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R 4 eport 201 The 2014 Sustainability Report collects the with Coca-Cola Andina’s 2014 Annual Report. valuable contributions that our collaborators Thus, we are simultaneously putting financial and the Company as a whole make every economic information and that of sustainability day in Argentina, Brazil, Chile and Paraguay. management for the period at the disposal of In it you will find projects and actions that inspire our main stakeholders taking a first step towards others and generate value for our collaborators, integrating both reports for the following periods. customers, consumers, suppliers and the You can access the Sustainability Report communities where we have the privilege using the pen-drive that is included in the to operate. We also share lessons learned 2014 Annual Report; downloading the PDF and work plans in each of the pillars of our of the online publication from our web site sustainability strategy. www.koandina.com; or by scanning the QR This edition, which follows the guidelines of code that is included in the Annual Report and the Global Reporting Initiative in its latest G4 on the Company’s website. version, is presented jointly and complementary 2014 Everything we have been doing makes us view a 2015 full of opportunities, a year sustainability report that we will continue looking for profitable and sustainable ways to keep on growing.
Juan Claro González Chairman of the Board Coca-Cola Andina at a Glance 6 Sustainable Management 14 Beverage Benefits 30 Active Healthy Living 46 Water Stewardship 58 Energy Management and Climate Protection 68 content Sustainable Packaging 80 Work Environment 92 Community 116 Challenges for the coming years 144 Characteristics of the Report and GRI G4 Version Content Index 148 We Value Your Opinion 168 During 2014 we delivered over 4.7 billion liters of soft drinks, juices and bottled waters and employed more than 16,100 coca-cola andina at a glance people in 4 countries.
One company one team We distribute beer in Brazil and in the South of the Argentina, and liquors in the South of Chile At Coca-Cola Andina we produce and distribute products licensed by The Coca-Cola Company In Argentina and Chile we produce PET bottles in Argentina, Brazil, Chile and Paraguay in for soft drinks and REF PET packaging in several franchised territories servicing almost 52 million formats for our own operations and for sale to people. We are the 2nd Coca-Cola bottler in other bottlers. South America and are among the 3 largest in Recent years have been marked by important Latin America. organic and inorganic growth. The merger We are the sole Coca-Cola soft drink producer in between Embotelladora Andina and Coca-Cola Paraguay, the largest producer in Chile and the Polar S.A., a bottling plant with 41 years of second largest producer in Brazil and Argentina. history, made in 2012 was relevant. In addition, the acquisition of Companhia de Bebidas Among the beverages licensed by The Coca-Cola Ipiranga by our Brazilian subsidiary, Rio de Company, we produce and distribute sparkling Janeiro Refrescos Ltda. materialized in 2013. beverages, fruit juices, mineral and purified water, flavored water, energy and isotonic beverages.
1 Refillable pet: bottle Polyethylene terephthalate; , since the material possesses adequate density to support collection and sanitation processes, it can be safely reutilized
6 / 7 Integrity
We believe in honesty, Austerity transparency and We take care of the coherence as a basis for resources as if they were our behavior, respecting ours, responsibly orienting the Company’s values. costs to the Company’s Our beliefs Coca-Cola Andina needs and requirements.
2020 Vision Ethics Code Lead the beverage market, being recognized for our management It contains the set of principles and ethical conduct behavioral guidelines excellence, people and welcoming culture. of all employees, contractors, consultants and members of the Board
Mission in terms of their functions, and to all those who provide services to the Company. Add value to grow sustainably, refreshing our consumers and sharing It covers aspects such as legal regulations and regulatory compliance; moments of optimism with our clients. Conflicts of interest; Transparency and accuracy of accounting information; Values Fraud, corruption and money laundering; Dealings with public officials; Integrity customers and suppliers; Political and humanitarian contributions. Austerity It establishes an Ethics Committee to ensure compliance and mechanisms Teamwork for the reception of non-compliance complaints. Result-oriented Attitude 2 You can access the full text of the Ethics Code at www.koandina.com Customer approached
Customer approached Result-oriented Attitude We know the needs of our We approach our We are moved by customers and concentrate Teamwork energies on an passion, commitment and our efforts to fully fulfill the We promote trust, efficient work in perseverance, confirming promise of service and cooperation, respect order to achieve the our desire to always do dedication to the market. and diversity in our work proposed goals. our job better at all times. environments, adding the personal contribution to the joint creation.
8 / 9 Presence in countries: nd Argentina,4 Brazil, Chile Coca-Cola bottler 3,153 2 MUS$ and Paraguay 271,000clients in South America in net sales 2.92 million km franchise extension 74 distribution centers We delivered over
Over Franchised territories with One of the largest Coca-Cola7 billion liters4.7 of beverages bottling plants 16,100employees 11 bottlers in the world in 2014 52 million inhabitants in 5other plants the 4 countries our operations
Our Embotelladora Rio de Janeiro Embotelladora Paraguay operations del Atlántico S.A. Refrescos Ltda. Andina S.A. Refrescos S.A. Andina Empaques Vital Jugos S.A. Argentina S.A. Vital Aguas S.A. Envases Central S.A. unit cases - total sales 229.4 306.9 231.8 62.5 volume (Million) clients (thousand) 68 88 63 52 workers 3,288 7,560 3,810 1,478 soft drink market share 61.40% 61.40% 68.50% 62.10% franchise extension km2 1,892 165 398 407 (thousand)
bottling plants 3 3 4 1
other plants 1 4 0 0 distribution centers 41 13 17 3 franchise inhabitants (million) 13.9 21.9 9.4 6.8
San Juan, Mendoza, San Luis, Córdoba, Santa Part of the states Antofagasta, Atacama, Fé, Entre Ríos, La Pampa, of Río de Janeiro, Coquimbo, Región All of the regional boundaries Neuquén, Rio Negro, Espiritu Santo, Metropolitana, San Paraguayan Chubut, Santa Cruz, Tierra São Paulo and Antonio, Cachapoal, territory del Fuego and the Western Minas Gerais Aysen and Magallanes Province of Buenos Aires.
10 / 11 key sustainability performance indicators economic performance
From the beginning, sustainability has We permanently monitor key sustainability The economic dimension of sustainability table shows the capital flow between our been a part of our business essence. performance indicators in topics that are refers to the way in which an organization stakeholders and the main economic It’s the view with which we conduct, relevant for the companies in the sector, creates value for society. The following impacts of our operation on society. decide and act upon in order to offer for The Coca-Cola Company, for our the best products to our customers shareholders and our major stakeholders. and consumers, creating social value and making a positive difference in the communities we serve.
2014 Key sustainability Component Concept MU$S Argentina Brazil Chile Paraguay performance indicators Economic value created (EVC) Efficiency in water consumption Number of liters of water needed to produce one Net sales plus income from financial 2.03 1.76 2.7 2.19 a) Sales 3,175 liter of beverage investments and sale of assets
Efficiency in energy consumption Economic value distributed (EVD) Energy used per liter of produced beverage - 0.34 0.33 0.28 0.59 Payments to suppliers, royalties and Mjoules / liter of produced beverage b) Operating costs 2,370 other operating payments Solid waste generation Grams of solid waste generated per liter of 13.76 11.76 15.42 23.3 Total payments to employees and social produced beverage c) Salaries en employee social benefits contributions. Does not include future 467 payment commitments Recycling of solid waste Percentage of recycled waste in relation to 91% 91% 82.90% 80% All financial payments to the d) Payments to capital suppliers 162 generated waste organization’s capital suppliers
Industrial safety e) Government payments Gross rates and taxes 39 Severity in accidents and number of accidents, 215.01 7.3 62.58 4.08 indicator LTISR (lost time Injury Severity Rate) Voluntary contributions and investment Client Satisfaction 1 f ) Investments in the community of funds in the community in the broad 4 sense of the word (including donations) Annual measurement with all of Coca-Cola Andina’s 85% 70.8% 61% 83% operations in scope Economic value withheld (EVW) Product Quality (Calculated as economic value created less Economic Reserves 133 93.50% 96.80% 95.20% 94.60% Beverage Product Quality Index (BPQI) Rate Value)
Packaging Quality 90.00% 94.40% 87.60% 81.80% Packaging Quality Index (PCQI) Rate Note: Revenues are net of taxes pertaining to sales activity.
Employee turnover 0.41 3.55 1.93 0.62 For more information on our economic performance, you can access the 2014 Annual Report at the following link:: Favorable internal environment www.koandina.com Bi-annual survey (2013 data prior to merger with 63% 60% 59% N/A Coca-Cola Polar territories)
12 / 13 sustainable management
Our View on Sustainability
Our 2020 Vision inspires sustainability management, formalizing goals, objectives and indicators with expected values in the medium and long term. Coca-Cola Andina in conjunction with The Coca-Cola Company, has defined 4 work areas and 7 priority axis in our commitment to the path of sustainable development. They are aligned to the “Live positively” platform.
14 / 15 Our Sustainability Management Focal Points
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Beverage benefits Water stewardship We want to satisfy the consumption Our goal is to safely return to nature needs in the market, offering a quality and communities an amount of water beverage portfolio, in which consumers equivalent to what we use in all of our can trust. beverages and their production.
Active, healthy lifestyles Community We promote a healthy and active lifestyle We seek to contribute to the offering a wide range of beverages, development of the communities where providing nutritional information and we conduct our activities through encouraging physical activity and various programs to develop local healthy habits. economies, create opportunity and improve the quality of life of people. Energy management and climate protection Work envorinment We work to minimize greenhouse gas We promote a safe and diverse emissions of our operations. work environment that enhances the individual qualities of people, to inspire Sustainable packaging them to give the best of themselves. We We strive to reduce, recycle and reuse adhere to the international principles of materials and conserve the resources. Human Rights.
16 / 17 Our Integrated Management System allows identifying, monitoring and managing the relevant risks associated with the operation. Each operation produces its legal compliance, environmental impact, occupational safety and health risk matrix. In addition, we incorporate food safety standards. For more information about our Integrated Management System and certifications achieved refer to the chapter on “Beverage Benefits.“
sustainability management and governance
A plan based on the identification • Instability in the supply of utility services also providing the operations flexibility to Andina’s perspective regarding sustainability, and management of business risks and oil prices. adapt the Sustainability Plan to the particular visualizing opportunities that arise in each Identifying risks - economic, political, • Water scarcity and poor water quality could characteristics of each local context and to area to enhance sustainable development social, competition and environment - is a adversely impact our production costs and the needs of every community where we inside and outside of the company and key concept in managing our business, in capacity. operate. anticipate contingencies that arise in each of the areas to turn them into an opportunity for order to be prepared should any change or • Significant additional labeling or warning Opportunities that arise within the scope development. materialization thereof shall occur. requirements of our products. of sustainability in the four operations are visualized at the Corporate level. We work This plan is presented to the Chief Executive The main risks that could have a negative • Perception of risk in emerging economies on assessing iconic corporate projects, Officer, the Executive Committee and to the effect on our business goals are: may impede our access to international benefitting from lessons learned at the Board of Directors as part of the Business • The relationship with The Coca-Cola capital markets. operations and helping in the progress of the Plan and is approved by the latter. Company has substantial influence over our • The countries in which we operate may sustainability plan in each of them. Each operation guarantees the normal business and operations. adopt new tax laws or modify existing laws to functioning of the committees through a • Our business is highly competitive, including increase taxes applicable to our business. A management integrated plan person responsible of coordinating and with respect to price competition. • Our growth and profitability depend on Sustainability Committees and decision relating in each operation. Sustainability economic conditions in the countries where making • Changes in the market of non-alcoholic Management improvements are reported to we operate. beverages are evolving due to consumer Each operation has a Sustainability the Chief Executive Officer and Corporate preferences, health and nutritional Committee composed of workers from Officers in monthly sessions. This is when A plan adapted to each reality considerations and lifestyle changes. different areas of the company. These projects, their developments and key Sustainability at Coca-Cola Andina is • Fluctuation in raw material prices. committees are responsible of preparing performance indicators are presented along strategically managed at Group level, but an Annual Plan of activities aligned to with any concerns regarding Sustainability.
* For more information visit www.koandina.com 2014 Annual Report
18 / 19 Performance results of key indicators for each of the operations occur throughout the various chapters in this Report, according to the sustainability axis to which they belong
Sustainability in the life cycle of our products We work to identify and reduce the impact at each stage of the life cycle of our products.
Life Cycle What we are doing in order to...? In this Report, refer to Chapter... Monitoring the performance of • Customer satisfaction: Annual measurement.
sustainability key variables • Product quality: measured through indicators of Ingredients-Packaging Reduce water consumption Water Stewardship The operations of Coca-Cola Andina report product and packaging quality Rating
monthly on the performance of sustainability key • Guarantee the safety quality Employee turnover: Monthly measurement. variables to the group’s Chief Executive Officer. of our products. • Labor environment: Bi-annual measurement. Manufacturing Beverage Benefits Use technologies with lower Key indicators monitored In addition to the company’s key performance impacts on the environment • Efficiency in water consumption (total water indicators we carry out measurements with consumption per each liter of produced international scope tools such as the Global Energy Management and Distribution Diagnose carbon print beverage) Reporting Initiative, RSE ETHOS-IARSE of the Climate Protection Latin American Program RSE-PLARSE, and also • Efficiency in energy consumption (total energy Contribute to the development tools of domestic scope in each country. Vending - Clients Beverage Benefits used per each liter of produced beverage) . of our small clients’ network Also, a follow-up of perception indicators is • Solid waste (percentage of recycled solid waste Deliver better information of total waste generated, grams per liter of solid performed, in order to monitor the opinion of to our clients and contribute Beverage Benefits stakeholders on our performance, including Consumers waste generated). to their wellness with our Active Healthy Lifestyle surveys on the local community, measurement • Industrial safety (Severity in accidents and products of labor environment (bi-annual), and customer number of accidents). Reported monthly, through satisfaction surveys. Use returnable and the LTISR indicator (lost time, Injury Severity Landfill - Recycling Sustainable Packaging eco-friendly bottles Rate).
20 / 21 Government Meetings Coca-Cola at different Meetings, participation governmental in joint initiatives, levels, regular
direct relationship with communication Workers specific areas, regular Internal communication, communication, joint plan surveys, labor environment building and satisfaction analysis, internal magazine
Participation and dialogue with stakeholders
The key of our sustainability management is the awareness about the approach each of them; and the degree of influence they have on the achievement of not only on issues that matter to us, but also of those who influence on and business goals.
are important for the system to which we belong. It is also necessary to know and annually update the expectations they have To do this, we had to begin identifying the main stakeholders with whom regarding our operation and the priority assigned to the issues relevant to we interact. They were defined as part of the systematization work of the sustainability management. This is why we have multiple communication Sustainability Strategy carried out in 2007 that is annually reviewed to ensure channels that allow for a two-way communication flow.
that there are no substantial changes. The identification criteria used were Additionally, we have a whistleblower channel that can be used by any of the the proximity, the type of formal or informal relationship that we have with stakeholders.
Clients and consumers Suppliers Surveys and satisfaction Shareholders Contractors Interviews, analysis, client service and Regular communications, Periodic meetings, Neighboring communities meetings, regular development centers, call shareholders’ meetings, surveys and analysis and civil society communication centers, regular means of meetings with the CEO. for feedback Relationship activities, communication (supervisor Andina Day (annual event participation in organizations, visits, developers, etc.) including a visit to facilities) surveys and perception and assessment analysis
22 / 23 Priority Stakeholders’ Opinion Boundaries Chapters and sections of the Report on which Materiality matrix Very High Medium Low Internal External are informed high Quality, excellence and wellness Beverage benefits of the products • • Coca-Cola Andina at a Transparency on business • • glance
Internal labor environment management, lifestyle and people Work environment development • •
Water management • • • Water Stewardship
Sustainability Commitment Sustainability (strategy, Reporting process, Management dialogue with stakeholders) • •
Risk management (risk matrix, mapping of stakeholders, Sustainability relevant issues for assessment of economic, social • • Management and environmental impact) coca-cola andina’s sustainability management Coca-Cola relationship Coca-Cola Andina management (periodic meetings at a glance To identify them we consider priority issues This information and its subsequent participation in training sessions) • • for our shareholders and The Coca-Cola order of priority was agreed upon by Company the Sustainability Working Group, with ; emerging from the dialogue with Value chain development (social our main stakeholders; that are key to the representatives from the four countries in inclusion business; client network Beverage benefits - development, specially small store sustainability of the companies in the food which the Company operates. Community owners, commercial support and • • • and beverage sector; those suggested by Materiality analysis of the topics included tools for clients) international organizations with influence in the matrix, was performed following in the sector; the ones emerging from the the guidelines of the G4 guide for Promote healthy active living Active healthy living sustainability platform “Live positively”; Global Reporting Initiative (GRI) and the • • • those that come from other internal Sustainable packaging and waste materiality principle included in GRI as Sustainable packaging management sources that highlight economic, social or well as AA1000 series (AccountAbility). • • • environmental aspects that can influence Economic and social development In addition, the International Standard on Community of local communities our stakeholders and indicators for the Social Responsibility ISO 26000:2010 • • Global Reporting Sector (Global Reporting was considered as a guide to issues to Climatic change (energy use, car- Energy management and Initiative - GRI) G4 version. be considered in this analysis, taking its bon footprint, efficient distribution) • • • climatic protection recommendations into account.
24 / 25 participation in the public agenda on sustainability
• 2014 International CSR Conference of • “High Endeavors” Program OTR Chile the Argentine Institute of Corporate Social • WWF (World Wildlife Foundation). Responsibility. The event was sponsored by • Junior Achievement Learn to Endeavor in the Coca-Cola Andina Argentina. Environment (AEMA-Spanish acronym). • Companies Committed with Disability Club • Ocean Conservancy Coastal Clean Up Day - (Argentina). Paraguay and Chile. • FIRJAN Social Responsibility Committee - • Planet time, Water Day, Environment Day. Federation of Industries of the State of Rio de Janeiro - Brazil.
awards and recognitions
• The Diario Financiero and - Excellence in Growing Single Serve Excellence” in Latin America for Tatiana Elías, Fontes, “Leader in the Beverage Industry” PriceWaterhouseCoopers 2014 Ranking 2 0 1 3 C o c a - C o l a A n d i n a A r g e n t i n a operating excellence unit team collaborator, category, Coca-Cola Andina Brazil recognized us as the 2nd most Admired - Quality trophy 2013, Coca-Cola Andina Coca-Cola Andina Brazil. - Winner of the category Best Employer Brand Company in Chile. Argentina - CCIL Quality Ranking (Cariacica Plant) - 1st in the food and beverage sector in the mass • Second place in the Ranking of Corporate - L + Trophy - Live Positively Cup 2013, place in Distribution, 1st place in Product and consumption category. Employer Brand Study: Transparency 2014. Transparent Chile. Chilean Coca-Cola Andina Argentina 2nd place in Packaging, Coca-Cola Andina Trabajando.com., Coca-Cola Andina Chile. Brazil. chapter of International Transparency, evaluated - RGM Best In Class Award 2013, Coca-Cola - Best brand presence and the most attractive 19 multinationals in 2014 with highest sales in Andina Argentina - CCIL S&OP Certification - 4th place, Silver of the 2014 Job Fair issued by the Santiago the country regarding availability of financial level, Coca-Cola Andina Brazil 2014 Job Fair, Coca-Cola Andina Chile - CCIL 2014 Execution CUP - 1st place, Best information and business market, reporting on execution in the franchises’ group, with over - CCIL Planet Trophy - Honorable mention for -Third place TCCC Quality and Food Safety anti-corruption programs and organizational 25 thousand points of sale, Best Execution of the “Cogeneration” project, Coca-Cola Andina Award 2013, “Leading Indicators” category. transparency. Single-Serve, Best Execution Bar Channel, Brazil. • Issuing Entity: TCCC-SLBU; Scope: and Convenience Stores, Coca-Cola Andina - CCIL Internal Communication Awarded I Coca-Cola Latin South America awarded during Brazil. nitiative - 1st place, Coca-Cola Andina Brazil 2014: - CCIL Operating Excellence Certification - Espíritu Santo Business Leader Award of the - Performance Distinctions 2013, Coca-Cola (Riberão Preto Plant) and recognition as “Folha Vitoria” newspaper - for Venilson Freire Andina Argentina Coca-Cola’s “First Master in Operating
26 / 27 outstanding case distribution with electric vehicles
“We give a better quality service to customers, improve service speed and arrive at the precise time and anywhere. And all of A fleet of that, in addition, with zero CO2 emissions, being sustainable”,
electric trucks says Carlos Ortiz, Head of 12serves customers in the Operations of the carrier company downtown area of our capital. Aillavilu, who serves us there.
Zero 2 emission, fuel-efficient CO vehicles providing excellent service.
The most central area of Santiago, the Chilean through the busy streets of the sector distributing capital, is known for the great amount of people products. and endless activity, but it is also known for the Each of these small trucks need only six hours high levels of pollution it has reached, especially of battery charge to travel about 40 kilometers, during the winter months. representing a considerable final savings in We serve nearly 1,000 customers in this relation to other types of transportation. Today 30-block perimeter known as the “micro- the fleet has 12 vehicles, each with a capacity center” on a daily basis, which represents of a pallet and a half travelling approximately 25 a dual challenge for the company: Achieve kilometers daily. high standards service level to our clients and In addition to the advantage of emitting zero minimize the impact on an area with the above- atmospheric pollutions, electric vehicles also mentioned characteristics. have a significant reduction in relation to noise Electric trucks have been the perfect solution to pollution. They do not make noise (other than meet all those needs. For 15 years these electric signaling) which allows for a better coexistence trucks, carry the Coca-Cola brand and all the with the environment in such a hectic area. other products in our portfolio to each store in On the other hand, since the electric vehicles 2 downtown Santiago with zero CO pollution. are small they are much more comfortable and They are the only ones of this type that run efficient above all.
28 / 29 beverage benefits Sparkling Soft Drinks
a wellness-oriented Nutrition: We offer soft drinks with increased nutritional beverage portfolio ingredients (vitamins, salts, minerals, natural juices) We offer a broad portfolio with high quality drinks to such as the ready to drink juice Nutri (Cepita/ meet the needs of our consumers. Our commitment Frugos/ Del Valle/Andina), Vitamin Water, Powerade, is to provide options to be and feel good, in the Burn, Fanta Zero con vitamina C, Kapo, Del Valle energy, hydration, nutrition and relaxation categories Kapo and Del Valle Reserva Açaí+Banana.
always caring Juices More than 30% of the brand portfolio offered for consumer needs contains increased nutritional ingredients and Low calories and reduced sugar: contribution of minerals, etc. Responding to consumer preferences, which
include health and nutrition considerations, we Returnabilty: offer a line of low calorie beverages: Coca-Cola Our returnable formats are designed to be the Light, Coca-Cola Zero, Coca-Cola Life, Sprite Zero, formats with the most added convenience within the Fanta Naranja Zero, Powerade Zero, Inca Kola Zero, point of sale, allowing accessibility to our products to Quatro Zero, Leão Ice Tea, Matte Leão, Guaraná the people with limited resources. We offer Kuat, Schweppes, Jugos Del Valle, Powerade, Mais, Coca-Cola, Coca-Cola Light, Coca-Cola Zero, Fanta Water Frugos, and Fuze Tea. In Brazil, a new formula for Naranja and Sprite in returnable formats of 0.350 Fanta Naranja, Uva and Kuat, and in teas with Leão lts., 1lts., 1.25lts., 1.5lts., 2lts., 2.5lts. and 3lts. at Fuze (hot fill) and Chá Verde. accessible prices. As a result of a process of listening to The consumption of this product generates a our customers and consumers, we double value to society: on the one hand it provides seek to interpret their needs and accessibility to low-income people and on the other bring us closer to their tastes to hand, the consumer makes a decision of responsible Others be able to offer the best products. purchasing, since acquiring sustainable formats for For this reason, in October 2014, the benefit of the environment, there is a possibility we introduced the new recipe for to recover containers and their subsequent reuse. Coca-Cola Life which changed its taste profile with a more delicious and refreshing proposal. Sweetened with Stevia and sugar cane Coca-Cola (1) Life continues contributing 36 calories per glass, Percentage of returnable format sales Isotonic and Energy Drinks which makes it low in calories (57% than regular Coca-Cola).
46% of our product portfolio is low or Zero-calories, including Coca-Cola Light, Zero, Argentina Brazil Chile Paraguay Life and other light soft drinks. 45.6% 17.1% 57% 49.3%
1Includes family and personal size returnable formats 100% of the packaging of the products we offer is recyclable (glass, aluminum, cans, Pet, Refpet and tetra pack) as well as 100% of the secondary packaging.
32 / 33 outstanding case Del Valle Coca-Cola Brazil works to expand the Reserva range of ready-to-drink beverage choices, açaí+banana creating more practical alternatives that provide hydration and well-being. The innovation presented by Del Valle Reserva Acai with Banana is a business model that expresses our vision and our values. “It’s a product that carries nutritional benefits and sustainability from A beverage with the beginning to end of the value chain” nutritional benefits Marco Simões Coca-Cola Brazil Vice of super fruits and also an innovating President of Communications and project for the development of the açaí Sustainability value chain
picked by Amazonian riverside communities
Del Valle Reserva Açaí+Banana enters the Del Valle Reserva, brings the nutritional market with the nutritional value of açaí. benefits of açaí, and is a source of zinc and The new launch of Coca-Cola Brazil, is a magnesium, that help in obtaining energy, presentation of the “Del Valle” special line and banana pulp, that naturally sweetens the for nectars which was developed by the beverage reducing sugar addition. Research and Development Laboratory of The Company’s entrance to the growing Coca-Cola in Rio de Janeiro, responsible for market of super fruits (called this way given new drinks for Latin America, and one of the the high concentration of nutrients) through five centers for Coca-Cola advanced research the Reserva signature is accompanied by the around the world, together with Belgium, creation of the “Coletivo Floresta” project (see Japan, China and United States. outstanding case community chapter), which The nectar comes in 1 liter and 250 ml. works with açaí pickers on income generating formats with images that refer to the origin of activities, with an approach on the social and açaí. Ideal to drink at breakfast and during cultural well-being of the communities and the early hours of the day. the biodiversity conservation of the Amazon forest.
34 / 35 Our integrated management system incorporates international quality, environment, safety and occupational health and food safety standards, according to the requirements of the FSSC 22000 food safety certification scheme
quality and excellence in the processes
Quality is a central issue for the and storage of finished product, among company, reflected in the adoption others. All these activities are formalized of world class standards since our in the INTEGRATED MANAGEMENT inception. International best practices SYSTEM, certified according to the that guide our management reach requirements of FSSC 22000 food safety people, processes and products. certification scheme. We are incorporating into our processes and facilities the variables of eco- efficiency in the use of resources, the minimization of waste in recycling and the improvement in the quality of life Management Systems at Coca-Cola Andina of workers. At the same time, we have developed programs to monitor the · Quality: ISO 9001 quality and safety of food in order to · Environment: ISO 14001 continually preserve the health and · Occupational Safety and Health OHSAS 18001 safety of consumers. · Food Safety FSSC 22000 For example, audits are carried out in · FSSC 2200 includes ISO/TS 22002 the production process and finished products, international food safety · KORE: The Coca-Cola Company’s corporate standards are certified, hazard analysis requirements. Scope productive facilities and are implemented, physical, chemical distribution centers of the operations in each and biological risks are evaluated that country on Quality, Environment, Occupational may impact on the health of consumers, Safety and Health infrastructure improvements are made to increase the level of safety in the reception of raw materials, processing
36 / 37 Beverage Product Quality Index (BPQI) Key 2014 Sustainability Performance Indicators
Argentina Brazil Chile Paraguay 2013 2014 2013 2014 2013 2014 2013 2014
91.70% 93.50% 94.90% 96.80% 91.60% 95.20% 94.60% 94.60% Integrated Sustainability System Policy
At Coca-Cola Andina we manufacture waters, Coca-Cola Andina’s management is committed liquid foods and non alcoholic beverages to lead and support the implementation of this carbonated and non carbonated and we bottle Statement carbonated and non carbonated mineral water. • Promoting excellence, sustainability and Understanding quality as a broad concept which efficiency; simultaneously satisfies our clients, consumers, • Ensuring availability of resources and the shareholders, employees, suppliers and the best available technology; community, we have established the following • Giving priority to the prevention of pollution, policy: damage and diseases; • Responsibly manage our activities, • Managing knowledge and information products and services and in compliance across the value chain; with The Coca-Cola Company’s policies, client’s requirements, applicable rules and • Encouraging teamwork and learning as a legislation; key factor for human capital growth; • Manufacture and distribute safe products • Measuring and evaluating our performance, driven toward a consistent • Achieve a safe and healthy working improvement of the effectiveness of the environment for workers and visitors; Integrated Sustainability System. • Optimize our processes for greater productivity; • Develop our suppliers;
38 / 39 Coca-Cola is the first beverage company worldwide which pledged to post calories on the front of its labels
marketing and responsible labeling Responsible Marketing
Coca-Cola is committed to providing objective, voluntary basis. Coca-Cola is the first beverage meaningful and understandable nutrition information company worldwide which pledged to post National marketing campaigns are designed on all our products. We believe in the importance calories on the front of its labels. In accordance in conjunction with The Coca-Cola Company. and the power of an informed choice. with Coca-Cola´s global policy, all labels (except We support nutrition labeling based on evidence glass and water) must contain GDAs. In Latin We have a responsible marketing policy, which and education that enables consumers to make America, Coca-Cola presents the amount of decisions that meet their nutritional requirements calories, along with daily value percentage (DV%) stipulates that advertising is not directed to and individual energy and those of their families. on the front of the packaging; being consistent children less than 12 years old for any of the That is why we did not only adopt the legislation with the commitment to provide consumers with transparent nutrition information about its products. even before the period of validity, but we voluntarily company’s products. There is no advertising included the necessary information to guide our At Coca-Cola Andina, we include the content consumers in their consumer decisions. of calories and amount of sugar, total fat and guideline in media whose audience of children sodium in products in our portfolio. In addition, We apply Guideline Daily Amounts (GDA) a nutrition facts panel provides additional data on under 12 years old is greater than 35%. GDAs are a nutritional information tool presented proteins, carbohydrates, fiber and minerals and Additionally, children younger than 12 years old as tablets in the labeling of products. It is based vitamins, when the product contains them. The on evidence to help consumers choose diets that percentage of the recommended daily value of are not shown drinking any products without the meet the individual nutritional and energy needs. the mentioned nutrients on a diet based on 2,000 GDAs are being implemented in South America calories a day, is also presented. presence of a responsible adult. by different food and beverage companies on a
40 / 41 13% of the contacts were 37.2% sales and taking orders. made complaints
49.7% of the contacts conducted Satisfaction level with 842,429 Coca-Cola Andina contacts to inquiries and service Customer Service requests 271,000 85% 61% clients in the 4 countries Argentina Chile
70.8%Brazil 83%Paraguay
How to contact Client Service?
ARGENTINA Contact with consumers Consumer information: 0800 8888 888 communication with clients and consumers The main channels of communication Telephone 0810-7777-888 for consumers are the Telephone Client channels through various channels: website, phone Text message 3516212622 Contact Center and through the calls, email, and cell phone text message. E-mail: [email protected] Build a cooperation bond with our website and social networks. customers is key to ensure that the quality We measure the level of customer BRAZIL Contact with consumers is carried of our beverages and that the message we satisfaction evaluating factors such Telephone 0800-0235338. out through The Coca-Cola want to convey reaches our consumers as salesmen, dispatch, sales support, www.coca-colabrasil.com.br Company´s channel, that in its adequately. billing, supply of product variety, quality SAC 0800 -0212121 management procedures, have and profitability, hotline service, among To generate the long-term relationship we certain cases which require scaling have channels so that customers may give others. Through the measurement of CHILE and solutions on to be handled by the performance of Coca-Cola and its us their opinions and expectations, and Hola Coca-Cola 800 219 999 the bottler. simultaneously we actively work to meet competitors in these factors, the competitive When consumers directly contact their satisfaction with our services. situation is determined allowing us to PARAGUAY our operations, the contact is develop action plans for the entire year. The two main communication tools are Telephone 0800-115555 registered and then derived to The Since 2011 operations measurement criteria Customer Care Service and Satisfaction *2622 from mobile telephones Coca-Cola Company to give equal were unified, thus achieving comparability Surveys. E-mail: [email protected] treatment. of results. All our operations have a contact center that receives customer queries and complaints
42 / 43 outstanding case The development of this innovative concept that provides small and Community Retail medium-sized retailers an alternative competition potential in more like Centers (CRC) conditions with large areas, made us earn the Commercial Execution Award recognition of The Coca Cola Company worldwide for innovation in this field.
In 2014 we implemented It benefits more than 1,000 CRCs 5,000 Clients in all areas of our Coca-Cola Andina Chile and their area of influence franchise
This program is part of our strategy of The pilot project began in 2011, approaching sustainable development of the communities and clients, developing a graphic line which gave the traditional channel as a whole. It consists a common identity to all these businesses, of enhancing productivity of the traditional generating the visual proposal of each type of channel (small shops, kiosks, mom & pop’s, business, offering the ideal amount of products, etc.) to improve their business model producing forming the implementing teams, finding the a greater complementarily between adjacent necessary suppliers and putting this new businesses instead of having a competition concept into operation. In addition, a CRC among them. manager was appointed by business unit. Additionally, in certain vulnerable counties, the The year ended with 300 CRCs implemented in program was supplemented supporting the Santiago, and sales growth figures that endorse community by installing recycling centers and/or the initial premise: 10% to 12% growth above recreational places in the surroundings of these similar clients in which the CRC concept was not businesses. developed. The local team discovered that there were areas Additionally, we conducted a quantitative and in which there was a concentration of three or qualitative study with consumers, i.e. those more clients with which we could work with who ultimately buy the products; obtaining to help them complement each other rather conclusions, such as that the image and the than compete, thus satisfying different sales infrastructure of these business groups are occasions. In this way, this concept was created attractive factors that positively influence the and sought to promote it in the traditional purchase decision. channel through the strengthening of these Community Retail Centers (CRCs)
44 / 45 active and healthy living friendship teamwork our approach
At Coca-Cola Andina we promote the integral well-being
of people through initiatives that promote active lifestyle,
maintaining a balance between proper nutrition and regular
physical activity.
In all the initiatives that are carried out, we emphasize
values such as fair play, teamwork, joy and friendship.
joy fair play
48 / 49 from 12,032 752 28 1,175 argentina chile Arica to 6,000 248 80 teenagers enrolled teams enrolled cities games participating men’s teams women’s Punta Arenas teams 9,984 men and reached played teenagers between 2,048 women 13 and 15 years old
coca-cola cup
With the conviction that physical regional level, with the participation of activity and fun together are the best teenagers between 13 and 15 years way to fully move along all of life’s old. stages, the Coca-Cola Cup rescues It was born 15 years ago in Mexico the essential values of the sport: and played in Argentina, Brazil, camaraderie, fair play and an active Chile, Colombia, Guatemala, Costa living, seeking to: Rica, Honduras, Spain, Nicaragua, • Promote the benefits of a healthy Dominican Republic, Panama, and active life. Paraguay, Peru, Venezuela, and • Promote the free expression several countries in Africa. of young people through sport, The champions of each country travel complementing their intellectual to play at the International Coca-Cola training. Cup. • Spread respect, fair play and healthy In every country the program is competition and teamwork. supported by the generation of alliances with social, sporting and • Develop a sense of belonging governmental entities in all cities and the interaction between the where the Coca-Cola Cup takes place, participants. helping to strengthen the social fabric. This football tournament is the largest intercollegiate sports expression at
50 / 51 other active and healthy living initiatives
Hey Let’s Play physical activity through interactive games. We Hey Let’s Play aims to promote the physical and participated in the nutrition day organized by the cultural activity during breaks, free spaces at Private Institute of Integral Nutrition, the Natalia schools. Stipanovich day, the Paraguayan Nutrition Association day, Nutrisys Update day and the Action activated in 160 institutions, reaching World Heart Day organized by the Paraguayan 3,000 students from grade school to high Cardiology Society. school. Health and Wellness Beverage Institute This Institute is part of the ongoing commitment Powerade Sponsorship of The Coca-Cola Company to advance on The major marathons and sporting events were scientific knowledge in understanding about addressed from the Powerade brand, through beverages and the importance of an active, the organization and sponsorship of events. healthy and balanced lifestyle. It seeks to serve as a resource of information for In all countries where we operate health professionals about the science, safety and benefits of beverages and their ingredients, Health Professionals Key Events as well as the importance of diet, nutrition and We were present at various events in Paraguay physical activity for health and well-being. supporting nutrition, sport and the integral well-being of people. To do this we installed interactive “Living Positively” stands, with delivery of products, the possibility to access the website of the Health and Wellness More information at: Beverage Institute and to also perform www.institutodebebidas.org
52 / 53 outstanding case Escolha sua parada para não ficar parado 40,205 students enjoy sports stations installed in schools
40 schools
students 6,053 participated in the activities of the project
ANDINA SCHOOLS “Escolha sua parada para não ficar parado”
Coca-Cola’s Active and Healthy Living campaign rope game), skate, trampoline, bike competitions, implemented regionally under the slogan bowling and racing. “Escolha sua parada para não ficar parado”, in Entertainers, promoters and sports monitors English “Choose your activity to stay moving”. encouraged activities spreading the campaign The campaign’s objective, was the promotion of objectives, helping teenagers in 40 schools to an active and healthy life among young people. experience the daily activities and choose their For its implementation, Andina and Coca-Cola favorite in order to stimulate the commitment to a made an agreement with INFOGLOBO. more active life. The participation of the students 40 schools were mapped and chosen in the was encouraged through competitions. At the State of Rio de Janeiro and Niterói, whose target same time, campaign commemorative panels audience is teenagers. remained in each of the participating schools Taking advantage of the conceptual foundations thus reminding about the importance of engaging of the campaign and its elements, activity with in a healthy lifestyle and wellness activities and high level of entertainment was structured shared fun, the values of our brand. through 6 sports stations: Battle of strength (the
54 / 55 outstanding cases “Before, this place was a field in bad conditions, surrounded by very few green FIELDS areas, which were also poorly maintained.” Children would play here for a short while, FOR CHILE they would come here because they had no other place to go, there wasn’t much more. Since we were benefited with Fields for We were partners in this Coca-Cola Chile it changed from heaven to Earth. Now project, contributing in the construction of it looks beautiful, an equipped field, green surroundings. Children use this field a lot, neighbors come out with their children to play 7 soccer courts in the evenings. I think everyone feels like I do in the cities of Antofagasta, Copiapó, when we stop and look at what Coca-Cola Coquimbo, Santiago, Rancagua, gave us: proud. It was a very big gift and Coyhaique and Punta Arenas. that is why we take advantage of it and take care of it a lot, there are even neighbors who are responsible for watering the plants every afternoon. We are very grateful”. Rosa Santander, President of the Board of Chileans Neighbors 26,700from our concession areas impacted with the project Oscar Bonilla South / Rancagua
United so that all Chile remains moving
Joining the football spirit initiative at the height of conditions in urban development and high social the spirit of Coca-Cola ambassadors, put their the World Cup Brazil 2014, Fields for Chile was risk of children and young people. In general, effort and commitment in raising these public implemented in Chile; a joint project between the chosen places shared similar characteristics: spaces, enjoyed sharing and working elbow to The Coca-Cola Company, Andina Coca-Cola and abandoned, dry sites, with almost no elbow with the community; inspired also by family Coca-Cola Embonor, that built and enabled 15 infrastructure, often defenseless to crime. members who were invited as volunteers; and fields with green areas throughout the country, After the intervention of Coca-Cola, Coca-Cola acting to make this place a better place to live. one in each region. Andina and My Park Foundation, and with the There were more than 56 thousand Chileans Under the pillar of Action and Movement for support of hundreds of volunteers from the impacted by this great project, 26,700 belonging All, Coca-Cola Andina was partner and an companies and the communities themselves, the to the regions where we operate. The work The program donated a field and green active contributor to this project, which was picture changed dramatically. The fields today sought to generate spaces for living a life in also supported in its implementation and look like professional sports establishments, with motion, which contributes to the happiness of areas to communities during 2014 for development by the national NGO My Park synthetic grass and lighting; the environment was those communities, especially to children and each region of the country. Foundation. filled with grass, plants and trees, beautifying young people. Dozens of communities were evaluated and also the place with color and energy. More than the 15 finals were chosen for their particular 100 workers from Coca-Cola Andina, portrayed
56 / 57 water stewardship A key concept in this work pillar, transformed into a project, is “Replenish” in which we approach many of our efforts to return to nature the water we use in our beverages
reduce
recycle replenish
importance of water resource
Water is a precious and essential resource for A key concept in this work pillar, transformed into life. We know that in order to make a significant a project, is “Replenish” in which we approach difference, we must approach our efforts beyond many of our efforts to return to nature the our approach the limits of our own bottling plants. water we use in our beverages. It has a double Our goal is to be the true guardians of the water purpose: the conservation of watersheds for sustainability and access to water as a human As bottlers of Coca-Cola beverages, the • Recycle part of the water is incorporated resource; responsible water administrators right in the areas where we operate, with care for water throughout our product cycle into the beverage and another part is used in through the promotion of projects that not only measurable results in three categories: is one of our main strategic axes. We work the production process. The latter is led to an improve water efficiency but also collaborate to protect this resource, not only because it effluents treatment plant that delivers water in the conservation of the sources of this • Protection of watersheds is vital for human life and the communities suitable for animal life and thus returned to resource and in making water accessible in the • Water for productive use communities where we operate. where we operate, but also to our business. nature. • Access to drinking water in the communities Our challenges are based on the following • Replenish is a concept of returning We work actively in several lines of action in principles: the water used in our beverages from our operations, carrying out strategic alliances with organizations that are familiar with the local • Reduce means putting all necessary efforts conservation projects that enhance the problems. (resources and technology) so that each day natural infiltration of water and the care of we consume less water in our processes to underground aquifers and water access. produce our beverages.
60 / 61 100% of waste water generated in our processes is treated at our own and/or external effluent plants
Water Consumption (liters) 2011 2012 2013 2014
Argentina (1) 1,694,360,700 1,873,029,865 2,061,169,755 2,661,571,787
Brazil (2) 1,909,754,000 1,815,232,000 1,884,794,000 1,906,945,242
Chile (3) 1,391,200,000 2,823,436,707 2,887,571,404 2,570,378,697
Paraguay (4) 962,887,000 819,494,770 765,562,370 768,418,161
Efficiency in water consumption Amount of liters of water necessary to produce one liter of soft drink Total discharge of treated waste water (in liters) into effluent plants
(6) Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay (6)
320,489,110 290,687,081 2.19 2.14 2.17 2.7 1.76 1.76 2.03 3.06 754,808,465 973,027,890 415,232,000 582,413,226 680,307,658 1,122,048,901
2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
2014 Key Sustainability Performance Indicators
Note: the ratio of produced soft drink is affected by the type of product that each operation manufactures in each country. We can make (1) It corresponds to the Cordoba plant, whose source is 100% underground water wells three big differences between carbonated soft drinks, non-carbonated soft drinks, and soft drinks in returnable bottles, each one of (2) Includes Jacarepagua and Vitoria. Underground water (wells) and municipal water (treated and channeled through the public network) them has a different production process which entails different water consumption to produce a liter of soft drink. Returnable products (3) Corresponds to the Renca plant. Inaugurated in 2012. The extraction of water is done through underground water. The exploited water banks correspond or packaging orientation requires greater consumption of water as well as non carbonated products due to its filling process. Ratios in to the Santiago Central sector, according to the Chilean water authority, DGA (for its initials in Spanish) Network water is used as drinking water in dressing the table are affected by the increase of new categories in the manufacturing mix (juices, isotonic, energy, etc.) and the growing mix of rooms, bath rooms, and casinos. returnable containers. (4) Underground water supply coming from Patriño Water Bank, through artesian wells over 150 meters deep.
62 / 63 All production lines are equipped with automatic CIP systems, this allows us to save water and energy
outstanding initiatives and results
Rainwater recovery: Effluent treatment plant: by minimizing the use of chemical products, Paraguay: At Coca-Cola Andina, by means of a rainwater Vitoria Plant was expanded applying more replaced by physical processes of purification of Arroyos y Esteros “Water for All” collection system and storage in tanks or modern and efficient technologies. New the treated water. Donation of a water well in Arroyo y Esteros lagoons, we use this resource for different biological reactors were installed which have • Segregated treatment of liquid industrial waste Coca-Cola Paraguay’s commitment to destinations such as ancillary services, fire a greater processing capacity, as well as (LIW):Wastewater management is outsourced, environmental and social issues is aimed at the protection and sanitary services at the plant. centrifugation and biological sludge flotation through the company Ecoriles, which sustainable development of our communities. systems. continuously monitors and analyzes the quality In 2010, within the framework of the “Living Optimization of CIP sanitizing processes: of waste water we treat. Meetings are conducted Positively” sustainability platform approached All production lines are equipped with Chile: on a monthly basis with this company to analyze on the strategic axis in the support of the automatic CIP systems (Cleaning in Process: RENCA Plant: the evolution of the issue. We are in the process community and within the framework of an a cleaning and sanitizing process for the line This Plant, inaugurated in 2012, was designed of studying a company-owned liquid industrial action associated with the Dequeni Foundation, ducts for changing flavors) this allows us to to maximize the efficient use of water, among waste treatment plant. the municipality and the communities of Toro save water and energy. The last rinse water is other resources. It is certified pursuant to • Reduction in the amount of non-compliant Paso, Loma’i and Itakúa companies, a water stored in tanks, and it is then reused in the first LEED (Leadership in Energy and Environmental spilled productions: 4 new lines were installed well was inaugurated that today allows access rinse of the following cleaning process. Design). The new corporate building was with volumetric fillers, which decrease the to this resource to 116 families and more than also designed and built pursuant to the same Brazil: amount of problems of net content. 800 people who previously did not have direct requirements. access to this resource. Water consumption efficiency: • Sensors in bathrooms to economize water Among the plant and building’s main advances Advances in reducing the consumption consumption. regarding water reutilization, we can mention: of water in Brazil are related to the • Washers with high efficiency rinsing systems. implementation of an air rinser (system • Automatic control of sanitary equipment and drinking water faucets that shut off • Research on water source vulnerabilities. composed of air blowers which are oil exempt Drinking water, quality of life and health aimed to replace the water in the bottle rinsing automatically. • In depth Hydro-geological research that was process) and the replacement of one of the • Nano-filtering Water Recovery: last used as a basis for the preparation of the current of an entire community 116 families, 814 returnable bottles washing machines for a generation water treatment with nano-filtering development plan of new wells that ensure water people more efficient equipment (Jacarepaguá). membranes, producing optimum quality for supply in a sustainable manner. the production of drinking water. Characterized
64 / 65 outstanding case Access to water Tuclame
It is located
kilometers from 240 the city
Tuclame an area inhabited by almost400 people
The aridity of the Northwest of Córdoba, where water in the near town of Tuclame. This town Andina which inspired the action “We are away cooperative that supplies the neighbors of this rain seems to have extinguished and where has a perforation of 116 meters, connected from it all and without access to essential needs area. access to basic needs is a constant struggle, to a tank elevated at 20 meters which works for any human. We have to go fetch water in In mid March, main laying works began with we find Iglesia Vieja, an area inhabited by almost with a pump provided temporarily by the drums, which is tremendous and exhausting. the help of neighbors, and when the household 400 people. It is located 240 kilometers from quartermaster. This is where the people of To improve it is crucial to have water and to reach network is finalized - scheduled for April of 2015, the city of Córdoba. Close to the capital, but at Iglesia Vieja had to go to have access to every household.” the works will be completed with the installation the same time very far, since they do not have drinking water. Neighbors contacted representatives of different of the final pump. drinking water or electricity. For supplies they Faced with this situation, at the beginning of companies. They also contacted Coca-Cola Access to water is a concrete need in many depend on the nearby town of Tuclame. November 2013, residents resolved to get Andina. After knowing about this problem and corners of the territory of our operations, either The homes of Iglesia Vieja are located on dirt organized to ensure that each household in how neighbors had worked to transform their due to scarcity of the resource, or because it roads, where vegetation survives in a constant Iglesia Vieja had access to this vital resource situation, we provided a 10HP water pump and is not fit for human consumption. We maintain struggle against drought. Access to water was through the construction of a water network that 13,000 meters of pipeline needed to operate the our commitment, giving continuity to access always a huge difficulty. Rainfall in the areas is counted with a pumping system suitable for the water supply for the neighbors. and purification projects, for the welfare and the so low that every drop that falls is a blessing. domestic distribution. For the correct operation of these facilities a optimism of the communities to which we have People who live in this community had no Miguel Angel Piriz, a neighbor at Iglesia Vieja, three-phase electric connection was necessary, the privilege of serving. another option other than going 20 kilometers one of the people who made efforts to carry out made with collaboration of our company, away on foot, by bicycle, or car, to stock up on the project shared the initiative with Coca-Cola distributors of the area and the electric
66 / 67 energy management and climate protection our approach
Coca-Cola Andina’s goal regarding energy consumption is summarized in the concept “The business grows, not carbon”. For the year 2020 we proposed to satisfy the consumer’s needs, using the same energy in absolute terms as the one in the year 2010. Specifically, in 2010 the goal was to yearly reduce 2% of energy consumption. This strategy is based on two main axes: on the one hand, we developed a variety of initiatives aimed at increasing energy efficiency of our operations, and on the other, we began to measure our carbon footprint, as a first step to define the baseline for operations, and then move towards reducing and offsetting emissions
70 / 71 most outstanding initiatives
Energy - Best Practices: Use of ecological refrigerant gas: New production lines in block This boiler has an economizer, which uses Implementation of tools called “Energy We are committed to use ecological gas The addition of lines in block allows reducing heat from the gases emitted to heat the Best Practices”, promoted by The in new equipment purchases in all cooling consumption of energy and water, since supply of water and the fuel used to power it Coca-Cola Company. This includes actions equipment. In addition, we changed transportations travel shorter distances and is renewable biomass (coco pit, wood chips or of control and repair of compressed air and cooling equipment, which use refrigerants the process is simplified. briquettes). steam leaks; cleaning of heating, ventilation that are less harmful to the environment. Paraguay and conditioning air filters; training and Ammonia removal: Solar panels at the plant: employee participation; scheduled control In the direct cooling exchange, we In 2012, solar panels were installed as a systems to reduce the amount of energy, advanced in replacing ammonia for pilot project at the Paraguay plant, aiming lighting systems with movement sensors, ethanol-propylene glycol in container to harness the energy of sunlight to reduce among others. lines. The installment of the new system, electricity consumption in the clothing sector. “... it is a good initiative since it is generated New bottle blower: including coolers, condensers, pumps The investment meant 17,000 USD. Currently, The installation of new bottle blowers and solutions control instruments, remote the system remains in operation. by clean energy, the difference between other allows working at lower pressures, in monitoring, among other innovations. traditional systems is not perceived, and it Boiler with energy saver: addition to having a built-in compressed air Video conference rooms: In Paraguay in 2012 a third boiler was is 100% effective in the generation of warm recovery system. The impact of this action New videoconference rooms were purchased, prepared to operate automatically represented a reduction in greenhouse gas water...” Marcos Benítez, collaborator and one installed, contributing to significantly modulating the circulation in the chimneys and emissions. of the users of the system. reduce the need to travel between different pumps, optimizing the use of energy. locations and operations.
72 / 73 outstanding case Co-generation
BRAzIL The “CO-GENERATION” project promoted by the Andina Group, allows the use of more than 70% of the thermal energy from the fuels we use in the production process. Six months after its implementation we are already underway of registering reductions in electricity consumption. For the future we plan to achieve energy self-sufficiency, for the supply of steam, carbon dioxide, nitrogen and part of the water generated for our facilities in the District of Jacarepagua in Rio de Janeiro. allows the use of more than
70% of the thermal energy
Emissions Measuring greenhouse gas emissions
Following procedures and recommendations Having begun to measure our emissions, from the Corporate Accounting Standard allows us to complement the company’s and the Greenhouse Gases Protocols Report energy information. Communicating it, shows in 2010 a first measurement of Greenhouse the company´s commitment to the environment Gases (GHG) emitted during the year arising and contributes to empowering consumers from the productive, commercial and logistic to make a purchase decision choosing the activities. We began registering Scope 1 company that shows greater commitment to emissions (direct emissions resulting from the environment. fuel consumption in production processes and/or by equipment of company ownership or control) and Scope 2 emissions (indirect emissions caused by the consumption of Measuring greenhouse gas emissions 2014 electric energy in processes, commercial (Scope 1 emissions without fleet) company total activities and logistics by equipment of company ownership or control.) 19.64 CO2 gr/liter of product.
74 / 75 outstanding case Biogas Recovery Plant Montecristo Argentina “The total capabilities of the plant are defined in 200m3/h of treated flow, with an organic load of 24,100 kg DQO/day, with the possibility to maintain the efficiency of the anaerobic process throughout the year regardless of the Summer season by the incorporation of an effluent warming stage. 3 The addition of an online DQO detector at the 577,050 m beginning will allow us derive the effluents that Generated 2014 exceed the limits of the plant design to then treat them without affecting the efficiency of the process, maintaining and improving output parameters according to applicable corporate and legal law compliance.” 10.03% Lorraine Depetris, Environmental Supervisor Percentage of natural gas replaced by biogas
With the purpose of reducing the consumption of gas that is used in the production and specifically natural gas, from 2011 we began to use a system in the bottling of beverages. of capturing biogas generated in the liquid effluent This technology is more ecological, it satisfies treatment plant. a need for energy and contributes to the The recovery of this renewable energy source was improvement of living conditions by reducing used as fuel in boilers, replacing almost 10% of pollution. natural gas in 2013. With the new expansion, potential biogas During 2014 we carried out the expansion of the generation will reach 175,000 m3/month, which will liquid effluent treatment plant, maintaining and be used for the heating process and natural gas improving treatment technology. replacement. Biogas generation occurs in the anaerobic reactor It is important to note, that the outcome of the where bacteria produce methane to degrade treated effluent is suitable for aquatic life and it organic matter. Methane is captured in biogas complies with the parameters required by recovery plant, passing-then-by a series of stages Coca-Cola based on requirements of the World of purification for its later use as fuel for the self- Health Organization (WHO) and with the existing supply of the plant and for replacement of natural legal requirements.
76 / 77 results 2014
Total organization energy consumption (renewable and non-renewable fuels, acquired and produced electricity) in Mjoules
Argentina Brazil Chile Paraguay
381,459,584 445,780,496 322,477,904 357,552,233 280,560,992 266,557,791 194,232,996 211,853,605 Mjoules
2013 2014 2013 2014 2013 2014 2013 2014
Energy used per each liter of produced beverage MJoules/produced beverage
2010 2011 2012 2013 2014
Argentina 0.30 0.28 0.33 0.30 0.34
Brazil 0.41 0.36 0.34 0.30 0.33
Chile 0.31 0.24 0.31 0.29 0.28
Paraguay 0.56 0.56 0.54 0.55 0.59
Key Performance Sustainability Indicators As with used water/liter of beverage ratios, to the extent of the offer expansion of sensitive products, new categories and a greater mix of returnable containers, processes require increased consumption of this resource. The constant challenge is to reduce consumption ratios, even by increasing the supply of new categories of beverages and packaging.
78 / 79 sustainable packaging 1,487 tons of Pet reduced in our products in 2014, The E COFLEX bottle represents a 57% PET savings over equivalent to reduce the carbon the bottle previously used, with a significant reduction in the footprint impact by more than carbon footprint.
2 5.13 million kgs of CO This format also seeks that consumers get involved in the compacting process in order to optimize the subsequent transportation to recycling.
our approach Bottle to Bottle Bottle with lesser use of PET plastic - LIGHTWEIGHTING We permanently optimize packaging This applies both in the design of the One of Coca-Cola’s latest advances in (primary and secondary) containing our bottles, and the recovery for recycling or packaging design, has to do with the Advances have been made in all of products as one of the cornerstones of our reuse. implementation of a bottle consisting of Andina’s operations in the reduction of environmental management. up to 25% recycled PET. It is identifiable bottle weight, we expect 100% of our by the words “ PCR PET (Post consumer bottles to follow this concept. recycled)” added to the standard code of With the arrival of Bonaqua in 2012, a the products. most outstanding initiatives and results natural mineral water, we managed to Since August 2011, Pet is collected from introduce the lower weight bottle in the New packaging design The bottle has the same appearance, of the market in Argentina that is then market, favoring a relevant environmental At Coca-Cola Andina we are aligned with the weight and life than the traditional PET and taken to CABELMA’s Bottle to Bottle action in the Light weighting global and global strategy designed by Coca-Cola to can be 100% recycled along with other PET plant in the city of Buenos Aires, where it gradual process. plastic bottles. Identified by the green Plant reduce the weight of containers and minimize is prepared through washes and mills to This ECOFLEX bottle has been developed Bottle logo presented on the labels. This its impact on the environment through the be combined with virgin resin. Through to use the least amount of PET resin in its type of initiative reinforces our commitment reduction of Pet in our bottles and use a demanding treatment validated by preparation; also significantly impacting to working with sustainable packaging. preforms with caps with smaller threads that the food legal authority, this has been the power applied to its conformation in accompany this reduction, known as “Short- implemented both in green and clear the injection and blowing process. Finish”. resins in more than 80% of our operations’ PET bottles. Plant Bottle Distinguished worldwide with gold medal This development, implemented since in the DuPont awards in the launch of Bottles consisting of up to 25% 2012, is related to the incorporation in non- packaging innovation category recycled PET returnable bottles of up to 30% plant-based resin, generated from sugar cane waste.
82 / 83 Bottle recovery of our products is one of our biggest challenges in terms of waste management and its impact on the community.
Returnable bottles During 2014 major projects were developed to expand We also have returnable bottles, in which we have the supply of returnable bottles in Brazil, growing the invested in technology that allows us to give consumers mix of these bottles by 66% with respect to 2013, which the opportunity to choose a more environment-friendly involved investments in bottles and cases. product and accessible to all of society.
Packaging Quality Index
Argentina Brazil Chile Paraguay
87.80% 90.00% 91.30% 94.40% 86.50% 87.60% 80.00% 81.80%
2013 2014 2013 2014 2013 2014 2013 2014 2014 Key sustainability performance indicators
Recycling then placed in conjunction with institutions that are Packaging recovery of our products is one of our major oriented towards the recovery of plastic pet and caps for challenges in terms of waste management and its impact recycling. on the community. All Company bottling plants and distribution centers At this point consumer awareness and participation are segregate and recycle the waste generated, in addition key factors, for which we have developed programs in we invite contributors and visitors attending the plants to partnership with other actors, public bodies, institutions, bring their Pet residues, which are taken to the ecological customers and suppliers. islands of each operation to be recycled. Recovered and recycled plastic is incorporated to Classification of bottles continues in order to reduce new bottles in the Bottle to Bottle system and also to unnecessary breakage of the same. This action brings manufacture and deliver children’s games, which are about a reduction of more than 30% in bottle breakage.
84 / 85 outstanding case Joint work with micro-collectors cooperative brazil
This operation has been done for several years. Coca-Cola Andina along with the Coca-Cola Institute support solid waste micro-collectors in Rio de Janeiro and Vitoria (Brazil). The initiative prmotoes jobs in vulnerable areas and gives value to Pet waste in the recycling network. Bottles collected by the cooperative Over are partially destined to Bottle to Bottle thousand tons manufacturing and other general 16 of waste were products, such as textile, garden tools, recovered in 2014 construction articles, etc.
Glass recycling Waste management For this, we have the commitment of Coca-Cola Andina´s Waste Management consumers to return used bottles for further System covers all of the Company’s processing, washing and entry to production. operations, approached on minimizing solid waste generation and its proper segregation, Bottles are selected and those that are using the 4Rs principle: Reduce, Reuse, discarded are sent to the ecological island Renew and Recycle. Also we work to reduce of each plant for preparation and sent to the waste generated and increase the recycling recyclers, some products manufactured with feasibility of same, searching for a valid recycled glass are asphalt paints. purpose for each one, generating benefits for entrepreneurships and/or external organizations.
86 / 87 cycli ss Re ng Cy Gla cle 1 New bottle purchase or return from the market to the plant; 1 9 6 Bottle returns to the plant; 2 Bottle wash and beverage filling; 2 8 7 Bottle inspection;
3 Inventory and distribution at points of sale; 8 Re-entry to production 3 7 (go back to step 1) 4 Sale to final consumer; 9 Elimination of non-standard bottles to the supplier of new Consumer returns 4 6 5 bottles.
bottle to point of sale 5
(bottle exchange complete);
Waste management system Returnable pallets Internal campaigns Composting We encourage to minimize waste generation, In order to minimize waste generation we have We carry out internal campaigns by means of In order to minimize the generation of waste and and promote proper classification as well for reached agreements with suppliers to replace programs designed to increase recycled material take advantage of its energy potential we use subsequent recycling. Thus, we reduce the packaging materials destined to become waste for indicators in all of the waste generated. composting as an alternative for the fate of our environmental impact of the transportation returnable materials that allow for several uses. This includes the elimination of personal printers organic waste from the restaurant. Composting of waste to the landfill, and collaborate with For example the use of returnable pallets in our for collective ones; the use of rechargeable has as main objective the valuation or reuse of the community in relation to the issue of solid glass and Ref Pet bottles. toners, the use of recycled paper; internal organic matter as a fertilizer to increase crop waste management. In addition, we increased All production destined to the market is done by campaigns for returning PET consumed by each, performance. revenues, due to the sale of recyclable materials to returnable pallets and separators. In addition, the among others. Everything is communicated companies that work with them. Eco-barriers built with plastic bottles: supply of preforms is delivered in returnable metal through signs and email messages, ensuring that crates, thus replacing the volume of wooden pallets This initiative, carried out in conjunction with a We work to decrease the waste generated and it reaches all territories and operations. and cardboard use. strategic partner, FEBRACOM and in partnership with the Government of the State of Rio de increase the recycling feasibility of same Chile Selective waste collection Janeiro, is directed to the construction of three Ecological Islands We segregate at source waste generated by our RENCA plant and new technologies barriers (eco barriers made with solid waste) for Collected PET is processed at the plant’s mill, With this tool, we seek to increase the recycling operations (production and administrative areas) and rivers in Rio de Janeiro (Brazil). percentage of all solid waste generated in the we send them to the ecological islands of each plant, transformed into Scrapy then delivered to a administrative areas to give it a correct and friendly where, after a preparation process, are delivered to specialized company. It is used for different applications, such as plastic trays, polyester for destination with the environment. For the proper different recycling companies. For example, tetra All our operations have an ecological Island, operation of the island segregation at source is is destined to a company dedicated to separating clothes, trash bags, among other things. where 100% of the solid waste is gathered, required so, much importance is given to the selective aluminum from cardboard, giving it different recycling collection of all collaborators, suppliers and visitors. destinations according to the type of material. Brazil which undergo a preparation process for their Also, the production area has a plastic grinding Common waste final recycling. service and spill of nonconforming product, thus Equipment at waste warehouses As a result of our Environment Education In Brazil, besides the PET plastic processing mill, the making a comprehensive solid waste management. Campaigns which makes a more efficient use of a can press was implemented. We seek to waste management, in 2014 we achieved 41% constantly increase the value of waste, investing in reduction of non-recyclable waste. tools and machinery to prepare materials so that they become useful and required by the recycling market.
88 / 89 PET** 2014\TN* Glass PP Plastic Sugar Fructose Plastic
Brazil 26,981 4,676 1,965 145,959 -
Paraguay 5,637 3,558 688 32,761 -
Argentina 17,696 9,700 2,400 79,500 49,000
Chile 13,104 9,847 1,684 105,162 -
*in yearly tons **PET plastic: consumed preforms, bottles, etc.
Solid waste generation Solid waste recycling Grams of solid waste generated per liter of produced beverage Percentage of recycled waste versus generated waste
Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay
13.39 13.76 13.10 11.76 14.30 15.42 23.0 23.3 92.30 91.0 87.8 91.0 75.9 82.9 86.0 80.0
2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
Key sustainability performance indicators Note: hazardous waste is treated within the territory of each operation, it does not leave the country. 98% is used to generate energy at a cement plant
90 / 91 work environment our approach
Within the core values underpinning the company, one of them is to promote a good working environment. At Coca-Cola Andina, we promote the importance of people as a basic business pillar and as a future success factor. For us, respecting people is to offer them a development perspective balanced with their professional and personal aspects.
16,136 total company collaborators
argentina brazil chile paraguay
Managers and 107 Managers and 60 Managers and 78 Managers and 29 Senior Executives Senior Executives Senior Executives Senior Executives
Professionals Professionals Professionals Professionals and Technicians 687 and Technicians 5,278 and Technicians 1,185 and Technicians 246
Other 2,021 Other 2,202 Other 2,043 Other 1,103 Workers Workers Workers Workers
Temporary 473 Temporary 20 Temporary 504 Temporary 100
Total 3,288 Total 7,560 Total 3,810 Total 1,478
94 / 95 Diversity Indicators
6,761 men men argentina 3,035 brazil 799 women 253 women 286 employees with disabilities
3,260 men 1,354 men chile paraguay 550 women 124 women
Employees per age
argentina brazil chile paraguay
18 and younger 0% 18 and younger 0% 18 and younger 0% 18 and younger 0%
Between 18 and 29 27% Between 18 and 29 38% Between 18 and 29 28% Between 18 and 29 52%
Between 30 and 39 46% Between 30 and 39 35% Between 30 and 39 32% Between 30 and 39 29%
Between 39 and 49 20% Between 39 and 49 19% Between 39 and 49 25% Between 39 and 49 11%
50 and older 6% 50 and older 8% 50 and older 15% 50 and older 7%
96 / 97 10% Professionals and The last measurement carried out in 2013, reached Technicians 14% 87% of adhesion and favourability index was 61%. Managers and Senior Executives 12% Other Workers
Diversity indicators: % of female collaborators by category 5% Temporary
commitment executives as of December 2014 are women, between the employees and their families. a ratio we are interested in monitoring, to diversity Celebrating Kid’s Day, Christmas party, we to continue ensuring access and equal carry out sports tournaments and recognize At Coca-Cola Andina we maintain the strong opportunity. the employment trajectory of employees conviction that diversity, integration and with several years in the company. In Chile, employee development is the basis of the quality of life we perform marriage encounters and business growth. We encourage the inclusion and work environment lectures relating to communication in the of workers with disabilities in our business, We develop a variety of initiatives to achieve family. convinced that diversity creates value not only one of our major goals: be a better place to In addition, we carry out visits to the plant for the company but for the integration and work. for employee relatives. At different times of development of people. The quality of life for all workers is a central the year, employees are offered to invite their At the same time in Brazil, we developed a issue and permanent task in the operations. families to learn where they work and spend Training Program for People with Disabilities, a different day. This visit includes a tour, a with a duration of two years, whose video and a chat with a guide who invites participants have access to expertise provided The quality of life for all workers is a central you to enjoy the day and the magic of the by all areas of the company having, at the end issue and permanent task in the operations. Argentina Brazil Chile Paraguay Happiness Factory. 2013/14 2013/14 2013/14 2013/14 of the process, skills to improve their chances At Coca-Cola Andina we carry out bi-annual 63% 60% 59% N/A of incorporation into the company as well as to We encourage the integration of organizational climate surveys, in order to know other companies. working life with the family the perception on the company of each of its By the end of 2014 Brazil employee staff has Favorable internal climate We have an annual schedule of entertainments, members and to obtain specific information 286 workers with disabilities. celebrating several events or particular dates. on the strengths and opportunities for Key sustainability performance indicators With respect to gender diversity it can be Bi-annual survey (2013 data territories previous to the Each of them is designed to take advantage of improvement that we have and to implement merger with Coca-Cola Polar) noted that 14% of managers and senior these instances to generate new connections specific and precise work plans.
98 / 99 Percentage of employees covered by collective bargaining agreements 215% 111% 139% 109.6% Argentina Brazil Chile Paraguay
% Andina minimum entry wage / local 100% of employees of each activity are Argentina Brazil Chile Paraguay covered by the corresponding collective minimum vital and mobile wage 2013/14 2013/14 2013/14 2013/14 bargaining agreement, regardless of their 71.6% 6.5% 52.3% 32% membership status. 69% 11.9% 48.7% 22.5%
Our initial wages, outweigh
by far the local minimum wage. labor relations At Coca-Cola Andina we respect and support Surveys and research ensure external equity the right to freedom of association existing in all of the remuneration of our employees. In all countries where we operate. We have meetings operations, the entry salary of an employee who with unions, and provide the required information. joins the company full-time sits high above local Salary updates are negotiated with the unions on minimum wage. the dates specified by categories and there are no Employee turnover rates by region, have remained differences in the company between men’s and very low throughout the period, and in relation to women’s wages that perform the same function. other industries. Salaries are reviewed by position against market surveys.
Employee turnover 1
Argentina Brazil Chile Paraguay
0.3 0.4% 3.7 3.6 2.4 1.9 0.7 0.6
2013 2014 2013 2014 2013 2014 2013 2014
1 Calculated as the division between amount of permanent employees who left the company and the amount of employees at the close of each year.
100 / 101 In 2014 we invested 3.25 million dollars, developing 243.1119 hours of training, 39.32% destined to professional development programs and 34.30% in skills Training and technical knowledge.
Training 25 Training 14 Women hours Men hours
personal development: training and education
We believe in constant learning and providing our workers The training process is performed through the management with the possibility to develop all skills that will allow them of training and education activities, with the purpose of to execute their tasks with responsibility, excellence and adjusting skills and expertise to the needs of the position commitment. Skilled workers allow greater employability of they occupy. them and ensure the achievement of established goals. Percentage Training hours by topic
Training hours 18.59% 0.18% 5.06% by workers’ Managers and Senior Professionals Other Total Labor safety Code of ethics and Sustainability Temporary category and Executives and Technicians Workers hours business conduct gender
Total M F Total M F Total M F Total M F Country hours hours hours hours
Argentina 3,828 3,337 491 16,811 15,217 1,594 15,915 15,686 229 1,900 1,851 49 38,454
Brazil 745 646 99 76,960 68,015 8,945 71,851 48,333 23,518 496 496 150,053
Chile 195 183 12 23,654 18,962 4,692 12,769 10,979 1,790 8,856 7,904 952 45,474 2.57% 34.3% 39.32% Politics, human rights, Work skills Development of diversity and inclusion development competencies Paraguay 224 159 65 2,350 1,680 670 6,565 5,844 721 0 0 9,139 practices Sub-Total 4,992 4,325 667 119,775 103,874 15,901 107,100 80,842 26,258 11,252 10,251 1,001 243,119
102 / 103 We started with a survey to unveil training collaborators and areas, seeking a vertical and development needs in order to define the and horizontal integration; it favors coaching annual training plan, which includes: and the organization’s climate.
Andina Leader Management skills Coaching program development program It is aimed at officers and managers, Attended by area heads and supervisors, with the purpose of developing skills in totaling a group of 72 people approximately. communication, leadership, interpersonal This program is defined through the analysis relations, reinforcement of bonds, etc. and diagnosis of the level of competence This program is addressed specifically and demonstrated during the last measurement according to analysis on the above topics period (2011). It is aimed at the development and on future roles to perform. of Effective Communication, Analytical Thinking, Negotiation and Leadership. “Safe Work” Programs It trains and advises on possible risks and prevention management, approached on the Partnering with the Company’s growth objectives, specific contingencies of each position. develop a culture of excellence and prepare our It promotes self-care and team cooperation employees to take on new challenges, we train for safe work. our employees in the field of sustainability in all the Training on sustainability countries where we operate. Since 2009, in Argentina we carry out the campaign called “Our Era, Our Commitments” which is aimed at creating Coca-Cola Andina University awareness on sustainable development in all 110 collaborators participated our personnel on Energy, Waste, Water and during 2014 People. We worked together with Universities and In addition, we communicate through our Educational Institutions, who made in-house Revista Mundo Andina (Andina World executive training programs tailored for Magazine) a whole section about issues the needs of managers, operators and/or related to CSR and sustainable development, administrative personnel. highlighting actions taken by our staff. In this framework, training programs are Also, anyone who joins the company, in the approached on sustainability, development induction process, receives training on how and consolidation of managerial and Coca-Cola’s 2020 Vision is aligned to all of strategic skills. Collaborators are prepared our company’s processes by activating CSR for developing skills necessary when facing actions. business changes. This program, also contributes to improve relationships among
104 / 105 performance evaluation • Encourage a culture which promotes learning from successes and errors, and implement a During 2014 we worked on a new Performance cross communication style which promotes Evaluation model for our collaborators. that we listen to one another. This project with a final scope of all company • Recognize individual contribution of workers territories was built with the joint contribution of with the best performance. experts and mentors of each of our operations. • Deliver a model that contributes in identifying Coca-Cola Andina is committed to offering and selecting potential talents within the integral performance management so as company. to motivate employees achieve improved individual growth and development. It includes • Promote equal opportunity for developing a unique Goal and Competence model, as positions that require equal competences and well as an effective goal evaluation and skills’ responsibilities. analysis, both focused on: • Provide tools that contribute a suitable • Promote equal criterion in assigning and planning of people development. evaluating performance goals. • The performance management model has • Motivate the creation of skills focused on been designed as a cross system to the results, growth aspiration and people. organization, without differences in scope to specific segments or areas, and its gradual • Maintain consistence and transitivity in implementation is considered for all levels of establishing goals emphasizing on team the organization during 2015-2016. work and the search of global wide Company excellence.
106 / 107 Benefits granted to our employees promote family development and enjoyment, as well as health care and prevention along with a healthy lifestyle development
Maternity and paternity leaves granted in 2014 and return to work compensation and benefits meal plans according to the collaborators’ activities and conditions. Amount of Amount of Amount of Amount of To improve the quality of life of our collaborators, • Labor gymnastics: we offer access to plans Country maternity paternity maternity leaves paternity leaves Return % we offer a variety of incentives and benefits that leaves leaves returned to work returned to work of different physical activities, both at our allow them access to a broad range of products own facilities and in agreement with sporting Argentina 27 138 23 138 98% and services: organizations, to ensure the collaborators’ Brazil 30 224 10 116 50 % Health comprehensive care and recreation • Preventive vaccination programs, according • Maternity and paternity leave. Chile 59 - 53 - 90 % to the risks and conditions of each region, e.g., • Maternity leave and paid nursing time, 6 dengue, influenza, yellow fever, hepatitis a, etc. Paraguay 7 24 6 22 90 % months decrease to half work day work without salary reduction for women reinstated after • Conferences, workshops and lectures on Note: Return rates are consistent with the rotation indicator of each country. maternity leave. health topics for employees and their families. Articles related to prevention and detection of • Assistance and health insurance diseases, are also published both in Mundo • Life insurance additional to that required by law Andina Magazine, and on the intranet. Social • Housing policy loans which consist of • Dental plan • Leave of absence for marriage, death granting subsidy to 5 workers per year. Education • Retirement bonus • Health insurance or social works plan, of member of the family, siblings or • Personnel transportation service and according to the country, includes both the • Academic excellence scholarships. We provide grandparents, medical exams. subsidized meals employee and the entire whole family group, and full scholarships and academic excellence • Nursery. • Contests for collaborator´s children with the it is the Company who absorbs any differences scholarships to children of employees for their • Tickets to attend events best average school grades. between the plan versus contributions and legal college education and we have a discount on Economic aid. fees for different educational programs for our employees. • Free products and life insurance • Eating habits re-education programs, with the • School kit, bonus for employee’s children support of professional nutritionists, to adjust younger than 18 years old
108 / 109 At Coca-Cola Andina we seek to create a preventive culture, adopting health and safety measures for risk prevention, performing medical check-ups on our employees, promoting training in accident and disease prevention
health and safety In Chile, Andina’s Hygiene and Safety Joint Committee was created at the Renca facility, which counts with The approach is on the reduction of accidents, loss the participation of Company representatives and prevention, legal compliance and ergonomics. employees. At each operation we activated programs such as In Paraguay there is an Accident Prevention Internal “Zero Accidents” and “Safe Work Managers” in order Commission, representing 71% of the workers from to have the workers commit with the Operation’s the industrial, commercial and logistics divisions. Security Management System. Regarding safety in the workplace, among other This initiative provides a set of tools to identify critical initiatives, training is provided on accident prevention points and corrective actions, one of them is the oriented to adaptation and mounting of new facilities Situational Assessment Program, by means of which and fire prevention of structural material as well as raw the majority of managers were trained to implement materials in storage. Counting with specific equipment the development of a secure behavior along with their for emergencies, accident drills are organized annually teams, thus reducing the number of unsafe acts in the to implement contingency plans to ensure the safety workplace. of persons and facilities. We have Health and Safety Committees representing We continue training sales personnel in concepts of 100% of the Company’s collaborators. Each of them defensive driving thus contributing to the reduction involves executives, technicians and operators, also of accidents and training auto elevator operators ensuring the representation of the different areas through external certification bodies and specific (logistics, industrial, commercial, administration, etc.). skills for each sector in accordance with corporate In Argentina the Accident Prevention Committee security requirements. Also, when negotiating with is composed of workers, Union and process Unions health and safety issues are included, such as leaders, who work in the analysis and proposals for supplemental health insurance to that by the worker improvements. directly and vehicle insurance. In Brazil, we have an Accident Prevention Internal Commission formed by members and alternate members representing employers and all employees, covering various areas of the company and taking the Brazilian legislation1 into account.
No fatal accidents have been recorded at our operations in part as a result of controls and policies which we constantly apply.
1 Regulating Ordinance 3.214/1978-Regulation Standard N ° 5
110 / 111 Health and Safety Indicators 2014 Key sustainability performance indicators
Argentina Brazil Chile Paraguay 2014 2014 2014 2014 Absenteeism rate % Absenteeism rate % Absenteeism rate % Absenteeism rate % 2.76 / 3.09 1.54 / 1.9 3.15 / 3.39 1.89 / 1.78 Lost Time Incident Rate (LTIR) Lost Time Incident Rate (LTIR) Lost Time Incident Rate (LTIR) Lost Time Incident Rate (LTIR) 8.45 / 8.2 0.75 / 0.74 6.5 / 4.66 0.82 / 0.67 Lost Time Injury Severity Rate (LTISR) Lost Time Injury Severity Rate (LTISR) Lost Time Injury Severity Rate (LTISR) Lost Time Injury Severity Rate (LTISR) 213.46 / 215.01 6.48 / 7.3 76.97 / 62.58 7.21 / 4.08
Throughout 2014, Andina Brazil developed a project aimed at the training of all employees linked to the fleet of vehicles, motorcycles and trucks performing workshops of defensive driving and security dialogues that included security on transit issues, obtaining positive results in lower rates of accidents. Also, the Workplace Accident Prevention Internal Week was celebrated with all collaborators including health and safety issues in the workplace, approached on education and integrating the participation of workers. Additionally, specific training was conducted for those who perform work in height, in confined spaces or who operate machinery.
112 / 113 We installed recreational spaces or contact points outstanding case where people were invited to carry out positive AMBASSADORS behaviors. The points were “Circle with a smile”, for which 2 taxi-bikes were used that transported people who wanted to take a stroll through the mountain village, spreading their smile to the public in general. “Give a balloon”, where a group of promoters gave balloons to adults so that they could give them to the children and finally “End of Stress Zone“ that was installed in a park with hammocks made out of ropes and Coca-Cola cases to create a space for relaxation, fun and entertainment for the public in general. The activation lasted 10 days in which Act responsibly and 2 thousand acts of kindness were carried out, more than 2,500 balloons were delivered and sustainably more than 2,000 children played in the hammocks Make a positive difference and around 500 people enjoyed the ride on the taxi-bikes. “Let’s go crazy” Campaign - Villa Carlos Paz- Córdoba - February 2014
The Ambassadors Program is a global initiative, and it We invite you to join campaigns such as “Signs of is being implemented in all operations of the Kindness”, to inspire to view the world with other Coca-Cola system worldwide. eyes and to transform it into a better place with small The goal is that each contributor becomes aware that actions and gestures of kindness; or “International he or she is the visible face of Coca-Cola Andina and Happiness Day “ which takes place March 20th and also of the love for our brands. that we take care to remember following the slogan of “Open Happiness” because we believe that happiness We become Ambassadors whenever we spread is in the simple things like going for a walk, hugging clear and transparent information about our products somebody, read a book and be touched by it, enjoy among other colleagues, families, friends and the what we do, living naturally, dance, laugh, be with entire value chain; when we protect the reputation friends, and much more. of The Coca-Cola System and when we act as true representatives of our company and when we promote As ambassadors, we live each of the company’s wellness in the environment of which we are part. values and are committed to each one of the people that we reach and with each of the communities in Ambassadors is a way of thinking and operating and which we operate. Each Ambassador is essential of feeling for the business, a movement and also a to achieving our 2020 vision. Our products provide call to act, a connection between partners that also simple moments of happiness and freshness, we inspires our customers, our families, friends and those create these moments while we strive to improve our who surround us. economies, our communities, and the environment. The program consists in preparing our collaborators as true “ambassadors” expanding their knowledge about our products, their ingredients and healthy lifestyle.
114 / 115 community ingredients Our approach community packaging Our aspiration of generating value in societies where we are present, not only reaches the communities in each of the countries, but it also extends to our value chain, formed by clients and suppliers committed to the Coca-Cola essence. recycling manufacture To help us grow business sustainability we depend on the demand of our customers and partnerships with our suppliers, distributors, large and small customers and the communities where we operate
consumers distribution and clients 271,000 cooling clients
grocers180,000 and retailers
business with social impact: our value chain our clients Amount of clients per channel Argentina Brazil Chile Paraguay Total
We have defined our Sustainability Axes and 2020 Annually and reaching all of Coca-Cola Andina’s Grocers and small retailers 59,876 31,291 51,181 36,959 179,307 Vision. operations we measure our clients’ satisfaction level, To manage each of these priorities, we need as one of our key sustainability indicators. Wholesalers 766 3,194 271 805 5,036 to involve our chain; by involving every link in a Supermarkets 1,513 1,606 528 243 3,890 particular way depending on its impact on the On-Premise 5,915 52,181 10,596 13,823 82,515 production process. Subtotal 68,070 88,272 62,576 51,830 270,748 For this reason, the knowledge of the characteristics of those who compose it; the quality of the relationship we establish with each of them and their Argentina 68,000 Customer satisfaction development are vitally important to our operations. Brazil 88,000 The client network becomes a strategic partner Argentina Brazil Chile Paraguay in our business development. Among them, small Chile 63,000 grocers are a fundamental link in our value chain, since in addition to the social impact they generate, Paraguay 52,000 they are responsible of an important portion of the total 271,000 Company’s sales. 8.1 85% 8.1 70% 8.1 61% 8.1 83% 2013 2014 2013 2014 2013 2014 2013 2014
In 2014 the satisfaction survey changed in kind and detail, distinguishing targets and evaluation points in each country.
118 / 119 More than 9.7009,700 Distance trained clients clients66,626 trained since in Andina’s South 2010 until today Region in 2014
We have multiple support tools to deepen the clients, contribute to their development and attend Happiness Factory Route to Market (RTM) relationship between the Company and each of its their interests: In 2014 the Happiness Factory was inaugurated The Route to Market (RTM) project in Paraguay in Cordoba, Argentina. This project invites is aimed to servicing our clients more efficiently Call-Center Argentina Brazil Chile Paraguay visitors to a magical trip to discover the secret and profitably, providing them with the service Amount of calls attended by the call of the Coca-Cola formula. With this plant we they expect and need in terms of attention 303,370 257,995 218,801 62,263 center complete 3 plants where we offer a unique and investment in their businesses. RTM Complaints 201,426 27,347 81,483 3,471 experience for the school community (Rio de implementation allows us to improve service Orders (sales) 48,854 6,068 28,560 26,480 Janeiro, Santiago and Córdoba). level to our clients thanks to the adaption of optimum service models. Management by Requests (service, visits, etc) 21,538 197,801 87,321 29,543 the commercial area, through different market Questions 31,552 26,779 21,437 2,769 selling channels, has evolved and sustained our growth and positioning in the country marking a At our plants, we difference with our competitors. Training: “Sales Strategy in the implemented throughout the year and keep attended over During 2014 we began the pilot project Traditional Channel” informed on their evolution on a specific “Coca-Cola Business School”, reaching Based on the contents of thematic cards website. locations such as Cordoba, Río Cuarto, Villa through collectible materials (cards) or through 30,198 Client visit to plants visitors during 2014 María, Carlos Paz and San Francisco, and in a Escuela de Negocios Coca-Cola (ENCC initials This program helps us strengthen our coming from over 700 6-month period we reached 615 users in Spanish for Coca-Cola Business School) relationship with clients. During the visit institutions and schools. website, we train our clients on topics such as they learn about our history and productive brands, product portfolio, prices and trade and processes; we share our Sustainability productive processes. programs and the Company’s commitment with Coca-Cola Business School pilot reached the localities the environment. Today this project is the training “High Endeavors” Program of Córdoba, Río Cuarto, Villa María, Carlos Paz and San Distributor Sales force Development We add value to our clients activity with the greatest private Program Francisco, and recorded 615 users in a 6 month period. This initiative seeks to improve opportunities financing in Chile. Imparted by internal instructors, this program is of 20,000 small and medium store-keepers, Sales Contests carried out for the most important distributors, increasing their business profitability and We carry out contests every year, rewarding with the purpose of aligning their capacities with having a direct impact on the quality of life of clients recognizing their trajectory with our own salesforce and delivering tools so they its owners, their families and the communities the Company. Each client can follow the can meet their goals. where they are part of. development of the contests that are
120 / 121 outstanding case THE WORLD’S CUP Coca-Cola and FIFA World Cup 2014 Brazil
The Coca-Cola Company was one We created millions of of the 2014 FIFA World Cup main memorable experiences at sponsors and Coca-Cola Andina as local host accompanied the enthusiasm generated by its realization Everybody’s in Latin America and more precisely Cup! in Brazil, with multiple marketing initiatives. The implemented campaign More than 30,000 revolved around a clear message: participated each day promote the inclusion of diversity duringpeople the 25 days that the FIFA FUN with the purpose of the 2014 Cup to FEST lasted in Copacabana become “The World’s Cup”.
We gave a special welcome to the Cup We launched the most modern and exclusive way to drink Coca-Cola, the 250 ml. aluminum bottles, an The World Cup can only be touched by the world exclusive innovation of Coca-Cola Andina for a limited champions and heads of State, but reaffirming edition which was produced in Andina Riberao Preto. the concept of diversity inclusion defined for the campaign, we promoted an unprecedented action to During the world cup matches: exercise our leadership: decreased visual and blind We brought the world into one Coca-Cola. players of the Brazilian national team 5 - current world The consumers could purchase our products in and Paralympics’ champions - were able to participate formats from all over the world. in the event and touch the iconic object. This was a We carried out the FIFA FUN FEST, as an official FIFA historical fact that can still be seen on YouTube and point to watch the World Cup publicly in the 12 host cities. the first time that the FIFA made an exception to the We built the Coca-Cola House in front of the rule. Maracaná Stadium, as a great visibility icon with We launched a promotion of collectible mini- unique experiences for young people. It had a bar; a bottles, for the purpose of making it the World Cup store which sold Coca-Cola jeans; a hospitality area memorabilia for young people. to receive VIP guests including clients; a Coca-Cola FM radio study; a media center to receive celebrities 1 million gifts and 4,000 exchange posts. and the press and an area to take pictures with the stadium in the background. More than 4,000 young people took part in this experience. We organized the Trophy Tour, a Coca-Cola asset. We painted in red with our logo the airports, 11 More than 2 million people had the opportunity to subway stations, 17 shopping malls, 75 newsstands, receive and appreciate the world soccer award. among other areas close to the stadiums.
122 / 123 10,600 suppliers
our suppliers Our choice: local suppliers We try to do our purchases and acquisitions At Coca-Cola Andina we maintain a Win-Win from local suppliers based in the cities relationship with our suppliers, supporting where our production facilities and principal their activities and generating key partnerships distribution centers are located. with those suppliers critical to the operation. Our policy is to encourage growth, waging This decision essentially tries to promote on their continuous improvement, and giving local development of the suppliers, generate prevalence to those with the best quality, social integration with the supply chain, and reduce responsibility and care for the environment. delivery time as well as reducing risk to exchange rate variations of foreign currencies.
Supplier Indicators 2014
Percentage of local suppliers Percentage of expenses on local suppliers
Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay
96.90% 99.10% 97.10% 86.30% 95.50% 98.60% 98.50% 64.80%
124 / 125 Coca-Cola Andina’s main suppliers must comply with the requirements laid out in the document and then undergo periodic evaluations carried out by independent and accredited supervising companies that specialize in social compliance, on behalf of The Coca-Cola Company.
Supplier Guiding Principles the importance of responsible practices at case the latter shall prevail. If a suppler does assessments; collaborating on improvement At Coca-Cola Andina we are committed the workplace that respect human rights not comply with some kind of aspect of the plans; specific training; financial support to defending fundamental principles of and fulfill-at a minimum- local labor and Guiding Principles’ requirements, it should in critical circumstances; evaluation international human rights at the work place environmental regulations, as well as key implement corrective measures. and feedback with regard to safety and wherever we operate. international conventions. The Company reserves the right to terminate hygiene practices, quality, protection of the its agreement with any supplier who fails to environment and social responsibility. In We believe that the true way to measure The Principles consider the following demonstrate that it is in compliance. addition, we have strategic alliances and joint a well-managed business does not only topics: projects of improvement and implementation consider if the business is economically For more information visit the following · Respect free association and collective of new technologies, resulting in increased successful, but also how did it achieve this website: www.thecocacolacompany.com bargaining capacity of the supplier and our operation. success. That is why we seek to develop Supplier Management Tools relationships with suppliers who share · Forbid child work Social and environmental similar values and who operate ethically. Classification · Forbid forced work and abuse at the requirements workplace In order to optimize Coca-Cola Andina’s Our commitment with human rights is We have a specific procedure that defines management role, suppliers are classified formalized by respecting the Universal · Suppress discrimination the rules and requirements that existing in large categories in accordance with their Declaration of Human Rights; ILO · Work hours and salaries suppliers must meet, including aspects of importance and whether they are critical to Declaration on Fundamental Principles health, safety and environment. In addition, · Company integrity the business. Although the same relationship and Rights at Work and the United Nations all service contracts include the enforcement · Complaint and solution procedures policy is the same with all of them, certain Global Compact. of local laws with respect to the prohibition processes and procedures are differentiated It is portrayed on the “Supplier Guiding · Adequate and effective management of child labor, a correct record and payment pursuant to their classification. Principles”, whose regulations include procedures of workers from third parties, enforcement associated suppliers and independent As a general rule, the supplier must comply Development of working hours and the prohibition of slave with all current local and national laws work. bottling groups. We promote and collaborate in the and regulations on this matter, unless the These Principles communicate our performance improvement and development International Labor Organization should values and expectations to suppliers and of suppliers through feedback controls and independent bottling groups, highlighting establish greater requirements, in which
126 / 127 Actions for sustainable packaging production
We worked with our Company’s suppliers, to manufacture PET preforms with Plant Bottle resin, to decrease the weight of lids and disposable bottles using a lesser amount of resin, to manufacture plastic cases with recycled resin and to manufacture cardboard sheets with recycled paper.
Evaluation score. For production supplies, all suppliers Supply Chain Committees health risks and the safety of persons Suppliers are evaluated every six months, undergo Quality Control analysis. Audits We participated in Supply Chain involved in the Company’s activities; generating a report where workers of are carried out in the event that suppliers Committees of the Coca-Cola bottlers minimize negative environmental impacts; Coca-Cola Andina, products and services provide lower than expected results. where we worked on joint initiatives in order control risks to intellectual and material users, define a compliance evaluation to enhance business volumes and good property of the Company. business practices. Training in Sustainability Thus, we achieved supplier development Process Quality and Safety is responsible Critical suppliers evaluated during 2014 agreements for strategic supplies and for issuing training on sustainability, adjustments to our quality standards, for security and environment to the suppliers Ingredient suppliers example with sugar, caps, preforms, etc. before working at the plant. In addition, 2014 We also developed alliances with other Category Evaluated concepts YTD training days are carried out on topics companies and institutions to work on Compliance SGP (Supplier Guiding Principles) 96% approached on the business. Additionally better practices in the value chain, under employees of suppliers are checked GFSI (Global Food Safety Initiative) 85% the Consorcios de Compras (Purchasing for qualifications and the validity of the SAA (Supplier Authorization Agreement) NA Consortia) organization. training they have in the field of accident Packaging suppliers Management System Requirements preventions, according to the task they will develop. 2014 All suppliers, contractors and outsourced Category Evaluated concepts YTD parties that serve in the plant, are informed Compliance SGP (Supplier Guiding Principles) 93% about Management System Requirements: GFSI (Global Food Safety Initiative) 54% ensure the quality of our products and that SAA (Packaging & Sales & Marketing Equipment) 98% they are safe for consumption; mitigate
128 / 129 We seek to improve the quality of life and promote happier, developed and sustainable communities
social investment in the community
Our social investment policy is based on We measure perceptions and needs of our Caritas, ACDE (Asociación Cristiana de Programs with Junior Achievement 4 strategic pillars: Good Neighbor; Sport local community, disseminate activities and Emprendedores) Foundation and Social Wellness; Education and Social strengthen links with responsible institutions. • Fundación Dequeni. Junior Achievement is an international non- Inclusion; and Environmental Care. • Fundación Paraguaya. In this sense, we partner and advise expert profit organization, which aims to encourage • World Wildlife Fund (WWF). Through these pillars, we mainly promote organizations on the issues addressed, and inspire the entrepreneurial attitude in • Cruz Roja Paraguaya. healthy active living, climate protection and creating synergies and enhancing the results children and young people from primary, • ONG “A Todo Pulmón, Paraguay Respira”. care for the environment, and donations to achieved. secondary and higher education, allowing them local communities. • ONG GEAM. to assess their own goals and strive to reach Among them are: • Fundación Coca-Cola them. Good Neighbor • Fundación Banco de Alimentos. • Fundación Educación 2020 It is the strategy of social investment to engage Sharing their purpose, we support and • Fundación Junior Achievement. • Fundación Coanil actively and effectively with the needs of the participate in the programs implemented • Club de Empresas Comprometidas. • Hogar de Cristo community of which Coca-Cola Andina is a in the countries where we have operations. • Fundación Ambiente, cultura y desarrollo • Ort-Chile (TAVEC) part of. Our collaborators are volunteers joining the (ACUDE). • Centro de Estudios Públicos Foundation’s training programs sharing their We have constant dialogue and • Fundación AVINA. • Unión Social de Empresarios Católicos knowledge, professional experience and an communication tools for the community to • Instituto Argentino de Responsabilidad Social entrepreneurial spirit. The children of our meet the needs and the context in which we (IARSE) Education and Social Inclusion employees take part in Junior activities that develop our business, and thus approach the • Universidad Católica de Cordoba ICDA We facilitate integration and educational promote entrepreneurship, environmental actions in the interests and concerns of the • Universidad Nacional de Córdoba opportunities for individuals and organizations, education (activities that are described in the community. Queries and claims are received • INTA Instituto Nacional Tecnológico promoting entrepreneurship and sustainability Environmental Care section in this chapter) and through the Coca-Cola’s website, which are Argentino values, through education at primary and the personal-growth values involved in taking a referred to the regions and corresponding • Fundación TECHO para mi país. secondary schools. proactive attitude in society. bottlers. • Organizations: Helen Keller, Soles,
130 / 131 A youth delegation of Coca-Cola participated in the 12th edition of the Entrepreneurs Forum held in Mendoza, which counted with the presence of more than 3,000 young people from across the country. In Córdoba, 13 corporate volunteers dictated more than 250 hours of classes in 26 programs of the Foundation, reaching more than 760 children and young students of primary and secondary schools in the province.
We exceeded3 million dollars supporting institutions and organizations with social, environmental and educational purposes.
Coca-Cola Andina Chile has collaborated same time and you do not realize it”. Christmas Event We have already formed more than 150 with Junior Achievement for more than one Jaime Gacitúa, Head of Service Platforms / Each year we hold an event to live the students and work to insert the largest decade not only with the economic support, volunteer for the “Global market” program - magic of Christmas, share with the family amount in company positions. but also with the participation of collaborators Instituto Cumbre de Cóndores, Renca at recreational activities and inspire the as volunteers in classes. “Teaching others, one “Children captured much of what we taught construction of stronger communities. In every Donation of scholarships to students town where we have our main production is who learns the most” is the best expression them, they understood what it was and that with limited resources centers, we carry out activities, shows, truck that sums up the experience of volunteers was super rewarding for me, as a person and Thanks to the collaboration of Fundación parades, etc. Coca-Cola Chile, the donation of scholarships who actively participated in programs during as a professional. It helped me a lot to discover was held for the ninth consecutive year for the last year that were aimed at “learn by skills I believed I did not have. To share with the Training project for handicapped students with limited resources, who opt for a doing”, through a participatory and interactive children was a gift.” Through this program developed in Brazil, technical-professional high school education. methodology with contents linked to economic Ángel Berríos Microbiology Analyst / Volunteer differently-abled people trained in SENAI - Additionally, and in order to contribute issues and entrepreneurship. in the “Global market” program- Instituto during 2 years. The objective of the program with the quality of teaching, 2014 winning Cumbre de Cóndores, Renca and “Our is to learn about the areas of a company in schools were awarded TAVEC laboratories I was a volunteer families” - Colegio Juan XXII, La Legua. order to facilitate the inclusion of participants (advanced science education technology) In Argentina, during 2014 different activities in the labor market. called “Science for all” intended for high “The feeling is very positive, it is to be were conducted within the framework of school students and “Children have the word” contributing in a different way.” The connection the agreement with Junior. Besides the for pre-school, grade and middle school that occurs with the children, when you students. participation of our volunteers as teachers approach them to talk, what we give to each in the programs implemented in schools, other is super powerful. I had a good time, children of employees participated in Forums learning things, it also helped me get out of the We donated and National Meetings to promote the bubble in which we live, whether we want to 1 . 8 entrepreneurial spirit. million liters in or not. When you go to a school in Renca, you realize that there is much more going on at the products.
132 / 133 2014 Educate in Afforestation Program 14,596 children and 708 teachers, who worked voluntarily generating environmental awareness in 263 schools and their communities.
It indirectly reached more than 30,000 people
being reproduced and at the same time they “IF WE ARE NOT PART OF THE SOLUTION, WE Social Perception Survey in Argentina also, to identify areas for improvement on which receive environmental education as a process ARE PART OF THE PROBLEM” At Coca-Cola Andina Argentina since 2010, to work to better satisfy our customers and the incorporated into the curricular content of the Miriam María Acevedo. Escuela Profesor Oscar we measure and analyze the perception that community in which we operate. schools. The trees that are being reproduced Raúl Malvasio. B° Obispo Angelelli. society has on our participation in sustainable are then planted in communities next to each development, the creation of social value and Education in Environmental Care school with the participation of boys, girls, Learn to undertake in the environment - the care of the environment. We communicate sustainability values to parents and teachers. This experience also Mendoza - Argentina children and young entrepreneurs, in order comprehensively promotes the strengthening With the Junior Achievement Foundation and to protect the environment and promote of values such as respect for nature and natural We constantly deal with renewing our social the participation of our volunteers we dictated sustainable communities. resources, citizen participation, tolerance and courses for three schools: Batalla del Pilar, permission to operate the vision of the future. Educate in Afforestation Program- Roque Saenz Peña and Misiones, all in the “This program gave us many opportunities to Annually, we perform a statistically representative Fundación Acude - Argentina Department of Godoy Cruz - Mendoza. The grow as a community. I’m very happy because, survey on the perception that the company’s We are aware of the importance of educating training proposal called “Ecological Detectives for the first time I got a positive response from a main stakeholders have (consumers, families, about environmental care, this is why for the in Action” encouraged students to learn and parent group for the construction of the nursery public bodies, educational institutions, etc.) last 4 years we have been supporting the assume a proactive activity by proposing “Educate in Afforestation Program “, directed by and to get the elements to do this. This project solutions to environmental problems. This tool is designed and applied in conjunction Fundación ACUDE. made me understand that one cannot “impose” with the Catholic University of Córdoba. From the first moment in which the people something on a community no matter how good It appears from the data obtained from the last The program is conducted in grade and middle in charge of Junior Achievement Argentina, it is, and the fact that children grow them, and measurement, that the company is consolidated schools, kindergartens, special schools and along with Coca-Cola, raised the possibility of follow step by step how this seed becomes as in previous years on the 2nd place regarding high schools in 162 locations in the provinces implementing the program “Learn to undertake” a tree and what it costs, makes them value it companies that do a good job in social of Cordoba, Mendoza, Jujuy, Santiago del with the students of the school we viewed it as a much more and it is no longer an imposition. I responsibility; Although we had obtained Estero and Rio Negro in Argentina. It is aimed valuable and creative invitation. The proposal is think that now everything begins to change from better results than in previous years in terms at teachers and early aged children as well articulated completely with the conceptual and the inside out. I hope I stay at this school until of recognition on behalf of the respondents for as grade and special, schools. It consists in attitude contents of the school learning areas I am old to be able to tell parents, which were responsibility actions developed. The study also the installation of forest nurseries in schools, and encouraged students to propose ideas, my students, that we worked great together highlights the strength of the image-brand and where trees are produced from seed, so that propose solutions on environmental problems in as a team. I am grateful for having allowed my highlights fidelity with the product manifested children and teachers can follow all the natural the surrounding community and the educational mentality to change to make change possible. by consumers. It is a tool that we find useful, growth process of the native trees that are community and inform the community using the
134 / 135 19 volunteers from different areas of the company’s Andina Center (Santiago-Chile) in their role as Coca-Cola ambassadors, assumed the challenge of participating as monitors in three different programs: Our Families; Search for your Success; and Global Market.
school radio. From the educational institution we “Learn to Undertake in the widely value the possibility to participate in the Environment” (AEMA for its Spanish experience, which achieved impressive results meaning Aprender a Emprender en el making it possible for more “Environmental Medio Ambiente) - Paraguay detectives in action” to exist in the community. Since 2007 “Learn to Undertake in the Mrs. Graciela Costa – Principal at ESCUELA Environment” AEMA is the joint program of N° 1-666 Batalla del Pilar Coca-Cola and Junior Achievement, whose objective is that school children of different ages Project - Recycling in Schools of Renca, learn and acquire awareness about caring for Chile the environment. The initiative is implemented in three Renca In addition, through an alliance with Paraguay schools and consists of an environmental Educa, since 2011 the educational material education and minimization of solid waste of the program was implemented on the campaign. XO computers. An interactive software was Three establishments participated (1 day care developed that allows the proposal to reach center and 2 schools), with around 1,700 more than 2,600 boys and girls of Paraguay. students. Planet Hour Upon completion of the first stage, an We adhere to this global initiative of the World assessment was made through an approach Wildlife Fund for Nature (WWF) by turning group in each educational establishment, with off the lights of the industrial plants and our the participation of teachers and principals, who main advertising posters for one hour, inviting provided their opinion about the development workers and major customers, suppliers and of the project, their learning, and proposals for consumers to be part of this initiative that improvements for the future. promotes awareness of the need to take action on anthropogenic climate change and polluting emissions as well as save energy and minimize light pollution.
More than 15,300 children have participated since its beginnings until 2014.
136 / 137 outstanding cases Coletivo Floresta: A new way of doing The launch of the “Coletivo Floresta” program strengthens the positioning of Coca-Cola as a company business that is strongly committed to sustainability and the economic development of the region. “More than a product we have a good cause. When you drink Del Valle Reserva Açaí con Banana, the consumer will make a difference for many people in the value chain of the açaí extracted from the Amazon “Director of Social Business Coca-Cola Brazil, Claudia Lorenzo A shared value This module of the Coletivo platform benefits Amazon coastal communities, generating income, providing project generates profit for technical assistance and promoting access to a fair the company and trade chain. social impact for the In the first year, it is expected to directly impact 600 coastal populations of collecting families and, indirectly 1,200 and about 50 the Amazon. communities
Coletivo Floresta stimulates the development of the The municipalities of Manacapuru and Carauri, açaí harvesting communities (fruit of the Açaizeros, were the first to participate in the program. a palm tree that grows only in the Brazilian Amazon) Agribusinesses, approved by Coca-Cola Brazil, providing technical assistance and promoting which receive the production, were located in access to a fair trade chain. Coletivo Floresta these municipalities, within the framework of acts on three fronts: stimulate and empower the international criteria of company quality. communities, provide technical assistance and The program operates with the assistance of a promote access for collectors to a fair trade chain. local promoter who helps in the articulation of It is implemented through an innovative value co- partnerships; technical assistance and in the creation process with communities, respecting the integration of the value chain; and in addition to culture and local traditions lead and implement citizen training and community The project is a partnership between Coca- workshops. Cola Brazil and the Government of the State of To meet the program’s objectives, Coca-Cola Brazil Amazonas formalized in a cooperation agreement, counts on the experience of the Coletivo Coca-Cola which establishes 10 principles that govern the platform, present in 150 communities throughout relationship with fruit gathering communities; Brazil and since its implementation in 2009 it has to preserve their culture, the environment and already impacted more than 50 thousand people contributes to its sustainable development. 16 through six different models. non-governmental organizations and entrepreneurs Coletivo Coca-Cola, is one of the most ambitious also adhered to this agreement including the shared value programs proposed by the private Implementation Agency of the German Cooperation sector in Brazil for Development, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) - interested in cooperating with the objectives of the project.
138 / 139 outstanding case SOLIDARITY SERVICE HELEN KELLER INSTITUTE CÓRDOBA - ARGENTINA
Today 150 students have access to new sports activities that contribute to their psychomotor and emotional development.
Solidarity is a value that is grown not in need of various repairs to be able to deliver Today 150 students have access to new as a volunteer for the initiative, says: “I like with words but with concrete actions. a better education service to its students. sports activities that contribute to their to help because it is a way of generating Last December the Helen Keller Institute Among the necessary works, the psychomotor and emotional development. changes so that society improves and materialized the illusion of recovering its refurbishment of the pool was selected Also, between October and November, because the children’s smile and that of the swimming pool, a new grandiose space of as a priority for the purpose of adding volunteers from Coca-Cola Andina Argentina people who are involved is very comforting.“ encounter and development, benefiting about swimming to physical education activities that contributed with their service vocation He also appreciated the active response 150 visually-impaired students. contribute to the psychomotor development painting and improving the property’s façade. of the Institute to the social commitment of Coca-Cola Andina because “they The Helen Keller Institute depends on the of those who attend the Institute. Thus, the María Eugenia Ferreyra, Deputy Director of immediately integrated into the team and they Ministry of Education of the province of contribution of Coca-Cola Andina, consisted the Helen Keller Institute valued the actions collaborated.” Cordoba, since 1944 it fulfills the noble of repairing cracks, recovery and application expressing “that the presence of Coca-Cola mission of educating visually-impaired of a waterproof coating in the 7 meters long not only contributes to the maintenance of Subsequent to the intervention and as a way students in an integrated manner. It is by 3 meters wide swimming pool. In addition, the building, but it is also a possibility to of strengthening the link that was generated recognized by its quality service to contribute the pool sides and entry points were adapted open ourselves to the community to show with this action, on October 20th the children to the training of competent persons, favoring to the needs of the students. This action, them what our role is and so they know of Helen Keller came to our Montecristo plant the development of capabilities to access articulated with the Ministry of Education, how to treat our students not only from their to participate in a guided tour. The result better living conditions and so they can live who will be responsible for the completion disabilities but from their capabilities” of the visit was happiness and significant autonomously. of the works, perimeter fence, bathrooms, Atilio Acosta, who since 2010 works in the learning. Another example that great things dressing rooms and filtering machines for come from simple and small actions. At the time, September 14, 2014, the institute commercial area of San Isidro, Córdoba next year (2015). was celebrating its 70th anniversary and was Marketing Services and who participated
140 / 141 outstanding case ECOLOGICAL WALL SAN BERNARDINO PARAGUAY
This initiative is part of
program AEMA(Coca-Cola and Junior Achievement) and the group of children and youngsters YAEMA started thanks to this program.
This initiative is part of AEMA program in the community in general and more The second stage included the the interest of the residents of a low- (Coca-Cola and Junior Achievement) specifically in the town’s educational preparation of a green wall on the income neighborhood who found in it and the group of children and community. perimeter of the school since it did a chance to meet construction needs youngsters YAEMA started thanks to The initiative consisted of two stages. not have this useful structure to and at the same time contribute to this program. The first began with an awareness delimit and also to safeguard the the protection of the environment It is a known fact that waste is an campaign to the whole educational integrity of the students. The wall and the reduction of pollution of Lake almost inevitable by-product in community and activities of collection of approximately 720 m² (400 mts. Ypacarai near the town and highly human activities that generates great and re-use of plastic bottles to build x 1.80 mts) required nearly 30,000 contaminated. pollution, especially solid waste as beds; benches and poufs that are plastic bottles for its construction plastic bottles, plastic bags and being used by the school. which were collected in the cardboard, among others. In addition, costumes for dolls, bags community. The objective of the project is to & decorations were made from plastic The success of the project, address this issue, by recycling and bags delivered by retailers. transcended the school awakening re-using waste to generate awareness
142 / 143 challenges for the coming years
Our work pillars are the result of communication and interaction with our groups of interest, staff, and community, therefore we will continue to build on them, by setting challenging goals:
Market
Environment
Community
Work environment
144 / 145 Market Sustainable packaging Water • Social perception: Survey on society’s view of us in terms of social, environmental and economic • Continue refreshing people extending the Reduce Reduce • Continuously improve processes to use less value. product portfolio, adding new categories, • Continue developing optimal designs of PET water in the elaboration of our products, with the strengthening the zero-calorie and nutritional containers in all our packaging, reducing the challenge of maintaining the incorporation of new Work environment aggregates segments for each occasion and weight of our bottles. categories to the portfolio. • Continue to ensure that all areas and activities of lifestyle. • Involve our suppliers more and more in joint Recycle our company respect the legal regulations and the • Continue to expand the offer of returnable projects to achieve synergy and improve our • Treat water integrally and return 100% of the criteria established by our Human Rights Policy in formats. primary and secondary packaging. water used in our operations with a quality that will the Workplace. • Boost initiatives that support active living Reuse allow for aquatic life. • Maintain a safe and healthy environment for and healthy habits, such as Baila Fanta, Dale • Increase the use of recycled resin (Bottle to Replenish workers and visitors. Security concepts will be Juguemos, Copa Coca-Cola, Sprite Urban Tour, Bottle, B2B) in our PET bottles. • Support and promote projects that impact on incorporated into the ways of people, generating etc. • Encourage the use of our returnable products the conservation of water sources and access to safe conduct guidelines and designing increasingly • Always ensure the supply of high quality so that each bottle can be re-used again in a safe drinking water to communities reached by our less risky processes and installations. products and services in the market, making controlled way, deepening the expansion into new operations. • Through partnerships with renowned local and constant investments in technology, equipment territories of our operations. international educational establishments, we will and specific technical training of collaborators. Community expand our collaborators’ technical, professional Renew • Our goal with the education aims at the and managerial development programs. In Environment • Progress in the use of plant-derived resin Plant sustainable development of our communities. We addition, we will enhance the development of Bottle in our PET bottles. Energy seek to generate greater educational opportunities internal trainers for the dissemination of knowledge • Grow in the business, both in facilities and Recycle and access to work for the most vulnerable areas. and expertise where required; in order to • Consolidate the connection model among technology, integration processes and category • Expand training programs to clients and the strengthen our human resources recyclers, collection points and public entities, by launches, while maintaining stable Energy deepening of the route to market (RTM) models, for • Teamwork, integrity, attitude. These are three means of agreements with Clients, Institutions, consumption the development of small businesses. of the values that we identify and that sustain the Municipalities and places of high consumption • Carry out projects that develop the efficiency • Continue the dialogue with interest groups to basis of our corporate culture. We will continue to increase the obtaining of post-consumer Pet in the use of energy for production, cooling learn about their concerns and to develop activity to deepen support for volunteer programs in and integrate it into the recycling process and/or equipment and transportation systems involving plans based on them. solidarity initiatives that contribute to sustainable Bottle to Bottle. more and more links in the value chain, for development and where our collaborators are the • Generate strong collaboration links with monitoring and management of transversal plans. links for approach needs. organizations recognized by their “know-how” in the communities where we are present.
146 / 147 CHARACTERISTICS OF THE REPORT and GRI G4 VERSION CONTENT INDEX Food and Beverage Sector
Report profile and materiality test The report follows guidelines developed by the Global Reporting Initiative - GRI, in its latest Guide to Prepare G4 Sustainability Reports and the Sector Supplement for the Food Industry, in the form of essential compliance. The period covered by the report includes January 1st through December 31st, 2014. It is the sixth report presented by Coca-Cola Andina. It includes the operations of Coca-Cola Andina in Argentina, Brazil, Chile and Paraguay: Andina Chile; Andina Argentina; Andina Paraguay; Vital S.A. Chile and Andina Brazil.
148 / 149 Basic General Contents
Indicator External Verification Page/Answer/ Indicator ISO Reasons for status 26000 Yes No omission F - P - N/A Clauses
Vision and Strategy 4.7; 7.2
CRS, Editorial CRS, page Statement from the most senior G4-1 144 Annual Report 6.2 x decision-maker of the Organization. • 2014, pages 10/11 CRS, pages 18 and 19 Description of key impacts, risks, and G4-2 Annual Report 2014, 7.4.2 x opportunities. • pages 73 to 75
Organization profile 4.2; 4.3; 6.3.10 G4-3 Name of the organization CSR, pages 6/7 • x Primary brands, products, and/or G4-4 CSR, pages 6/7; 32/33 x services. • This year the Report is presented related to previous periods are informed G4-5 Location of organization's headquarters. CSR, pages 170/171 • x simultaneously and articulately with the throughout the Report if appropriate. Number of countries where the G4-6 CSR, pages 10/11 x Company’s 2014 Annual Report, taking the The currency used, unless otherwise organization operates • first steps to integrate financial economic Annual Report 2014, specified, refers to “$” Chilean pesos. When G4-7 Nature of ownership and legal form. x pages 18/19; 26/27 • information and sustainability into future it says dollars or “US $” it refers to American G4-8 Markets served CSR, pages 10/11 x editions. dollars. • The process for its preparation was led by G4-9 Scale of the reporting organization. CSR, pages 10/11 • x Gri g4 Content Index the areas of Corporate Management and G4-10 Organization Employee breakdown CSR, pages 94/95 • x The following table shows the indicators Control and the Integrated Management Percentage of employees covered by referred to in the GRI G4 Report and G4-11 CSR page 100 • x System that coordinated the collection collective bargaining agreements. its Sector Supplement for the Food Description of the supply chain for the of the information that was provided G4-12 CSR, pages 118/119 • x Industry contemplated in the Report and organization. by representatives from all areas of the Significant changes during the reporting that are material to Coca-Cola Andina’s Annual Report 2014, company. G4-13 period regarding size, structure, x pages 18/19; 92/3 • management. The ratio of each indicator with ownership or value chain. The guidelines of the G4 Guide the clauses of the ISO 26000:2010 Social Explanation of whether and how the CSR, pages 10/11; (materiality test) and those of the AA1000 G4-14 precautionary approach or principle is x Responsibility International Standard are also 14/15; 16/17 • (AccountAbility) Standard; the issues that addressed by the organization. presented. are priority for the Company’s sustainability Coca-Cola Andina adheres to the management; the interests and expectations principles and of its major stakeholders and issues that are initiatives in which The Externally developed economic, Coca-Cola Company priority at the sustainability level for the food environmental, and social charters, and the Coca-Cola G4-15 x and beverage sector, were followed for the principles, or other initiatives to which System participates. • definition of the content and material issues the organization subscribes or endorses. Among them are the United Nations Global to report. The boundaries of material issues Reference Compact and the are detailed in the respective table included Indicator Universal Declaration of Human Rights in the Sustainable Management Chapter and • Full the Community chapter (value chain). Memberships in associations (such as • Partial G4-16 industry associations) and/or national/ CSR, page 26 • x Techniques and bases for data international advocacy organizations. • N/A Not available measurement, as well as significant changes
150 / 151 Indicator External Verification Indicator External Verification Page/Answer/ Indicator ISO Page/Answer/ Indicator ISO Reasons for status 26000 Reasons for status 26000 Yes No Yes No omission F - P - N/A Clauses omission F - P - N/A Clauses
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES 5.2 CORPORATE GOVERNANCE 6.2 Governance structure of the organization, Annual Report 2014, List all entities included in the G4-34 x and committees pages 20/21; 24 /25 • G4-17 organization's consolidated financial CSR and Annual Report • x statements or equivalent documents. Annual Report 2014, G4- 39 Function of the highest governance body x Process for defining the report content pages 20, 21 and 22 • and the Aspect Boundaries. How the Highest committee or position that The CEO and the Board G4-18 organization has implemented the CSR, Pages 148/149 • formally reviews and approves the of Directors approve Reporting Principles for Defining Report G4 -48 organization's sustainability report and the Annual Report x Content. • ensures that all material Aspects are and the Sustainability Aspects identified in the process for G4-19 CSR, Page 25 x covered Report defining report content. • Ethics and Integrity 4.4 G4-20 Aspect boundary within the organization. CSR, Page 25 • x Organization's values, principles, G4-56 standards and norms of behavior such CSR, pages 8/9 Aspect boundary outside the • G4-21 CSR, Page 25 x as codes of conduct and codes of ethics. organization. • The effect of any restatements of Information is consis- Internal and external mechanisms for G4-22 information provided in previous reports, x seeking advice on ethical and lawful Annual Report 2014, tent with previous CSRs • G4-57 x and the reasons for such restatements. behavior, and matters related to pages 21 to 23 • Significant changes from previous organizational integrity G4-23 reporting periods in the Scope and No changes • x Aspect Boundaries. Internal and external mechanisms for reporting concerns about unethical or Annual Report 2014, 4.5; 5.3 G4-58 x Stakeholder Engagement unlawful behavior, and matters related to pages 21 to 23 • List of stakeholder groups engaged by organizational integrity. G4-24 CSR Pages 22/23 x the organization. • Basis for identification and selection of G4-25 CSR Pages 22/23 x stakeholders with whom to engage. • Organization's approach to stakeholder CSR Pages 22/23; 43; G4-26 engagement 134 • Key topics and concerns that have been raised through stakeholder G4-27 CSR Page 24 engagement, and how the organization • has responded. Report Profile 4.2; 4.3 Reporting period for information January 1st through G4-28 x provided. December 31st 2014 • G4-29 Date of most recent previous report . July 2014 • x G4-30 Reporting Cycle Annual • x Contact point for questions regarding the G4-31 CSR Page 168 x report or its contents. • Level reached, GRI Content Index, and CSR Pages 148 to 150; G4-32 the reference to the External Assurance x 151 to 166 • Report Organization's policy and current G4-33 practice with regard to seeking external Not externally verified assurance for the report.
152 / 153 Basic Specific Contents
Indicator External Verification Indicator External Verification Page/Answer/ Indicator ISO Page/Answer/ Indicator ISO Reasons for status 26000 Reasons for status 26000 Yes No Yes No omission F - P - N/A Clauses omission F - P - N/A Clauses CSR, Pages 14; 16; CSR, Pages 14; 16; ENVIRONMENTAL PERFORMANCE: x 18/19, 36/37 ; 38/39; 6.5 SUSTAINABILITY MANAGEMENT FOCUS 18/19; 36/37 • • Management approach 82/83 Annual Report 2014 , x Supplies: Management approach CSR, Pages 88/89 • x Economic Performance: Management Approach Pages 10 y 11 • G4-EN1 Supplies used, weight and volume CSR, Page 91 6.5.4 x Economic value generated and 6.8.1; 6.8.2; • G4-EC1 CSR, Page 13 x distributed. • 6.8.3; 6.8.9 25% of PET bottles Percentage of supplies used that are are recycled resin. G4-EN2 6.5.4 x Financial implications and other risks recycled supplies Packaging returnability • G4-EC2 and opportunities for the organization's CSR, Pages 18; 20/21 • 6.5.5 x CSR Page 32. activities due to climate change Energy: Management approach CSR, Page 70 • x G4-EN3 Direct internal energy consumption CSR, Pages 78/79 6.5.4 x Coverage of the organization's defined CSR, Pages 108/109; • G4-EC3 • 6.8.7 x benefit plan obligations 110 to 113 G4-EN4 Direct external energy consumption • Financial assistance received from G4-EN5 Energetic intensity CSR, Pages 12; 78 • 6.5.4 x G4-EC4 government • CSR, Pages 72/73; G4-EN6 Reduction in energy consumption 75; 77 • Market Presence: Management Approach CSR, Pages 12/13 • x Reductions in energy requirements of G4-EN7 CSR, Page 78 6.5.4; 6.5.5 x Ratios of standard entry level wage by products and services • G4-EC5 gender compared to local minimum CSR, Page 101 wage at significant locations of operation Water: Management approach CSR, Pages 60/61 • x 64% of the directors G4-EN8 Total water withdrawal by source CSR, Pages 62;63 • 6.5.4 x of the company are Water sources that have been Proportion of senior management hired Chileans (9) and the G4-EN9 CSR, Pages 62/63 • 6.5.4 x G4-EC6 from the local community at significant rest: 1 American, 1 significantly affected by water withdrawal locations of operation German, 1 Brazilian, 1 Argentinean and 1 It is not reused in the Peruvian. process. The water Percentage and total volume of water used or captured by G4-EN10 6.5.4 Indirect economic impacts: Management approach CSR, Pages 118/119 • x recycled and reused. rainfall and delivery is • Development and impact of 6.3.9; 6.8.1; suitable for animal life. CSR, Pages 50/51; G4-EC7 infrastructure investments and services 6.8.2; 6.8.7; x CSR, Pages 64/65 52/53; 54/5; 57; 75 • supported 6.8.9
6.3.9; 6.6.6; Biodiversity: Management Approach Significant indirect economic impacts, CSR, Pages 12; 32;66/7; 6.6.7; 6.7.8;6.8.1; All operations are G4-EC8 x Operational sites owned, leased, including the extent of impacts 75; 87; 119; 120/121 • 6.8.2; 6.8.5; located in urban managed in, or adjacent to, protected 6.8.7; 6.8.9 G4-EN11 areas, determined by 6.5.6 x areas and areas of high biodiversity • CSR, Pages 38/39; local governments as x value outside protected areas Procurement practices: Management approach 124; 126 • industrial premises. Proportion of spending on local suppliers 6.4.3; 6.6.6; Description of significant impacts of G4-EC9 CSR, Pages 124 x at significant locations of operation • 6.8.1; 6.8.2; 6.8.7 activities, products, and services on G4-EN12 biodiversity in protected areas and No Aplica areas of high biodiversity value outside protected areas G4-EN13 Habitats protected or restored CSR, Page 32 • Total number of IUCN Red List species and national conservation list species G4-EN14 No Aplica with habitats in areas affected by operations, by level of extinction risk
154 / 155 Indicator External Verification Indicator External Verification Page/Answer/ Indicator ISO Page/Answer/ Indicator ISO Reasons for status 26000 Reasons for status 26000 Yes No Yes No omission F - P - N/A Clauses omission F - P - N/A Clauses
ENVIRONMENTAL PERFORMANCE: ENVIRONMENTAL PERFORMANCE: Management approach Management approach Emissions: Management Approach CSR, Page 75 • x Transport: Management Approach CSR, Page 16 • x Direct greenhouse gas (GHG) emissions G4-EN15 CSR, Page 75 6.5.5 x (Scope 1) • Significant environmental impacts of transporting products and other goods Energy indirect greenhouse gas (GHG) G4-EN16 G4-EN30 and materials for the organization's CSR, Pages 28/29 6.5.4; 6.6.6 x emissions (Scope 2) • • operations, and transporting members Other indirect greenhouse gas (GHG) G4-EN17 of the workforce emissions (Scope 3) • Greenhouse gas (GHG) emissions Overall: Management Approach x G4-EN18 CSR, Page 75 • 6.5.5 x intensity Total environmental protection G4-EN31 Reduction of greenhouse gas (GHG) CSR Pages 28/29; expenditures and investments by type • G4-EN19 6.5.5 x emissions 75; 82 • Supplier Environmental Assessment: CSR, Pages 126/127 • x G4-EN20 Emissions of ozone-depleting substances • Management Approach NOx, SOx, and other significant air G4-EN21 All suppliers must emissions • meet the standards Percentage of new suppliers that were and requirements of CSR, Pages 88/89 x G4-EN32 6.3.5; 6.6.6; 7.3.1 x Effluents and Waste: Management Approach • screened using environmental criteria. the Coca-Cola System • Total water discharge by quality and CSR, Pages 62/63; G4-EN22 6.5.3; 6.5.4 x and Supplier Guiding destination 64/65 • Principles Total weight of waste by type and G4-EN23 CSR, Pages 90/91 6.5.3 x disposal method • Significant actual and potential negative Total number and volume of significant No spills were recorded G4-EN33 environmental impacts in the supply G4-EN24 6.5.3 x • spills in the period. • chain and actions taken Weight of transported, imported, exported, or treated waste deemed Environmental Grievance Mechanisms: CSR, Pages 22/23 • x hazardous under the terms of the Basel Management Approach G4-EN25 N/A Convention (2) Annex I, II, III, and VIII, We had no significant Number of grievances about and percentage of transported waste incidents related environmental impacts filed, addressed, shipped internationally G4-EN34 to non-compliance 6.3.6 x and resolved through formal grievance • CSR, Pages 64/65. with environmental mechanisms Identity, size, protected status, and 100% of the effluents regulations. biodiversity value of water bodies and from the company 6.5.3; 6.5.4; G4-EN26 related habitats significantly affected by are treated, so that x • 6.5.6 the organization's discharges of water there are no significant and runoff impacts on water resources CSR, Pages 36/37; x Products and Services: Management Approach 82/83 • Extent of impact mitigation of 6.5.3; 6.5.4; G4-EN27 environmental impacts of products and CSR, Pages 32; 82/83 x • 6.5.5; 6.7.5 services Percentage of products sold and their CSR, Page 32; 84/85; G4-EN28 packaging materials that are reclaimed 6.5.3; 6.5.4;6.75 x 87 • by category Compliance: Management Approach x We had no significant Monetary value of significant fines and incidents related total number of non-monetary sanctions G4-EN29 to non-compliance 4.6 x for non-compliance with environmental • with environmental laws and regulations regulations.
156 / 157 Indicator External Verification Indicator External Verification Page/Answer/ Indicator ISO Page/Answer/ Indicator ISO Reasons for status 26000 Reasons for status 26000 Yes No Yes No omission F - P - N/A Clauses omission F - P - N/A Clauses
SOCIAL PERFORMANCE: LABOR PRACTICES 6.4 X SOCIAL PERFORMANCE: AND DECENT WORK LABOR PRACTICES AND DECENT WORK CSR Pages 38/39; Employment: Management Approach • x Diversity and Equal Opportunity: 94; 98 CSR, Page 98 • x Total number and rates of new employee Management Approach G4-LA1 hires and employee turnover by age CSR Page 100 • 6.4.3 x Composition of governance bodies and group, gender and region breakdown of employees per employee CSR, Pages 94/95; 6.2.3; 6.3.7; G4-LA12 category according to gender, age x Benefits provided to full-time employees 96/97 • 6.3.10; 6.4.3 group, minority group membership, and that are not provided to temporary or G4-LA2 CSR Pages 108/109 6.4.4; 6.8.7 x other indicators of diversity part-time employees, by significant locations of operation Equal remuneration for women and men: CSR, Pages 100/101 • x Management Approach Return to work and retention rates after G4-LA3 CSR Page 109 6.4.4 x parental leave, by gender • No differences were recorded in the wages Ratio of basic salary and remuneration Labor/Management Relations: of women and men 6.3.7; 6.3.10; CSR Page 100 G4-LA13 of women to men by employee category, x • to the performance of • 6.4.3; 6.4.4 Management Approach by significant locations of operation Minimum notice periods regarding As a general provision, the same activity or operational changes, including the minimum number function G4-LA4 6.4.4; 6.4.5 x whether these are specified in collective of notice is 30 days in • agreements all regions Supplier assessment for labor practices: CSR, Pages 126 /127 • x Management Approach CSR, Pages 36/37; Occupational Health and Safety: • x Management Approach 38/39 Percentage of new suppliers that were 100% of new providers 6.3.5; 6.4.3; G4-LA14 • x Percentage of total workforce screened using labor practices criteria were examined 6.6.6; 7.3.1 represented in formal joint management-worker health and safety G4-LA5 CSR, Page 110 6.4.6 x Significant actual and potential negative committees that help monitor and advise • 6.3.5; 6.4.3; G4-LA15 impacts for labor practices in the supply CSR, Pages 128/129 x on occupational health and safety • 6.6.6; 7.3.1 chain and actions taken programs
Type of injury and rates of injury, Labor practices Grievance Mechanisms: CSR, Pages 22/23 • x occupational diseases, lost days, and Management Approach G4-LA6 absenteeism, and total number of CSR, Pages 112/113 • 6.4.6; 6.8.8 x work-related fatalities, by region and by Number of grievances about labor gender G4-LA16 practices filed, addressed, and resolved • through formal grievance mechanisms Workers with high incidence or high risk G4-LA7 of diseases related to their occupation. •
Health and safety topics covered in G4-LA8 CSR, Page 110 6.4.6; x formal agreements with trade unions •
Training and education: Management Approach CSR, Page 102 • x Average hours of training per year per G4-LA9 employee by gender, and by employee CSR, Pages 102/103 • 6.4.7 x category
Programs for skills management and lifelong learning that support the G4-LA10 continued employability of employees CSR, Page 104 • 6.4.7; 6.8.5 x and assist them in managing career endings
Percentage of employees receiving regular performance and career G4-LA11 CSR, Page 107 6.4.7 x development reviews, by gender and by • employee category
158 / 159 Indicator External Verification Indicator External Verification Indicator ISO Page/Answer/ Indicator ISO Page/Answer/Reasons status 26000 Reasons for status 26000 for omission Yes No Yes No F - P - N/A Clauses omission F - P - N/A Clauses
SOCIAL PERFORMANCE: HUMAN RIGHTS SOCIAL PERFORMANCE: HUMAN RIGHTS
Investment: Management Approach CSR, Page 126/127 • x Security Practices: Management Approach Total number and percentage of significant investment agreements and Percentage of security personnel trained 6.3.3; 6.3.5; G4-HR1 contracts that include human rights CSR, Page a 126 x in the organization's human rights • 6.6.6 G4-HR7 clauses or that underwent human policies or procedures that are relevant • rights screening to operations Total hours of employee training on human rights policies or procedures Indigenous Rights: Management Approach concerning aspects of human rights G4-HR2 CSR, Pages 102/103 6.3.5 x Total number of incidents of violations We had no significant that are relevant to operations, • 6.3.4; 3.6.6; 3.6.7; G4-HR8 involving rights of indigenous peoples incidents related to x including the percentage of employees • 3.6.8; 6.6.7; 6.8.3 and actions taken indigenous rights trained Assessment: Management Approach Non-discrimination: Management Approach CSR, Page 98 • x Total number of incidents of Total number and percentage of We had no significant 6.3.6; 6.3.7; G4-HR3 discrimination and corrective actions x operations that have been subject discrimination incidents • 6.3.10; 6.4.3 G4-HR9 • taken to human rights reviews or impact assessments Freedom of Association and Collective Bargaining: CSR, Pages 100; 126 • x Management Approach Supplier Human Rights Assessment: CSR, Page 126/17 • x Operations and suppliers identified in Management Approach All suppliers must comply which the right to exercise freedom of 6.3.3; 6.3.4; with the standards and CSR, Page 126/127; association and collective bargaining 6.3.5; 6.3.8; G4-HR4 requirements of the x 128/129 may be violated or at significant risk, • 6.3.10; 6.4.5; Coca-Cola system and the All suppliers must and measures taken to support these 6.6.6 comply with the Suppliers Guiding Principles Percentage of new suppliers that were rights. G4-HR10 standards and x screened using human rights criteria requirements of the Child Labor: Management Approach CSR, Pages 126/127 • x Coca-Cola system and CSR, Pages 126/127; 128/129 the Supplier Guiding The prohibition of recruitment Principles of children under 18 years is incorporated in the internal No negative incidents Operations and suppliers identified rules of order, hygiene and 6.3.3; 6.3.4; were recorded as having significant risk for incidents safety standards, as well as 6.3.5; 6.3.7; in human rights. G4-HR5 of child labor, and measures taken to x the regulation of contractors. 6.3.10; 6.6.6; Evaluations of new contribute to the effective abolition of All suppliers must comply 6.8.4 providers and periodic child labor with the standards and evaluations conducted Significant actual and potential negative requirements of the by the Kore System 6.3.3; 6.3.4; 6.3.5; G4-HR11 human rights impacts in the supply chain x Coca-Cola system and the seek to minimize the • 6.6.6 and actions taken Suppliers Guiding Principles. potential impacts that could arise from failure to respect fundamental Forced or Compulsory Labor: CSR, Page 126/127; 128/129 • x Management Approach rights such as freedom of association, child CSR, Page 126/127; 128/129 labor or forced labor. We had no significant incidents related to forced Human Rights Grievance Mechanisms: or compulsory labor in our CSR, Page 22/23 • x operations. All suppliers Management Approach Operations and suppliers identified must comply with the as having significant risk for incidents Number of grievances about human We have not received standards and requirements 6.3.3; 6.3.4; of forced or compulsory labor, 6.3.5; 6.3.10; rights impacts filed, addressed, and complaints about G4-HR6 of the Coca-Cola system x G4-HR12 6.3.6 x and measures to contribute to the resolved through formal grievance human rights in the • and the Suppliers Guiding 6.6.6 elimination of all forms of forced or mechanisms period Principles compulsory labor All suppliers must comply with the standards and requirements of the Coca-Cola system and the Suppliers Guiding Principles
160 / 161 Indicator External Verification Indicator External Verification Page/Answer/ Indicator ISO Page/Answer/ Indicator ISO Reasons for status 26000 Reasons for status 26000 Yes No Yes No omission F - P - N/A Clauses omission F - P - N/A Clauses
SOCIAL PERFORMANCE: SOCIETY SOCIAL PERFORMANCE: SOCIETY Local Communities: Management Approach CSR, Page 130 • x Compliance: Management Approach Percentage of operations with imple- Monetary value of significant fines and mented local community engagement, 6.3.9; 6.51; 6.5.2; There have been no G4-SO1 CSR, Pages 130 to 143 x total number of non-monetary sanctions impact assessments, and development • 6.5.3; 6.8 G4-SO8 significant fines or 4.6 x for non-compliance with laws and • programs penalties in the period regulations Operations with significant actual or G4-SO2 potential negative impacts on local • Supplier Assessment for impacts on Society: CSR, Pages 126/127 • x communities Management Approach Annual Report 2014, x Anti-Corruption: Management Approach Pages 20/21 • All suppliers must comply with the Total number and percentage of Percentage of new suppliers that were standards and 6.3.5; 6.6.1; operations assessed for risks related Annual Report 2014, G4-SO3 • 6.6.1; 6.6.2; 6.6.3 x G4-SO9 screened using criteria for impacts on requirements of the • 6.6.2; 6.6.6; x to corruption and the significant risks pages 20/21 society Coca-Cola system and 6.8.1; 6.82; 7.3.1 identified the Supplier Guiding Communication and training on anti- 6.6.1; 6.6.2; Principles G4-SO4 CSR, Page 103 x corruption policies and procedures 6.6.3; 6.6.6 We have no significant Significant actual and potential negative Confirmed incidents of corruption and 6.6.1; 6.6.2; G4-SO5 incidents related to x G4-SO10 impacts on society in the supply chain • actions taken • 6.6.3 corruption and actions taken Our Code of Business Grievance Mechanisms for impacts on society: Conduct establishes CSR, Pages 22/23 • x that, as a general rule, Management Approach no funds or assets Number of grievances about impacts on We have not had 6.3.5; 6.6.1; including value targets G4-SO11 society filed, addressed, and resolved complaints of this type • 6.6.2; 6.6.6; x or services of the through formal grievance mechanisms. during the period. 6.8.1; 6.82 company’s employees will be used to make political contributions. Public Policy: Management Approach Political contributions • x are only accepted if they have express approval of the Board and in accordance with local law. Each political contribution will be recorded in accounting records as a “political contribution” Total value of political contributions by G4-SO6 country and recipient/beneficiary • Anti-competitive behavior: Management Approach Total number of legal actions for anti- No legal actions 6.6.1; 6.6.2; G4-SO7 competitive behavior, anti-trust, and x recorded in the period • 6.6.5; 6.6.7 monopoly practices and their outcomes
162 / 163 Indicator External Verification Page/Answer/ Indicator ISO Indicator External Verification Reasons for status 26000 Page/Answer/ Indicator ISO Yes No Reasons for status 26000 omission F - P - N/A Clauses Yes No omission F - P - N/A Clauses
SOCIAL PERFORMANCE: CSR, Pages 32; 38/39 • SOCIAL PERFORMANCE: PRODUCTS AND SERVICE RESPONSIBILITY PRODUCTS AND SERVICE RESPONSIBILITY Customer Health and Safety: Management CSR, Pages 36/37; x Compliance: Management Approach CSR, Pages 36/37 • x Approach 48/49 • Percentage of significant product and Monetary value of significant fines We have had no service categories for which health 6.3.9; 6.51; 6.5.2; for non-compliance with laws and significant incidents G4-PR1 CSR, Page 38 x G4-PR9 4.6; x and safety impacts are assessed for • 6.5.3; 6.8 regulations concerning the provision and related to this type of • improvement use of products and services breach Total number of incidents of non-compliance with regulations and We have had no G4 food processing sector indicators voluntary codes concerning the health significant incidents G4-PR2 6.3.9; 6.5.3; 6.8 x and safety impacts of products and related to this type of • Procurement services during their life cycle, by type of breach outcomes All suppliers must Product and Service Labeling: comply with the CSR, Pages 40/41 • x Management Approach Percentage of purchased volume from standards and FP1 suppliers compliant with company's requirements of the Type of product and service information sourcing policy Coca-Cola system and required by the organization's the Supplier Guiding procedures for product and service Principles G4-PR3 information and labeling, and CSR, Page 40 • 6.71; x percentage of significant products and service categories subject to such Percentage of purchased volume which information requirements is verified as being in accordance with Total number of incidents of non- FP2 credible, internationally recognized • We have had no compliance with regulations and responsible production standards, significant incidents 6.6.1; 6.6.2; G4-PR4 voluntary codes concerning product and x broken down by standard related to this type of • 6.6.3; 6.6.6 service information and labeling, by type breach of outcomes Labor practices and decent work Results of surveys measuring customer 6.6.1; 6.6.2; Percentage of working time lost due to G4-PR5 CSR, Pages 12; 42/43 x satisfaction • 6.6.3 FP3 industrial disputes, strikes and/or lock- • outs, by country Marketing Communications: Management Approach CSR, Pages 40/41 • x G4-PR6 Sale of banned or disputed products N/A Healthy and affordable food Total number of incidents of non- Nature, scope and effectiveness of compliance with regulations and We have had no any programs and practices (in-kind voluntary codes concerning marketing significant incidents contributions, volunteer initiatives, G4-PR7 4.6; communications, including advertising, related to this type of • knowledge transfer, partnerships and promotion, and sponsorship, by type of breach product development) that promote FP4 CSR Pages 32; 34/35 x outcomes access to healthy lifestyles; the • prevention of chronic disease; access to
Client Privacy: Management Approach healthy, nutritious and affordable food; We have had no and improved welfare for communities Total number of substantiated complaints significant incidents in need G4-PR8 regarding breaches of customer privacy 6.71; 6.72; 6.7.7 x related to this type of • and losses of customer data breach
164 / 165 Indicator External Verification Page/Answer/ Indicator ISO Reasons for status 26000 Yes No omission F - P - N/A Clauses
SOCIAL PERFORMANCE: PRODUCTS AND SERVICE RESPONSIBILITY
Customer health and safety
Percentage of production volume manufactured in sites certified by an 100% of our production independent third party according is under the standards FP5 x to internationally recognized and certification of food • food safety management system safety and food quality standards
CSR, Page 32 Please note that this indicator is CSRd focused on the % of Percentage of total sales volume our product portfolio of consumer products, by product with characteristics of FP6 category, that are lower in saturated reducing calories and • x fat, trans fats, sodium and added nutritional ingredients. sugars The focus of our work is on the supply of beverage options that meet the needs of consumers
CSR, Page 32 Percentage of total sales volume Please note that this of consumer products, by product indicator is CSRd category, that contain increased focused on the % of FP7 x nutritious ingredients like fiber, our product portfolio • vitamins, minerals, phytochemicals with characteristics of or functional food additives reducing calories and nutritional ingredients
Product and service labeling Policies and practices on communication to consumers Management about ingredients and nutritional CSR, Pages 40/41 x Approach • information beyond legal requirements
166 / 167 we value your opinion
It is important for us to have your opinion to improve our sustainability management. We invite you to send us your suggestions, questions or any comments related to this Sustainability Report or to our work at Coca-Cola Andina to the following email andina.ir@koandina as well as to our operations’ offices. For more information about this report or to view our previous reports go to: www.koandina.com
168 / 169 Identification of the Company Embotelladora Andina S.A. Open Stock Company Tax Id N°: 91.144.000-8 Address: Av. Miraflores 9153 / Renca / Santiago / Chile General Coordination Cecilia Andrea Abati, Head of Business intelligence Corporate Office Av. Miraflores 9153 / Renca / Santiago / Chile / Telephone (56 2) 2338 0520 Collaborators: www.koandina.com María Luz Gil (Par), Andrea Baez (Par), Arminda Meza (Par), María del Carmen Soler (Ch), Carolina Losicer (Br), Head of Investor Relations Max Fernandes (Br), Paula Vicuña (Ch), Carolina Hopfenblatt (Ch), Paula Vicuña / [email protected] / Telephone (56 2) 2338 0520 Consuelo Barrera (Ar), María Celeste Layús (Ar).
Advice, technical assistance and GRI Content: Argentina Alicia Rolando Ruta Nacional 19, Km 3,7 / Córdoba ARS- Reporte Sustentable Telephone (54 351) 496 8800 www.ars-reportesustentable.com
Brazil Graphic design Rua Andre Rocha 2299 Izquierdo Diseño Taquara Jacarepaguá / Rio de Janeiro Telephone (55 21) 2429 1530 Date March 2015 Chile Av. Miraflores 9153 / Renca / Santiago / Chile Telephone (56 2) 2462 4286
Paraguay Acceso Sur Km 3,5 / San Lorenzo / Paraguay Telephone (595 21) 959 1000
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