributorscontractors, distributors Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay

34 • Coca-Cola Andina • Sustainability Report 2016 35 *** governance structure GRI: Sustainability Policy and G4-34 G4-35 management structure G4-36 G4-48

Ethics Committee The corporate sustainability policy sets BOARD OF DIRECTORS A plan for every reality out the responsibilities, management Sustainability at Coca-Cola Andina is and operating model of sustainable Executive Committee Audit Committee strategically managed at the group level, but also providing flexibility to the development management. operations to adapt the Sustainability Directors´Committee Plan to the particular characteristics of each local context and to the needs of Internal Audit every community where we operate. Chief Executive Oﬃcer Miguel Ángel Peirano

Corporate Sustainability Committee Chief ›› Definition of goals and objectives. Financial Oﬃcer* ›› Definition and review of metrics and indicators. — Andrés Wainer ›› Approval of subscriptions. General Manager Argentina ›› Approval of plans and projects. — Fabián Castelli Chief Executive Chief Financial Chief Human Resources Manager of Corporate ›› Ensure the connection to sustainability pillars. Officer Officer Officer Management Control and ›› Review and approval of the Sustainability Report. Sustainability Chief Strategic Planning Oﬃcer — Tomás Vedoya

General Manager Brazil — Renato Barbosa

Chief Legal Officer — Jaime Cohen Operation – Sustainability Committee ›› Definition of goals and objectives to develop in the operation. General Manager Chile ›› Definition and review of metrics, tracking of Chief Process and — José Luis Solórzano each plan. Information Technology Officer Argentina Brazil Chile Paraguay ›› Approval of subscriptions for the company in — Carlos Gálvez Enrique Marcio Fernando Leandro the territory. ›› Approval of plans and projects. Pérez Estévez Greco Jaña Vergara Capristo ›› Coordination and implementation of the plans. ›› Compilation of the Sustainability Report Chief Human General Manager Resources Officer Paraguay information. — Gonzalo Muñoz — Francisco Sanfurgo

> See more: www.koandina.com/

*** Access the 2016 Annual Report in order to know about the structure, powers and functions of the Higher Governance Body and its committees. * The Manager of Corporate Management Control, Sustainability and Risk, depends on the Chief Financial Officer. * You will find the Corporate Sustainability Policy at http://www.koandina.com/pagina.php?p=gobierno-politicas&loc=en

36 • Coca-Cola Andina • Sustainability Report 2016 37 outstanding case we are actively involved in the following organizations awards and recognitions obtained GRI: G4-34G4-16 G4-35 G4-36 G4-48

PARAGUAY BRAZIL PARAGUAY BRAZIL

National Police - Arroyo Seco Police Station, close to Paresa Oportunidade Especiais. Grand Prize 2016 Coca-Cola Brands Award in the category Coca-Cola Brazil Productivity and Operating Excellence (monthly). for soft drinks and juices. Award -Silver Project: reduce the loss of returnables, lines AFBCC - Associação Fabricantes Brazileiros de Coca-Cola. 2 and 3. Fundación Dequeni - actions to promote education. 2016 Coca-Cola Prestige Award in the category for soft ACRJ- Associação Comercial do Rio de Janeiro. drinks & water. 2nd place Coca-Cola Quality Award Jacarepaguá Bottling Fundación Paraguaya/Junior Achievement - Dale Juguemos. Facility. ACIJA - Associação Comercial e Industrial de JPA. Top of Mind 2016. World Wildlife Foundation. ABIR - Associação Brazileira das Indústrias de Refrigerante. Honorable mention Coca-Cola Planet Trophy – Caju Voluntary Firemen Distribution Center. Espírito Santo em ação. Fundación Moisés Bertoni. LEED Platinum Certification – Caju Distribution Center Instituto Coca-Cola. Teletón. 1st place S&OP certification ranking Coca-Cola Andina Semana Otimismo. Brazil-Silver Certification. Techo Paraguay. Coletivo Jovem e Coletivo Floresta Instituto Coca-Cola. FUPADI. CIESP - Centro de Indústria do Estado de São Paulo. Fundación Paraguaya - Plan Emprendedores. CIRJ - Confederação das Industrias do Rio de Janeiro. Education Ministry. Health Ministry.

ARGENTINA

Membership Fundece (EXC). Membership IARSE. CHILE CHILE Sponsorship of events food bank Mendoza. Centro de Estudios Públicos. ALAS Awards (Sustainable Leaders Agenda). Category: Best Climatic change – Support the program Educate in of the best Chile and leading company in investor relations. Universidad de Los Andes. Afforestation, Fundación ACUDE, 10 programs. ARGENTINA Global Compact best sustainability practices recognition. Asociación de Industrial Proveedoras. Beverage donations Entrance to the Santiago Stock Exchange Sustainability Index. Winners of the 3rd place in the South Latin Business Conf. Gremial Comer Detallista. (Food and authorized orders bank). Unit Cup. Initiatives finalists National Environmental Award SOFOFA. Inclusion education - FONBEC – All of Andina Argentina. "Recyclapolis". Finalists in the GCCL AWARDS ATLANTA with a case of Immediate Consumption. Cámara Nacional de Comercio Chile. Monthly donation for logistics Food Bank. Asociación de Industriales Antofagasta. Social perception survey sample at 3 locations. Cámara de Comercio de Santiago. Benchmarking IPACE (PNC-PIC) indicators Alimentos y Bebidas de Chile. Casa Macuca. Asociación Nacional de Avisadores de Chile - ANDA. Junior Achievement Rosario. Junior Achievement. Junior Achievement Córdoba. Fundación Libertad y Desarrollo. Cooperativa Los Carreros. Unión Social de Empresarios Cristianos. Fundación AVINA. Fundación Ruta 40. Asociación Hospital Infantil. Casa Bethel. CONIN.

38 • Coca-Cola Andina • Reporte de Sustentabilidad 2016 39 outstanding case

Awards which distinguish us and make us proud

If anything characterizes Coca-Cola Andina is the development of sustainable business processes and the delivery of value to the service of our stakeholders and the communities in which we operate. Aspects such as these make the difference and allow us to be recognized.

he permanent incentive for the protec- Annually, only a company by country is T tion of the interests of our Company worthy of this distinction, which is given and our stakeholders, value creation and to those who demonstrate leadership, the efficient use of resources providing consistency and excellence in the public transparency of information are some disclosure of their information on investor of the variables that Coca-Cola Andina relations, sustainable development and stands out for. corporate governance practices.

For this reason, in 2016 we were distin- Together with the highest distinction, "We are convinced In addition, we share the happiness of join- communities, occupational health, and guished as the 2016 ALAS20 Company, Coca-Cola Andina additionally obtained ing "The Emerging Market 70 Ranking", an talent attraction and retention, among the most important category to which a First Place in the Investor Relations Cate- that the work of all index prepared by the Vigeo rating agency, other variables. firm can aspire nationwide in Brazil, Chile, gory and Second Place in the Categories of expert and leader in Europe in the evaluation Colombia, Mexico and Peru. Sustainability and Corporate Governance. our collaborators of the degree that enterprises and public Finally, the Global Compact Chile Network, is what makes corporations take into account environ- an instrument of the Organization of Unit- mental, social and corporate governance ed Nations (UN), recognized Coca-Cola us become a objectives. Ours was one of the first five Andina’s Code of Ethics of Suppliers and benchmark in each selected for having achieved the highest Third Parties as an outstanding practice in scores in a reference universe consisting transparency and anti-corruption. of these important of 850 companies from 31 countries and 37 sectors. It was in the context of the presentation of the pillars, and we will results of the research "Integration System keep on working to In 2016, we also became part of the select of the Principles of the Global Compact" group of 21 companies in Chile that integrate (SIPP for its acronym in Spanish) conducted continue creating the Sustainability Index of the Santiago Stock jointly with the School of Sociology of the shared value." Exchange (Chile Dow Jones Sustainability Faculty of Humanities and Social Sciences Index, DJSI Chile), which recognizes leading of the Universidad Andrés Bello, which Miguel Ángel Peirano, companies in sustainable management of highlights best practices in the four areas Chief Executive Officer of the industry. promoted by the Global Compact: Human Coca-Cola Andina during the Rights, Labor Relations, Environment and ALAS20 award ceremony. The most important dimensions of our Anti-corruption. Company were brand management, administration and relationship with customers, risk and crisis management, environmental policies, supply of raw materials, water as a natural resource, relationship with

40 • Coca-Cola Andina • Sustainability Report 2016 41 GRI: G4-DMA Beverage benefits

our focus

Our commitment is to provide options for living and feeling well in the categories of Energy, Hydration, Nutrition and Relaxation.

Light and Zero Sales Argentina Brazil Chile Paraguay 9.7% 7.7% 32.0% 2.9% GRI: Beverage portfolio A beverage for every need G4-DMA G4-4 FP6 49% of our products are zero t Coca-Cola Andina we accompany Pomelo; Light Del Valle; Kapo Light; Del Soft drinks and low-calorie. We seek to A the changes in preferences regarding Valle Mais Light; Frugos Light; Aquarius; adapt being flexible to the health and nutrition of our customers and Bonaqua; Kin; Crystal; Dasani; Powerade needs of consumers, modifying consumers, we listen to those who choose Light; Schweppes Light; KAPO; Andina del recipes, incorporating sugar- us and seek to satisfy different tastes, Valle Light; Andrifrut Light; Néctar Andina free beverages, offering multiple lifestyles and needs of hydration through Light; Uva and Kuat, and teas from the Leão oolife is an operation belonging to options and availability for all our a diverse portfolio of products. Fuze line (hot fill), Chá Seede and Fuze Tea K Coca-Cola Andina that was born at the consumers. Light. Coca-Cola Life evolved its profile, beginning of 2016. It focuses on a portfolio . Thus we offer a wide range of zero and naturally sweetened with stevia and sugar "of the future", which is composed of in- low-calorie beverages: Coca- Cola Zero; cane, contributing only 36 calories per cup, novations and products of The Coca-Cola Coca- Cola Light; Coca-Cola Life; Fanta 57% less than regular Coca- Cola. System present in the more developed Naranja Zero; Sprite Zero; Crush; Kuat Zero; markets and appearing as attractions to Inca Kola Zero; Nordic Mist Zero; Quatro develop in Chile. These products seek to cope with the trends of people who seek innovation and additional attributes to hydration, at the time of quenching thirst, such as: functionality, naturalness, health Portfolio characteristics Juices and nutrition. Koolife currently imports 17 different products, among which are coco- nut waters, premium mineralized waters, premium iced-tea, protein shakes, and special versions of Coca-Cola. 36% 38.5% of the portfolio 0 kcal or light. sales in returnable formats.

Water 28% of the portfolio with vitamins Energy drinks Others or nutritional additives.

>See more: www.koandina.com/

44 • Coca-Cola Andina • Sustainability Report 2016 45 2016 launches GRI: Nutrition, an essential factor FP7 FP5 More than 30% of our portfolio contains increased nutritional ingredients and G4-DMA contribution of minerals. Together with independent experts and scientific G4-PR1 advisors, we constantly monitor food safety issues.

PARAGUAY BRAZIL

Schweppes Pomelo. Monster. e are much more than the leading The carbonated and non-carbonated monitoring of standards related to food Sprite Cranberry. Coca-Cola Stevia. beverage brand. We are a company versions of water are present in all our safety and the use safe packing materials. W Aquarius Multifruta. Coca-Cola Cherry. that is concerned with the overall wellbeing operations to hydrate the body and mind Coca-Cola Vainilla. of collaborators, customers and consum- of our consumers, some of the brands that All our packaging components are subject- ers, and thus we offer a broad portfolio of we have in this segment are Crystal, Dasani, ed to safety assessments and have to be beverages with nutritional ingredients and Bonaqua and Benedictino. allowed for use by the health authorities contribution of minerals. in all countries in which our products are Ensure the safety and quality of our prod- commercialized. We offer beverages with increased nutritional ucts is a permanent commitment and the ingredients (vitamins, salts, minerals, natural most important responsibility we have with juices) such as the ready-to-drink juice line consumers around the world. This includes Nutri (Cepita / Frugos / Del Valle / Andina). the obligation to comply with governmen- Also products that adapt to the different tal health regulations of the countries in activity our consumers like Vitamin Water, which we operate, ensure the permanent Powerade, Burn and Monster.

CHILE

Monster (Energy, Ultra, Lo-Carb and Ripper). Coca-Cola Vainilla. ARGENTINA Coca-Cola Vainilla Zero. Schweppes Zero. Koolife. Aquarius cero levemente gasificada. Coca-Cola (Cherry, Vainilla and Coca-Cola sin cafeína). Powerade Zero. Smartwater (Agua Plain). Gold Peak (Ice Tea, Green Tea and Unsweetened). Gold Peak Diet (Diet Tea). Core Power (Vainilla, Chocolate and Banana). Zico (Agua de Coco and Chocolate).

46 • Coca-Cola Andina • Sustainability Report 2016 47 GRI: With the highest quality Nutrition information labelling FP7 FP5 Our System has the highest standards to ensure the quality of beverages, G4-DMA ensuring its consistency and reliability. International best practices guide our G4-PR1 G4-PR2 management, incorporating people, processes and products. We believe in the importance of informing and empowering consumers through our labels. We understand that they must have an active and responsible role ur Integrated Management System KORE is a demanding program developed and for this reason we provide objective, meaningful and understandable 100% of our production plants and O allows us to work in line with inter- by The Coca-Cola Company and specifically main distribution centers in the national standards. Quality always was a designed for our activity, which incorporates nutrition information on all our products. four countries where we operate central issue for Coca-Cola Andina and it standards and requirements that go beyond have the following certifications: is reflected in the adoption of world class the scope of ISO certifications, based on ONE 200 ml SERVINGS CONTRIBUTES sodiu standards for our production plants and international best practices in quality, vidence-based nutrition labelling allows our consumers to Low m TOTAL ›› Quality: ISO 9001. distribution centers in the four countries environment and safety. It is enforceable make decisions that meet their individual nutritional and CALORIES SUGAR FAT SODIUM E 84 22 g 0 g 12 mg in which we operate. by all operations owned or franchised by energy requirements and those of their families. * 4%VD ** 0%VD 0%VD ›› Environment: ISO 14001. Coca-Cola in the world. *Daily values based on a diet of 2,000 Kcal or 8,400 kJ. FSSC 22000 food safety certification Not only did we adopt regulations before they were in force, but we Coca-Cola ** Daily value not established. Regular ›› Occupational Health and Safety: guarantees the safety of our beverages. Procedures, instructions and exhibits com- have voluntarily included the information necessary to guide our OHSAS 18001. Processes and installations incorporate prising the Integrated Management System consumers in their consumer decisions. We are the first beverage criteria of occupational health and safety, are reviewed for changes in requirements, company world-wide committed to put the contents of calories ONE 200 ml SERVINGS CONTRIBUTES sodiu Low m ›› Food safety FSSC 22000. eco-efficiency in the use of resources, maintaining the methodology and records and amounts of sugars, total fat and sodium on the labels of the TOTAL CALORIES SUGAR FAT SODIUM recycling and waste minimization. At the updated. If these requirements are met, we products in our portfolio. 0 0 g 0 g 28 mg * ›› FSSC 22000 includes ISO/TS same time, we have developed programs are also complying with KORE, applicable 0%VD ** 0%VD 1%VD 22002. to monitor the quality and safety of food, legislation, international ISO and OHSAS We use Guideline Daily Amounts (GDAs), which is a nutritional Coca-Cola *Daily values based on a diet of 2,000 Kcal or 8,400 kJ. Zero ** Daily value not established. in order to continually preserve the health standards to which we adhere. information tool presented in the form of tablets in the labelling ›› KORE: “The Coca-Cola Company” and safety of consumers. of products. It is based on evidence to help consumers choose

Operating Requirements. The Coca-Cola Company has its own audit diets that meet the individual nutritional and energy needs. ONE 200 ml SERVINGS CONTRIBUTES sodiu Low m We perform audits on the production process body named GAO (Global Audit Organiza- TOTAL CALORIES SUGAR FAT SODIUM ›› RP – SGP Audit Green Result and finished products. We are certified on tion) that from 2013 maintains a system of GDAs are applied in South America by different food and beverage 0 0 g 0 g 18 mg * 2014 (Brazil and Chile). international standards of food safety; we scheduled and unscheduled audits to verify companies on a voluntary basis. In accordance with the global 0%VD ** 0%VD 1%VD Coca-Cola implement hazard analysis, assessment of compliance with the standard. policy of Coca-Cola, all labels (except glass and water) must *Daily values based on a diet of 2,000 Kcal or 8,400 kJ. Light ** Daily value not established. physical, chemical and biological risks that have GDAs. In Latin America, Coca-Cola presents the amount of may impact on the health of consumers. calories, along with the Daily Value percentage (% DV) on the front We perform infrastructure improvements to of the packaging, being consistent with the commitment to offer Each bottle contains approximately 3 servings of 200 ml. Each 200 ml. serving contains: increase the level of safety in the reception consumers transparent nutrition information about their products. Total Saturated of raw materials, processing and storage Calories Sugar Fat Fat Sodium 36 9.0 g 0.0 g 0.0 g 20 mg of finished product. 2% 10% 0% 0% 1% Coca-Cola Life % Daily Reference Value for an adult based on 2000 Kcal Key Sustainability Performance Indicator Argentina Brazil Chile Paraguay

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

Product quality Beverage Product Quality Index 93.50% 91.60% 92.10% 96.80% 94.10% 93.30% 95.20% 96.20% 86.20% 94.60% 97.60% 93.80% (BPQI) Rating.

48 • Coca-Cola Andina • Sustainability Report 2016 49 GRI: Responsible marketing G4-DMA G4-PR1 G4-PR3 We do not direct advertisements or promotions to children under 14 years of FP5 age for those products classified as with "high sugar" content, i.e. containing 6 grams of sugar per 100 milliliters.

In addition, a nutrition facts panel provides additional data on proteins, carbohydrates, fiber and, when the product contains them, minerals and vitamins. The percentage of the recommended daily value of the mentioned nutrients based on a diet of 2,000 Calories Calories calories a day are also presented. consumed burned Food and Body functions ational marketing campaigns are Have a Do not only The non-caloric sweeteners used in the light/zero soft drinks of the Company are safe beverages and physical activity N designed in conjunction with The beverage with quench your every meal and thirst. for the entire population, including children older than 2 years of age, pregnant and energy balance Coca-Cola Company. We have a respon- snack. breast-feeding women. This is endorsed by international bodies, such as the U.S. Food (calories) sible marketing policy, which stipulates and Drug Administration (FDA), the United Nations Food and Agriculture Organization that advertising is not directed to children (FAO), the World Health Organization (WHO), the Joint FAO/WHO Expert Committee on younger than 14 years of age for any of the Choose a Keep beverages at Food Additives (JECFA) and the European Food Safety Authority (EFSA). It is important to remember that Company's products that are high in sugars, beverage that moderate you enjoy. temperatures. when it comes to keeping a balanced no advertising is shown in the media whose weight all calories count, no matter audience of children under 14 years of age from what food or beverage they is greater than 35% and children under Eat Choose beverages come, including those coming from 14 years of age are not shown drinking fruits and according to your Appropriate daily fluid intake by our caloric beverages. any products without the presence of a vegetables. physical activity and lifestyle. responsible adult. 0-6 months 7-12 months 3.5 glasses (0.7L), preferably breast- 4 glasses (0.8L) preferably breast- The Coca-Cola System offers a wide feeding exclusively. feeding exclusively and supplementary range of regular beverages, low and food and beverages. Includes 3 glasses Babies (0.6L) total fluids incorporating baby no calorie options, and a range of formula, juice and drinking water. formats so that the people can decide 1-3 years 4-8 years which of them best fit their needs 6.5 glasses (1.3L) total fluids, which 8.5 glasses (1.7L) total fluids, which and lifestyles. includes 4.5 glasses (0.9L) of total includes 6 glasses (1.2L) of total Boys and girls beverages including drinking water. beverages including drinking water. If you want to know more about our 9-13 years beverages: Men: Women: 12 glasses (2.4L) total fluids, which 10.5 glasses (2.1L) total fluids, which includes 9 glasses (1.8L) of total includes 8 glasses (1.6L) of total The Beverage Institute for Health and beverages including drinking water. beverages including drinking water Wellness: www.beverageinstitute.org 14-18 years Teenagers Men: Women: European Hydration Institute 16.5 glasses (3.3L) total fluids, which 11.5 glasses (2.3L) total fluids, which includes 13 glasses (2.6L) of total includes 9 glasses (1.8L) of total beverages including drinking water. beverages including drinking water. Coca-Cola brand: 19-70 years or more Men: Women: www.coca-colacompany.com/ 18.5 glasses (3.7L) total fluids, which 13.5 glasses (2.7L) total fluids, which brands/all Adults includes 15 glasses (3L) of total includes 11 glasses (2.2L) of total beverages including drinking water. beverages including drinking water

* Institute of Medicine of the National Academy of Sciences

*Note: High in sugars, this logo is for foods that have added sugar and contain more than 22.5% of sugar in its formulation. Then, it does not apply to products that have natural sugar like fruits or juices without added sugar.

50 • Coca-Cola Andina • Sustainability Report 2016 51 GRI: Beverage benefits in G4-26 G4-DMA the value chain G4-PR5 FP4 Building close ties of cooperation with our customers is the key to ensure that our beverages and the message we want to convey arrive at the hands of our consumers with the highest quality standards.

customer service customers consumers through call center

We generate a long term relationship with Also, through the measurement of perfor- We communicate through the call center Total calls our customers. We have several channels mance of Coca-Cola Andina’s measurement and the website and on social networks. to provide them with information about performance, we can compare ourselves our products and get to know their views every month in different variables looking Contact with consumers is carried out 1,078,275 and expectations. Each operation has a for continuous improvement in our service through The Coca-Cola Company channel, Contact Center that receives queries and to customers, since we have performance which in its management procedures has claims from customers through several information by bottler and by channel in certain cases which required to be scaled channels: website, phone calls, e-mail and the sales, delivery and commercial/financial to and resolved by the bottler. Requests cell phone text message. variables. (service, visits, etc.) When consumers contact our operations We actively work to learn about their Customer Service Brand Love directly, the contact is registered and then satisfaction level with our services, we derived to The Coca-Cola Company in order 20.6% 2016 do so by means of service and customer to give equal treatment. satisfaction surveys. We evaluate factors Argentina 86.3% such as salesperson, delivery, sales support, Brazil N/A Complaints billing, supply of varieties of products, quality, profitability, telephone service and Chile 75.4% technical service, among others. 10.5% Paraguay 86.8% How to contact Customer Note: Brand love measurement. Service? Inquiries Consumer information: 0800 8888 888 Argentina Tel. 0810-7777-888 SMS 3516212622 36.4% Tel. 0800-0235338 Brazil www.coca-colabrasil.com.br SAC 0800-0212121 Orders (sales) Chile Hola Coca-Cola 800 219 999

TTel 0800-115555 32.5% Paraguay *2622 from mobile phone E mail: [email protected]

52 • Coca-Cola Andina • Sustainability Report 2016 53 outstanding case

Chile argentina We adapted to the A tool for the quality new Labelling Law of our beverages In 2016 we were the first company to apply regulations seeking to regulate food labelling regarding nutritional information, advertising directed to children and Since its start-up, the Sensory Analysis Program trains panelists who are an the sale of certain products in schools. active part of the production process and quality control of products and are true ambassadors of our brand. eliver information to consumers that In this context, we reformulated six brands Applying the standard required investments D will contribute to a better choice of (Quatro, Nordic, Cantarina, Andina del Valle, for the modernization of the packaging pool food is a right and an obligation. Respond- Aquarius and Kapo) and launched Andina and production lines (labelling machines) ing to this, in June 2016 Chile enacted the del Valle 0% added sugar, which allowed for the launch of the Zero version return- analyzed Labelling Law 20,606, that requires to label us to have 80% of our SKUs without the able beverages; training all workers of the production containers with a lettering of "HIGH IN", lettering "HIGH IN" and make versions with Company and the development of a team of indicating that this product contains high less sugar or no sugar available for more Ambassadors prepared to deal with doubts In January 2016, the products that were part levels of sugars, sodium, saturated fats or than 90% of our customers. and inquiries; training customers, primarily of the Sensory Analysis Program account- calories; restrict advertising of these foods those belonging to the Education Channel, ed for 35.5% of the total number of SKUs aimed at children under 14 years, as well On average, we lowered 9% of calories given the impact of the law on educational manufactured at the Montecristo Plant. as their sale, promotion and free delivery and 9% of sugar in our beverages and establishments, and stakeholders about onvinced that each worker is a repre- but also in a significant level of release of in educational establishments. grew the mix of products low in sugar or its implications. C sentative of Coca-Cola Andina in their product batches with the testing done and Through training for new panelists and sugar-free by 2.6 points from 23.9% in 2015 community and guided by the purpose of satisfactorily carried out. updates of flavors for those already certi- The regulations, pioneering in the world to 26.5% in 2016. In 2017 we will continue expanding the inspiring and recognizing in each one of fied, as of December of that same year we by their level of demand, were adopted coverage of products with low content them a true ambassador, we instituted At the Montecristo Plant, the Program started increased the number of SKUs analyzed to by Coca-Cola Andina and interpreted as The challenge we began addressing in of sugar or sugar-free (Coca-Cola Zero, the Sensory Analysis Program, a mecha- the year with 91 panelists and finished with 96.1%, implying a 60.6% increase in just an opportunity to develop a portfolio with 2015 with the reformulation of the product Coca-Cola Light, Fanta Zero, Sprite Zero, nism for the evaluation of the quality of 115, increasing by 30% between January and 12 months (see graph 2). ample versions of regular beverages low in portfolio, included the change of labelling Nordic Zero) and adjusting the formulas in our beverages. December (see chart 1). Areas with greater sugar and sugar-free. in 2016, becoming the first in the market this direction, committed with the purpose attendance compliance were: Corporate skus analyzed with the new labels (see graph). of providing a healthy beverage portfolio The initiative, born in the light of the KORE (75%), Quality (69%), Juices (68%) and Graph 2 with consumption options to meet differ- requirements, underwent tremendous Non-Carbonated Laboratory (58%). . ent tastes, lifestyles and hydration needs. growth which resulted not only in an increase . sugar reduction (gr per 200ml) in the number of trained panelists in 2016,

trained panelists . Graph 1 115 , 111 107 107 . 101 100 99 98 91 91 90 90 JAN DEC

SKU analyzed SKU not analyzed JUL FEB SEP APR JAN DEC JUN AUG OCT NOV MAY MAR SKU (Stock-keeping unit) is a number that references each finished product or inventoried material. In this case, the total number of SKUs refers to all finished Number of panelists products and raw materials which should be part of 2013 2014 2015 2016 the Sensory Analysis Program.

54 • Coca-Cola Andina • Sustainability Report 2016 55 GRI: G4-DMA Healthy and active living our focus

Our commitment is to promote a healthy and active life among our collaborators and in the community.

We promote the integral well-being of people through initiatives that promote active lifestyles, maintaining a balance between proper nutrition and the regular practice of physical activity.

In all the initiatives that we carry out, we emphasize values such as fair play, teamwork, joy and friendship

Kcal/lt sold Argentina Brazil Chile Paraguay 371.8 382.7 276.2 367.4 GRI: dale juguemos – oye juguemos (hey let's play) Always moving FP4

In order to contribute to the welfare of coca-cola cup children within schools, in 2016 and for the eighth consecutive year the Dale Juguemos his soccer tournament is the largest Young (Hey-Let’s Play) program was carried out Teams Cities Games intercollegiate sports expression at people in our operations in Argentina, Chile and T registered reached played regional level, with the participation of registered Paraguay. young people between 13 and 15 years of age. Argentina The proposal promotes physical activity The Coca-Cola Cup rescues the essential 2014 12,032 752 28 1.175 during recess periods of public elemen- values of sport: comradeship, fair play and tary schools in an attractive and safe way, an active lifestyle. it encourages fellowship values through 2015 3,468 120 36 221 play and provides nutrition information to We are convinced that the union between bring the kids closer to healthier lifestyles. physical activity and fun is the best way 1,650 24 39 to fully move throughout all stages of life, In Chile, the initiative is aimed at educational this is why the Coca-Cola Cup encourages establishments of vulnerable areas located and promotes: 1,656 92 12 63 in the Metropolitan Region and Antofagasta.

›› The benefits of a healthy and active life. 2016 The experience of these years reinforces 1,008 56 4 21 the idea that exercise not only carried out ›› The free expression of young people on a regular basis is beneficial for the body through sport, complementing their but also for the emotional well-being, and intellectual training. Chile helps develop values such as discipline, 248 M From Arica to perseverance, solidarity, teamwork, respect 2014 6,000 2016 Schools Teachers Children ›› Respect, fair play, healthy competition y 8 FF Punta Arenas and tolerance. and teamwork. Argentina 30 589 12,376 There are three lines of work: 2015 18,040 902 906 Chile 90 1,710 50,235 ›› The sense of belonging and the interaction 16 among the participants 1. Workshops for the school community. Paraguay 70 600 12,935 2,970 207 728 2. Activation of healthy recess periods. Born 15 years ago in more than 15 coun- 3. Sports material kit. tries around the world, whose champions participate in the International Coca-Cola 18,860 944 12 981 Cup. In each, the program relies on the 2016 generation of alliances with social, sporting and governmental entities in all the cities 3,972 331 5 754 79.5% where the Coca-Cola Cup is held, helping of teachers affirm that the students to strengthen the social fabric. Since the implementation fought less during recess periods Since 2008 the program of the program, thanks to the materials donated. reached over 70% 761,000 of the teachers consider that there students, over 1,900 public are a lot more children moving elementary schools in Argentina and during recess periods. more than 26,000 teachers

58 • Coca-Cola Andina • Sustainability Report 2016 59 festival da escolas

Aware that young people are the future, in 2016 we continued developing the Festival da Escolas program in Brazil, which proposes to implement activities benefitting the well-being and creativity by working as a team. It consists of rewarding the best experiences linked to sport, dance or outdoor activities, which are expressed by the participants in texts, videos or staging through photos and images. Beyond the awards, thanks to these experiences, the young internalized values that encourage fellowship and healthy competition, and that they will accompany them throughout their lives.

hydration during beverage institute for a healthy canchas para Chile active life for health and lifestyle (fields for Chile) wellness As every year, our Powerade brand has a We continue conducting nutritional It began in 2014 and its success throughout fundamental role in the hydration of athletes. The Beverage Institute for Health and counseling programs at our plants seek- the country did not stop. It's the initiative In 2016 we hydrated thousands of marathon Wellness (BIHW) is part of the ongoing ing to improve the quality of life of our Canchas para Chile (Fields for Chile), that participants, sponsoring several events commitment of The Coca-Cola Company collaborators, through accessible and free managed to rescue, implement and start up organized in the cities where we operate. to promote the advancement of scientific professional assistance. sport spaces in particularly vulnerable areas. knowledge and understanding on: beverages, The mineral water lines are also a key link hydration and healthy and active lifestyles. At the same time, we complement them As Coca-Cola Andina we actively participate in physical activity and for that reason they with training on brands and ingredients in the construction of these community are present in events like the Dakar Rally, It seeks to serve as a resource of informa- in beverages, so they can incorporate spaces in all our areas of operation. Olympic Games, among others. tion for health professionals in the fields fundamental concepts about hydration, of science, safety, beverage benefits and calorie balance, a good nutrition habits In May 2016, it was Renca’s turn. The site ingredients, importance of diet, nutrition and and know the options that are most suited is located in the municipality of Renca, physical activity for health and well-being. to their lifestyle. and several actors participated with all their energy and optimism to embellish it During 2016, program professionals worked and bring it to life, among them were the together with the dining room service at Mi Parque foundation, students from the the plant to improve menus and portions. Cumbre de Cóndores school of the same Although education and prevention begins commune, the traditional channel custom- at home, at Coca-Cola Andina we are con- ers and of course, our team of Coca-Cola cerned for the healthcare of our people. Andina volunteers.

> See more: www.institutodebebidas.org/

60 • Coca-Cola Andina • Sustainability Report 2016 61 outstanding case

GRI: FP4 brazil Coca-Cola Andina is gold

In 2016, 16 collaborators from Brazil, Argentina, Paraguay and Chile fulfilled the dream of representing the Company in the Olympic Games in Rio de Janeiro, the world’s biggest sports event that stepped on Latin American soil for the first time in history.

n a huge burst of color, beauty and joy, again the historic alliance with the Olympic of Coca-Cola to the public to then open I on August 5th 2016 the Olympic torch, movement and sport, sharing the values the doors of an enormous facility where symbol of the Olympic Games spirit, was of excellence, friendship and respect, and each person was able to create their own lit in the Maracaná Brazilian Stadium, and promoting a healthy and active lifestyle narrative experience. with it, the illusion of 10,500 athletes from through our soft drink. 206 countries. In the center of the setting, more than five We wanted to be present as a brand and hundred translucent acrylic spheres simu- During the competition, the first to take as a company, and that is why we sent lated the physical behavior of gas bubbles; place in South America, 306 events were 16 collaborators from Brazil, Argentina, while in the background people could take disputed with a total of 42 disciplines of 28 Paraguay and Chile to witness an event fun and creative pictures using refraction sports, in 33 stages in four regions of Rio full of emotion that favored the encounter, lenses and custom kaleidoscopes; to star de Janeiro: Barra da Tijuca, Copacabana, exchange and integration among the rep- in their own Matrix style video; live the Deodoro, and Maracaná. The novelty was resentatives of the four operations. A Gold photographic experience of augmented the inclusion of golf and rugby, which re- team with positive attitude that placed the reality or perform live dance ' battles' turned after 112 and 92 years, respectively. Andina pride at the top. between friends along with the famous game "Just Dance". Thanks to a million-dollar investment, the During the Olympic Games, we created "Marvelous City" - renowned in the whole the "Coca-Cola Stop" in collaboration with In 17 days, 86 thousand people passed world for its tropical charm fused seamlessly SuperUber, a space especially designed by through the "Coca-Cola Stop" which led to with its cosmopolitan urban architecture the Brazilian studio Atelier Marko Brajovic 200 million interventions in social networks, - transformed its usual appearance with that invited visitors to dive into vibrant mul- taking the Coca-Cola spirit to every corner a greater infrastructure at the service of tisensory experiences and high technology of the planet tourists; new stadiums and sports facilities designed for sharing golden moments. and the enhancement of landmarks of the capital Rio de Janeiro. Located in a revitalized area of Rio de Janeiro known as Pear Mauá, people were drawn And there, amid the turmoil and hunger from the boulevard towards an immersion for glory, was Coca-Cola to seal once room that introduced the magical world

62 • Coca-Cola Andina • Sustainability Report 2016 63 GRI: G4-DMA Water stewardsºhip

our focus

Water is a vital resource for life and aware of this we seek a responsible use, develop processes that allow greater efficiency in consumption, replenishing this vital resource to nature.

Water ratio (liters used/liters of beverage produced) Argentina Brazil Chile Paraguay 2.22 1.70 2.51 2.10 reduce recycle GRI: We protect water, Means making every effort necessary Part of the water is incorporated into G4-DMA for processes to reduce their water reuse the beverage and another is used in consumption and, equally important, production processes. Conducting the G4-EN8 train people who work in our value Complementarily with reducing, latter to our own or third party effluent G4-EN10 we protect life chain and are in contact with this we work on improvingproduc- treatment plants, resulting in water resource so they know how to take tion process technology for the suitable for animal life and thus G4-EN22 care of it. reuse of water in a safe manner, returned to nature. as well as capturing rainwater for The main element of industrial applications. our beverages is water, to which we add other Origin of water supply Productive process Ef uent Disposal ingredients to provide nutrients, vitamins and unique flavor. Taking care of this vital resource 6,251,284 m3 1,806,198 m3 2,026,306 m3 1,232,611 m3 Underground Network Own Public through its reduction, 3 3 3 reuse, recycling and 8,057,482 m 3,817,162 m 3,258,917 m replenishment is a cornerstone of the replenish Coca-Cola System. To return the resource used in our beverages based on conservation projects that enhance the natural infiltration of water, the care of underground aquifers, providing alternatives to people who lack access to safe drinking water.

ater is a precious and essential This task has the dual purpose of conser- The treatment of effluents are measured with W resource for life, and taking care of vation of watersheds for sustainability and KORE standards, which are more stringent it during the entire production cycle is one access to water as a human right in the than the applicable laws of each country; of the main strategic axes of the Company. places where we have a presence, obtaining this list of parameters must be met in order origin of water supply Create a significant difference requires to measurable results in three categories: to be able to discharge the effluent. Those focus efforts beyond the boundaries of our who monitor the treatments every day are . . own bottling plant. ›› Watershed protection. the environment teams of each bottling plant and periodically samples are sent At Coca-Cola Andina we are true guardians ›› Water for productive purposes. to outside laboratories endorsed by The of water resources through the promotion of Coca-Cola Company. projects that not only contribute to improv- ›› Access of the communities to drinking ing water efficiency, but also collaborate in water. the protection and conservation of water sources and secure that the communities All our bottling plants comply with re- where we operate can access these sources. searches on vulnerability of sources, which . . are carried out by external entities backed

In this regard, we work vigorously in several by The Coca-Cola Company. The goal is ARG BRA CHI PAR lines of action making strategic alliances with to periodically analyze the geological and organizations that know the local problems. hydrological context, land uses and char-

A key concept - materialized in a concrete acteristics that may affect water sources; Underground water (wells) project – is to replenish or return the water and in this way maintain mitigation plans we use in our beverages to nature. of potential risks identified. Network water (municipal)

66 • Coca-Cola Andina • Sustainability Report 2016 67 GRI: Key Sustainability Performance Indicator Outstanding initiatives G4-DMA Liters of water used per liter of beverage produced G4-ENB G4-EN10 3,06 G4-EN22

2,61 2,70 2,51

2,10 2,19 2,19 2,17

2,22 2,14 2,02 2,03

1,76 1,76 1,70 1,73

2016 2015 2014 2013

Argentina Brazil Chile Paraguay

Water consumption (expressed in liters) *

Water consumption (expressed in liters) 2011 2012 2013 2014 2015 2016 reutilization thanks efficiency in efficiency in water Argentina1 1,694,360,700 1,873,029,865 2,061,169,755 2,661,571,787 2,692,832,790 2,752,280,913 to the incorporation returnable lines treatment plants of new technology Brazil2 1,909,754,000 1,815,232,000 1,884,794,000 1,906,945,242 2,422,473,000 2,197,955,000 The lines that bottle returnable products All plants have an entry water treatment, Chile3 1,391,200,000 2,823,436,707 2,887,571,404 2,570,378,697 2,454,498,180 2,360,736,000 All of the production lines are equipped with consume more water than those that whether the source is underground, surface, automatic CIP systems (Cleaning in Process), bottle one-way products. Therefore, the network or rain. The objective of this part of Paraguay4 746,510,300 819,494,770 765,562,370 768,418,161 772,119,270 746,510,300 a process involving cleaning and sanitizing technology of the washing machines is a the process is to permanently analyze the Total discharge of waste water (in liters) treated in OWN effluent plants the ducts of the lines for switching flavors fundamental pillar for saving and reutilizing quality of the water source and process it that allows us to save water and energy. water in the process. until it has reached the required parameters Argentina6 630,895,000 695,480,000 754,808,465 973,027,890 949,811,532 1,093,905,242 The final rinse water is stored in tanks for that are defined for the entry into production Brazil5 530,650,000 368,085,000 415,232,000 582,413,226 678,639,000 542,863,080 this purpose, and is then reused in the first The latest efforts allowed to save 60% in of beverages. "Cleaning" the sourced water Chile6 415,239,000 421,979,000 680,307,658 1,122,048,901 531,720,000 - rinse of the following cleaning process. the washing of returnable bottles (as for generates rejections in the filtering process, example the 7 liess line in Brazil) and 33% so nano-filtering technologies have been Paraguay6 373,478,000 329,006,540 320,489,110 290,687,081 409,630,540 389,538,000 Also during the incorporation of new in Chile with the recovery of Flushing water. incorporated that reduce these rejections Total discharge of waste water (in liters) treated in EXTERNAL effluent plants bottling lines, the technology of blowing After washing there are critical points of improving consumption efficiency. and filling is introduced as a single block, control that inspect the empty bottles, Argentina 407,062,085 67,070,000 preventing to split these processes reducing and also periodic laboratory tests are Brazil 199,486,000 the consumption of water for rinsing of performed which validate the methods rainwater recovery Chile 1,313,359,632 blown bottles. and new water-saving projects. We maintain efforts to capture rainwater - - Paraguay for reuse, seeking to avoid further poten- (1) Corresponds to the Cordoba plant, whose source is 100% underground aquifer. tial contamination in the natural course, (2) Includes Jacarepaguá and Victoria locations. Groundwater (wells) and water from the municipality (treated and piped over the public network) is used. preserving it for infiltration or evaporation. (3) Corresponds to the Renca plant. Inaugurated in 2012. The extraction of water is done through groundwater. The aquifers exploited correspond to the Santiago Central sector, according to the water authority of Chile, DGA. Uses of network water is used as drinking water for dressing rooms, bathrooms, and casinos. (4) Supply of underground water from the Patrino aquifer, through artesian wells over 150 meters deep. (5) All waste waters are treated externally at the Mapocho-Treba plant belonging to Aguas Andinas. (6) 100% effluent plant treatment.

68 • Coca-Cola Andina • Sustainability Report 2016 69 outstanding case paraguay GRI: G4-DMA Drops of Life argentina G4-EN27 The equipment installed with Slingshot G4-EC8 technology continue to generate drinking G4-EN9 water in communities. The system performs Life purifiers a distillation vapor compression, which boils and causes it to evaporate any dirty water front, which allows pure water to In conjunction with Fundación Ruta 40 we performed the "Safe Water Project” condense and be collected. that seeks to ensure access to this vital element in seven rural schools of the Through this process, the Slingshot tech- province of Río Negro, through a system of purifying filters and training on nology is designed to capture the waste and water-borne diseases. other materials removed from the water source in a different chamber, separated ccess to safe water is an infringed right It's an instant microbiological purifier that The initiative also includes training schools from the clean, pure water. These wastes A for hundreds of communities around kills 99.9% of bacteria, viruses and parasites; on the assembly, use and care of filters; are disposed of in a manner that is safe the world. Some of them are the towns it purifies 12 liters per hour on average; it conferences on the problem of diseases and appropriate for the location where the of Villa Llanquin and Pilcaniyeu and the can supply safe water to approximately 100 transmitted by water; methods of prevention unit is placed. This requires changes in life landscapes of Cerro Alto, Playard, Chacay, persons per day for at least three years; it and the importance of caring for the body habits ensuring access to drinking water Pichi Leufu Abajo and Arriba, all located in works with murky waters and requires no and healthy living. to more than 2,300 people. the Argentine Province of Río Negro batteries, electricity or aqueduct networking. The benefits of this innovative technology The results are concrete: the community At seven rural schools in this area attended have been demonstrated by the World has safe water in a very simple, effective by 246 students, Fundación Ruta 40 and Health Organization (WHO) and distributed and immediate way; parasitic infections and Coca-Cola Andina carry forward a "Safe across than 300 countries through the most other acute and chronic gastrointestinal Water Project” in order to bring safe water important NGOs in the world. diseases are eliminated, and the children to educational communities using the develop healthily and adopt hygienic habits. argentina LifeStraw filters. Watershed protection - La Calera Natural Reserve Implemented projects came to an end with The Safe Water Project optimum results and exceeding the expectations of technicians. We can not only be already managed to bring satisfied for its ecological benefits (recovery safe water through its filters of the vegetation and water infiltration increase) but also by the knowledge left and training to more than 200 for the professionals and the community families, 30 rural schools and in general. 50 evacuation centers in the The study of the Natural Reserve of La Calera is a capital for the scientific community, provinces of Buenos Aires, which will develop and refine afforesta- San Juan, Entre Ríos, Santiago tion techniques. For the coming years, The Coca-Cola Company is committed to del Estero, Chaco, Misiones maintain the project together with Fundación and Salta. Avina and Fundación Vida Silvestre, with particular emphasis on the monitoring of natural reservoirs.

70 • Coca-Cola Andina • Sustainability Report 2016 71 outstanding case

GRI: G4-DMA Between 2011 and G4-EN27 argentina G4-EC8 2013 through the G4-EN9 Value in each drop construction of new works and In the framework of the global commitment for 2020 to resupply communities maintenance of and nature 100% of the water we use, from 2011 we participate in the project of restoration and conservation of major wetlands of the Sitio Ramsar Lagunas those already de Guanacache, Desaguadero and Bebedero in central western Argentina. carried out 10,000 hectares of wetlands were gradually t Coca-Cola Andina we believe that Sitio Ramsar Lagunas de Guanacache, Since the mid-20th century, the wetlands recovered. A water is an essential resource for Desaguadero and Bebedero which we have of Guanacache suffered a degradation life, health and the economic prosperity been working from 2011 in partnership with process due to erosion caused by the Our objective was to generate actions of of communities. This is why we deal with Fundación Avina, Fundación Humedales, improper handling of water, deforestation, restoration of the ecosystem through the and worry about returning to nature what the public sector and the local community. overgrazing of livestock and the invasion of construction of small dams which collect we use in our products and production exotic species; that caused the decrease water and sediment, and thus stop the processes, through various projects for The area reached is located in central of its surface and affected the traditional strong erosive processes and at the same the reduction of the water used, recycling western Argentina in the border area of the activities of residents, leaving them without time facilitate this vital element for cattle and replenishment throughout the world. provinces of San Juan, Mendoza and San water for irrigation and causing floods which of the communities. For this we have the Luis, and covers 962,370 hectares. There isolated their settlements. collaboration of neighboring such as El In Argentina, we achieved the goal by are about 12 huarpes communities residing Forzudo and El Retamo. performing the restoration and conser- there and also scattered creole people who vation project of the main wetlands of the call themselves "laguneros". Thanks to the recovery of fresh water reservoirs, grazing fields were irrigated, the marsh vegetation was renewed and Until 2015, wildlife returned. As a result of the restoration actions and recovery of the wetlands Coca-Cola and its services, 100 families (about 400 people) bottling partners of the area directly benefitted.

replenished 191,000 Finally, if we take into account the social million liters learning, this teaches us that planning and participatory action with the direct of water to the beneficiaries significantly improves the achievement of objectives; that the results planet, which is to facilitate the relationship and the support equivalent to 115% of public organizations related to the problem and that, ultimately, the combination of the water used. of academic and local knowledge is key to generating solutions according to the needs.

72 • Coca-Cola Andina • Sustainability Report 2016 73 GRI: Energy management G4-DMA and climate protection

our focus

We are committed to the growth of our industrial and commercial activities in harmony with the environment being proactive and innovative.

Use of energy ratio (MJ/liters produced) Argentina Brazil Chile Paraguay 0.34 0.23 0.29 0.54 For a sustainable future

15% of the energy consumed by cooling equipment Coca-Cola Andina at our customers’ comes from renewable USD 17.4 USD 32.9 locations sources. By 2020, the million were destined for million invested in environmental management of gas. Also, each country has teams of cooling equipment environmental management. We continue with the replacement plan technicians to remove these gases from goal is to meet the needs Equipment without of cooling equipment that began in 2014, the coolers that will be disposed of and energy savings of the consumer using covering 68% of the pool of units with treated as hazardous waste, being able to the same energy as in 13,225 hours of training in sustainability technologies that save up to 40% of energy recycle parts of the artifacts such as glass, 2010. and the environment. through several modifications that make metals, etc. their useful life more efficient. Those equipment that have electronic There were also improvements regarding controller, LED and CO2, manage to save refrigerant gases, since we use natural gas 39% of energy consumption, which is in replacement of non-ecological; for the beneficial for the community and especially he goal of Coca-Cola Andina with next few years it is planned to completely for our customers, since it reduces their T respect to energy consumption is Use of energy Andina eliminate the equipment that use this type operating costs. Equipment with summed up in the concept "Growing the Renewable 66,844,617 6% energy savings business, not the carbon". By the year Electric 550,164,932 47% 2020, we set out to reach the needs of the consumer, using the same energy, in Hydroelectric 109,958,400 9% absolute value, as in the year 2010. We Non-renewable 452,926,033 38% Coolers installed and investment do this with a strategy that has its axis in: 1,179,893,982 2014 2015 2016 ›› Developing a variety of initiatives aimed Amount ThUSD Amount ThUSD Amount ThUSD at increasing energy efficiency of our Argentina 5,654 5,962 4,867 5,129 10,013 10,563 operations. Fuel consumption from renewable sources 2015 2016 Brazil 7,868 5,016 4,636 2,756 11,443 6,803 ›› Use the carbon footprint as one of the MJ MJ Chile 5,400 5,587 4,660 4,207 10,311 9,308 input data that is analyzed for the projects. Biomass 153,580,443 65,478,287 Paraguay 1,450 1,500 1,400 1,275 2,877 2,620 Of the total of renewable energy consumed, Hydroelectric 128,975,580 109,958,400 Total Andina 20,372 18,065 15,563 13,367 34,644 29,294 37% comes from biomass and 62% is hy- 1,059 600 droelectric power, while 1% comes from Solar biogas generation. 12,636,824 1,365,725 Biogas Amount of equipment installed. Type of equipment Total Andina 295,193,907 176,803,017 Innovation for reduction of consumption Argentina Brazil Chile Paraguay is as important as the sources of power generation. Thus, recent constructions Equipment only with electronic controller 6,802 8,809 2,778 14,327 carried out from the year 2015 were made under LEED standards, which implies a huge Equipment only LED 0 4,486 4,870 5,462 economic and technical effort. Equipment only with electronic controller + LED 39,940 9,134 37,930 24,147 Others 37,800 4,668 24,285 8,023 Total Andina 84,542 27,097 69,863 51,959

76 • Coca-Cola Andina • Sustainability Report 2016 77 GRI: G4-EN3 argentina G4-EN4 montecristo biogas brazil G4-EN5 recovery plant G4-EN7

It continues to be perfected in order to increasingly capture more energy biogas, which is an indicator that the treatment is being efficient. co-generation In order to maintain a stable temperature throughout the year, the biogas is used for the own heating process, and the surplus The Co-generation Power Plant and the for natural gas replacement. The resulting effluent treatment is CO2 and N2 Production Plant guarantee suitable for aquatic life and complies with the parameters required the provision of electricity to the operation. by Coca-Cola based on the requirements of the World Health Organization (WHO) and with the existing legal requirements. This Co-generation Power Plant allows the use of more than 70% of the thermal energy from the fuels we use in the pro- 1,365,725MJ duction process. of generated biogas in 2016.

chile energy reduction in blowing air laser-guided Thanks to the replacement of equipment in the blowing lines of PET vehicles bottles at the plant installed in Córdoba, Argentina, we managed to cut the consumption of blowing air by 30%; which means a The incorporation of 31 LGVs at our Renca saving of 600,000 kWh per year. The project was implemented in bottling plant, reduces our carbon emissions, September 2016 and proposes to extend to the rest of the plants and allows the expansion of technology that have blowing lines. in other warehouses of the Company. The implementation of the LGV-SAP platform, improved automation of product highs/ natural lighting, solatube lows and inter-warehouse transfers. This meant a 95% reduction in the differences A system of natural lighting was installed in our plant located in in inventory. This technology significantly Bahía Blanca, the engineering and quality team decided to move improves the safety of work environments, forward with this innovative technology which allows access of insomuch that the number of days lost due natural light through tubes. Now we can see their effective func- to accidents at the deposit, fell by 31% in tioning in the entrance to line 4 and the maintenance workshop the last two years (LTISR indicator, severity at the plant. The tubes run through a dome in the ceiling, which and number of accidents). capture light from the sun and transfer it to a tube of high reflec- tivity which leads the light inside. The advantage of this type of product is that it is possible to naturally illuminate areas that do not have windows and, in turn, allows circumventing obstacles between the roof and the ceiling. The results are very positive, and that's why we are working with the procurement teams to grow in this clean technology.

78 • Coca-Cola Andina • Sustainability Report 2016 79 Energy used per each liter of beverage produced - MJ / liter of produced beverage GRI: Initiatives for energy G4-DMA Operations 2016 2015 2014 2013 2012 2011 2010 G4-EN5 efficiency improvement Argentina 0.34 0.33 0.34 0.30 0.33 0.28 0.30 G4-EN6 G4-EN15 Brazil 0.23 0.38 0.33 0.30 0.34 0.36 0.41 G4-EN18 Chile 0.29 0.28 0.28 0.29 0.31 0.24 0.31 G4-EN31 best practices and renewable energy Paraguay 0.54 0.60 0.59 0.55 0.54 0.56 0.56

Economically Note: the values of years prior to 2012 do not consider the plants incorporated by the mergers with Coca-Cola Polar and Companhia de Bebidas Ipiranga. viable The implementation of energy best practices is defined by the analysis of four key variables. The team evaluates investment and determines if it is economically viable; taking Organization total energetic consumption into account the social and environmental benefits, not only for the plant, but for the (renewable and non-renewable fuels, acquired and produced electricity) expressed in MJ community that surrounds it. Finally, and equally important, is the safety of the equip- Social Environmental ment available in the market to implement the technology and the continuity of supply. Operaciones 2016 2015 2014 2013 beneﬁt beneﬁt Argentina 415,967,650,39 436,258,050,81 445,780,496,38 381,459,583,50 During 2016 we participated in Benchmarking sessions organized by The Coca-Cola Com- pany's, where bottlers from around the world presented their energy saving experiences Brazil 300,542,077,79 532,914,687,48 357,552,232,95 322,477,904,40 Energy safety and projects, sharing successes and difficulties that were faced in the implementation. 270,778,919,00 263,317,812,46 266,557,790,80 280,560,991,84 and continuity Chile For 2017, the energy management system and the resulting energy performance are Paraguay 192,695,334,97 210,805,200,22 211,853,605,13 194,232,996,10 planned to be improved; since once the best practices have been implemented they should again be monitored and propose initiatives according to the reality of each plant Total Coca‑Cola Andina 1,179,893,942,15 1,443,295,750,97 1,281,744,125,26 1,178,731,475,84 and its context.

paraguay solar panels boiler with energy management energy saver Since 2012 the plant in Paraguay uses As long as there is an expansion in the energy from sunlight for sanitary facilities. Just as with solar technology, Paraguay supply of sensitive products, new categories While this is not representative of the total works from 2012 with a boiler prepared and a greater mix of returnable bottles, consumption of the plant, it serves for for automatic operation modulating the the processes require increased energy analyzing the costs and benefits of the circulation in the chimneys and pumps, consumption. The constant challenge is investment and the actual functioning of optimizing the use of energy. This boiler has to reduce consumption ratios, even by technology. The results are excellent and an energy saver, which uses heat from the increasing the supply of new categories extending this technology to other services gases emitted to heat the water supply. The of beverages and packaging. Sensitive is being assessed. fuel used to operate is renewable biomass products such as juices, which use hot-fill (coco pit, chip wood or briquettes). technology, consume more energy than any other product, this also affects the reported ratios.

On average, in the last five years the ratio of energy consumption of Coca-Cola Andina remained constant, increasing production but not the use of energy.

80 • Coca-Cola Andina • Sustainability Report 2016 81 GRI: We measure gas emissions G4-DMA G4-EN5 In order to help prevent the greenhouse effect, at Coca-Cola Andina we carry G4-EN6 forward initiatives to reduce carbon footprint, promote energy conservation and G4-EN15 promote good practices, from the production of the beverage until it arrives at G4-EN18 G4-EN31 the hands of our consumers. Scope 1 operate. For this purpose the Electric Mix was developed gathering information from Emissions KG CO2(eq) Without own fleet With own fleet missions of the Coca-Cola System energy needs with clean energy options the different energy generating sources from Argentina 13,243,631,94 13,268,075,28 include bottlers, which requires us to available in each region. the Ministries or Public Entities in charge E types of emissions Brazil 6,210,973,49 27,512,290,68 fulfill the role of developing initiatives that of updating said information. reduce the carbon footprint. We accept In this sense, distribution is a key factor Scope 1 measurement includes direct Chile 9,410,652,74 12,275,211,56 this challenge and that is why we carry due to the amount of kilometers that our emissions caused by the consumption It should be noted, that in all cases the Paraguay 1,181,576,77 1,181,576,77 out actions in conjunction with packaging system must travel to reach each of the of fuels in production processes and/or most up-to-date sources of data were used. 30,046,834,94 54,237,154,29 suppliers, which represent approximately customers. Aware of this, direct supply equipment owned or controlled by the Once the information from each country Total 30% of the total footprint. strategies and/or through distributors Company. In the case of fleet vehicles, was collected, several energy sources are designed to comply with this process only those that are owned by the company used in order to produce electricity were We actively support initiatives developed in the most efficient manner possible; are considered. 2016 was key because we identified in each country. The following by The Coca-Cola Company with the pro- invest in vehicles with technology that worked closely with the logistics areas to tables show how the energy infrastructure ducers of ingredients (lemons, sugar, etc.), reduces emissions into the atmosphere, improve the reported information and the of each country impacts on the footprint Scope 2 with whom we work on strengthening good and there are even cases of distribution ability to report. of the Company. Electricity consumption practices based on international standards. in electric vehicles. Electric Mix Emissions Kg (MWH) CO2 (eq) An example of these is the Bonsucro Cer- Scope 2 means those indirect emissions Scope 3 emissions are defined as other indi- 60,666,49 tification, which is a certification system Cooling equipment installed at our cus- caused by the consumption of electrical rect sources associated with the electricity Argentina 24,448,593,89 that recognizes both sugar as well as its tomers’ locations are also a key factor, to energy in the processes, commercial and used by our coolers and vending machines Brazil 77,229,43 12,047,791,63 by-products produced in a responsible way, the extent that since 2014 we have been logistics activities or by equipment owned in the facilities of our customers, and the 39,279,60 23,174,963,41 and gives the same importance to environ- implementing replacement programs with or controlled by the Company. To make fuel used by our third party distributors. Chile mental, social and economic principles. modern coolers containing energy saving progress in this aspect, we implemented These emissions are monitored by country Paraguay 30,544 2,229,712 systems and ecologic refrigerant gases. This best practices in our facilities and shared and are managed with renewal of cooling Total 61,901,060,93 At our bottling plants we control and sys- investment effort brings saving benefits experiences with other bottlers in search equipment and improvements in the temically measure the direct impacts from for the stores of up to 40% regarding the of optimization of the energy use ratio as distribution routes worked in conjunction energy, water, and waste. We are looking previous technology. well as the mix selected for the supply. with distributors. Total Scope 3 emissions, for improved technologies that promote are mostly related to the quality of energy energy savings, as well as also procure our To elaborate Scope 2 we must look at the available in each country, since the cooling energetic reality of each country where we equipment installed at our customers’ Scope 3 locations consume household electricity. Emissions CO2 (eq) in Kg Third party The following tables show Scopes 1, 2, Total emissions CO2(eq) in Kg 2016 Truck fleet (number of trucks) Km travelled Argentina 54,924,697,42 and 3 footprint by country considering A1 54,237,154,29 Brazil 0,00 Own Third-party Own Third-party that each has their own characteristics in A2 61,901,060,93 terms of logistic services as well as energy Argentina 0 807 0 41,394,110 Chile 48,671,222,00 infrastructure. A3 125,326,345,42 Brazil 857 136 14,829,110 2,096,618 Paraguay 21,730,426,00 kg CO2 eq 241,464,560,64 Chile 165 483 3,072,717 17,672,272 Total 125,326,345,42 gr CO2 eq 2,41465E+11 Paraguay 0 292 0 12,451,027 Ratio 59.17

82 • Coca-Cola Andina • Sustainability Report 2016 83 outstanding case

GRI: G4-EN27 G4-EC7 G4-EC8 brazil results achieved:

First Distribution Center with Energy consumption dropped by Local generation of LEED PLATINUM certification 54% 10% (490MWh) or R $245,000 saved per year. of the energy consumed (45 MWh) or The first Distribution Center of all Latin America’s Coca-Cola System to achieve R $22,600 saved per year. the highest level of certification of sustainable buildings operates in the district

of Cajú in Rio de Janeiro since March 2016. Water consumption was reduced by

f anything characterizes Coca-Cola So much so, that thanks to the project 100% 82% waste of works were recycled or reused; (1,670 m³ of water) or R $70,800 I Andina is the permanent generation of energy consumption was managed to be saved per year. nothing is deposited in landfills. sustainable projects that contribute to the cut by 54% and water consumption by 82% benefit of people and the planet, helping to in comparison with other similar logistics preserve natural resources and enhance the center. In addition, of all the energy con- economic development of the communities sumed, 10% is generated in the building where we operate in a clean and renewable way through photovoltaic panels, plus the use of natural An example of this was the construction in light throughout the day. Rain water and 2016 of the new Distribution Center in the sewage or used water, from households, The LEED system (Leadership in Energy district of Cajú, in the city of Rio de Janeiro, are treated and reused. and Environmental Design), officially the first of the entire Coca-Cola System to represented by GBC (Green Building achieve the highest environmental building The working environment of employees Council) is an international certification certification in the world LEED Platinum complies with the standards of global system and environmental orientation for GBC (Green Building Council). requirements for issue on environment buildings, which is used in 143 countries, renovation and refurbishment, lighting, and has the intention to encourage the It's an intelligent building posing great accessibility by public transport, and for development of projects, work and the challenges in the area of energy efficiency; people with special needs. operation of buildings, always focusing efficient use of water; improvement of the on the sustainability of their actions. conditions of the work environment for With regard to the community, from its their employees and relationships with the initial design the project addresses and This certification attests to the commit- community; keeping the market construction considers the environmental impacts on ment with the principles of sustainability cost but with sustainable best practices. the application environment; recycling or for the construction of the building - reusing 100% of the waste generated by before, during and after the works - and The Distribution Center, which is in operation the works of the building and construction, provides external validation of the results since March 2016, has three floors of offic- none of which is deposited in landfills obtained with water and energy, which es, a parking lot, a loading and unloading expresses the responsibility of Coca-Cola area, an area for conferences, ordinance, Andina Brazil in addressing sustainability restaurant and changing rooms over a total in a holistic and integrated manner. of 8,589 square meters, having the seal of eco-efficiency at a world class standard.

84 • Coca-Cola Andina • Sustainability Report 2016 85 outstanding case

GRI: G4-EN27 G4-EC7 chile G4-EC8 Distribution fleet: renewal with an environmental view

Because sustainability n the context of the commitment towards In the context where Coca-Cola Andina is a key pillar in our I energy Management and climate protec- Chile operates this initiative is more than tion, Coca-Cola Andina Chile completed relevant, since the Metropolitan Region has value chain, in 2016 we in 2016 the renewal of its fleet acquiring records of the highest levels of pollution in fulfilled the purpose 151 Mercedes Benz Euro V trucks with America with values of 2.5 PM (fine particu- of renewing our truck advanced BlueTec5® technology, which late matter), according to figures published fleet with vehicles that achieves a perfect combination between by the World Health Organization (WHO). taking care of the environment and reducing incorporate technology fuel consumption. Currently, the Company makes 625 delivery adapted to the Euro V routes per day, which means 20,744,989 regulations, promoting The New Euro V engines consume less kilometers and 1,193,716,548 liters of fuel social, environmental fuel than the previous (Euro IV) and the a year. BlueTec5® technology allows to inject the and economic balance. AdBlue® additive into the exhaust manifold Thanks to this new incorporation, we where the urea molecules are broken down. replaced 23% of the fleet for Euro V with As a result of this chemical reaction, "NOx" BlueTec5® technology, going from "EPA are converted into nitrogen and water and 2004" emissions (as required by the current also reduce fine dust emissions between regulations) of 2.5 (g NOX/hp-hr) and 0.1 80% and 90%, since the particles are (Gr MP/hp-hr) to "Euro V" of 1.5 (g NOX/ eliminated in the own combustion chamber hp-hr) and 0.015 (Gr MP/hp-hr). of the engine. In addition to these benefits, the fleet has 20,744,989 It should be explained that the NOx are speed control (90 kph) which makes the kilometers travelled. oxides of nitrogen that are released into the distribution process safer. air (through the exhaust of motor vehicles, More efficient engines that consume less fuel. the combustion of coal, petroleum, or nat- The new trucks will be assigned to An- Due to its technology it reduced ural gas) and form side pollutants, through tofagasta, Rancagua and the Metropolitan NOx emissions by photochemical reactions, as for example Region; arriving to our direct customers PAN (peroxyacetyl nitrate) causing smog, such as supermarkets and small shops. an environmental problem that primarily affects large cities where the concentra- 35% tion of pollutants in the atmosphere is higher; causing problems for health and and fine dust emissions by the environment. 75%

86 • Coca-Cola Andina • Sustainability Report 2016 87 GRI: G4-DMA Sustainable packaging

our focus

Our packaging are focused on reducing, recycling and reusing in order to preserve natural resources.

Recycling of solid residue Argentina Brazil Chile Paraguay 89.7% 88.7% 82.9% 71.8%

Generation of solid residue (gr/lt of produced beverage) Argentina Brazil Chile Paraguay 13.9 6.4 19.0 25.2 GRI: Environmental commitment G4-DMA G4-EN2 and sustainability G4-EN27 G4-EN28 At Coca-Cola Andina he packaging of products are a key Some of the outstanding initiatives in this a strategic aspect of T element in sustainability management, respect are: that is why with our suppliers we seek for our operation on the permanent progress for bottles, caps, road to sustainable cases, film, spacers and pallets. design development is the use of environmentally We work with multi-disciplinary teams in Every year we have formats that still have projects where economic, environmental potential to reduce their weight according friendly packaging, from and social aspects are assessed; and in to the line where they are being produced the sustainable source of improvement opportunities applicable to the at. For example, during 2016 the line that materials to the full cycle packaging design and its treatment process, produces Aquarius beverages at the bottling By implementing of the container. until it has been recycled or re-utilized. plant at Bahía Blanca, Argentina, managed bottle to bottle to reduce its weight from 34.3 grams to 28 weight reduction grams, which resulted in saving 10 tons of It is a project that seeks to increase the resin per year. percentage of recycled resin in plastic bot- in bottles, in 2016, tles and the availability of post-consumer 197 tons of PET In Paraguay investments were made to bottles; benefitting not only the community reduce the weight of 8 formats during but also the production of recycled resin were saved. 2016, which meant saving 21 tons of PET. making it a competitive raw material for The packaging of 100% In Chile, on the other hand, it was imple- the industries that consume it. mented in 2 formats, achieving savings of of the products we 165 tons of resin. During 2016, bottles with up to 25% of recycled PET were produced, this can be eco-flex bottles returnable bottles offer is recyclable. Our Company is always in the constant identified through the "PET PCR (post-con- (pet–light search to improve and align efforts with sumer recycled)" inscription. Although weighting) At Coca-Cola Andina we truly believe in the global strategy of Coca-Cola to reduce this concept is more known in the plastic returnability and that is why every year packaging weight and minimize its impact on industry, our glass bottles continue this The Ecoflex bottle continues to be our we make efforts to maintain and introduce the environment. The initiative also started same logic producing glass bottles with star in the “light weighting” concept, these bottles to all of our customers. We looking at the cases for returnable bottles, up to 70% recycled material. since it represents a 57% saving in the want consumers to choose a more envi- 100% of the not only in the reduction of weight but also PET needed for manufacture compared ronmentally friendly product of excellence secondary packaging in the maximization of the use of material to the previous bottles. We advanced which is also economically accessible. This recycled for the manufacture. in the weight reduction of bottles at of choice places the entire supply chain in an is recyclable. all of Andina’s operations, seeking for increasingly necessary role for our planet. In Chile, three sizes of cases are produced 1,593 tons of packaging efficiency, guaranteeing the with 100% recycled material and two with recycled PET resin quality of products. In addition, lighter % returnable sales by country: 13% less than using plastic box. Efforts to weight packaging impact significantly on Argentina 47.0% incorporate covers with smaller threads, were used in the energy applied to its conformation in the Brazil 19.4% also known as "Short-Finish", seek to manufacture of our injection process and during the blowing accompany this reduction. Production process. Chile 49.9% lines that acquired this technology in the plastic bottles. Paraguay 47.6% 38,5% past kept it and deployed on all products This bottle also seeks for consumers to of the mix of commercialized soft drinks is returnable. manufacturing. commit to the compaction of the PET packaging to optimize transportation for subsequent recycling.

90 • Coca-Cola Andina • Sustainability Report 2016 91 GRI: The importance of recycling G4-DMA

Through awareness projects and tasks in different countries, the Company bets on recycling, recovery and reuse of bottles, avoiding residue to end up in landfills, reducing energy consumption and therefore the carbon footprint generated. brazil

ecovery of packaging (primary and secondary) is one of the Percentage of waste recycled/ coletivo reciclagem The program collaborates with R biggest challenges in relation to waste management and produced in our plants (collective recycling) its impact on the community. Awareness and the participation 6,631 people 63% are women. 92,2% 92,3% 91,0% of consumers, as well as the value chain is key for this purpose. 89,71% The goal is to enhance and professionalize recycling cooperatives

90,1% 91,0% 87,8% and strengthen their inclusion in the formal recycling chain. We For the non-returnable products we seek to strengthen the existing 88,73% 86,2% helped by generating more efficiency at the workplace, the creation 85,2% 86,0% recovery chains in the communities where we operate; participate of networks, fair income and by providing a decent environment 82,9% 82,9% 85,5% in this strengthening leads us to develop public - private part- for the collecting task. 82,95% 83,3% nerships that provide a secure framework for all stakeholders. 80,0% The program was designed in 2012 based on the learnings obtained On this aspect, Coca-Cola Andina actively participated in three during12 years of work at the Coca-Cola Brazil Recycling Institute, 75,9% programs during 2016: 75,3% which served to weave alliances and networks across the country and design a modular and flexible program, able to be replicated 71,86% in the cooperatives with different development levels. 2016 2015 2014 2013 Every six months, the location is diagnosed, and an action plan is Argentina Chile Total Coca-Cola prepared with measurable targets in conjunction with cooperative Brazil Paraguay ANDINA members and a system of rewards for achieving goals is defined, as for example the acquisition of equipment, the implementation of a new point of extraction, etc. This program was recognized in 2015 by the Fundación Banco do Brasil with the Social Technology seal.

With our operation in Brazil, we were part of the "Optimism Week" an initiative which donated the income earned in a week of sales to 70 cooperatives in the region.

92 • Coca-Cola Andina • Sustainability Report 2016 93 chile argentina clean points, alliances cooperatives sponsorship program with corporations (pac - for its acronym in spanish)

In the framework of strengthening alliances, Coca-Cola Andina positive and significant impact on the work style of base recyclers. The Cooperatives Sponsorship Program seeks to improve the work environment of re- Chile participated together with the company "TriCiclos" in the These become key actors since they not only serve, but they also cyclers, increase productivity at the recycling plants and increase recovery indices for launch of the "Every bottle counts " program, which promotes offer environmental education for their surrounding community. PET and other recyclable material; installing technical capacities at each one in order Glass Recycling the installation of fixed and mobile 'eco-points' for household Thus the system is positioned as a triple result model. to achieve self-sustainability of the cooperatives in the long term. In all operations, returnable glass bottles waste recycling. are reused. We have the commitment The campaign was implemented in the community of Santiago For 2017 we seek to generate synergies with the corporate volunteer programs, offering of consumers to return bottles used for The initiative proposes the citizen to understand waste as a conse- de Chile but it was also performed indoors for the Company’s conferences on safety, management, etc., and incorporating customers and suppliers further processing, washing and reentry quence of eating habits and to learn the true meaning of recycling community, 2016 results were: so they can collaborate from their role. to the production process. The bottles are while experiencing first-hand the early stages of this process. selected and those that are discarded are As with the existing program in Brazil, the PAC has six-month cycles. In Cordoba, Argen- sent to the Ecological Island of each plant This mini valuation plant seeks to intelligently resolve the challenge tina, the "Cooperativa Los Carreros de Villa Urquiza" was sponsored and the project is to be prepared and shipped to recyclers. of logistics, which is one of the major drawbacks of recovery systems; currently in the phase of measuring results (See Outstanding Case). These are processed to make other prod- kg recycled internally 4,034 achieving efficiency and traceability of materials and creating a ucts, some end up at the glass products kg recycled in the community 1,119 manufacturers returning as new bottles.

Segment

A rd s a s ig w n e R

e a o s e f u s r r o e e s n u m g e a lt n i s t D

Action Plan

> See more: http://www.triciclos.net

94 • Coca-Cola Andina • Sustainability Report 2016 95 Grams of residue generated/liter of beverage GRI: chile 25,99 25,65 G4-DMA coaniquem glass 23,30 recycling campaign 23,00 19,09 The Corporation for Assistance of Burned 16,06 15,95 Children, COANIQUEM (for its acronym in addition, they receive compensatory ed- 13,98 14,75 Spanish), is a nonprofit charity that has ucation through the Colegio Hospitalario 12,96 15,42 14,30 13,80 13,76 13,39 12,64 13,10 the mission to fully rehabilitate children Casabierta COANIQUEM. 11,76 and young people with burns, as well as 10,86 prevent, train and research on the sub- Glass is 100% recyclable and it is the most ject. It is committed to offering treatment recycled material in Chile, the reuse of this 6,49 of excellence free of charge, in order to material means savings of natural and eco- improve the quality of life and the future nomic resources for its natural extraction, 2016 2015 2014 2013 of the patients. and it also reduces the amount of waste going to landfills. Argentina Chile Total Coca-Cola Thanks to the campaign, the construction Brazil Paraguay ANDINA of "Casabierta" was able to be financed, a With this campaign, the institution recovers During 2016 Coca-Cola welcoming place, where children from Chile approximately 10,000 tons per year, and Andina Chile donated Brazil is an average among RJ-ES and R. 11.65 and 10.07 and neighboring countries stay throughout with the funds obtained from recycling the RJ: Rio de Janeiro - ES: Espirito Santo - R: Riberao Preto their rehabilitation period. Food and lodging institution manages to maintain the services is provided at the residence to each child it provides to the community. 131,670 kg and to one of their family members. In of glass. Support for entrepreneurs During 2016, the Company continued to support the "Eco-Harri" (baler machine) and "Toncreaton" (cardboard toys) projects, within the framework of the Industry Entrepreneur program of the Government of the Province of Córdoba, Argentina. Both projects were able to make progress in their endeavors and we are proud that sustainable entrepreneurs have their opportunity.

Under the orbit of that same program, a new project called "3 Construcciones" was incorporated, which proposes to make constructions with PET bricks. The sponsorship began in October 2016 and is at the stage of prototypes and trials; we have all of 2017 to reap the benefits of this alliance, hoping that the program will reach the desired goals.

2,431 tons of post-consumer PET were recycled, thanks to the initiatives carried out in the community.

96 • Coca-Cola Andina • Sustainability Report 2016 97 Our residue management

At Coca-Cola Andina we work to decrease residue generated and increase recycling feasibility.

ll bottling plants and the Company's of solid waste management. In addition, existence of these in order to communicate A distribution centers segregate and we increased revenues due to the sale of during the event to all consumers so they recycle residue generated. In this regard, recyclable materials to companies that could segregate their residue, thus favoring we invited collaborators and people who work with them; some of them are used as their subsequent recycling. visited our plants to bring their recyclable input, paying only the cost of transformation residue, which are transferred to the ecolog- into new bottles. ical islands of each operation for recycling. Residue management centers or ecological During 2016 campaigns were conducted islands of each operation centers receive to increase the recovery of non-returnable residue already segregated at source, bottles consumed by our collaborators in this is why much importance is given to their homes, increasing the percentage of the respect of selective collection of all recovery from 2% to 14% in a short period collaborators, suppliers and visitors. In of time. In 2017, the necessary efforts and addition, we process all our returnable awareness tasks will continue in order to packaging such as crates and bottles by achieve the goal. the end of their useful life; then they will At 7 of the most important be transformed to start another circuit. We also worked to decrease residue generat- races in Paraguay bottles ed and increase recycling feasibility, seeking Production areas have grinding of plastics for environmentally friendly treatment for and effusion of nonconforming product, thus were collected to meet each one. We have a Residue Management implementing a solid waste comprehensive the zero residue goal. System covering all the Company’s op- management. For wood materials as pallets erations, with a focus on minimizing the there are re-composition centers where generation of solid waste and its proper they are refurbished for reuse, lengthening In Argentina 4 of the most segregation, using the 4R principle: Reduce, their lifespan, and those that cannot be Reuse, Renew and Recycle. To Renew is refurbished go to recycling. important sporting events when we use renewable materials as inputs, in Córdoba were covered, for example the Plant Bottle program that To promote social recycling, internal cam- allows to obtain PET bottles replacing 30% paigns are performed for the donation of achieving the recycling of the inputs conventionally used with paper and/or plastic caps to nonprofit plant-based ethanol. institutions. of 188 kg of PET.

Our recycling programs are based on pro- Also during 2016 zero-waste events were moting the correct classification of residue carried out, implying a great effort from the from their origin. In this way we reduced the marketing area. To do so, specific baskets environmental impact of the transportation were built and installed in the events and of residue to the landfill and collaborated the organizers were informed about the with the community in relation to the issue

98 • Coca-Cola Andina • Sustainability Report 2016 99 Solid waste generation (tons) 2016 Argentina Brazil Chile Paraguay GRI: New Collection Supplies for Collection G4-DMA other industries Collection bottles Paper / Cardboard 866 997 698 537 G4-EN2 Glass 4,210 662 7,526 4,038 G4-EN27 G4-EN28 PET: Caps 360 254 491 28 Returnable and PAPER / CARDBOARD METAL 180 403 41 324 New Sale / Metal (all except aluminum) non-returnable products bottles Recycle Hazardous waste 595 95 343 11 Sale / Pressing Sale / Pressing Recycle Aluminum 15 74 10 - Recycle PET 2,705 865 1,481 366 Plastic (all except PET and caps PP) 5,220 678 2,186 321 Wood 1,650 3,025 2,260 937 Use of fuel Collection New Collection Collection other industries Organic - 174 558 - bottles Other recyclables - 769 3,584 -

GLASS: Other non-recyclables 1,553 370 - 2,567 Returnable and ORGANIC WOOD: non-returnable Sale Repair New RESIDUE pallet Sale / bottles uses Sale / Grinding / Composting 100% of hazardous waste are transported to be processed by Recycle Crushing Scrap chipping third parties accredited by the regulations of the countries in which we operate. Disposal: safety cells Collection New boxes New Collection Collection or by-products products Raw material used (tons) 2016 Argentina Brazil Chile Paraguay

Safe Virgin PET plastic 1,394 17,984 13,172 5,654 Reuse: fuel for HAZARDOUS storage CAPS / co-generation Recycled PET plastic 2,240 476 - - BOXES ALUMINUM: RESIDUE cans Virgin glass 7,200 2,24 7,2 5,977 Sale / Grinding / Sale / Pressing 106,065 - - 2,989 Recycle Crushing Recycle Treatment by Recycled glass authorized third parties Caps plastic 2,260 1,214 1,653 781 Cases virgin plastic 1,214 324,933 1,015 19,983 Cases recycled plastic 1,653 - - 6,661 Key Sustainability Performance Indicators Stretch film plastic + Thermo-contractible 781 272,536 241 376 Argentina Brazil Chile Paraguay Wooden pallets 4,347 4,277 - 22,691 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 Sugar 76,128 126,237 86,868 33,865 Solid waste generation Grams of solid waste generated per liter 13.76 12.96 71.86 11.76 10.86 6.49 15.42 14.75 19.09 23.30 25.99 25.26 Fructose 46,205 - - - of produced beverage. CO2 (raw material) 9,901 10,142 8,084 2,912 Recycling of solid waste Percentage of recycled waste in relation 91.00 92.20 89.71 91.00 90.10 88.73 82.90 83.30 82.95 80.00 75.30 71.86 *Data in yearly tons. to generated waste. PET plastic: both in consumed preforms, bottles, etc. Glass: bottles

100 • Coca-Cola Andina • Sustainability Report 2016 101 outstanding case

GRI: G4-DMA argentina G4-EN27 Sustainable recycling with social commitment

Coca-Cola Andina n order to strengthen our commitment to recycling, thereby generating a source of launched a Program Ithe care of the environment, the recovery income for those who have for more than for Recovery of Plastic and re-use of materials returning them three decades, transformed what for many to the production cycle and encourage is waste, into sustainable work. "Inclusive recycling is a four-legged table Bottles (PET) along with the creation of employment in vulnerable that needs the presence of organized urban change agents and the communities, we launched the first recy- By joining this system, the Cooperative collectors as environmental promoters; the municipality of the city cling network of plastic bottles in the city and its beneficiaries will improve their presence of the State; the commitment of Córdoba to make of Cordoba. working conditions, the development of of companies and civil society, specifi- technical capabilities and the search of cally those that can contribute technical a positive difference The initiative, which is developed jointly self-management as part of institutional knowledge". on the wellness of with the local municipality and Fundación strengthening. the communities, the Avina, and the Cooperativa Los Carreros, Alejandro Gottig, Coordinator of the environment and the consists of the recovery of PET bottles On the other hand, encourage the habit of Fundación Avina Inclusive Recycling through the installation of "Eco points" in separating waste for recovery, increasing Program. people. different places in the North of the Capital. the rate of recovery of plastic bottles, contributing positively to the environmental At each of them, the members of the and social challenge to the city’s waste Cooperativa Los Carreros are responsible management. for collecting, preparing and wrapping "It is everyone’s responsibility to work for the used bottles for sale and subsequent a better world, a more cared for environment, and that is why we started this 100 percent inclusive project, that gives life support to the Cooperativa Los Carreros and a solution to the residents of the area Since the beginning of the program last and the environment". December to date 14,550 bottles were Enrique Pérez Estévez, Marketing Services Manager Coca-Cola Andina collected, prepared and compacted, which Argentina resulted in 582 kilograms of plastic bottles to be returned to the production cycle. The operation of the cooperative helps to improve the quality of life of 12 families.

102 • Coca-Cola Andina • Sustainability Report 2016 103 GRI: G4-DMA W ork environment

our focus

We promote a safe and comfortable working environment. We believe that motivated people are the basis of corporate sustainability, allowing to build a better Company. Our commitment is to promote an active and healthy life both for our collaborators and the community.

Employee turnover (%) Argentina Brazil Chile Paraguay 0.38% 2.71% 2.60% 0.45% GRI: Respect for people G4-10 At Coca-Cola Andina the importance of people is one of the basic pillars of the business and future success factor. To respect them is to offer them a balanced Coca-Cola Andina collaborators by gender and category Professionals development perspective between their professional and personal aspects. 2016 Executives Other workers Temporary Total and technicians Women 15 145 85 42 287 Argentina Total collaborators: Men 88 581 1,927 445 3,041 Women 12 417 373 - 802 Brazil 16,296 Men 49 4,931 2,136 - 7,116 Total collaborators by category Women 13 135 221 56 425 Chile Men 59 425 1,983 593 3,060

Executives Temporary Professionals and technicians Others Women 19 118 41 - 178 Paraguay men Men 13 169 1,041 126 1,349 90% 2% 8% 42% 48% Women 4 8 1 1 14 Holding Men 12 10 2 0 24 Total Andina 284 6,939 7,810 1,263 16,296

women Collaborators by gender and age 10% Executives Temporary Professionals and technicians Others Between Between Between Between Between Under 18 Over 70 Total 18 and 29 30 and 40 41 and 50 51 and 60 61 and 70 4% 6% 48% 42% Women - 75 141 59 12 - - 287 Argentina Men - 670 1,528 651 157 35 - 3,041 Women 13 293 342 113 37 4 - 802 Brazil Men 38 2,246 2,786 1,424 558 56 8 7,116 Women - 138 148 98 38 2 - 424 Chile Men - 951 953 721 364 69 3 3,061 Women - 32 54 26 9 1 - 122 Paraguay Men - 464 599 204 135 3 - 1,405 Women - - 6 2 6 - - 14 Holding Men - 6 3 7 8 - - 24 Total Andina 51 4,875 6,560 3,305 1,324 170 11 16,296 * In accordance with Apprentice Law Nº 10,097/2000. Extended by Federal Decree Nº 5,598/2005

106 • Coca-Cola Andina • Sustainability Report 2016 107 San Antonio

+ 11 GRI: points Quality of life and 80 G4-DMA 79 G4-SO4 70 68 working environment 60

50 The quality of life of all 40 San Antonio 2015 San Antonio 2016 collaborators is a central (Commercial, (Commercial, Finance & Finance & issue that requires Administration, and Administration, and Logistics) Logistics) permanent attention in actions for each of our operations. continued Antofagasta We develop a great improvement + 17 variety of initiatives in information, facilitating the search for points 80 order to achieve one of After the Employee Satisfaction Survey topics surfing in an intuitive and dynamic results during 2015, reaching 11 thousand way, accessing general and management 70 our main goals: make workers throughout the four operations, documentation and promoting the rela- 60 Coca-Cola Andina the 2016 was a year to respond to improvement tionship of collaborators with the Company 63 50 46 best place to work. opportunities detected through actions in and among them. the field of Culture, Development, Safety, 40

Training, Salary and Working Condition. As part of our climate management process, Antofagasta 2015 Antofagasta 2016 (Operations and (Operations and we carried out bi-annual measurements in Logistics) Logistics) Some of the noteworthy initiatives include the four countries (the last measurement the Internal Customer Satisfaction Survey was in 2015), and a follow-up thermometer Punta Arenas he working environment and the quality Brazil, Chile, Argentina and Paraguay (12 that seeks to know what the perception of in the interim years as 2016, in which three T of life of each one of the people in the activators/stockers and 4 torch bearers) to the Company is and its services to our own areas of Coca-Cola Andina Chile (San Anto- + 13 Company are fundamental aspects to meet participate during one month of the most workers, in order to identify the strengths nio, Antofagasta and Punta Arenas) joined. points the target of successfully carrying out our important sporting event in the world; for Course on Corporate Governance and and aspects to improve, enhance inter-area 80 Mission, Vision and Values. That is why we which the host country launched a massive Code of Ethics binding and team culture. Thanks to the implementation of specific 70 75 work to build a unique cultural style, one deployment in the planning, coordination implementation of plans for areas with respect to identified 60 team with shared values, and in that context and implementation of activities. In this sense, one of the instruments im- opportunities in the 2015 survey, we had an 62 50 through several activities and campaigns plemented was SharePoint (Intranet 2.0), increase of 28% in the general favorability during 2016 we continued strengthening Also, in 2016 we developed a Corporate 71.75% a digital communication tool that can unify surpassing records of previous increases. 40 the experience and internalization of the Policy Promotion Program in which we channels that were previously dispersed, Punta Arenas 2015 Punta Arenas 2016 (All management (All management principles that govern our daily task. highlighted the value of Integrity as one improve the update and availability of areas) areas) of the pillars to move forward on the path An example of this is the improvement of towards transparency. Is it is an initiative the induction processes of newly admitted composed of a set of e-learning courses Course on Anonymous Complaints persons to the plant of Chile, who during and online interactive experiences targeting implementation of Key Sustainability Performance Indicator a whole day are presented with the main employees of all countries, which has so processes of the Company and the Mis- far achieved an implementation of 71.75%. Favorable Argentina Brazil Chile Paraguay sion, Vision and Values through a fun and 51.65% work practical field activity. environment 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 Bi-annual survey That spirit which unifies and characterizes (2015 data) prior to merger with Coca-Cola 63% 64% 64% 60% 66% 66% 59% 60% 60% N/A 66% 66% us also was evident in the framework of Polar territories the Rio 2016 Olympics, for which a contest was organized that allowed workers of

108 • Coca-Cola Andina • Sustainability Report 2016 109 The area of Internal Communications that More than 60% of GRI: works in conjunction with Marketing pro- G4-DMA moting the feedback inside and outside of the people have G4-SO4 the Company was developed in Paraguay, in 2016. In addition, a workshop was held safety within their for the Human Resources Management objectives area in order to strengthen the internal customer service. we celebrated Also as part of the continuous improve- shared joy ment, in the operation in Chile employees were awarded the benefit of flexible hours As every year, we continue celebrating in the workday, which privileges freedom together the most emblematic events of with responsibility by making a good use of our collaborators and their families as well time ranges proposed, allowing for example as special dates: to avoid traffic during peak hours on the way to the plant and time management ›› Children’s Day independence. ›› Friendship Day On the other hand, Coca-Cola Andina continued with the development of the ›› Labor Day Safety based on Conduct (SBC) Program, a long term commitment that proposes to ›› Christmas Party establish a true cultural change towards a safe, accident-free company and in which ›› Year-end celebrations each and every one becomes a protagonist; developing a prevention culture applica- ›› Sport events ble within the workplace and personal environment. ›› Career awards

In Brazil, another progress was the imple- ›› Visits from family members to the Hap- mentation of the GreenMile system, a new piness Factory route optimization tool that improves the work process of drivers and helpers, and In order to integrate the families and let them that replaced hand-held devices for lighter know about the multiple benefits offered by and more practical smartphones. the Company, the Human Resources team in Antofagasta, Chile, invited the wives of In the first week of implementation, the collaborators to the plant, who during a GreenMile system had 98% utilization close and friendly encounter became part increasing customer visits in 60% of the of our organization. routes. In Chile Coca-Cola Andina scholarships and/or awards were also granted to the children of collaborators for good school performance within the framework of the Academic Excellence Program, and organized a breakfast so that young people could share the joy of achievement with their parents and colleagues.

110 • Coca-Cola Andina • Sustainability Report 2016 111 GRI: Labor relations Training for the development G4-DMA G4-SO4 At Coca-Cola Andina, we respect and support the right to freedom of of our people G4-10 G4-11 association in all countries where we operate. We have meetings with the trade unions of our collaborators, and supply them with the information they require. At Coca-Cola Andina rom the learnings obtained in 2015 Climate collaborator to learn autonomously with permanent professional FSurvey, during 2016 were strengthened greater availability of execution schedules. training and evolution the already active programs and other tra- alary restatements are negotiated % of unionized staff by main Relation between minimum on the road towards ining course were incorporated to develop The fact that this tool can adapt to rhythm S with the trade unions on the dates operations initial salary (basic salary the potential and abilities of employees of the student is very positive and im- specified by categories. These negotiations without extras) and local corporate excellence and their work teams. To strategically proves results in the incorporation of are used as reference for restatement to Argentina minimum wage. are part of the DNA of focus resources is part of the constant knowledge, providing the ability to share collaborators Embotelladora del Atlántico S.A. 67% our collaborators. That challenge proposed in the Development content between countries and promoting 2016 2015 2014 areas together with their areas of internal the construction of "One Company, One Andina Empaques Argentina S.A. 78% is why we continue Salaries are reviewed by position against Argentina 281% 297% 215% customers. Team". Administratively HR teams can a market survey. Surveys and researches betting on training as monitor participation, assessments, and Brazil Brazil 108% 112% 111% ensure external equity of the remuneration an essential tool for the Programs such as Universidad Andina other metrics in an agile way being able to of our collaborators, and there are no salary Río de Janeiro Refrescos Ltda. 3% Chile 100% 100% 139% development of human (UA), Escuela Comercial (EC) and Sistema implement ongoing improvements. differences in the Company between the de Excelencia Andina (SEA) are a capital Paraguay 117% 100% 110% resources. wages of men and women who perform Chile of the Company that continues to grow The future of Coca-Cola Andina is in the the same function. Embotelladora Andina S.A. 53% and reap the fruits of the previous years. hands of each one of our collaborators and Vital Jugos S.A. 44% In 2016 leadership and feedback trainings we should all take on this responsibility. At all operations, the initial salary of an were conducted providing tools to middle The efforts for the development of the employee entering full-time full is equal Vital Aguas S.A. 65% managers for a 360° view allowing them a people in the Company seek to fulfill the or above the local minimum wage. Envases Central S.A. 31% better relationship with their teams and purpose of leading the soft drinks market peers. being recognized for our excellence, people Over the past years we worked not only Paraguay management and welcoming culture. on economic benefits but also on the Paraguay Refrescos S.A. 68% As a differential aspect we can highlight the non-economic, seeking to adapt to the great effort made for digital training using new needs of our collaborators. modern e-learning platforms, allowing the

Key Sustainability Performance Indicator Argentina Brazil Chile Paraguay

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

Employee turnover 0.41% 0.49% 0.38% 3.55% 2.84% 2.71% 1.93% 2.04% 2.6% 0.62% 0.50% 0.45%

Calculated by dividing the amount of permanent employees that left the company and the amount of total of employees at the close of each year.

112 • Coca-Cola Andina • Sustainability Report 2016 113 Yearly training hours by category and gender GRI: Principles and values with G4-DMA Managers and principal Professionals 2016 officers and technicians Other workers Temporary Total G4-LA1 Women 2,112 5,054 1,874 0 9,041 G4-LA9 Argentina social responsibility Men 12,087 8,336 37,255 5,612 63,291 G4-LA10 Women 106 7,058 6,092 0 13,256 G4-LA11 Brazil G4-SO4 Men 966 70,458 56,722 0 128,146 Committed to the reality of our Company and the environment that Women 102 4,421 6,226 246 10,995 Chile surrounds us, we propose that our collaborators reflect on key issues such Men 479 9,972 23,117 2,607 36,175 as sustainability, ethics and human rights through training, seminars and Women 403 2,106 299 118 2,926 Paraguay Men 364 4,511 6,640 2,604 14,119 conferences. Women 4 209 0 0 213 Holding Men 82 45 0 0 127 t Coca-Cola Andina we care about the sustainability of our system to the organization without scope differences to specific business and sustainability in the business field. So much segments or areas. Totales 16,705 112,170 138,225 11,188 278,289 A so that in February 2016 we took part in the conference offered horas de formación by Margarita Ducci Budge, Executive Director of the Global Com- It includes a unique model of objectives and competences as well as Training hours bypor topic temáticas pact Network Chile, on the economic impact of sustainability in an instance of goal assessments and analysis of skills, focused on: Practices and policies organizations. on human rights, Development of ›› Promoting equality of criteria for allocation and assessment diversity and inclusion skills for the job The activity that was developed together with the Universidad of performance objectives. Sustainability and environment Siglo XXI in Cordoba, Argentina, served to expose cases of good practices of Corporate Social Responsibility (CSR), in an open ›› Motivating the generation of skills with focus on results, Ethics and code of business conduct meeting with different community audiences enhancing the growth aspiration and people. exchange of experiences and opinions. Labor safetyBRA ›› Maintaining consistency and transitivity in the establishment Also in adherence to the UN Global Compact, in mid-2016 we of objectives, emphasizing on emphasis on global Company organized a training session on Human Rights and Ethics with teamwork and on the search for excellence. recognized experts in Chile and Argentina, in order to educate our collaborators on the role of the Company in these issues and ›› Fostering a culture that promotes learning from the suc- Development of skills and employability discuss the ethical dilemmas of everyday life. cesses and mistakes, and implement a cross communication style that promotes listening to each other. New hirings (permanent) Raise awareness about the importance and the meaning of human Younger than 30 Between 30 and 50 Older than 50 rights, reflecting on values and provide tools to resolve these ›› Recognize the individual contribution of the workers with Male Female Male Female Male Female dilemmas were some of the main themes discussed during the better performance. Argentina 59 7 17 0 0 0 workshops, which we expect to repeat in 2017 in Paraguay and Brazil. Brazil 906 101 948 65 93 4 ›› Delivering a model that contributes to the identification and Chile 101 43 76 22 8 3 Human rights are an essential element in the business field, to selection of potential and talent within the Company. Paraguay 31 10 18 3 0 0 protect and respect them requires a huge commitment from all Holding 2 0 2 1 1 0 who are part of Coca-Cola Andina, if we want a society at peace, ›› Promoting equal development opportunities for positions more just, equitable and supportive but also a more harmonious, that require equal competences and responsibilities. People who left the Company* ethical and sustainable work environment over time. Younger than 30 Between 30 and 50 Older than 50 ›› Providing tools that contribute to a proper planning of people Finally, to analyze, improve and plan professional development development. Male Female Male Female Male Female of people we continued with the performance Management Argentina 36 7 71 14 13 1 Program that we have been applying since 2014, a transverse Brazil 957 80 1295 91 138 9 Chile 244 117 295 108 51 19 Paraguay 18 8 34 8 14 2 Holding 0 0 1 2 1 0

* Number of permanent employees who left the organization voluntarily, by dismissal, retirement, death, or other.

114 • Coca-Cola Andina • Sustainability Report 2016 115 GRI: Commitment to diversity Compensation and benefits G4-DMA G4-LA3 G4-LA8 They are intended for health care and prevention; At our Company, we n Brazil we continued performing the labor During 2016 benchmarking workshops were the development of a healthy life and family I inclusion Program in 2016 for people with performed with the Brazilian operation to understand that disability disabilities, which seeks to permanently replicate similar programs in Chile, Argentina development and enjoyment. is just one part of the improve access to knowledge and informa- and Paraguay. At the end of the year each uniqueness of each tion networks for target audiences making of the country teams that pursued the individual, so we focus it easier to fro them to approach companies project were formed, and training sessions ompensation and benefits offered in 100% of our operations: with active searches and promoting their were planned for middle management C by Coca-Cola Andina contemplate on the improvement of integration in the labor market. levels, who will be strategic partners in those required by labor laws in each of the Health Other talent, which leads us to the implementation, to be able to take the countries in which we have operations, but ›› Maternity and paternity leave. ›› Free parking. The program is developed in partnership first steps in 2017. every year the company strives to go beyond believe in diversity as a ›› Life insurance in addition to legal requirements. ›› Uniforms for personnel of the operations area. factor of mutual growth with the project "Oportunidades Especiais" already either with benefits to supplement created to gather information on vacant health insurance for the collaborator and the ›› Complete annual medical check-up for mangers, for the company and the People with motor, visual or heads of area and supervisors. positions in large companies that have in- intellectual disability family group, to continue and finish studies employees. clusive proposals; the goal is to disseminate and thus contribute to the employability, to Social searches to target audiences through the Brazil 2016 2015 facilitate special moments in the life of our ›› Leave for weddings, passing away of a close communication platform and initiatives. Professionals and employees and improve their quality of life. relative, siblings and grandparents. technicians 165 97 Other workers 8 50 Economic Total 173 147 ›› Free soft drinks. ›› Christmas care package.

116 • Coca-Cola Andina • Sustainability Report 2016 117 GRI: G4-DMA G4-LA3 G4-LA8 in 25% of our operations

Health Economic ›› Health insurance or social work plan; it includes the employee and family group, ›› Housing policy consisting in the granting a subsidy to 5 workers per year. with the Company assuming all differences between the cost of the plan versus contributions and legal contributions. Other ›› Food re-education programs. ›› 12 additional wages to the collective life insurance policy at a very low cost and/ ›› Conferences, workshops, and lectures of interest for collaborators and their family or incorporate the spouse to the within the insurance policy. group. ›› Paid vacation time with a bonus to the legal requirements. › 1 day leave of absence for moving. in 75% of our operations: in 50% of our operations Education › ›› Additional 2 day leave of absence for holiday travel more than 1,000 kilometers ›› Scholarships for academic excellence for a college degree career to children of away for a minimum of 10 days (workers within the collective bargaining Health Health workers. agreement). ›› Paid maternity rest and time of lactation (6 months of half a day work without ›› Dental plan. salary reduction for women reinstated after maternity leave). ›› Special discount arrangements health institutions and pharmacies. ›› Physiotherapy/physical therapy service. ›› Medical insurance and assistance. ›› Christmas gift for the children of employees. ›› Labor gymnastics: access to plans of physical activities in own facilities or external Education through special arrangements, for the comprehensive care and recreation of ›› Discounted rates of different educational programs for employees. collaborators. ›› Leave of absence for taking exams. ›› Preventive vaccination programs (dengue, influenza, yellow fever, hepatitis A, etc.). Maternity/paternity leave and job continuity Economic Social Number of employees who took leave Number of collaborators who continue to ›› Transportation service for all personnel work after taking leave ›› Day care. ›› Contests for children of employees with best grades. ›› Tickets for events. Maternity Paternity Maternity Paternity ›› Gift for the birth of a child. Argentina 29 126 29 126 Economic Other Brazil 63 207 47 174 ›› School kit, bonus for children under 18 years old. ›› Extension of 1 day of leave in the case of a death in the indirect family. (the law Chile 44 - 34 - ›› Retirement bonus. give 1 day). Paraguay 5 65 5 60 ›› Cafeteria. ›› Free soft drinks for the birthday of an employee’s child. Holding 0 0 0 0 ›› End of year gift. ›› Internal library. Total 141 398 115 360 Other ›› Paid official holiday should it fall within vacation period. ›› Extended paternity leave (the law requires 2 we grant 3). ›› Nutritionist at the plant. ›› Extension of 1 day of leave in the case of a death in the immediate family (the ›› Grant summer and winter garments for support personnel. law gives 3). ›› 1 day leave of absence for giving blood. ›› Snack: fruit and yogurt for administrative positions. ›› Bonus for college or tertiary degree of workers within the collective bargaining 79% ›› Discount on purchase of company products. agreement. of mothers and ›› Extended leave for decease of a spuse 4 days. ›› Reimbursement for lodging expenses (with a ceiling) for workers within the collective bargaining agreement. ›› Sport and recreation program for workers. ›› One-time advance payment of wages. 88% ›› Christmas party for the worker and family. of fathers continue working at the company one year after taking leave. ›› Payment of subsidy of the first 3 days of medical leave not covered by the health plan.

118 • Coca-Cola Andina • Sustainability Report 2016 119 Lost Time Injury Rate GRI: Health and safety, a argentina 2016 2015 2014 2013 G4-DMA G4-LA5 November 2016 accident rate decreased by Argentina 5.07 6.14 8.45 8.2 G4-LA6 challenge for all 73% against November 2015, and dropped 0.58 0.53 0.75 0.74 Brazil G4-LA8 by 20% in the same cumulative period. Chile 2.60 4.19 6.5 4.66 As well as we manage other critical parts of the business, providing a healthy Paraguay 0.46 0.59 0.82 0.67 and safe environment is a commitment that involves us all if we want to be brazil recognized by the management of people with whom we work. The Traffic Safety Program "Fleet Safety" Lost Time Injury Severity Rate reduced the "Crash Rate" indicator (number of collisions of our fleet) from 2.5 in 2015 LTISR 2016 2015 2014 2013 ince 2015, the operations of Coca-Cola In every operation we activate programs processes that must certify the achievement to 0.35 in 2016. Argentina 143.08 202.10 213.46 215.01 Andina work for the transformation to achieve "Zero Accident" and "Safe Work of targets on accident reduction. S Brazil 6.61 6.94 6.48 7.30 towards a safe culture. The Safety Based Managers ", seeking to engage the workers on Conduct (SBC) Program establishes with the safety management system of each There are common instances for all op- chile Chile 47.95 52.99 76.97 65.58 stages, criteria and the mechanics of country. No fatal accidents were recorded erations such as safety talks between LTIR dropped by 36% in 2016 with respect Paraguay 3.73 3.84 7.21 4.08 implementation for the areas in charge in any of our operations thanks to controls supervisors and their work teams, routines to 2015. NOTE: Both indicators include third parties. of Safety along the lines of The Coca-Cola and policies which we permanently apply of observations, monitoring, follow-up com- Company security management program. and the commitment of our people with mittees, safety academy, communication personal care. program and honors program. paraguay The purpose is to ensure respect for health, 140 leaders of the industrial, logistic and safety and the appreciation of life on the We have Health and Safety Committees The initiative requires the active partici- commercial areas were trained in the Safety basis of the liability on the part of leaders, in which 100% of the collaborators of the pation of workers, Union and leaders of Based on Conduct (SBC) Program. managers, employees, contractors and Company are represented. Executives, processes, who work on improvement general public. technicians and operators participate in analysis and proposals. each of these committees, also ensuring third party hours The efforts lead to decreasing accidents, the representation of the different areas During 2016 more than 32,000 hours of accident prevention, legal compliance (Logistics, Industrial, Commercial, Admin- training in safety took place and in the CHI and ergonomics. We have adopted health istration, etc.). four countries very positive results were and safety measures for the prevention of obtained: risks, performing medical check-ups to our The Program has three phases of implemen- employees and promoting training for a tation and each of them is subject to audit BRA prevention culture.

ARG PAR There were *Safety indicators include third parties. no fatal accidents in Key Sustainability Performance Indicator 2016. Argentina Brazil Chile Paraguay

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

Absenteeism 3.09 3.21 3.09 1.9 2.27 1.78 3.39 3.19 3.30 1.78 1.57 1.62 rate %

120 • Coca-Cola Andina • Sustainability Report 2016 121 outstanding case

GRI: FP4 trainer and person capable of generating a implementation stages of the "global team, key competencies for any executive. talent and succession management plan" A collective challenge In a first stage, the process reached 261 people among members of the Management Team (Level N), the Committee of Corporate Session with Executive Committee for and Functional Managers, (Level 1) and 9 talent review and succession. In order to ensure the n the midst of an ever-changing business It is an initiative based on three key activities: Executives and Professionals (Level 2) who continuity and success I environment with few controllable vari- planning the positions which will be subject faced the challenge of: learning through of the business through ables in relation to the complexity of the to the plan (strategy, skills, current and experience 'on the job' such as market environment in which the business oper- future structure); identify the competen- visits, visits to operations, exchange with the timely identification ates, working on planning the succession cies required for exercising it in a suitable other roles, participation in cross-functional and development of of critical positions is a central axis for the manner (analyze performance, potential projects , etc.; learn from others through people in the current and management of human resources in the and succession plans) and develop the actions such as feedback, coaching, men- Session with Management Team for future positions, entire company. education and training of the candidates toring and learning with working groups; (feedback, action plans for the person and and formal training courses, conferences, 8 talent review and succession. Coca-Cola Andina Aware of the responsibility of managing the Company, and follow-ups). seminars, diploma courses and masters. works on a plan for the human potential and ensure the normal functioning of our organization, at Coca-Cola We believe that this mechanism, as well as In the future, the challenge is to extend succession of strategic 7 Consolidation of results. positions. Andina we launched a “Global Talent and ensuring continuity with collaborators who the feedback process to levels 1 and 2 in Succession Management Plan". already know the organization and whose all operations; define action plans for the career we witnessed, allows us to observe development of the people; install the the capabilities of future command as Talent Review Process as a permanent cycle Workshop within the Management Process of Leaders 6 Corporate Of cers. of the organization and strengthen internal resources in each country where we have Workshop presence and also between countries. 5 Management Committee.

At Coca-Cola Andina, we are convinced that this new policy not only ensures business continuity, but it also promotes Workshop an organizational culture where people Presentation of Talent and Succession 4 HH.RR Team. are a valuable resource that interacts in Management Global Plan to a generous way, sharing experience and Management Team. knowledge, enriching each other and ensuring the future and growth of his/her 3 own career and that of the entire Company.

De nition of Talent and Succession 2 Management Global Plan.

1 Pilot Plan.

122 • Coca-Cola Andina • Sustainability Report 2016 123 outstanding case GRI: FP4 We foster an inclusive work culture In 2016, we continued with projects of employment for people with disabilities, in order to contribute to social inclusion through the employability and training, collaborating in the development of 263 workers who perform several tasks at about 10 Coca-Cola Andina Brazil operating units. what is disability?

According to the Convention on the Rights of Persons with Disabilities adopted by the United Nations, "it results from the interaction between persons with impairments (physical, mental, intellectual or sensory) and due to attitudinal and environmental barriers that hinder their full and effective participation in society on equal terms with others".

The average evolution of handicapped staff 2016 turnover for 2016 123 t Coca-Cola Andina we believe that The initiative began in the neighborhood of meetings to align behavior patterns. In of people with 111 diversity in the work world is a key Jacarepaguá in Rio de Janeiro, and quickly addition, among other things, instances A 105 factor for sustainable development, which spread to other areas of that city; Espírito of accompaniment and follow-up were disabilities is 0.22; 100 103 96 contributes to improving the competitiveness Santo, one of the smallest States of Brazil, included as well as flexible working hours while the average 94 92 of organizations and their organizational and Ribeirão Preto, a major Brazilian munic- to facilitate the transfer of people, access climate, sensitizes employees and enhances ipality in the interior of São Paulo, including to therapeutic or medical treatment and turnover of the 82 82 teamwork. a total of 263 workers with disabilities in all career continuity, in addition to important 74 76 Coca-Cola Andina Brazil. accessibility works such as automatic doors, Company is 2.77. In this context, is that in 2016 we obtained ramps in the main entrances and adapted JUL FEB excellent results in the "Labor Inclusion Among some of the main achievements, bathrooms. SEP APR JAN DEC JUN AUG OCT NOV MAY Program for People with Disabilities", a the program promoted the incorporation MAR proposal that encourages their participation of inclusive technologies such as the NVDA 2015 2016 and development creating a collaborative software, a free screen reader with an open 2013 2014 environment that encourages mutual growth code which allows blind people to use on of the Company and its people. their computer with the Windows oper- 14 28 34 75 92+ ating system through a voice synthesizer or braille device; trainings and bi-monthly

124 • Coca-Cola Andina • Sustainability Report 2016 125 GRI: G4-DMA Community

our focus

We seek to contribute to the progress of the communities where we develop our activities, through programs promoting local economies, creating opportunities and improving the quality of life of people.

% of local suppliers Argentina Brazil Chile Paraguay 97.0% 99.6% 95.0% 85.9% GRI: Our contribution to Our customers G4-12 the community Among 258,807 s a result of the socio-economic con- dialogue between them and the sales force. A text of the countries our operations The goal for all operations is to exceed 85% As a Company, we seek t Coca-Cola Andina, we aim to create partnerships that we weave with them, the customers, 37% are are carried out, the customer portfolio customer satisfaction. A value in societies where we are pres- suppliers, the distributors and consumers of Coca-Cola Andina slightly decreased to simultaneously satisfy ent, not only reaching local communities themselves. grocers and small with respect to 2015, yet maintaining the Furthermore, aware of the need to adapt customers, consumers, in each of the countries but also our value businesses, what we percentage of small businesses every year. to new technologies, we offer wide pos- chain consisting of customers, shareholders The sustainability leaders of each operation sibilities of digital contact and different shareholders, call the traditional employees, suppliers and suppliers committed to the Coca-Cola identified opportunities in every link of Customers are an essential link in our value communication channels with our cus- essence. the value chain to integrate community channel. chain, since in addition to the social impact tomers, via telephone, e-mail, web and and the community in programs with them, with a 360° view on on the growth of local economies, they are face-to-face visits. general in each of the For this purpose, we develop - on the the positive impacts that we can exert as responsible for a significant percentage of operations. basis of ethical conduct that guide our a System. the Company's sales. Like small grocers, large customers are actions - businesses with social impact also important and it is why we encourage understanding that its sustainability de- In this way, we offer training and visits to them to create alliances in areas such as pends on the demand of customers and plants together with their families, and returnable packaging and return of non-re- thanks to these experiences we empower turnable packaging, through campaigns small businesses who welcome us with at their shopping centers so that they can OPERATION AND management tools. function as clean points. UPSTREAM LOGISTICS DOWNSTREAM Coca-Cola Andina Consumers The Coca‑Cola Company Suppliers of raw Bottling Distribution Customers Recycling and recovery We regularly measure the satisfaction of our (TCCC) materials and services Packaging customers: all countries have a call center that receive different types of queries; a collaborative tool that promotes permanent

Supplier of concentrate Includes suppliers that Bottling, packaging and all Includes distribution Includes the wide Involves recycling and and syrups. Coca-Cola provide raw materials administrative and logistic tasks, (own Distribution network of customers, recovery strategies Operating Requirements. and services to the relieving and minimizing impacts. Centers) mostly small kiosks and in conjunction with (KORE). various operations Route optimization with mom & pop’s. Cooling the community. Standards for suppliers in Brazil, Argentina, the aim of reaching all. with new technologies Improvements in of raw materials. Paraguay and Chile. that reduce energy reverse logistics, 2020 Sustainability Implementation of consumption. accompaniment to number of customers (in '000) traditional sales Goals – Sustainable sustainable packaging. recyclers. Consumer Agriculture awareness.

CHI PAR Beverage benefits Energy management and climate protection Sustainable Packaging Active and healthy life

Sustainability axis BRA Work environment Sustainable Packaging ARG Energy management and climate protection Community ARG BRA CHI PAR Water stewardship

128 • Coca-Cola Andina • Sustainability Report 2016 129 In Argentina there Argentina Brazil Chile Paraguay plant visits were 1,336 visitors, 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 plant visits This program helps strengthen the bond with 51% of which were customers and enhance their sense of belonging Customer satisfaction Bi-annual measurement with all of 85.00% 85.00% 86.30% 70.80% 70.80% N/A 61.00% 75.00% 75.40% 83.00% 83.00% 86.80% with the brand. These occasions allow them customers. Coca-Cola Andina's operations in scope to get to know our history; the manufacturing In Brazil there were processes of beverages and the technology required; the quality controls performed; the 8,659 visitors, 2% sustainability programs and the commitment of of which were Customer Services Love the Company with the care of the environment. , , , CHILE customers. The index of love for the brand developed by ARGENTINA The Coca-Cola Company for the bottlers of 75.3 In Chile there were 88.4 BRAZIL ARG BRA CHI PAR South Latin Business Unit (SLBU) has been PARAGUAY 7,675 visitors, 4% taken into account this year. N/A Students Clients 85.2 Family Others of which were members customers. Customer-oriented development programs

training in sales strategies in the traditional channel

We coach small and medium-sized mer- chants, increasing their business profitability and directly impacting on the quality of life of its owners, sales clerks, families and the community where they are embedded. training on sales contest distributors sales labelling law force development Each year, we carry out contests rewarding We train our internal and external audi- customers as a form of recognition of their The program includes the most important ence regarding the changes involving new trajectory with the Company. Each one can distributors. Through training and advice regulations in Chile (see Outstanding Case follow the development of the competitions through internal instructors, they are Chapter 2): we have developed a special that are implemented throughout the year provided with tools for the achievement team of ambassadors to deal with doubts on a specific web page and remained in- of goals and to align their capabilities with and uncertainties generated by the law and formed on their progress. those of the Company’s Sales Force. we train our customers, primarily those located in or near educational spaces given its impact on these establishments.

130 • Coca-Cola Andina • Sustainability Report 2016 131 GRI: Our suppliers G4-EN32 The proposal resulted customer loyalty G4-LA14 interesting for 93%. G4-HR4 program G4-HR5 At Coca-Cola Andina we believe that suppliers are onvinced that teamwork helps to G4-HR6 The Customer Loyalty Program continued improve the Company's results, we an essential link in the value chain, which is why we C G4-HR10 in 2016 exceeding the figure of the previous benefit from the task of suppliers to meet 85% would have work with those who share our values and operate in G4-SO9 year and achieving the participation of 752 some of the needs of raw materials and G4-DMA customers. It is a long term projected pro- the intention to an ethical manner in order to achieve excellence in services required for the manufacture of G4-12 posal that seeks to generate a relationship the quality of products and service efficiency. our products. In order to properly manage participate. G4-EC9 based on trust, transforming the concept of them requires us to perform a permanent "Supplier/Customer" into "Business Partners" monitoring and assessment on the basis of through a plan of mutual benefits whereby constant communication and awareness of we are both benefitted. We want to be the their realities to achieve improved relations. preferred supplier of our customers by increasing the bond and communication At Coca-Cola Andina we operate together with them, enabling us as partners and with agriculture and construction suppliers, meeting common goals. and others, thanks to which we achieve services of excellence for different audiences. In 2016 with the Socioité Program, 5,200 customers were trained in Asunción and The added value generated by The Sales per channel (%) the interior of the country, and at 5,000 of Coca-Cola System together with its entire them marketing elements were activated value chain is significant, representing improving the aesthetics of the stores. Traditional 33.2 0.3% of the GDP of the countries where The measurement of the progress of the Wholesale 33.9 it operates. The joint task with suppliers different stages of the program reflected ARG promotes greater benefits both economic, Supermarkets 30.0 a great interest on behalf of customers to social and environmental. On–Premise become part of this program. 2.9 supplier assessment Traditional 24.7 At Coca-Cola Andina we maintain a Win- Wholesale 23.9 BRA Win relationship with our suppliers, sup- Supermarkets 31.1 porting their activities and generating key On–Premise 20.3 partnerships with those who are critical to There were the operation. Our policy is to encourage Traditional 48.2 their growth, betting on their continuous improvement and those who achieve further 2,694 hours of Wholesale 11.7 development in quality, social responsibility CHI Supermarkets 28.4 training imparted and environmental care are the ones who On–Premise to customers in 11.8 prevail when it comes to choosing a supplier. Argentina. Traditional 47.4 Wholesale 18.1 PAR Supermarkets 12.1 On–Premise 22.4

132 • Coca-Cola Andina • Sustainability Report 2016 133 workshop for suppliers and GRI: service providers G4-EN32 G4-LA14 G4-HR4 The 12th edition of the workshop for suppli- ›› Internal audits and anonymous com- Coca-Cola Andina G4-HR5 ers of raw materials and service providers plaints channel. we give priority G4-HR6 took place at Coca-Cola Andina Brazil; an Brazil with its value to hiring local G4-HR10 annual conference where leading suppliers ›› Integrated management system, and suppliers chain was key to G4-SO9 are invited to recognize those with the best assurance processes for: G4-DMA We seek to make acquisitions and purchases performance and where the event is used synchronize the Supplier indicators G4-12 from local suppliers in cities where we have to address the following issues: ·· Quality, Argentina Brazil Chile Paraguay G4-EC9 production facilities and major distribution ·· Safety, performance of the centers. This decision seeks essentially to Percentage of local suppliers ›› Glance of the economic context with an ·· Environment, operation during the promote the local development of supplying 2014 96.90% 99.10% 97.10% 86.30% external specialist. ·· Health and safety, companies, generate an integration with ·· Audit critical service providers. Olympics. 2015 97.11% 99.80% 95.56% 87.00% supply chain, reduce delivery time and ›› Sustainability and social responsibility the risk of exposure to foreign currency 2016 97.00% 99.68% 95.06% 85.93% programs in the community. In 2016 there was a special mention due to exchange rates. Percentage of the expense for local suppliers the Olympics, since the city of Rio de Janeiro ›› Policy purchases and updates. was the headquarter of three of the most 95.50% 98.60% 98.50% 64.80% During 2016 our procurement areas shared 2014 representative world sporting events; during experiences on their requirements and 2015 98.85% 99.90% 97.52% 54.00% ›› Warehouses and requirements for the 114 days our operation had to adapt to the processes, which often does not allow reception of raw materials. planet's largest sporting event. 2016 97.00% 99.83% 97.52% 40.00% the inclusion of small producers or social enterprises given their robustness. In this ›› Financial process, documentation and sense, the corporate purchasing policy was payments. amended and along with the operations some success cases were implemented in this area. The latest version includes the We had a total of incorporation of social and environmental dimensions to the technical evaluation assigning weight to those aspects to then move forward with the economic assessment. 8,927 An example of a social management company that promotes the development of local susuppliers in 2016 suppliers is the Producers + Consumers Ark, which promotes “prosumer” communities 95 206 164 (producers and consumers at the same Days Countries Countries time) by linking small producers with networks where they can commercialize their products and provide services. Through the Ark we defined the purchase of uniforms in Argentina, which are manufactured by 300 42 23 small textile producers. Cities Modalities Modalities 10,000 10,500 4,350 Drivers Athletes Athletes

134 • Coca-Cola Andina • Sustainability Report 2016 135 a new management GRI: guiding principles for our contractors G4-DMA for suppliers FP1 La The management of commitments and In short, it has four management areas: The contract management model success- FP2 At Coca-Cola Andina we are committed to workplace, which respect human rights Our suppliers must comply with relationships with contractors is an increas- Operating Management, Performance fully integrates five key areas (Operating, the defense of the fundamental principles of and –at a minimum- comply with labor the following requirements: ingly complex subject for large companies, Management, Monitoring Contract Manage- Financial, Labor Relations, Legal, Safety international human rights in the workplace, and environmental laws at the local level, especially when the size of the operation is ment and Legal and Social Management; and Occupational Safety) under a single regardless of the place where we operate. as well as key international conventions. ›› Respect freedom of association and extensive and a good part of its operation fostering a global approach and defining tool through measurable and controllable collective bargaining. is supported by these third parties. specific tasks that each of the parties variables We believe that the true measure of a well- As a general rule, the supplier must comply involved must comply in the contract run business not only considers whether with all local and national applicable laws ›› Forbid child labor. Coca-Cola Andina is no exception, and that's management process. it achieves economic success on how it related to these topics, except that the why in the continuous search for efficiency achieves it; therefore, we seek to develop International Labor Organization were to ›› Forbid forced labor and abuse at work. this year we adopted a new management This strategy sets also a preparation and relationships with suppliers that share similar set higher requirements, in which case the model for third parties, which allows to training for stakeholders, enabling them values and operate in an ethical manner. latter should apply. If a supplier does not ›› Eliminate discrimination. regulate the amount of contracts per to understand and adhere to a new model meet some aspect of the requirements of the operation, the weight on the costs of the that benefits all parties. Guiding Principles, corrective actions should ›› Hours of work and wages. organization and the workers involved in be implemented. The Company reserves these contracts, especially when many of Critical suppliers evaluated Category Concepts evaluated 2016 Our commitment to human rights is for- the right to terminate agreements with any ›› Safe and healthy workplace. them relate directly to our consumers. In this malized by respecting the Declaration of supplier that cannot prove compliance. way, we share the vision to be recognized SGP (Supplier Guiding Principles) 96% Human Rights of the United Nations; the ›› Protection of the environment. by our management excellence. Declaration on Fundamental Principles The main suppliers of Coca-Cola Andi- Ingredient suppliers Compliance GFSI (Global Food Safety Initiative) 85% and Rights at Work of the International na must comply with the requirements ›› Business integrity. The new model comprehensively addresses Labor Organization and the principles of established in the document and then the issue of contract management and allows SAA (Supplier Authorization Agreement) N/A the Global Compact. undergo periodic evaluations carried out ›› Complaints and solution procedures. them to be managed with a full control, by accredited independent counsellors who regulation, transparency and looking for SGP (Supplier Guiding Principles) 93% The Company’s policy on this issue is specialize in social compliance, on behalf ›› Appropriate and effective manage- the continuous improvement of costs and GFSI (Global Food Safety Initiative) 54% reflected in the "Guiding Principles for of The Coca‑Cola Company. ment systems service performance. Packaging suppliers Compliance Suppliers” whose provisions cover asso- CSME (Packaging & Sales & Marketing Equipment) 98% ciated suppliers and independent bottling For more information, visit the web site at: groups. These premises communicate our www.thecocacolacompany.com. values and expectations, highlight the importance of responsible practices in the

supply chain committees

We participate in the Supply Chain Com- mittees of the Coca-Cola bottlers, where joint initiatives are worked on in order to boost business volumes and good business practices. Development agreements are reached with suppliers of strategic raw materials and adjustments to our quality standards, for example sugar, caps, preforms, etc. In addition, partnerships with other companies and institutions are created to work on best practices in the value chain, under the organization of Purchasing Consortia.

136 • Coca-Cola Andina • Sustainability Report 2016 137 Social investment GRI: Supplier management tools G4-DMA FP1 in the community FP2 ur social investment policy is based We still we need to improve the measurement At Coca-Cola Andina O on strategic pillars: being a good methods of initiatives, but we are going in we seek to improve neighbor; promote sports, education, social the right direction, defining contributions people’s quality of inclusion and environmental care mainly by project and the changes that we want to management system requirements concerning water and waste. achieve in the communities through spe- life and promote cific goals. We have dialogue and constant All supplier contractors providing services at the plant are permanently informed about happier, developed and During 2016 we were critical to target communication tools to meet their needs and controlled on Management System Requirements: ensure the quality of our products sustainable communities. resources and following social investment and we focus programs and initiatives on and that they are safe for consumption; mitigate the risks to the health and safety of measurement methodologies we asked our- their interests and concerns. persons involved in the activities of the company; minimize the negative environmental selves whether our initiatives are voluntary impacts; control risks to material and intellectual property of the company. and charitable, to jointly articulate with We hold periodic meetings with the ONGs and make the goals of our social-en- municipalities in which our operations vironmental projects clear in the case of are located in order to understand the having to incorporate non-profit partners. social and economic context in which we are immersed, and collaborate quickly in Suppliers are classified into categories according to their importance and criticality in We are convinced that there are more and disaster cases order to optimize management. We perform more actors with whom we can establish Classification While the same relationship policy remains for all of them, certain processes and procedures are differentiated according to their classification. synergies to enhance the results of the Through Coca-Cola’s website, we receive strategic initiatives in the community, and prioritize queries and claims, which are referred to those partnerships and programs with a the corresponding regions and bottlers. We promote and collaborate in the improvement of the performance and development alliances and of suppliers through controls, assessments and feedback. long-term vision, since resolving those issues We measure the perceptions and needs of Development We collaborate with improvement plans; specific training; financial support in critical joint projects of merit a sustainable commitment in time. our local community, disseminate activities circumstances; evaluation and feedback with regard to practices of safety and hygiene, quality, environmental protection and corporate social responsibility. improvement and and strengthen links with the responsible institutions. We have a specific procedure that defines the rules and requirements that suppliers implementation of must meet, including health, safety and environmental aspects. Social and All service contracts include the enforcement of local laws with respect to the new technologies, environmental prohibition of child labor, a correct record and payment to third party workers, requirements enforcement of working hours and the prohibition of slavery. resulting in increased

They undergo an evaluation every six months, generating a report where users of capacity of the Coca-Cola Andina’s products and services, define a compliance evaluation score. For Assessment production raw materials, all suppliers undergo a quality control analyses. Audits are supplier and our performed in the event that suppliers present lower than expected results. operation.

138 • Coca-Cola Andina • Sustainability Report 2016 139 organizations with which we relate: summary of initiatives

PARAGUAY BRAZIL PARAGUAY BRAZIL

Policía Nacional - Comisaría Arroyo Seco, cercana a Paresa Oportunidade Especiais Use of special baskets made of corrugated card board for Project for training people with disabilities: inclusion of residue separation and recycling paper and cardboard 263 people with disabilities to the labor market of Rio de Fundación Dequeni - Acciones para fomentar la educación AFBCC - Associaçao Fabricantes Brasileiros de Coca-Cola Janeiro Internal campaign of collecting caps for recycling Fundación Paraguaya ACRJ - Associaçao Comercial do Rio de JPA supporting the Lucha organization "Together fighting Coca-Cola Institute (optimism week): the sales volume of a World Wildlife Foundation ABIR - Associaçao Brasileira das Indústrias de Refrigerante cancer” particular week, went to 70 cooperatives of recyclers in the region of Rio de Janeiro, Espirito Santo and Ribeirão Preto Bomberos Voluntarios Espírito Santo em açao Recycling bottles post runs "Good things happen when you recycle" 1,178 catadores no ano de 2016 Fundación Moisés Bertoni Instituto Coca-Cola Semana Otimismo Participation in ADEC’s VIII CSR and Sustainability Congress. Coletivo Jovem: training and accompaniment project to Teletón Coletivo Jovem e Coletivo Floresta Instituto Coca-Cola Through an alliance with the Moisés Bertoni Foundation, we the labor market of young people between 15 and 25 promoted the event to be carbon neutral by measurement years. Working in conjunction with 14 NGOs located in Techo Paraguay CIESP - Centro de Indústria do Estado de Sao Paulo and subsequent compensation communities near Rio de Janeiro and Ribeirão Preto. 5,348 impacted in 2016 FUPADI CIRJ - Confederaçao das Industrias do Rio de Janeiro Support the initiative "Firefighters for a day" Fundación Paraguaya - Plan Emprendedores Coletivo Floresta: Training for the development and support Support to the OMAPA Organization in the finals of the to the value chain of the acai fruit in the communities Ministerio de Educación Math Olympics in Paraguay located on the banks Ministerio de Salud Dale Juguemos (Let’s Play) Program at 70 public schools, reaching more than 12,000 children teaching on balanced Junior Achievement nutrition and physical activity at recess

ARGENTINA ARGENTINA

Membership Fundece (EXC) 26 Educational programs with Junior Achievement Cordoba Membership IARSE Installation of water filters in Rio Negro for access to drinking water of 7 schools CHILE Auspicio de eventos Banco Alimentos Mendoza CHILE Inclusion of scholarships to 75 children under the FONBEC Cambio climático - Apoyo programa Educar Forestando. program Centro de Estudios Públicos Fundación ACUDE, 10 programas. Fields for Chile Renca, along with Fundación Mi Parque Development of Educar Forestando program in 10 schools Universidad de los Andes Donaciones de Bebida (Banco de Alimentos y pedidos Volunteer program Reforestemos Patagonia: Coyhaique. in the city of Córdoba. autorizados) Planting 400 native Lenga trees at the Dos Lagunas Asociación de Industrias Proveedoras national reserve Implementation of PAC program Cooperatives Sponsorship Inclusión educación - FONBEC- Toda Andina Argentina Conf. Gremial Comer Detallista Program, with the Los Carreros cooperative in the city of Startup of the food Alliance Network. Contributing to more Córdoba SOFOFA Donación mensual banco de alimentos para logística than 180 organizations and impacting 89,974 people Donation to the Food Bank Foundation in Cordoba. Cámara Nacional de Comercio Chile Encuesta de percepción social muestra tres locaciones 10 Junior Achievement volunteer programs 330 children Donated liters: 282,909 from schools located in Renca Asociación de Industriales Antofagasta Indicadores benchmarking IPACE (PNC-PIC) Donations of caps and paper to the Children's Hospital in Christmas Recycling Workshop center zone with Andina Córdoba. Cámara de Comercio de Santiago collaborators together with Kyklos (B corporation) Casa Macuca Installation of Ecopoints in hypermarkets in the north area Alimentos y Bebidas de Chile Cleaning beaches in Punta Arenas of the city of Córdoba Junior Achievement Córdoba Asociación Nacional de Avisadores de Chile - ANDA Give a smile. Internal Christmas campaign delivering gifts to foundations Junior Achievement Cooperativa Los Carreros Christmas caravan in San Antonio Fundación Libertad y Desarrollo Unión Social de Fundación Avina Empresarios Cristianos Campaign "Each bottle counts" with a recycling bus Fundación Ruta 40 TED X RENCA Asociación Hospital Infantil Opening of the Coca-Cola Andina cinema for the Renca Casa Bethel community Conin

140 • Coca-Cola Andina • Sustainability Report 2016 141 student scholarships GRI: Education and social inclusion G4-DMA G4-EC8 In Chile, the Company benefits children The link goes beyond the purely economic G4-16 of employees who meet the requirements aspect and the collaborator becomes a G4-SO1 Through partnerships junior achievement covering 70% of annual tuition and fees of witness of the development of the student, with several programs the chosen career. who considers his/her guidance, support, organizations that encouragement and containment. In ad- Thanks to the commitment of volunteer participating in all the activities that his/ In Argentina we work together with the dition, during the year there are several are concerned about workers in different programs, we helped her "partner" develops during a regular day Fondo de Becas para Estudiantes (Fonbec), meetings between them generating a both issues, we schools with training modules on different of work, such as interviews, work lunches the Córdoba foundation which rewards permanent and lasting relationship that promote inclusive and issues, in order to extend the view on sus- and meeting, as well as know how it is to the efforts of children and young people enriches young and old. In 2016, the pro- integrating educational tainability and the care for the environment work at Coca-Cola Andina. with low resources through a system of gram reached 70 students. of grade, middle, and high school students. corporate volunteering, which provides opportunities. Finally, in 2016 for the second consecutive for a contribution, shared between the The objective is to encourage them to year we joined the International Entrepre- Company and the worker who wants to help. engage with their communities and the neurs Forum (FIE for its acronym in Spanish), onvinced that education is a key pillar context surrounding them; fostering in a high-impact educational event organized C of society and the communities where them the entrepreneurial spirit in life and by the Junior Achievement Foundation in During 2016, 44 sophomore, junior and we operate, we are actively involved in reinforcing values as teamwork, solidarity, Cordoba. It is a program aimed at young senior high school scholarship students educational initiatives promoting values responsibility and comradeship. people between 16 and 23 years based of entrepreneurship and sustainability, and on the formation of values, attitudes and received financial support in the regions of we are approaching several organizations Also, we participated in the educational the creation of tools, which allow them to Punta Arenas, Coquimbo, Antofagasta and to collaborate in order to provide training program "Partners for a day" which provides discover their entrepreneurial potential and Tarapacá. The annual funding per student opportunities to those who do not have it. the chance for students in the last year of action capabilities so they are protagonists high school to live a day in the profession in the transformation of their own spaces. is $550,000 (Chilean pesos). they want for their future together with Company collaborators. Thanks to this initiative, the student has the possibility of

142 • Coca-Cola Andina • Sustainability Report 2016 143 coletivo jovem chile, renca GRI: coca-cola chile and argentina G4-DMA good neighbor G4-EC8 Every year the Coletivo Jovem program, The strength and diffusion of the program G4-16 that has been underway since 2010 in generates the involvement of businesses It began in 2014 and its success throughout G4-SO1 Brazil, achieved positive and high-impact near schools to offer internships and incor- the country has not stopped. It's the Fields food banks children's day G4-EC2 results for the communities and extended porate staff to their organization. for Chile initiative which has managed to G4-EC8 invitations to other organizations to join rescue, implement and launch sports spaces We have a real commitment to our surrounding community, and For the celebration of Children’s Day, Coca-Cola Andina Argentina as partners. Thanks to the support of 14 NGOs in the in particularly vulnerable areas. As Coca-Cola that is why we have partnered with the Food Network and Cordo- collaborated with 46 organizations thanks to the organizational area, so far more than 20,000 young people Andina, we have actively participated in the ba Food Bank NGO, dedicated to reducing hunger in each of the support of the Cordoba Food Bank. It is one of the most ambitious projects participated in training courses and another construction of these community spaces regions where they operate. Through our sustainability strategy, of shared value proposed by the private 5,348 from low income communities in in all our areas of operation. we generate a positive impact on the most vulnerable in terms sector that promotes training for income Rio de Janeiro and Ribeirão Preto were of nutrition, contributing with our products. christmas visits generation for young people between 15 formed in 2016. In May 2016, it was Renca’s turn. Fundación and 25 years, to discover their talents and Mi Parque, students from the Cumbre de Because we seek to build links with our community, be a close As every year, Coca-Cola Andina wants to stand beside those who find job opportunities. Cóndores school of the same commune, and appreciated brand, we want to continue offering moments are most in need, in a moment as magical as Christmas. Therefore, customers from the traditional channel of happiness with our products among those who most need it. all employees of Coca-Cola Andina Argentina have the opportunity and of course, our team of Coca-Cola to write a wish and bring it along with a gift to different hospitals Andina volunteers, participated with all During 2016, Chile contributed and institutes in the area. Patients were visited in 2016 staying at their energy and optimism to embellish 290,099 kilos of food, the Hogar de Betel, Grupo de Mujeres de Valor, Hospital Infantil and give life to the place located in the Municipal, Inst. Rehabilitación Mogólico, Hospital Pediátrico del municipality of Renca. benefiting 136 institutions. Niño Jesús, La casa de Ronald McDonald and Hospital de Niños. Argentina delivered 222,409 During the visit gifts and messages are delivered with the collab- liters reaching 138,781 people oration of a team of paramedics dressed as clowns, following the chile, instructions of the staff of each institution. mostly children and young coyhaique people. months training + classrooms in Connection We are a company that is motivated to te communities + with opportu- achieve amazing results, not only in our virtual learning nities in Alliances with platform. employability local Os processes and operation, but also in the alliances. contribution we can make to generate a more sustainable country and planet, in harmony with our environment. There- fore, on June 2, 2016 in Coyhaique, with 15 collaborators, 400 native lenga trees were planted in the area, to assist in the 30% recovery of an ecosystem that suffered a 117,846 rapid degradation in recent years. impacted employability 12 121 +35,000 states units young people employed

144 • Coca-Cola Andina • Sustainability Report 2016 145 outstanding case

chile Support to the community of RENCA

At Coca-Cola Andina, ocated in the Northwest area of the Aware of our commitment to provide quality we seek to create L city of Santiago, the Renca commune products but also support the development genuine bonds with our is one of the most vulnerable in Chile and of the societies where we have presence, in one that records the highest rates of pov- 2016 we launched a plan to become a good nearest communities erty in the region, with large gaps in food, neighbor within the community. to generate positive safety, cleaning of streets, labor offers, changes in its people, among others. Therefore during six months we worked on through initiatives diagnosing part of the 700 stores that make There, Coca-Cola Andina is recognized as up the municipality, reaching 67 municipal that have a social, one of the main companies that makes and subsidized schools, foundations, au- environmental and a contribution to the generation of jobs, thorities, neighbors and partners. economic impact. through a plant that concentrates 65% of the volume production of all Andina Chile. The field task allowed us to get closer to the needs, realities, pains and problems of people in social, environmental and economic terms. The diagnosis was validated by GKF Adimark, a market and public opinion company and served to define stakeholders, towards which initiatives should be guided.

Thus, in 2016 we implemented together with "Fundación Mi Parque ", grocers and In November, we opened the doors of our overcoming, positivism, pride in belonging volunteers from the Company a field for house inviting and rewarding 240 children and happiness, the initiative brought to- Renca impacting on nearly 1,700 inhabitants. from three local schools with the Coca-Cola gether foundations, schools, small grocers 330 Andina Cinema experience, while we still and employees who received messages Children trained to be In addition, within the framework of the pro- receive every day visits from students who, full of passion, excitement and hope; a "Climate entrepreneurs". grams “Aprender a emprender en el medio escorted by the “bus de la roja” (Chile’s call to action to become protagonists and ambiente” (AEMA) and “Emprendedores soccer team official transportation), come to generators of the change they need. climáticos” fostered by Junior Achievement, learn about the history and experience the workers trained on environmental issues in magic of Coca-Cola through the "Happiness order to turn students into entrepreneurs as Factory". During 2016 800 children joined 240 agents of change and inspiring responsibility the community. Children attended and cooperation necessary to mitigate the Coca-Cola Andina Cinema. effects of climate change, promoting sus- Finally, in October, we performed the first tainable development practices. Thanks to TEDx in Renca, a global event that brings these proposals, we reached 330 children entrepreneurs and thinkers together who from two schools located in Renca. share their ideas and transforming experiences with the audience. Throughout six 800 conferences on the issues of recycling, Renca children visited the Happiness Factory.

146 • Coca-Cola Andina • Sustainability Report 2016 147

GRI: Challenges for the coming years G4-2

Sustainable packaging Reporting year-to-year market environment Water makes us improve in ›› Be proactive with new legislation such Reduce Renew Reduce Energy and climate the process, we strive to as the Labelling Law and strive to make our stakeholders communicate to our entire value chain ›› Grow the business, either by integration ›› Continue developing optimal designs ›› Evaluate alternatives of using Plant ›› Continuously improve the processes of PET bottles in all our packaging, Bottle plant origin resin in our PET and technology to use less water in perceive the spirit that clear and transparent information to processes or launch of new categories, maintaining stable and efficient energy reducing the weight of our bottles. bottles. the manufacture of our products, this company has to facilitate the process of decision-making of our consumers. consumption. For 2017, new light-weight preforms with the challenge of maintaining in 5 products are planned to be im- Recycle the incorporation of new categories grow sustainably. ›› Carry out energy efficiency projects ›› Incorporate performance indicators plemented. to the portfolio. for production, cooling equipment related to the calorie content to help ›› Contribute to strengthen the con- and transportation systems, looking monitor and manage how we are ›› Offer quality packaging made thinking nection between recyclers, collection ›› During 2017 the design and technologies for synergies with our value chain. We remain in the constant search for responding to the diverse needs of about the environment and the facility points and public entities, by means of our water plants will be strongly incorporating information that responds our consumers. ›› For 2017 energy audits and inventories to be recycled. of agreements with customers, in- worked on in order to achieve the best to the needs of our stakeholders as well ›› Continue refreshing people extending of gas emissions are expected to be stitutions, municipalities and places efficiency of the processes. as to global best practices such as for the product portfolio, adding new performed that will allow us to carry ›› Work strongly in conjunction with of high consumption to increase the example the GRI requirements and the categories, strengthening low calorie out tailored plans in order to designate our suppliers, on eco-friendly devel- production of post-consumer PET. Recycle Sustainability Guide of the Santiago Stock and nutritional added segments. We resources effectively in the pursuit of opments and more efficient use of Exchange. Our work pillars result from the work in our portfolio availability at reducing our carbon footprint. materials in our secondary packaging. ›› Monitor recycling projects in the com- ›› Increase the technology in our treat- continuous communication and interaction each of our customers with the aim of ›› Be proactive and innovative in the munity to achieve sustainability and ment plants to fully process efflu- with our stakeholders, collaborators and providing consumption options for each incorporation of 8% of clean energy to Reuse autonomy of recyclers not only from ents, returning the water used in our community, so we will continue to build on occasion and be part of the lifestyle meet energy needs of the operations an environmental point of view, but operations with a quality that allows them and define challenging goals in each of our customers. In this sense, the in Argentina. ›› Increase the use of recycled resin (Bot- also giving support to the impacting animal life. of our work areas: expansion of our returnable packaging tle to Bottle, B2B) in our PET bottles. social issues. remains our main challenge. ›› Look for projects that will allow us to ›› Encourage the use of our returnable ›› Working with NGOs and the commu- reuse treated water as a raw material, ›› Hydrate participants of sporting events, products so that each bottle is reused nity to encourage good habits for the looking for the synergy of our efforts managing these events comprehen- in a controlled way, deepening its collection and recycling of bottles. with other initiatives. sively, from supplying to managing expansion into new territories of our post-consumer packaging. Keep ini- operations. Replenish tiatives that support active living and healthy habits, such as the Coca-Cola ›› Develop agreements with our indus- ›› Support and promote projects that Cup, marathons and bike races. trial scrap recyclers to improve the impact on the conservation of water ›› Always ensure the supply of high competitiveness of recycled resin. sources and access to safe drinking quality products and services in the water for communities reached by market, making constant investments our operations. in technology, equipment and specific technical training of collaborators. ›› Maintain and monitor the projects that have been implemented, in order to ensure that they continue capturing expected water.

150 • Coca-Cola Andina • Sustainability Report 2016 151 community work environment GRI: Characteristics of the Report G4-2 ›› We seek to generate greater educational ›› Continue to ensure that in all areas G4-18 opportunities and access to work for and activities of our Company legal G4-26 the most vulnerable sectors, ensuring regulations and criteria established G4-28 his Report follows the guidelines Sustainability division, which coordinated Techniques and bases for data mea- the sustainable development of the by our Human Rights Policy in the G4-32 communities with which we relate. workplace are respected. T developed by the Global Reporting the collection of the information that was surement, as well as significant changes Initiative - GRI initiative, in its latest Guide provided by representatives from all areas related to previous periods, are informed ›› Continue supporting projects of third ›› Maintain a safe and healthy environ- for Preparing Sustainability Reports G4 of the company. The review and approval throughout the report in the cases where parties that promote sustainability, ment for workers and visitors. Security for the food industry, in its exhaustive was conducted by the Corporate Sustain- it corresponds. seeking to make synergies with them. concepts will be incorporated into "conformity" mode. The period covered ability Committee, as established by the the ways people act, generating safe ›› Learn from the best practices that by the Report includes between January respective policy. The used currency, unless specified other- conduct guidelines and designing we have in the various operations, 1 and December 31, 2016. It is the Eighth wise, when it refers to "USD" indicates United processes and installations increas- specifically we will continue to work Report submitted by Coca-Cola Andina and For the definition of the content and ma- States dollars; when it indicates Chilean ingly less risky. on improving management of sup- contemplates it contemplates Coca-Cola terial issues reported, the guidelines of G4 pesos a "$" is used, and "$AR" for Argentine pliers and third parties in general. A ›› Through partnerships with recognized Andina’s operations in Argentina, Brazil, Guide (test of materiality) were followed, pesos; “R$” is used for Brazilian reais. challenge for 2017 will be to develop local and international educational Chile and Paraguay: Andina Chile; Andina after consulting with major stakeholders and incorporate sustainable suppliers. institutions, we will extend the pro- Argentina; Andina Paraguay; Vital Jugos S.A.; (shareholders, employees, suppliers and grams of technical, professional and ›› Expand training programs to customers Vital Aguas S.A. Chile and Andina Brazil. customers) of the four countries in which managerial development of our col- and the deepening of the route to mar- we operate. The indicators included for each laborators. In addition, we will boost ket (RTM) models, for the development Again, the Report is presented jointly material aspect that has been identified - the development of internal trainers of small businesses. and articulated with the Company’s 2016 both the G4 Guide and the key Sustainability for dissemination of knowledge and Annual Report. performance Indicators of the Coca-Cola ›› Create spaces for dialogue with the expertise where necessary, in order System have sufficient scope to report - in different stakeholders involved in our to strengthen our human resources. Given that Coca-Cola Andina joined the UN a clear, comprehensive and accurate form production and commercial chain to ›› We will continue to deepen in the Global Compact (UNGC) in 2015, we are – on our management, its successes and internalize their concerns and develop spreading and reinforcement of the reporting on indicators that account for what its future challenges. business plans. values of our culture. we are doing to meet the 10 principles that ›› Generate strong and cooperation ties we are committed to respect and promote. The coverage of material issues is detailed ›› We will support volunteer programs in with organizations with the "know- in the table included in the chapter Gov- solidarity initiatives that contribute to how" in the communities where we The process for its development was led ernment and Sustainability Management. sustainable development and where are present. by the Management Control and Corporate our collaborators are the links for the Social perception approach to the needs. ›› Measure the opinion that society has ›› Expand projects to build a more about us in terms of social, environ- inclusive and equitable culture in- mental and economic value. corporating people with disabilities in those operations that still have not ›› Develop close ties with our consumers, advanced in this sense. making them aware of responsible consumption.

152 • Coca-Cola Andina • Sustainability Report 2016 153 GRI-G4 Contents index

The sustainability report was prepared following the exhaustive conformity re- The indicators that relate quirements of the G4 Guidelines of the to the principles of the Global Reporting Initiative GRI. United Nations Global

The response to each indicator relates Compact are identified to the clauses of the International Social with the color red. Responsibility Standard ISO 26,000: 2010.

GRI G4 Guidelines - General basic contents

Material Aspects Page N° /Answer Omissions ISO 26000 Strategy and analysis 4.7; 7.2 G4-1 Provide a statement from the most senior decision-maker of the organization (such as Pages 10 through 15 of the 2016 Annual Report: 6,2 CEO, chair, or equivalent senior position) about the relevance of sustainability to the Link: organization and the organization’s strategy for addressing sustainability. http://www.koandina.com/uploads/reportes_ financieros/Annual%20Report%202016%20(VF).pdf G4-2 Provide a description of key impacts, risks, and opportunities. Pg. 15; 150-151 7.4.2 Also see: Document: Corporate Governance Practices (General Standard 385)" http://www.koandina.com/uploads/NCG%20385.pdf 20F Pg. 3 - 4 and 8. http://www.koandina.com/uploads/reportes_ financieros/20%20F%202015%20EN.pdf Organization Profile 4.2; 4.3; 6.3.10 G4-3 Report the name of the organization. Pg. 10 G4-4 Report the primary brands, products, and services. Pg. 44 G4-5 Report the location of the organization’s headquarters. RUT: 91.144.000-8 Address: Av. Miraflores 9153 / Renca / Santiago / Chile G4-6 Report the number of countries where the organization operates, and names of coun- Pg. 11 tries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report. G4-7 Report the nature of ownership and the legal form. Embotelladora Andina is an open stock corporation established by public deed on February 7, 1946, in Santiago, Chile. For more information see: 2016 Annual Report. Pg. 20-13; 27; 32 and 33 http://www.koandina.com/uploads/reportes_ financieros/Annual%20Report%202016%20(VF).pdf G4-8 Report the markets served (including geographic breakdown, sectors served, and types Pg. 11-13. of customers and beneficiaries). G4-9 Report the scale of the organization, including: total number of employees, total Pages: 10-13. number of operations, net sales (for private sector organizations) or net revenues (for Also see 2016 Annual Report, Pg. 20 public sector organizations), total capitalization broken down in terms of debt and http://www.koandina.com/uploads/reportes_ equity (for private sector organizations), and quantity of products or services provided. financieros/Annual%20Report%202016%20(VF).pdf

154 • Coca-Cola Andina • Sustainability Report 2016 155 Material Aspects Page N° /Answer Omissions ISO 26000 Material Aspects Page N° /Answer Omissions ISO 26000 G4-10 a. Report the total number of employees by employment contract and gender. Pg. 106 and 107. G4-20 For each Material Aspect, report the Aspect Boundary within the organization, as Pg. 30. b. Report the total number of permanent employees by employment type and gender. follows: Report whether the Aspect is material within the organization, if the Aspect c. Report the total workforce by employees and supervised workers and by gender. is not material for all entities within the organization (as described in G4-17), select d. Report the total workforce by region and gender. e. Report whether a substantial one of the following two approaches and report either: the list of entities or groups of portion of the organization’s work is performed by workers who are legally recognized entities included in G4-17 for which the Aspect is not material or the list of entities as self-employed, or by individuals other than employees or supervised workers, or groups of entities included in G4-17 for which the Aspects is material. Report any including employees and supervised employees of contractors. f. Report any significant specific limitation regarding the Aspect Boundary within the organization. variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries). G4-21 IFor each material Aspect, report the Aspect Boundary outside the organization, as Pg.30. follows: Report whether the Aspect is material outside of the organization, if the G4-11 Report the percentage of total employees covered by collective bargaining agreements. Pg. 112. Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical G4-12 Describe the organization’s supply chain. Pg. 14; 128-133. location where the Aspect is material for the entities identified. Report any specific limitation regarding the Aspect Boundary outside the organization. G4-13 Report any significant changes during the reporting period regarding the organization’s Pg. 10. size, structure, ownership, or its supply chain. We closed our plant in Vitoria in Brazil, industrially G4-22 Report the effect of any restatements of information provided in previous reports, and There were no restatements, the information remains reorganizing our operation in that country. the reasons for such restatements. consistent with the reports of previous years. The G4-14 Report whether and how the precautionary approach or principle is addressed by the Pg. 48. elaboration methodology was according to the organization. We have 20 certified work operations with international mandatory requirements of the Superintendence standards and regulations, which are audited every year. of Securities and Insurance (SVS) and the Global Certifications: ISO9001; ISO14001; OHSAS 18001; Reporting Initiative (GRI-G4). In addition, a progress FSSC 22000; KORE Standard; HACCP; Top Ten Fatality; communication for the United Nations Global Compact Supplier Guiding Principles. is included. Also see: G4-23 Report significant changes from previous reporting periods in the Scope and Aspect There were no restatements, the information remains Corporate Sustainability Policy Boundaries. consistent with the reports of previous years. The Risk Management Corporate Policy elaboration methodology was according to the http://www.koandina.com/pagina.php?p=gobierno- mandatory requirements of the Superintendence politicas of Securities and Insurance (SVS) and the Global Reporting Initiative (GRI-G4). In addition, a progress G4-15 List externally developed economic, environmental and social minutes, principles, or We participate in several economic, social and communication for the United Nations Global Compact other initiatives to which the organization subscribes or which it endorses. environmental nature external activities, all voluntary is included. and in order to improve our processes and share our Stakeholder engagement 4.5; 5.3 experiences. Pg. 27; 28 and 38. G4-24 Provide a list of stakeholder groups engaged by the organization. Pg. 26. Coca-Cola Andina adheres to the principles and initiatives in which The Coca-Cola Company and G4-25 Report the basis for identification and selection of stakeholders with whom Pg. 26. the Coca-Cola System participate. Among them the to engage. principles of the Global Compact and the Declaration G4-26 Report the organization’s approach to stakeholder engagement, including Pages 26; 27; 31; 36; 52; 153. of Human rights of the United Nations. Embotelladora frequency of engagement by type and by stakeholder group, and an Andina S.A. signed its adherence to the Global Compact indication of whether any of the engagement was undertaken specifically as of the United Nations in Chile during 2015 and which it part of the report preparation process. maintained during 2016. G4-27 Report key topics and concerns that have been raised through stakeholder The sustainability benchmarks in each country have engagement, and how the organization has responded to those key topics meetings with the Coca-Cola Company's public affairs G4-16 List memberships of associations (such as industry associations) and national or Pages 38 and 140. and concerns, including through its reporting. Report the stakeholder and sustainability area periodically. Key issues are international advocacy organizations in which the organization holds a position on the groups that raised each of the key topics and concerns. detected there, for 2016 some of the topics were: governance body, participates in projects or committees, provides substantive funding Chile: Labelling Law. beyond routine membership dues, views membership as strategic. Argentina: Post consumption, waste management. Material Aspects and Boundaries 5,2 Brazil: Olympics activation. Pag: 27-30; 54; 62 and 102. G4-17 List all entities included in the organization’s consolidated financial statements The Sustainability Report and the 2016 Annual or equivalent documents. Report whether any entity included in the organization’s Report consider the same entities and are presented Report Profile 4.2; 4.3 consolidated financial statements or equivalent documents is not covered by the simultaneously. G4-28 Reporting period (such as fiscal or calendar year) for information provided. January 1, 2016 through December 31, 2016 (Pg. 155) report. The main bottling facilities in Argentina, Brazil, Chile and Paraguay are consolidated. G4-29 Date of most recent previous report (if any). March 2016 Pg. 24 and 25 of the 2016 Annual Report. http://www.koandina.com/uploads/reportes_ G4-30 Reporting cycle (such as annual, biennial). Annual financieros/Annual%20Report%202016%20(VF).pdf G4-31 Provide the contact point for questions regarding the report or its contents. Pg. 178. G4-32 Report the ‘in accordance’ option the organization has chosen. Pg. 153. G4-18 Explain the process for defining the report content and the Aspect Boundaries. Explain Pg. 153. Report the GRI Content Index for the chosen option. Report the reference to the how the organization has implemented the Reporting Principles for Defining Report External Assurance Report, if the report has been externally assured. GRI Content. recommends the use of external assurance but it is not a requirement to be ‘in G4-19 List all the material aspects identified in the process for defining report content. Pg. 27-30. accordance’ with the Guidelines.

156 • Coca-Cola Andina • Sustainability Report 2016 157 Material Aspects Page N° /Answer Omissions ISO 26000 Material Aspects Page N° /Answer Omissions ISO 26000 G4-33 Report the organization’s policy and current practice with regard to seeking external This document was elaborated using the Global Re- G4-37 Report processes for consultation between stakeholders and the highest governance Pg. 26 y 30. assurance for the report. If not included in the assurance report accompanying the porting Initiative (GRI-G4) guide. Together with this, the body on economic, environmental and social topics. If consultation is delegated, In addition, since the enactment of Chile’s General sustainability report, report the scope and basis of any external assurance provided. document was verified by an external company in order describe to whom and any feedback processes to the highest governance body. Standard N ° 385, the Board surveyed all items relating Report the relationship between the organization and the assurance providers. Report to ensure the adequacy of the information contained in to the fulfillment of the Standard, which includes speci- whether the highest governance body or senior executives are involved in seeking the requirements of the methodology used. fic suggestions for practices related to economic issues, assurance for the organization’s sustainability report. sustainability, risk management and social affairs. The survey was performed with the help of specialized Governance 6,2 external advice. G4-34 Report the governance structure of the organization, including committees of the Pg. 36-37. Worth mentioning is that the standard, seeks to provide highest governance body. Also see: the market with information regarding corporate go- Identify any committees responsible for decision-making on economic, environmental Response to G4-42 indicator vernance practices that corporations have; addressing and social impacts. Document of the 2016 GSM General Shareholders’ several aspects related to the operation of the Board; Meeting. Pg., 1-2-3. Exhibit 1 the relationship between the company, shareholders Organizational Structure 20F pages 82 and 83 – and the general public; the Company’s risk manage- Directors, Senior Officers and Employees ment and control; and assessment by third parties on http://www.koandina.com/uploads/reportes_financie- the adoption of these practices. ros/20%20F%202015%20EN.pdf Also see: Corporate Sustainability Policy and Corporate Risk 2016 Annual Report. Pg. 24 and 28. Management and Control Policy http://www.koandina.com/uploads/reportes_financie- http://www.koandina.com/pagina.php?p=gobier- ros/Annual%20Report%202016%20(VF).pdf no-politicas G4-38 Report the composition of the highest governance body and its committees by: See answer for this index under indicator G4-40 G4-35 Report the process for delegating authority for economic, environmental and social Pg. 36. executive or non-executive. Independence, tenure on the governance body, number of Regarding Independence, see: topics from the highest governance body to senior executives and other employees. In addition, the company has specific guidelines for each individual’s other significant positions and commitments, and the nature of the Document comparing Chilean and U.S. Corporate delegation of authority, formalized in a "document of commitments, gender, membership of under-represented social groups, competences Governance Standards. Corporate Policy for Delegation of Authority" and the relating to economic, environmental and social impacts, stakeholder representation. http://www.koandina.com/uploads/Adjuntos/ Board of Directors meets once a month to learn about comparacion_estandares_gob_corporativo%20 the Company’s results and all matters falling within its CHile-EEUU.pdf competence. 20F Pg.83 through 86: Composition of the Board For more information see: of Directors, Senior Officers (Gender and Age) and 20F Pg. 82 and 83 - Directors, Senior Officers and Competence and Experience. Employees http://www.koandina.com/uploads/reportes_financie- http://www.koandina.com/uploads/reportes_financie- ros/20%20F%202015%20EN.pdf ros/20%20F%202015%20EN.pdf 2016 Annual Report. Pg. 31; 34; 36-38. http://www.koandina.com/uploads/reportes_financie- G4-36 Report whether the organization has appointed an executive-level position or positions Pages 36 and 37. ros/Annual%20Report%202016%20(VF).pdf with responsibility for economic, environmental and social topics, and whether post The Company has people in charge of sustainability, holders report directly to the highest governance body. environment, safety and relations with stakeholders; G4-39 Report whether the Chair of the highest governance body is also an executive officer. If Neither the Chairman of the Board nor any of the who must manage environmental and social issues. so, his or her function within the organization’s management and the reasons for this Directors perform executive positions. The officer responsible for economic, environmental, arrangement. Also see: social and risk management issues reports quarterly to 20F Pg. 83 through 86 the Board of directors and the Audit Committee on the http://www.koandina.com/uploads/reportes_financie- management, plans and outcomes of the aspects under ros/20%20F%202015%20EN.pdf his/her responsibility. 2016 Annual Report. Pg. 24-33. http://www.koandina.com/uploads/reportes_financie- ros/Annual%20Report%202016%20(VF).pdf

Corporate Sustainability Policy and Corporate Risk Management Policy http://www.koandina.com/pagina.php?p=gobierno-politicas

158 • Coca-Cola Andina • Sustainability Report 2016 159 Material Aspects Page N° /Answer Omissions ISO 26000 Material Aspects Page N° /Answer Omissions ISO 26000 G4-40 Report the nomination and selection processes for the highest governance body and The election of the Board of Directors is done in G4-42 Report the highest governance body’s and senior executives’ roles in the development, The Board of Directors has an Executive Committee in its committees, and the criteria used for nominating and selecting highest governance accordance to Chile’s Corporations Law (18,046). The approval, and updating of the organization’s purpose, value or mission statements, charge of monitoring and proposing guidelines for the body members, including whether and how diversity is considered, whether and how Board of Directors is the body through which Company strategies, policies, and goals related to economic, environmental and social impacts. general progress of the social business and the control independence is considered, whether and how expertise and experience relating to management is exercised and is elected by the General of operations on an ongoing basis through periodic economic, environmental and social topics are considered, whether and how stakehol- Shareholders’ Meeting in each statutory period, in our sessions. Also, and as prescribed in article 50 bis of ders (including shareholders) are involved. case every 3 years. Series A holders choose 12 directors Chile’s Law on Corporations Nº 18,046, and in accor- and Series B holders choose 2 directors. The directors dance with the provisions of the Circular Nº1956 and may or may not be shareholders of the Company, Circular Nº560 of Chile’s Superintendence of Securities they last 3 years in their term and can be re-elected and Insurance, the Board of Directors has a Directors' indefinitely. Committee, whose functions are: To examine the reports Currently the Board of Directors is composed by 11 of external auditors, balance sheet and other financial Chilean directors (1 is a woman) and 3 foreigners (2 statements presented by Company management to Argentineans and 1 Ecuadorian), who have expertise the shareholders, and to rule on these prior to their and experience to carry out their functions. Although it presentation to the shareholders for approval. - Propose is not a legal requirement, knowledge and experience external auditors and risk rating agencies to the Board, are taken into account when selecting them, and their which are suggested to the respective Shareholders’ resumes always accompany their nominations. Meeting. - Review information relating to the operations Chilean law requires that, in certain cases, corporations referred to in Title XVI of Law Nº 18,046 and report on have independent directors. We are required to do so them. - Examine remuneration systems and compensa- and the independence of these directors is guaranteed, tion plans for managers, senior officers and workers of since they must comply with legal requirements such as the Company. - Report to the Board with respect to the not maintaining a relationship of kinship, or relationship desirability of hiring or not the company's external audi- as shareholder, company manager or executive. These tors for the provision of services that are not part of the directors are proposed by shareholders representing 1% external audit, when they are not prohibited pursuant to or more of the shares of the company and their can- provisions of article 242 of Chile’s Stock Market Act Nº didatures are presented 10 days prior to the General 18,045. - Review and approve the Company’s 20-F An- Shareholders’ Meeting in which the Board of Directors nual Report, and verify the compliance by management is renewed. Two days before the Shareholders Meeting, of Rule 404 of the Sarbanes Oxley Act (Under section candidates must provide a declaration of independence 404 of the Sarbanes Oxley Act, management should in which they state they comply with legal requirements make an annual assessment of internal controls of the and assume the commitment of staying independent company). All this, without prejudice to other functions during the entire period. which it performs such as analyze and follow corporate For more information see: policies, review the origin and implementation of new 2016 Annual Report. Pg. 36 - 38 (Corporate systems or business models. Governance). For more information see: http://www.koandina.com/uploads/reportes_financie- Company Bylaws Amendment 06/25/2012 Art.10 ros/Annual%20Report%202016%20(VF).pdf http://www.koandina.com/uploads/Adjuntos/Estatu- 20F Board of Directors and Shareholders’ Meetings. tos%20Societarios%20Reforma%2025-06-12.pdf Pg.99 Document on "Corporate Governance Practices http://www.koandina.com/uploads/reportes_financie- (General Standard Nº 385)" ros/20%20F%202015%20EN.pdf http://www.koandina.com/uploads/NCG%20385.pdf 20F Pg. 88. G4-41 Report whether conflicts of interest are disclosed to stakeholders, including, as a See: http://www.koandina.com/uploads/reportes_financie- minimum: cross-board membership, cross-shareholding with suppliers and other Document on "Corporate Governance Practices ros/20%20F%202015%20EN.pdf stakeholders, existence of controlling shareholder; related party disclosures. (General Standard Nº 385)" http://www.koandina.com/uploads/NCG%20385.pdf G4-43 Report the measures taken to develop and enhance the highest governance body’s The Company contributes to its greater specializa- Code of Ethics V1.0 paragraph 2. Pg. 2 collective knowledge of economic, environmental and social topics. tion by carrying out talks with experts, specialized http://www.koandina.com/uploads/Adjuntos/Codigo- presentations, the preparation of specific reports, deEticav1_0.pdf etc. The Executive Committee also visits each country (Argentina, Brazil, Chile and Paraguay) and specialists on economic policy are invited. G4-44 Report the processes for evaluation of the highest governance body’s performance Although there is not a formal evaluation process, a with respect to governance of economic, environmental and social topics. Report report on compliance with the adopted practices is whether such evaluation is independent or not, and its frequency. Report whether such produced annually, thus directors are very rigorous evaluation is a self-assessment. Report actions taken in response to evaluation of monitoring and complying with committed corporate the highest governance body’s performance with respect to governance of economic, best practices. environmental and social topics, including, as a minimum, changes in membership Changes in the Board of Directors are described on Pg. and organizational practice. 32and 33 of the 2016 Annual Report. Also see: Document on "Corporate Governance Practices (General Standard Nº 385)" http://www.koandina.com/uploads/NCG%20385.pdf

160 • Coca-Cola Andina • Sustainability Report 2016 161 Material Aspects Page N° /Answer Omissions ISO 26000 Material Aspects Page N° /Answer Omissions ISO 26000 G4-45 Report the highest governance body’s role in the identification and management of There are policies and specific procedures for the G4-49 Report the process for communicating critical concerns to the highest governance The Board of Directors holds scheduled meetings at economic, environmental and social impacts, risks, and opportunities. Include the management of the several risks associated with our body. least once a month where several matters are addres- highest governance body’s role in the implementation of due diligence processes. operation. For this purpose, the Company has a Risk sed including the important concerns communicated Report whether stakeholder consultation is used to support the highest governance Management Division whose function is to propose and to the highest governance body. The approach to body’s identification and management of economic, environmental and social impacts, implement standards and control activities for miti- decision-making is decentralized, giving operations risks, and opportunities. gating them. In addition, the Board agreed to meet at a level of sufficient autonomy, which is framed within least quarterly with this division in order to analyze the certain limits to maintain strategic control of their proper operation of the risk management process, the businesses. (Document on Corporate policy of Authority risk matrix used by this unit (as well as the main sour- Delegation). ces of risks and methodologies for the detection of new Also see: risks and probability and impact of occurrence of those 20F Pg. 86 that are most relevant), and the recommendations and http://www.koandina.com/uploads/reportes_financie- improvements that would be relevant to perform in ros/20%20F%202015%20EN.pdf order to better manage the risks of the entity. Also see: G4-50 Report the nature and total number of critical concerns that were communicated to The main issues and concerns that were transmitted Document on "Corporate Governance Practices the highest governance body and the mechanism(s) used to address and resolve them. to the highest governance body involved the review of (General Standard Nº 385)" anonymous reports, the analysis of internal auditing http://www.koandina.com/uploads/NCG%20385.pdf reports, the review and approval of corporate policies Risk Management and Control Corporate Policy such as those of corporate sustainability and risk http://www.koandina.com/pagina.php?p=gobier- management, or other rules that apply to corporate no-politicas governance or to the company, internal control systems, review and approval of new business, review and appro- G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organi- Pg. 23. val of consolidated results and by operation. Some of zation’s risk management processes for economic, environmental and social topics. We are implementing a Management and Risk Control these were reviewed by the Audit Committee, Ethics (GCR for its acronym in Spanish) model, where the Committee or Executive Committee (in accordance to Board of Directors plays a fundamental role, counting the issue), and then analyzed by the Board of Directors; among its primary responsibilities knowing and others were dealt with directly in the Board of Directors. understanding all the relevant risks assumed by the The resolution mechanism is determined according Company, approve the strategy and general guidelines to their nature, if they are of a specific operation, of the GCR and monitor the continuous operation of the management or the Anonymous Complaints Channel. GCR processes reported by the Risk Committee through The Board of Directors meets once a month to learn assessments carried out by Internal Audit (which about the results of the company and all matters falling depends on the Board of Directors). within its competence. For more information see: G4-47 Report the frequency of the highest governance body’s review of economic, environ- According to the provisions of the Corporate Policy on 2016 Annual Report. Pg. 28 Duties performed by the mental and social impacts, risks, and opportunities. Management and Risk Control, the Risk Committee Directors’ Committee pursuant to Chilean Corporations was approved by the Board in December 2015, on Law N°18,046 (Art. 50 bis) a quarterly basis the Risk Committee will report to http://www.koandina.com/uploads/reportes_financie- the Board on: 1. The proper functioning of the risk ros/Annual%20Report%202016%20(VF).pdf management process. 2. The risk matrix used by the Company as well as the main sources of risks and G4-51 Report the remuneration policies for the highest governance body and senior execu- See: methodologies for the detection of new risks and the tives for the following types of remuneration: fixed pay and variable pay: performan- 20F – Paragraph B. Remunerations - Pg. 84 and 85 probability and impact of occurrence of those most ce-based pay, equity-based pay, bonuses, deferred or vested shares, sign-on bonuses http://www.koandina.com/uploads/reportes_financie- relevant. 3. Recommendations and improvements that or recruitment incentive payments, termination payments; clawbacks, retirement ros/20%20F%202015%20EN.pdf would be relevant to better manage the risks of the benefits, including the difference between benefit schemes and contribution rates for The document 2016 GSM Minutes, Pg. 34 and 35 Company in the opinion of the Risk Committee. 4. The the highest governance body, senior executives, and all other employees. sets forth the procedure through which remunerations contingency plans designed to react to the realization Report how performance criteria in the remuneration policy relate to the highest gover- are assigned to the Board of Directors, members of of critical events, including the continuity of the Board nance body’s and senior executives’ economic, environmental and social objectives. the Executive Committee, members of the Directors’ of Directors in crisis situations. Committee and Audit Committee. Also see: http://www.koandina.com/comunicados.php?loc=en 20F Pg. 87 http://www.koandina.com/uploads/reportes_financie- G4-52 Report the process for determining remuneration. Report whether remuneration con- See: ros/20%20F%202015%20EN.pdf sultants are involved in determining remuneration and whether they are independent 20F – Paragraph B. Remunerations - Pg. 84 and 85 of management. Report any other relationships which the remuneration consultants http://www.koandina.com/uploads/reportes_financie- G4-48 Report the highest committee or position that formally reviews and approves the Pg. 36. have with the organization. ros/20%20F%202015%20EN.pdf organization’s sustainability report and ensures that all material Aspects are covered. The CEO and the Board approve the Annual Report and The document 2016 GSM Minutes, Pg. 34 and 35 the Sustainability Report. sets forth the procedure through which remunerations are assigned to the Board of Directors, members of the Executive Committee, members of the Directors’ Committee and Audit Committee. http://www.koandina.com/comunicados.php?loc=en G4-53 Report how stakeholders’ views are sought and taken into account regarding The Shareholders’ Assembly which meets once a year is remuneration, including the results of votes on remuneration policies and proposals, the body that approves or not the proposal of the Board if applicable. through the vote in favor or against, recording it in the GSM Minutes. Also see: Document 2016 GSM Minutes http://www.koandina.com/comunicados.php?loc=en

162 • Coca-Cola Andina • Sustainability Report 2016 163 Material Aspects Page N° /Answer Omissions ISO 26000 GRI G4 Guidelines - Specific Basic Contents G4-54 Report the ratio of the annual total compensation for the organization’s highest-paid This information is sensitive. It is omitted to safeguard individual in each country of significant operations to the median annual total the personal safety of collaborators and senior mana- ISO 26000 compensation for all employees (excluding the highest-paid individual) in the same gers of our Organization. Material Disclosure on management approach and Linked country. Aspects indicators Page Nº /Answer Omissions clauses G4-55 Report the ratio of percentage increase in annual total compensation for the organi- Same as the answer to Indicator G4-54. Increases are CATEGORY: ECONOMIC PERFROMANCE zation’s highest-paid individual in each country of significant operations to the median made according to inflation in each country and also percentage increase in annual total compensation for all employees (excluding the performance adjustments. G4-DMA Management approach. Pages 10 y 11. highest-paid individual) in the same country. G4-EC1 Direct and distributed economic value. Pg. 34. Each country has its breakdown. To summarize, this report only 6.8.1; 6.8.2; 6.8.3; Ethics and Integrity 4,4 indicates the most significant categories, defined by their weight in the 6.8,9 total economic value. G4-56 Describe the organization’s values, principles, standards and norms of behavior such PPages 15; 17; 26; 27; 36 and 37. as codes of conduct and codes of ethics. Also see: G4-EC2 Financial implications and other risks and opportunities The risks/opportunities are detected and treated through the risk 6.5.5 2016 Annual Report. Pg. 28 and 29. for the organization’s activities due to climate change. management process. Some identified during 2016 were: http://www.koandina.com/uploads/reportes_financie- Regulatory: labelling law, taxation on sugar and taxation on waste ros/Annual%20Report%202016%20(VF).pdf Economic generation. Ethics Code V1_0 Performance Environmental: Increased rainfall, increased temperatures and water http://www.koandina.com/uploads/Adjuntos/Codigo- shortages. deEticav1_0.pdf Pg. 43-55; 65-73; 89-103. Supplier and Third Party Ethics Code V1.0 G4-EC3 Coverage of the organization’s defined benefit plan The Company complies with the existing pension obligations system in 6.8.7 http://www.koandina.com/uploads/Adjuntos/Codi- obligation. all countries where it has operations. go_Etica_Proveedores%20y%20Terceros.pdf Pg. 34. G4-57 Report the internal and external mechanisms for seeking advice on ethical and lawful Pages 15; 17; 26; 27; 36 and 37. G4-EC4 Financial assistance received from government. Not available for behavior, and matters related to organizational integrity, such as helplines or advice Also see: the period. lines. 2016 Annual Report Pg. 28, 29, 30 and 31. http://www.koandina.com/uploads/reportes_financie- G4-DMA Management Approach. Pages 10 and 11. ros/Annual%20Report%202016%20(VF).pdf Web Koandina – Anonymous Complaints Section G4-EC5 Ratios of standard entry level wage by gender compared Page 112. to local minimum wage at significant locations of http://www.koandina.com/uploads/reportes_financieros/Annual%20 G4-58 Report the internal and external mechanisms for seeking advice on ethical and lawful Pg. 15. operation. Report%202016%20(VF).pdf behavior, and matters related to organizational integrity, such as helplines or advice Also see: lines. 2016 Annual Report. Pg. 28, 29, 30 and 31. G4-EC6 Proportion of senior management hired from the local 2016 Annual Report, page 36. http://www.koandina.com/uploads/reportes_financie- community at significant locations of operation. http://www.koandina.com/uploads/reportes_financieros/Annual%20 ros/Annual%20Report%202016%20(VF).pdf Report%202016%20(VF).pdf Ethics Code V1_0 – Conflicts of Interest Pg. 2 and 3; Most of the employees in each country have the nationality of the Market Presence Pg. 9 and 10 country where they work. The directors of the Company are 14: Chilean In the event a person faces a conflict of interest, or (11); Argentinean (2) and Ecuadorian (1). to detect a potential conflict of interest, he/she must The first corporate line is composed of 7 people, 5 Chilean and 2 promptly inform the Company, and refrain from taking Argentinean. Senior Officers is defined as: The Board of Directors and the first actions that generate or can generate such conflict, corporate line. unless expressly authorized in writing by the Company's "National" is defined as: when their nationality matches the subsidiary Ethics Committee. where he/she performs its functions, except for the case of Chileans, http://www.koandina.com/uploads/Adjuntos/Codigo- who will be identified as such in any of the countries; and "foreigners" deEticav1_0.pdf are those that do not apply in any of the previous cases. G4-DMA Management Approach. Pages 21 and 22. See: Corporate Sustainability Policy. http://www.koandina.com/pagina. php?p=gobierno-politicas G4-EC7 Development and impact of infrastructure investments Pages 12 and 13; 34 and 35. 6.3.9; 6.8.1; and services supported. Annual Report, Page: 70 6.8.2; 6.8.7; Some of the investments in infrastructure that the Company developed 6.8.9 during the period were: Renewal of cooling equipment, which continues to benefit customers and communities due to electricity saving. Modification to reduce the weight of bottles and caps, which is positive for the community because less waste is generated. Indirect Improvements in business processes that enhance the relationship Economic with customers as well as the profitability. Incorporation of washing Impacts machines in production lines that optimize and reduce the use of water in industrial processes. Construction of deposits for storage and distribution. Construction of new plant in Duque de Caxias Brazil (first stage) G4-EC8 Significant indirect economic impacts, including the Pages 12 and 13. 6.3.9; 6.6.6; extent of impacts. Coca-Cola Andina, as part of the Coca-Cola System, generate added 6.6.7; 6.7.8; value in the countries where it operates equivalent to 0.3% of the 6.8.1; 6.8.2; country’s GDP (approximately). 6.8.5; 6.8.7; The distributed economic value table, also shows contributions to 6.8.9 Treasury, wages to direct employees and investments. When we include the indirect impact generated by the Coca-Cola System in each region where it operates, this is equivalent to 1% of GDP.

164 • Coca-Cola Andina • Sustainability Report 2016 165 ISO 26000 ISO 26000 Material Disclosure on management approach and Linked Material Disclosure on management approach and Linked Aspects indicators Page Nº /Answer Omissions clauses Aspects indicators Page Nº /Answer Omissions clauses G4-DMA Management Approach. Pages 15; 133-137. G4-DMA Management Approach. Pages 21 and 22; 32 and 65. Procurement See: Practices G4-EC9 Proportion of spending on local suppliers at significant Pg. 134. 6.4.3; 6.6.6; 6.8.1; locations of operation. We refer to "national" as a synonym of "local". 6.8.2; 6.8.7 Corporate Sustainability Policy http://www.koandina.com/pagina.php?p=gobierno-politicas CATEGORY: ENVIRONMENT 6.5 G4-EN8 Total water withdrawal by source. Pg. 67. Calculation and registration methods are Coca-Cola Company G4-DMA Management Approach. Pages 21 and 22. standards for all bottlers. (EOSH Performance Measurements and Water 6.5.4 See: Resource Sustainability). Corporate Sustainability Policy. http://www.koandina.com/pagina.php?p=gobierno-politicas. G4-EN9 Water sources significantly affected by withdrawal of According to the policy of The Coca-Cola Company actions are taken to water. replenish water used to nature. 6.5.4 G4-EN1 Materials used by weight or volume. The report publishes the raw materials used and which of them are from Water Information about these programs is found in the chapter "Water recycled origin. Page 101. Stewardship". In the chapter "Water Stewardship" water consumption is published Materials and as renewable resource initiatives are carried out to increase 6.5.4 G4-EN10 Percentage and total volume of water recycled and Pg. 65-73. replenishment. Page 67-73. reused. There are only cases of reuse in washing equipment (e.g. Bottles’ The use of renewable energy is published in the chapter "Energy washing machines) where the final rinsing water is recovered. This improves the WUR ratio but we do not have a meter in 100% of Management and Climate Protection". Page 76. 6.5.4 machines to know the specific savings from this action. G4-EN2 Percentage of materials used that Pg. 89 Sustainable Packaging. Water used or captured by rainfall is treated and delivered suitable for are recycled materials. Recycled material is used: 2.83% for plastic bottles, 5.34% for glass 6.5.4 animal life. There are cisterns for rainwater for fire prevention. bottles and 2.14% for plastic cases. G4-DMA Management Approach. Pages 21 and 22; 31 and 75. G4-EN3 Energy consumption within the organization. Pg. 77. 6.5.4 Heating and cooling are included in the value of electricity consumption. G4-EN4 Energy consumption outside of the organization. Pg. 77. Consumption of electric energy from sources that are not owned by Coca-Cola Andina: 660,123,332 MJ. Energy consumed by external transportation units: 1,113,585 GJ. G4-EN5 Energy intensity. Pg. 81. The reported EUR ratio (Energy Use Ratio) is by requirement of The 6.5.4 Coca-Cola Company the sum of the energies used in the bottling plants Energy (MJ) divided the produced liters. G4-EN6 Reduction of energy consumption. Pg. 75-87. G4-EN7 Reductions in energy requirements of products and Pg. 75-87. services. The total energy consumption decreased by 18.25% attributed to the shutdown of the Victoria plant and the incorporation of new technologies, managing to maintain the production (which decreased only by 5.07%). On the other hand, it is worth mentioning that 6.5.4; 6.5.5 expanding the portfolio of new products and packagings brings about greater set-ups and therefore higher energy consumption. We therefore stress that, although we have not grown in volume, we knew how to adapt to the needs of consumers without significantly impacting energy consumption.

166 • Coca-Cola Andina • Sustainability Report 2016 167 ISO 26000 ISO 26000 Material Disclosure on management approach and Linked Material Disclosure on management approach and Linked Aspects indicators Page Nº /Answer Omissions clauses Aspects indicators Page Nº /Answer Omissions clauses G4-DMA Management Approach. Pages 12 and 13; 61. G4-DMA Management Approach. Management Approach Pages 21 and 22; 32 and 98. See: See: Corporate Sustainability Policy. Corporate Sustainability Policy http://www.koandina.com/pagina.php?p=gobierno-politicas http://www.koandina.com/pagina.php?p=gobierno-politicas G4-EN15 Direct greenhouse gas emissions (scope 1). Pg. 82. 6.5.5 G4-EN22 Total water discharge by quality and destination. Pg. 67. Discharge parameters respond to requirements of The Coca-Cola 6.5.3; 6.5.4 Scope 1, includes fuel used in processes (Emissions Kg CO2 eq: Company in its document “Waste Water Quality.” 30,046,834.94) and Company owned equipment, referring to own fleet G4-EN23 Total weight of waste by type and disposal method. Pg. 98-101. (Emissions Kg C02 eq: 24,190,319.35). Total Scope 1: 54,237,154.29 Kg C0 eq. 82.9% of waste is recycled (Andina global value). We refer to recyclable 2 when materials are processed for reuse and also under this criterion is the organic waste intended for composting as hazardous waste are 6.5.3 G4-EN16 Energy indirect greenhouse gas emissions (scope 2). Pg. 82 and 83. intended as energy recovery in cement industries furnaces. 1.5% is Scope 2, Emissions: 61,901,060.93 Kg CO eq 2 Effluents and waste hazardous waste which undergo treatment according to the legislation G4-EN17 Other indirect greenhouse gas emissions (scope 3). Pg. 82 and 83. Cooling of each country (for example, security cells). 15.6% is general waste which go to landfills. Scope 3, Third party fleet emissions: 125,326,345.42 Kg CO2 eq. equipment are Distributed per country as follows: Argentina 44%, Brazil 0%, Chile 39%, relieved, see Page G4-EN24 Total number and volume of significant spills. There were no significant spills in the period 6.5.3 and Paraguay 17%. 79. For 2017 we will be able G4-EN25 Weight of transported, imported, exported, or treated 100% of hazardous waste is treated by third parties within the countries to emissions waste deemed hazardous under the terms of the Basel where it is originated. N/A to the footprint Convention annex I, ii, iii, and viii, and percentage of Scope 3. transported waste shipped internationally. G4-EN18 Greenhouse gas emissions intensity. Pg. 82. Scope 1, 2 and 3 Ratio for Embotelladora Andina is 59.17 gr 6.5.5 G4-EN26 Identity, size, protected status, and biodiversity value of 100% of the effluents from the company are treated, so there are no CO eq/liter of produced beverage. water bodies and related habitats significantly affected significant impacts on water resources. It is managed through the 2 6.5.3; 6.5.4; 6.5.6 Emissions by the organization’s discharges of water and runoff. Coca-Cola Company Source Water Vulnerability Assessment (SVA) G4-EN19 Reduction of greenhouse gas emissions. Reductions in plant processes are managed and reflected in the EUR Comparisons 6.5-5 requirement. ratio (Energy Use Ratio). With respect to fleet, more efficient vehicles are with previous incorporated, and with regard to coolers, the replacement plan for new years are not G4-DMA Management Approach. Pages 21 and 22; 89-103. technologies continues to be implemented. For the next reports we can available. 2015 See: demonstrate comparative differences. consolidated Corporate Sustainability Policy information on http://www.koandina.com/pagina.php?p=gobierno-politicas GHG Scope 1 Bottling Plants G4-EN27 Impact mitigation of environmental impacts of products Pg. 89-103; 66-73; 75-87. 6.5.3; 6.5.4; 6.5.5; Emissions that and services. 6.7.5 Products and services will serve as G4-EN28 Percentage of products sold and their packaging Pg. 101. a basis for materials that are reclaimed by category. 38.49% (company global) of the products sold are regenerated at the subsequent end of its useful life by the Company itself. comparisons 100% of the cases (secondary packaging) are regenerated at the end of 6.5.3; 6.5.4; 6.7.5 its useful life by the Company itself. We support environmental and social initiatives to encourage the G4-EN20 Emissions of ozone-depleting substances. Mainly CO2 and HCFC-22 are used as refrigerant gases in coolers. 3,742 kg, which are extracted from equipment and stored in containers for recovery of packaging that still do not have formal recovery circuits. further treatment, according to the regulations of each country were G4-DMA Management Approach. See: used during 2016. Ethics Code G4-EN21 NOX, SOX, and other significant air emissions. Only our operations in Chile measure these parameters, which for the We will seek to http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf 2016 period (measured in kg.) are: expand the scope Supplier and Third Party Ethics Code. NOX: 12600 to the rest of Compliance http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ MP10: 337.8 the countries in Proveedores%20y%20Terceros.pdf 2017. G4-EN29 Monetary value of significant fines and total number There have not been significant fines or sanctions for breach of of non-monetary sanctions for non-compliance with environmental laws or regulations. 4.6 environmental laws and regulations. G4-DMA Management Approach Pages 21 and 22. See: Corporate Sustainability Policy http://www.koandina.com/pagina.php?p=gobierno-politica G4-EN30 Significant environmental impacts of transporting There have not been spills of hazardous substances. Fuel usage for Environmental Transport products and other goods and materials for the the transport of product is reported in the section Scope 1, 2 and 3 of impacts from organization’s operations, and transporting members GHG emissions. the transport of the workforce. of personnel 6.5.4; 6.6.6 have not been reported for the period.

168 • Coca-Cola Andina • Sustainability Report 2016 169 ISO 26000 ISO 26000 Material Disclosure on management approach and Linked Material Disclosure on management approach and Linked Aspects indicators Page Nº /Answer Omissions clauses Aspects indicators Page Nº /Answer Omissions clauses G4-DMA Management Approach. PPages 21 y 22. G4-DMA Management Approach. Pages 21 and 22; 31. See: Corporate Sustainability Policy G4-LA5 Percentage of total workforce represented in formal joint Pg. 120. management–worker health and safety committees that http://www.koandina.com/pagina.php?p=gobierno-politicas 6.4.6 Overall help monitor and advise on occupational health and G4-EN31 Total environmental protection expenditures and Pg. 76. safety programs. investments by type. Environmental expenses: USD 17,416,611 Environmental investments: USD 32,938,204 G4-LA6 Type of injury and rates of injury, occupational diseases, Pg. 120. Occupational lost days, and absenteeism, and total number of work- Each safety management division has its accident management and diseases data will G4-DMA Management Approach. Pg. 133. related fatalities, by region and by gender. communication procedures as well as prevention programs. These be incorporated 6.4.6; 6.8.8 procedures respond to the Behavior-based Safety Program required by into next year’s G4-EN32 Percentage of new suppliers that were screened using Pg. 137. The Coca-Cola Company and the OHSAS 18001 standard. report. environmental criteria. All suppliers must comply with the standards and requirements of The 6.3.5; 6.6.6; 7.3.1 Coca-Cola System, and the Guiding Principles for Suppliers. Occupational Health and Safety G4-LA7 Workers with high incidence or high risk of diseases Andina has a detailed analysis by type of worker and position performed, G4-EN33 Significant actual and potential negative environmental Work is performed with critical suppliers and on significant impacts related to their occupation. referring to the risks they can be submitted to (by e.g. professional impacts in the supply chain and actions taken. on the chain: deafness, possible skeletal muscle diseases, and respiratory diseases). Upstream: initiatives are performed with primary and secondary For each type of risk it has specific mitigation measures. These include Supplier packaging suppliers to reduce their weight. adaptations of equipment and facilities to comply with the standards Environmental Also to reuse the industrial scrap of the plants in order to produce established, the delivery of (PPE) personal protective equipment Assessment new packaging, guaranteeing quality of waste and managing the adapted to each type of risk, training on the importance of its use and transformation of the same with partners. In order to reduce the impact monitoring measures for the purpose of verifying its use. Also, annual of waste generation. or periodic checkups are performed to track and control the identified Downstream: initiatives are performed with suppliers of coolers to place risks. more efficient equipment at customer locations and with distribution suppliers to make delivery routes more efficient, seeking to reduce fuel G4-LA8 Health and safety topics covered in formal agreements Pg. 120. consumption and the carbon footprint. Promote commercial efforts with trade unions. See "Compensation & benefits" the functioning of the committees is 6.4.6 aimed at a greater percentage of sales in returnable bottles, are to defined in the Behavior-based Safety Program. reduce use of raw materials. G4-DMA Management Approach. Pg. 113. G4-DMA Management Approach. Pg. 15. G4-LA9 Average hours of training per year per employee by Pg. 113. Environmental 6.4.7 Grievance G4-EN34 Number of grievances about environmental impacts No environmental grievances have occurred in the period. gender, and by employee category. Mechanisms filed, addressed, and resolved through formal grievance 6.3.6 mechanisms. Capacitación y G4-LA10 Programs for skills management and lifelong learning Pages 113 and 114. educación that support the continued employability of employees 6.4.7; 6.8.5 CATEGORY: SOCIAL - SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK and assist them in managing career endings. G4-DMA Management Approach. Pages 21 and 22; 105. G4-LA11 Percentage of employees receiving regular performance Pg. 116. and career development reviews, by gender and by 6.4.7 G4-LA1 Total number and rates of new employee hires and Pg. 114. employee category. employee turnover by age group, gender and region. The new hires for the entire company reached 2,515 employees with permanent contract. 6.4.3 G4-DMA Management Approach. Pg. 15. Rotation is a sustainability key performance indicator and it shown Also see: Employment consolidated by country. Ethics Code http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf G4-LA2 Benefits provided to full-time employees that are not The same benefits are granted regardless of the extension of the Supplier and Third Party Ethics Code. provided to temporary or part-time employees, by working day, in all significant locations of operation. 6.4.8; 6.8.7 http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ significant locations of operation. Diversity and Equal Proveedores%20y%20Terceros.pdf G4-LA3 Return to work and retention rates after parental leave, Pg. 119. Opportunity 6.4.4 G4-LA12 Composition of governance bodies and breakdown of 2016 Annual Report. Pg. 34. by gender. employees per employee category according to gender, http://www.koandina.com/uploads/reportes_financieros/Annual%20 age group, minority group membership, and other Report%202016%20(VF).pdf G4-DMA Management Approach. Pages 21 and 22; 106. 6.2.3; 6.3.7; indicators of diversity. 20F Pg.83 through 86: Composition of the Board of Directors and 6.3.10; 6.4.3 Labor/Management G4-LA4 Minimum notice periods regarding operational changes, As a general provision, the minimum number of notice is 30 days in Senior Officers (Gender and Age) and Competence and Experience. Relations including whether these are specified in collective all regions. 6.4.4; 6.4.5 http://www.koandina.com/uploads/reportes_financieros/20%20F%20 agreements. 2015%20EN.pdf G4-DMA Management Approach. See: Ethics Code http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf Equal Remuneration G4-LA13 Ratio of basic salary and remuneration Female executives vs. Male executives: 67.7% for Women and Men of women to men by employee category, by Female workers vs. Male workers: 104.7% 6.3.7; 6.3.10; Significant locations of operation. The global analysis reflects gaps that are explained by the different 6.4.3; 6.4.4 positions and tasks within each grouping segment. In a more detailed analysis, in identical positions no substantial differences are reflected.

170 • Coca-Cola Andina • Sustainability Report 2016 171 ISO 26000 ISO 26000 Material Disclosure on management approach and Linked Material Disclosure on management approach and Linked Aspects indicators Page Nº /Answer Omissions clauses Aspects indicators Page Nº /Answer Omissions clauses G4-DMA Management Approach. Pg. 133-137. G4-DMA Management Approach. Pg. 15. Also see: G4-LA14 Percentage of new suppliers that were screened using All suppliers must meet the standards and requirements of the 6.3.5; 6.4.3; 6.6.6; Ethics Code labor practices criteria. Coca-Cola System and the Guiding Principles for Suppliers. 7.3.1 Supplier Assessment http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf for Labor Practices G4-LA15 Significant actual and potential negative impacts for The evaluations of new suppliers and the periodic evaluations carried Supplier and Third Party Ethics Code. labor practices in the supply chain and actions taken. out by the KORE system seek to minimize the potential impacts that 6.3.5; 6.4.3; 6.6.6; http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ may arise due to the non-observance of fundamental rights such as 7.3.1 Forced Labor Proveedores%20y%20Terceros.pdf freedom of association, child labor or forced labor. G4-HR6 Operations and suppliers identified as having significant All suppliers must comply with the standards and requirements of The risk for incidents of forced or compulsory labor, and Coca-Cola System, and the Guiding Principles for Suppliers. Random G4-DMA Management Approach. Pg. 15. 6.3.3; 6.3.4; 6.3.5; Labor Practices measures to contribute to the elimination of all forms of checks and audits are performed to detect possible episodes. In 6.3.10; 6.6.6 Grievance G4-LA16 Number of grievances about labor practices filed, 100% of grievances are addressed and managed by the legal forced or compulsory labor. addition, the Anonymous Complaints Channel is available to receive Mechanisms addressed, and resolved through formal grievance departments of each country. claims. mechanisms. G4-DMA Management Approach. Pg. 10. CATEGORY: SOCIAL - SUBCATEGORY: HUMAN RIGHTS Also see: Ethics Code G4-DMA Management Approach Pg. 15. http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf Also see: Supplier and Third Party Ethics Code. Ethics Code Security Practices http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf Proveedores%20y%20Terceros.pdf Supplier and Third Party Ethics Code. http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ G4-HR7 Percentage of security personnel trained in the Not available for Proveedores%20y%20Terceros.pdf organization’s human rights policies or procedures that the period Investment are relevant to operations. G4-HR1 Total number and percentage of significant investment Total number and percentage of significant investment agreements and agreements and contracts that include human rights contracts that include human rights clauses or that underwent human 6.3.3; 6.3.5; 6.6.6 G4-DMA Management Approach. See clauses or that underwent human rights screening . rights screening. Risk Management Corporate Policy http://www.koandina.com/pagina.php?p=gobierno-politicas G4-HR2 Total hours of employee training on human rights Pg. 114. Assessment policies or procedures concerning aspects of human 6.3.5 G4-HR9 Total number and percentage of operations that The rights of employees are covered by policies of The Coca-Cola rights that are relevant to operations, including the have been subject to human rights reviews or impact Company to which we adhere. These are reviewed on a monthly basis percentage of employees trained. assessments. through discussion forums. G4-DMA Management Approach. See: G4-DMA Management Approach. Pages 133-137. Ethics Code http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf G4-HR10 Percentage of new suppliers that were screened using All suppliers must comply with the standards and requirements of The 6.3.3; 6.3.4; 6.3.5; Non-discrimination human rights criteria. Coca-Cola System, and the Guiding Principles for Suppliers. 6.6.6 G4-HR3 Total number of incidents of discrimination and No discrimination grievances have occurred in the period. 6.3.6; 6.3.7; Supplier Human corrective actions taken. 6.3.10; 6.4.3 Rights Assessment G4-HR11 Significant actual and potential negative human rights Assessments of new suppliers and periodic assessments carried out impacts in the supply chain and actions taken. by the KORE system seek to minimize the potential impacts arising 6.3.3; 6.3.4; 6.3.5; G4-DMA Management Approach. Pg. 15. from the non-observance of fundamental rights such as freedom of 6.6.6 Also see: association, child labor or forced labor. Ethics Code http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf G4-DMA Management Approach. Pg. 15. Human Rights Supplier and Third Party Ethics Code. G4-HR12 Number of grievances about human rights impacts No human rights grievances have occurred in the period. Libertad de Grievance http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ filed, addressed, and resolved through formal grievance 6.3.6 asociación y Mechanisms Proveedores%20y%20Terceros.pdf mechanisms. negociación colectiva CATEGORY: SOCIAL - SUBCATEGORY: SOCIETY G4-HR4 Operations and suppliers identified in which the right All suppliers must comply with the standards and requirements of The 6.3.3; 6.3.4; 6.3.5; to exercise freedom of association and collective Coca-Cola System, and the Guiding Principles for Suppliers. G4-DMA Management Approach Pages 127 and 139. 6.3.8; 6.3.10; bargaining may be violated or at significant risk, and 6.4.5; 6.6.6 measures taken to support these rights. G4-SO1 Percentage of operations with implemented local Pg. 139. community engagement, impact assessments, and The relationship with the community is managed from the areas G4-DMA Management Approach. Pg. 15. development programs. responsible for sustainability and institutional relations, always aligned 6.3.9; 6.5.1; 6.5.2; Also see: Local communities with The Coca-Cola Company and the definitions of their Public Affairs 6.5.3; 6.8 Ethics Code divisions. See "Relationship with the Community" scheme summarizing http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf the main actions and initiatives in the community. Supplier and Third Party Ethics Code. http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ G4-SO2 Operations with significant actual and potential negative No significant negative effects on the local communities where we have Child Labor Proveedores%20y%20Terceros.pdf impacts on local communities. operations have been determined. G4-HR5 Operations and suppliers identified as having significant The prohibition of the recruitment of children under 18 years old risk for incidents of child labor, and measures taken to is incorporated in the Internal Rules of Order, Hygiene and Safety 6.3.3; 6.3.4; 6.3.5; contribute to the effective abolition of child labor. Standards, as well as the regulation of contractors. All suppliers must 6.3.7; 6.3.10; comply with the standards and requirements of The Coca-Cola System, 6.6.6; 6.8.4 and the Guiding Principles for Suppliers.

172 • Coca-Cola Andina • Sustainability Report 2016 173 ISO 26000 ISO 26000 Material Disclosure on management approach and Linked Material Disclosure on management approach and Linked Aspects indicators Page Nº /Answer Omissions clauses Aspects indicators Page Nº /Answer Omissions clauses G4-DMA Management Approach. Pg. 15. G4-DMA Management Approach. Pg. 15. Also see: Grievance G4-SO11 Number of grievances about impacts on society filed, There have been no grievances on social impacts in the period. Ethics Code Mechanisms for 6.3.5; 6.6.1; 6.6.2; addressed, and resolved through formal grievance http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf Impacts on Society 6.6.6; 6.8.1; 6.8.2 Supplier and Third Party Ethics Code. mechanisms. http://www.koandina.com/uploads/Adjuntos/Codigo_Etica_ CATEGORY: SOCIAL - SUBCATEGORY: PRODUCT RESPONSIBILITY Proveedores%20y%20Terceros.pdf G4-DMA Management Approach. Pages 21 and 22; 31; 44 and 46. G4-SO3 Total number and percentage of operations assessed See 2016 Annual Report and 20F Annual Report Pages 30; 36 and 72. G4-PR1 Percentage of significant product and service categories Pg. 48. Anti-Corruption for risks related to corruption and the significant risks http://www.koandina.com/uploads/reportes_financieros/Annual%20 6.3.9; 6.5.1; 6.5.2; for which health and safety impacts are assessed for identified. Report%202016%20(VF).pdf 6.6.1; 6.6.2; 6.6.3 6.5.3; 6.8 http://www.koandina.com/uploads/reportes_financieros/20%20F%20 improvement. 2015%20EN.pdf Customer Health and Safety G4-PR2 Total number of incidents of non-compliance with There have been no incidents arising from non-compliance with the G4-SO4 Communication and training on anti-corruption policies Pages 108 y 115. regulations and voluntary codes concerning the health regulations or voluntary codes relating to the impacts of products and and safety impacts of products and services during their services on health and safety in the period. and procedures. Also see: 2016 Annual Report. Pages 69. 6.6.1; 6.6.2; 6.6.3; 6.3.9; 6.5.3; 6.8 http://www.koandina.com/uploads/reportes_financieros/Annual%20 6.6.6 life cycle, by type of outcomes. The quality and safety area aims to guarantee the safety of the food we Report%202016%20(VF).pdf produce, managing it through the identification, prevention, evaluation and control of the processes until the final consumer. G4-SO5 Confirmed incidents of corruption and actions taken No corruption incidents have occurred in the period. 6.6.1; 6.6.2; 6.6.3 G4-DMA Management Approach. Pg. 49. G4-DMA Management Approach. Our Conduct Manual (Ethics Code) establishes, as a general rule, that funds or assets shall not be used including valuables or services of G4-PR3 Type of product and service information required by Pg. 49. the company's employees to make political contributions. Political the organization’s procedures for product and service The Company offers nutritional information on the labels of contributions are only accepted if they have express approval of the information and labeling, and percentage of significant commercialized products, and it also works proactively with institutions Public Policy Board of Directors and in accordance with local law. Each political product and service categories subject to such to incorporate information on the matter (e.g.: Labeling Law). contribution shall be recorded in the accounting records as a political information requirements. Also, in products such as Bonaqua, the origin or source of water is contribution. made explicit. With respect to packaging, we indicate if packaging is returnable, or recyclable. In case that the bottle is "EcoFlex" it is also G4-SO6 Total value of political contributions by country and Not available for made explicit in the label. recipient/beneficiary. the period The company implements the program called "Ambassadors" to train G4-DMA Management Approach. See partners on hydration, ingredients and sweeteners so that they can 6.7.1 Ethics Code respond when their social circles consult in this regard. http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf The Coca-Cola Company periodically publishes reports through the Anti-competitive Beverage Institute for Health and Wellness (IBSB for its acronym in Behavior G4-SO7 Total number of legal actions for anti-competitive None have been recorded in the period. 6.6.1; 6.6.2; 6.6.5; Spanish), for example the book "Hydration", which provides grounds behavior, anti-trust, and 6.6.7 for the different stages of life, which is aimed at health professionals to Monopoly practices and their outcomes. publicize the importance of hydration in people throughout their lives. (http://www.coca-colamexico.com.mx/sala-de-prensa/Comunicados/ G4-DMA Management Approach. See instituto-de-bebidas-para-la-salud-y-el-bienestar-publica-libro-sobre-la- Ethics Code importancia-de-la-hidratacion-en-las-diferentes-etapas-de-la-vida) http://www.koandina.com/uploads/Adjuntos/CodigodeEticav1_0.pdf Product and Service Compliance Labeling G4-PR4 Total number of incidents of non-compliance with We have not had significant incidents related to this type of non- G4-SO8 Monetary value of significant fines and total number of None have been recorded in the period. 6.6.1; 6.6.2; 6.6.3; regulations and voluntary codes concerning product and compliance. non-monetary sanctions for non-compliance with laws 4.6 6.6.6 service information and labeling, by type of outcomes. and regulations. G4-PR5 Results of surveys measuring customer satisfaction. Pg. 52. G4-DMA Management Approach. Pg. 133-137. The Customer Service areas discuss the results and promote initiatives G4-SO9 Percentage of new suppliers that were screened using All suppliers must comply with the standards and requirements of The 6.3.5; 6.6.1; 6.6.2; that respond to opportunities / weaknesses detected. Satisfaction criteria for impacts on society. Coca-Cola System, and the Guiding Principles for Suppliers. 6.6.6; 6.8.1; 6.8.2; is measured every two years by an external provider, in person with a Supplier Assessment 7.3.1 survey. 9 factors are measured related to customer service: salesperson, for Impacts on delivery, commercial support, billing, technical service of coolers, Society G4-SO10 Significant actual and potential negative impacts on Assessments of new suppliers and periodic assessments carried out telephone service, profitability, quality and the variety of offered society in the supply chain and actions taken. by the KORE system seek to minimize the potential impacts arising products, each factor with its attributes. from the non-observance of fundamental rights such as freedom of Evaluations are from 1 to 10: above 7 is considered satisfied, 6.6.1; 6.6.2; 6.6.3 association, child labor or forced labor. dissatisfied 1 to 4, 5 and 6 is not considered, the index is the difference between the % of satisfied, less the % of dissatisfied. The sample is representative by region, location, channel and size. The comparison is with the main competitors and versus previous years’ results. Also telephone more detailed surveys are conducted on a monthly basis from our contact center, some attributes are measured and compared versus the previous months.

174 • Coca-Cola Andina • Sustainability Report 2016 175 EY Chile Tel: +58(2) 2676 1000 Avda.Presidente www.eychile.cl Riesco 5435, piso 4, Santiago ISO 26000 Material Disclosure on management approach and Linked Aspects indicators Page Nº /Answer Omissions clauses G4-DMA Management Approach. Pg. 51. G4-PR6 Sale of banned or disputed products. N/A Marketing Communications G4-PR7 Total number of incidents of non-compliance with There have been no cases of non-compliance with the regulations or regulations and voluntary codes concerning marketing voluntary codes relating marketing communications in the period. Independent Limited Assurance Report of Coca-Cola Andina’s 2016 4.6 communications, including advertising, promotion, and Sustainability Report sponsorship, by type of outcomes. G4-DMA Management Approach. Pg. 52. To the Customer Privacy G4-PR8 Total number of substantiated complaints regarding No claims based on the violation of privacy and the leak of customer Chairman and Directors of the Board breaches of customer privacy and losses of customer data have occurred in the period. 6.7.1; 6.7.2; 6.7.7 Embotelladora Andina S.A. (Coca-Cola Andina S.A) data. G4-DMA Management Approach. Pg. 48. Scope Our responsibility Compliance G4-PR9 Monetary value of significant fines for non-compliance We have had no significant incidents related to this type of non- with laws and regulations concerning the provision and compliance. 4.6 We have performed an independent limited assurance of the informa- Our responsibility is limited exclusively to the procedures referred to use of products and services. tion contents and data presented in Coca-Cola Andina’s 2016 Sus- in the preceding paragraph, corresponding to a limited scope assess- tainability Report. ment, which is the basis for our conclusions. We do not apply extend- G4 FOOD PROCESSING SECTOR SPECIFIC INDICATORS ed verification procedures, whose purpose is to express an external Management Approach. Pg. 15; 133-137. The preparation of this report is the responsibility of the Management assessment opinion on Coca-Cola Andina S.A.’s 2016 Sustainability of Coca-Cola Andina S.A. Likewise, the Management of Coca-Cola Report. Accordingly, we express no opinion. FP1 Percentage of purchased volume from suppliers Pg. 137. Andina S.A. is also responsible for the information and statements compliant with Company’s sourcing policy. contained therein, of the definition of the scope of the report and of FP2 Percentage of purchased volume which is verified All suppliers must comply with the standards and requirements of The Quantitative the management and control of information systems that delivered Conclusions Procurement as being in accordance with credible, internationally Coca-Cola System, and the Guiding Principles for Suppliers. data relating the information reported. recognized responsible production standards, broken to international Subject to the scope limitations, identified above, and based on our down by standard. standards Assurance standards and procedures work of limited independent assessment of Coca-Cola Andina S.A.’s and their 2016 Sustainability Report, we conclude that no aspect has come to discrimination We performed our review pursuant to international assurance stan- our attention that makes us think that: will be reported dards for auditing non-financial information ISAE 3000, set forth by in next periods. the International Auditing and Assurance Board of the International ► The information and data published on Coca Cola Andina Management Approach. Pages 15; 105. Federation of Accountants, the Guide for preparing Sustainability Re- S.A.’s 2016 Sustainability Report are not correctly presented. Labor Practices and ports of the Global Reporting Initiative (GRI) in its G4 version and the ► Coca-Cola Andina S.A.’s 2016 Sustainability Report has not Decent Work FP3 Percentage of working time lost due to industrial No significant working time lost due to labor disputes have occurred in respective sector supplement for the food industry (G4 Sector Disclo- been prepared in accordance with the Guide for preparing Sus- disputes, strikes and/or lock-outs, by country. the reported period. sures, Food Processing). tainability Reports of the Global Reporting Initiative (GRI) in its Management Approach. Pages 43; 45 and 46. G4 version and the respective sector supplement for the food industry (G4 Sector Disclosures, Food Processing). FP4 Nature, scope and effectiveness of any programs and Pg. 43-55. Our procedures were designed to: Healthy and ► The “Comprehensive” option declared by Coca-Cola Andina practices (in-kind contributions, volunteer initiatives, S.A. does not comply with the requirements for such a level in Affordable knowledge transfer, partnerships and product Food ► Verify that the information and data presented in Coca-Cola accordance with the GRI G4 version application guide. development) that promote access to healthy lifestyles; Andina’s 2016 Sustainability Report are duly supported by ev- the prevention of chronic disease; access to healthy, idence. nutritious and affordable food; and improved welfare for ► Determine that Coca-Cola Andina S.A. has developed its 2016 Recommendations for improvement communities in need. Sustainability Report in accordance with performance indica- Management Approach. Pg. 48. tors and principles of the Guide for preparing Sustainability Re- Without affecting our conclusions based on the limited scope of as- ports of the Global Reporting Initiative (GRI) in its G4 version sessment, we have identified some opportunities for improvement FP5 Percentage of production volume manufactured in Pg. 48. and the respective sector supplement for the food industry (G4 to Coca-Cola Andina S.A.’s 2016 Sustainability Report. These op- sites certified by an independent third party according 100% of the bottling plants are certified by third parties on issues of Sector Disclosures, Food Processing). portunities for improvement are detailed in a separate report of rec- to internationally recognized food safety management food safety and quality. system standards. ► Confirm application-level declared by Coca-Cola Andina S.A. ommendations, submitted to the Management of Coca-Cola Andina to its 2016 Sustainability Report, according to the G4 Guide. S.A. Customer Health and FP6 Percentage of total sales volume of consumer products, Pg. 45. Safety by product category, that are lowered in 15.85% of sales volume is low or zero calories. The breakdown can be Procedures performed Best regards, Saturated fat, trans fats, sodium and added sugars. seen in the "Beverage Benefit" chapter. As additional data 36% of the portfolio offered is low or zero calories. Our verification work consisted in performing inquiries to representa- FP7 Percentage of total sales volume of consumer products, Pg. 46. tives of Management, Managers and Units of Coca-Cola Andina S.A., EY Consulting SpA. by product category, that contain increased nutritious 6.77% of sales volume has vitamins, minerals and nutritional involved in the process of preparation of the report, as well as the ingredients like fiber, vitamins, minerals, phytochemicals aggregates. The breakdown can be seen in the "Beverage Benefit" realization of other analytical procedures and sampling tests such as: or functional food additives. chapter Policies and practices on communication to consumers Pg. 49 and 51. Product and Service ► Interviews with key staff from Coca-Cola Andina S.A. to assess about ingredients and nutritional information beyond Labeling the preparation process of the 2016 Sustainability Report, the legal requirements. definition of its content and the information systems used. ► Review the supporting documentation provided by Coca-Cola Andina S.A. ► Review formulas and calculations associated with quantitative information by re-processing data. ► Review the wording of the 2016 Report to ensure it does not in- duce to error or questions regarding the information presented.

176 • Coca-Cola Andina • Sustainability Report 2016 177 We value your opinion

For us, it is important to have your opinion to improve our sustainability management. Company Identification Embotelladora Andina S.A. We invite you to send us your suggestions, questions or any comments related to this Sustainability Report or our work at Open stock corporation Coca-Cola Andina via email: [email protected] as well as the offices of our operations RUT: 91.144.000-8 Address: Miraflores 9153, Comuna de Renca, Santiago de Chile For more information on this Report or to see our previous reports please go to: www.koandina.com

Corporate office General Coordination Av. Miraflores 9153, piso 7, Renca. Santiago de Chile. Cecilia Abati and Consuelo Barrera. Tel. (56 2) 2338 0520 www.koandina.com Collaborators: Carolina Losicer, Sandra Esteves, Valentina Meza Sánchez, Paula * * * Vicuña, Andrés Chamme, Juan Antonio Miranda, Sheila Chiriani Candia, Maximiliano Díaz Muzio, Graciela Cegla, Dolores Irarrá- Argentina zaval, Rodrigo Ruiz Valencia, Carolina Venegas Sandoval, Marcos Ruta Nacional 19 – Km 3,7. Córdoba. Jerónimo Mercado, Carolina Novoa Concha, Neiva Fátima Vieira (54 351) 496 8800 da Costa, Viviana Ribeiro Carmelini.

Brazil Writing assistance: Rua Andre Rocha 2299. Taquara Jacarepaguá, Río de Janeiro. Natalia Guantay. (55 21) 2429 1530 Design Chile www.negro.cl Av. Miraflores 9153, Renca. Santiago de Chile. (56 2) 2462 4286

Paraguay Acceso Sur Km 3,5. San Lorenzo, Paraguay. (595 21) 959 1000

178 • Coca-Cola Andina • Sustainability Report 2016 179 Sustainability › Puede acceder al Reporte de Susten- Report tabilidad descargando el PDF de la publicación online desde nuestra página web www.koandina.com o escaneando el código QR que se incluye aquí y en la 20 Memoria.