spreading smiles sustaining happiness
Sustainability Report 2012 Aligned to GRI G 3.1 About this Report
Coca-Cola India Private Limited (CCIPL hereinafter) is pleased to present its second sustainability report. While we started publishing communications on our sustainability performance in India recently, the concept of sustainability is not new to us. The Coca-Cola Company (TCCC - our parent company), which operates in over 200 countries, has identified facets of sustainability that are important to us based on the nature of our global operations and what our stakeholders expect of us. This has resulted in the ‘Me-We-World’ framework for sustainability that applies to all the group companies across the world. This multi-pronged framework covers material sustainability issues that enhance personal well being, build strong communities and help protect the environment.
This sustainability report is arranged around the Me-We-World framework, and highlights key issues, relevant targets, and our performance in the reporting period (1st January 2012 to 31st December 2012).
This report has been prepared based on the Global Reporting Initiative (GRI) G3.1 guidelines, including the Food Processing Sector Supplement (FPSS). This report takes into account all the reporting principles defined by the GRI to present a balanced and transparent communication and satisfies the requirements of GRI application level ‘B’.
CCIPL is involved in the business of manufacturing and selling beverage concentrates and marketing products under the Coca-Cola trademark in India. Hindustan Coca-Cola Beverages Private Limited (HCCBPL), a wholly owned subsidiary of TCCC, is our largest bottling partner in India. There are other authorized third party (franchisee) bottlers, who manufacture and distribute our products in their respective geographical sub-divisions in India. CCIPL, HCCBPL, our franchisee bottlers and Anandana (The Coca-Cola Foundation – also directly owned by the TCCC) constitute the Coca- Cola System in India.
Our significant sustainability impacts and opportunities in the Environment, Occupational Health & Safety (EOSH) space are in our bottling operation. Our bottlers (company and franchisee owned) also support us in all our major community initiatives. Hence, the reporting boundary for performance indicators on EOSH, human rights and community includes all our bottlers within India. CCIPL has reasonable influence over the other entities that are part of the Coca-Cola system. Therefore, water replenishment (and other) projects undertaken by Anandana have also been included in the report. EOSH data reported does not cover our corporate office in Gurgaon (since it has insignificant impact).
This report has been compiled for the benefit of all our stakeholders, which include our consumers, customers, regulators, civil society members, suppliers, employees and the society at large. We welcome any comments, clarifications or inputs for improving the quality of our communication.
Neelima Khetan, General Manager, Public Affairs and Communications will be happy to take your comments and inputs. She can be reached at [email protected] . spreading smiles sustaining happiness
Sustainability Report 2012 Aligned to GRI G 3.1 Coca-Cola India Sustainability Report 2012
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Contents
Deputy President India and South 5 1. Message 5 West Asia Business Unit 2.1 Introduction to the Coca-Cola 7
2. About Us System 7 2.2 Vision, Mission and Values 11 2.3 Awards and Recognitions 11 2.4 External Sustainability 12 Commitments 3.1 Committees under the Board 15 3. Governance and 15 3.2 Systems to ensure and monitor 16 Ethical Conduct Ethical Conduct Stakeholder Consultation 18 4. Stakeholder Consultation 18 Materiality and Defining 20
5. Materiality & Defining Reporting Content Reporting Content 20
6.1 Nutrition 22 6. Me – Enhancing 21 6.2 Product Safety and Quality 24 Personal Well-Being 6.3 Responsible Marketing 25 6.4 Promote Active Healthy Living 27
7.1 Women’s Economic 31 7. We – Building 29 Empowerment – Stronger The ‘5by20’ Initiative 7.2 Strengthening Community 33 Communities Foundations 7.3 Respecting Human and 38 Workplace rights 8.1 Water Replenishment 47 8. World – Protecting 45 8.2 Reducing Carbon 54 the Environment 8.3 Recycling of Packaging Material 57 8.4 Sourcing Sustainably 58 GRI Content Table 60 9. Appendix 60
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1. Message from Deputy President - India and South West Asia Business Unit
Dear friend,
The Coca-Cola Company, with a presence in more than 200 countries, has always believed that we have a tremendous opportunity to change the lives of people around us. Be it through innovations that are a part of our value chain, through community development work or by playing a role in empowering women. This belief is at the core of how we conduct our business across the world and how sustainability is at the base of everything that we do.
As we move towards achieving our Vision 2020 goals, we have also scaled up our sustainability agenda. We have defined, for ourselves, a framework of sustainability under the pillars of ME-WE-WORLD. This framework is our roadmap to improve wellbeing at the personal level (ME), social level (WE) and environmental level (WORLD). Together with our bottling partners, we are actively leveraging our Golden Triangle philosophy of partnering with governments, communities and corporates to bring to life some of these sustainability initiatives.
In India, ever since we began our sustainability journey, we have taken small but significant steps to play a part in the growth and development of communities. Today, we replenish more groundwater than we use for our operations. We are training mom-and-pop shop owners on best practices in traditional retail, helping and educating farmers in sustainable agriculture practices, etc.
As I write this, I am reminded of the story of Preeti Gupta, a woman retailer near the city of Agra, who doubled her shop sales upon receiving a solar-powered ‘eKOCool’ cooler from Coca-Cola. The innovation, developed for retailers in rural areas, not only runs the cooler through solar energy, but is also equipped with a mobile charger and solar lantern, that help to increase daily footfalls at her shop. Preeti is part of our global 5by20 initiative that aims to empower women by providing them with economic opportunities to help them succeed in today’s dynamic consumer landscape. There are many such examples that you will find as you turn the pages of this report.
As we celebrate 20 years of operating in India, since our return in 1993, we hope that our small contributions will make a positive difference to communities across the country. Through this report, we take the opportunity to showcase some of our projects and hope to hear your feedback and suggestions.
Warm regards,
Venkatesh Kini Deputy President Coca-Cola India and South West Asia Business Unit
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2. About Us
2.1 Introduction to the Coca-Cola System
The Coca-Cola Company (TCCC) plans for system-wide investments of US$2 billion within India to maintain the growth momentum. The Coca-Cola Company is the world’s largest beverage company, refreshing consumers with more The registered & corporate offices of CCIPL are than 500 sparkling and still beverage brands. Led by located at: Coca-Cola, the world’s most valuable brand, TCCC’s Registered Office: Plot No’s 1109-1110, Village Pirangut, portfolio features brands valued, in aggregate, at Taluka – Mulshi, District Pune, Maharashtra – 412108 about 16 billion United States Dollars. Globally, TCCC is the No. 1 provider of sparkling beverages, ready- Corporate Office: Enkay Towers, Udyog Vihar Phase to-drink coffees, juices and juice drinks. Through 5, Gurgaon, Haryana – 122016, India the world’s largest beverage distribution system, consumers in more than 200 countries enjoy TCCC’s Hindustan Coca-Cola Beverages beverages at a rate of more than 1.8 billion servings a day. Together with its bottling partners (over 300 Private Limited (HCCBPL) bottlers worldwide), TCCC ranks among the world’s HCCBPL is the largest bottling partner of The top 10 private employers with more than 700,000 Coca-Cola Company in India. It is a part of The system employees. Coca-Cola Company’s Bottling Investments Group (BIG1) and is responsible for the preparation, Coca-Cola India Private Limited packaging, distribution and sale of beverages (CCIPL) under the trademarks of The Coca-Cola Company. HCCBPL has 24 bottling plants at strategic locations spread across various states in India and covers Globally, the Coca-Cola system operates through approximately 65% of the volume for the Coca- multiple local channels. TCCC re-entered the Indian Cola System in India. HCCBPL has an extensive markets post the economic liberalization of 1991 distribution system spanning more than a million and established Coca-Cola India Private Limited outlets operating with world class execution (CCIPL) as its wholly-owned subsidiary in 1992. CCIPL standards. The focus of the system is to develop manufactures and sells concentrates, beverage bases strong customer value while delivering preferred and syrups to the licensed franchisee bottlers of choice of refreshment at an arm’s length of desire to TCCC in India and is responsible for consumer brand the consumer. marketing initiatives. Over the years, HCCBPL has focused on building Please refer the section on ‘Nutrition’ for a list of our world class operations based on principles of products in India. safety, profitability and good governance to achieve sustained growth. HCCBPL has strengthened its Our bottling partners prepare, package, distribute organization in terms of Supply Chain, Infrastructure, and sell the final branded beverages to our customers Market Execution, People, Processes, Compliance, and vending partners, who in turn sell our products to Governance and Route-to-Market. This approach consumers. Hindustan Coca-Cola Beverages Private has enabled HCCBPL to build its portfolio through Limited (HCCBPL), is a wholly-owned subsidiary of the launch of new packs and brands, coupled with a TCCC, and the largest bottler in India. There are fifteen competitive pricing strategy based on a balance of other licensed franchisee bottlers in India. value pricing and elimination of waste.
Since commencement of operations in India, we have The registered & corporate offices of HCCBPL are grown rapidly through a model that supports bottling located at: operations, through both company owned as well as 13 Abul Fazal Road, franchise owned bottlers. We are supported by over Registered Office: Bengali Market, New Delhi – 110 001, India 7,000 distributors and 1.3 million retailers. India now ranks within the top-10 markets for TCCC globally, by Corporate Office: 3rd Floor, Orchid Centre, DLF Golf volume and by end 2012, we have seen 27 quarters of Course Road, Sector 53, Gurgaon–122 001, Haryana, continuous growth. In November 2012, TCCC unveiled India
1 The BIG is one of the three major operating groups of The Coca-Cola Company and one of the largest and most geographically diverse bottlers in the Coca-Cola system. It was established to improve accountability and drive performance of Company Owned & Managed Bottlers (CBOs).
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Franchise Bottling Partners
The Coca-Cola system in India includes HCCBPL • Amrit Bottlers Private Limited and licensed franchisee bottlers (FBO) who • Brindavan Agro Industries Private Limited prepare, package, distribute and sell our beverage • Brindavan Beverages Private Limited brands. Following is a list of such FBOs who are • Brindavan Bottlers Private Limited located across the country: • Bengal Beverages Private Limited • Diamond Beverages Private Limited • Enrich Agro Food Products Private Limited • Kandhari Beverages Limited • Ludhiana Beverages Private Limited • Moon Beverages Limited • Narmada Soft Drinks Private Limited • Sri Sarvaraya Sugars Limited • Superior Drinks Private Limited • Udaipur Beverages Private Limited • Amritsar Crown Caps Private Limited
HCCBPL Co-Packers Franchise Bottling of Bottlers Plants HCCBPL
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Anandana – The Coca-Cola India Foundation
Anandana – The Coca-Cola India Foundation is a Wherever possible, the Foundation seeks to ensure wholly owned subsidiary of CCIPL. project execution, maintenance and sustainability through active involvement and direct participation The Coca–Cola India Foundation has adopted four of the beneficiary community at the grass-root level. Mission Objectives: Realizing that all mission goals cannot be achieved • Mitigating water stress and promoting water simultaneously, water sustainability and the spread sustainability of new and renewable sources of energy have been • Propagating the use of new and renewable accorded priority. sources of energy • Promoting active and healthy lifestyles While there are many regions affected by water • Subscribing to general social advance through scarcity, The Foundation’s activities are currently effective intervention where needed focused in (but not limited to) regions of Bundelkhand, Mewat and parts of Rajasthan. In order to promote the Foundation’s objectives, monetary grants and other assistance are provided The registered office of the Foundation is housed to civil society members, beneficiary organizations, in the same premises as CCIPL. Please refer The cooperatives, philanthropic organizations and such Foundation’s website for further details on the others who can be suitable partners in implementing working of the foundation: projects for social welfare across the country. (http://www.anandana.org)
“From project Santushti, which yields 7,000 litres of drinking water a day to project NeerJal which has revitalized a reservoir with approx. 3 Billion litres of water, the Anandana Foundation has constantly been working towards building better and healthier communities across India. We are committed to supporting socio-economic development in rural areas on issues relating to water, the environment, healthy living and social advance. We are glad that we have found the right local partners to work with and hope to continue to build more partnerships and collectively make a positive impact on society.” - Mr. Yogesh Chandra, “ CEO, Anandana – The Coca-Cola India Foundation
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2.2 Vision, Mission and Values
The Coca-Cola Company has a history of over 127 years. The company’s existence and long term success is mainly attributable to being agile in an ever-changing market and focusing on long term goals. TCCC has developed its Vision 2020 based on these principles, and the vision document is available at the following web-link: http://assets.coca-colacompany.com/22/b7/ba47681f420fbe7528bc43e3a118/2020_vision.pdf
CCIPL’s vision, mission and values are the same as our parent company and is available at the following web-link: http://www.coca-colaindia.com/ourcompany/missionvalues.html
2.3 Awards and Recognitions
‘Support my School’ (SMS) is one of our flagship community initiatives focused on improving infrastructure in rural and semi-urban schools (details on SMS have been presented in the section on community initiatives). This program has been a tremendous success and has been recognized at the following forums:
• Public Affairs Asia - Gold Standard Award for Public Private Partnership • Harmony Foundation - Mother Teresa Award for Social Justice • Exchange for Media - Best use of Public Relations for a Social Cause Award
Activities of The Coca-Cola Company and UN- Habitat partnership on Water and Sanitation were recognized under the Community Development category by Global CSR Excellence & Leadership in the World CSR Congress. The partnership was also nominated for Earth Care Awards and entailed a jury visit to our project site.
In 2012, The Public Relations Council of India (PRCI) recognized CCIPL/our people under the following categories:
• External magazine – KO Connect (quarterly magazine) • Corporate Brochure – ‘From Ripple to a Wave’ Brochure on Coca-Cola UN-Habitat Partnership • Annual Calendar • Mr. Deepak Jolly – Vice-President, Public Affairs and Communication (PAC) was recognized as the Best Chapter Chairman by the PRCI • Mr. Kamlesh Sharma – G.M., Corporate Communications, was recognized by PRCI as the Most Promising PR Person of the year • The SMS program was also recognized by PRCI under the Public Service Campaign Category
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2.4 External Sustainability Commitments
Millennium Development Goals UN-Habitat
The eight Millennium Development Goals (MDGs) The United Nations Human Settlements Programme were born from the actions and targets contained (UN-Habitat) is the UN agency mandated by in the Millennium Declaration adopted by 189 the UN General Assembly to promote socially nations and signed by 147 heads of state and and environmentally sustainable communities, governments during the UN Millennium Summit towns and cities and providing adequate shelter in September 2000. The MDGs set a target for all. UN-Habitat is responsible for promoting date of 2015, by which all countries and leading and consolidating collaboration with all partners, development institutions agree to fight a range of including local authorities, non-governmental the world’s main development challenges, such as organizations and the private sector in the poverty, hunger and HIV/AIDS. These goals serve implementation of the Habitat Agenda and the as a blueprint for making the world a better place. Millennium Development Goals. The Coca-Cola Working toward them offers faith and hope, and Company has a special interest in the quantity and even more reasons to believe in a better world. We quality of water, particularly in water stressed areas. are proud to contribute to the realization of the MDGs through our efforts. The partnership of UN-Habitat and The Coca-Cola Company aims to promote water sustainability in Goal 1: Eradicate extreme poverty and hunger several countries through the following activities: providing sources of continuous access to safe Achieve universal primary education Goal 2: drinking water, improving access to basic sanitation for Goal 3: Promote gender equality and empower urban poor and slum dwellers, and mobilizing multiple women stakeholders towards the idea of water and wellbeing.
Goal 4: Reduce child mortality UN-Habitat and the Coca-Cola India & South West Goal 5: Improve maternal health Asia Business Unit (Coca-Cola INSWABU) entered into a partnership and signed an agreement on 14 Goal 6: Combat HIV/AIDS, malaria and other April, 2007, during the launch of Business Partnership diseases for Sustainable Urbanization (BPSU) at Nairobi, to Goal 7: Ensure environmental sustainability collaborate for improving community access to water and sanitation in India and Nepal under the Water Goal 8: Develop a global partnership for for Asian Cities (WAC) Programme. With financial development commitments of US$ 150,000, UN-Habitat and Coca- Cola INSWABU implemented pilot demonstration CEO Water Mandate projects in both India and Nepal from 2007 to 2009, which reached out to more than 1 million people. The CEO Water Mandate is a unique public - private initiative designed to assist companies in Between 2007 and 2010, projects were implemented mainly in South Asia (India, Nepal, Pakistan, the development, implementation and disclosure Bangladesh), Cambodia and Vietnam. These of water sustainability policies and practices. initiatives led to significant achievements. Companies that endorse the mandate are required to report progress annually against a set of standard The challenges involved in the projects undertaken principles. The Coca-Cola Company became one of in the first phase from 2007 to 2010 led to many the first six companies to commit to the CEO Water lessons being imbibed. In this regard, an impact Mandate in 2007. Reporting requirements of the evaluation of the partnership between UN-Habitat mandate focus on: and TCCC was undertaken to determine the significant and lasting impact of the partnership • Direct operations on urban poor especially on schools. The key- • Supply chain and watershed management indicators identified as factors of change were • Collective action capacity-building and awareness-raising, with the • Public policy improvement of water and sanitation service delivery • Community engagement in schools and poor neighborhoods to reduce • Transparency incidences of water-borne diseases. •
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Dr. Joan Clos, Under-Secretary General, United Nations, and Executive Director, UN Habitat, and Atul Singh, Deputy President Coca-Coca Pacific Group (then President & CEO, Coca-Cola India and South West Asia), unveil the ‘From Water to Wellbeing’ compendium in the presence of senior ministers from Jordan, Laos and Myanmar, as well as Dr. Andre Dzikus of UN-Habitat and Deepak Jolly of Coca-Cola India.
Building on this base, the collaboration spread to a total of nine countries between 2010 and 2012 (with the inclusion of Uganda, Kenya and Tanzania).
On 4th September 2012, the UN-Habitat and TCCC announced expansion of partnership on water sustainability to 10 countries at the 6th World Urban Forum. The partnership will continue to focus on Asia and Africa and will impact over a million people and will build on the work done earlier by both the partners.
A compendium titled ‘From Water to Well Being’ was released by Dr. Joan Clos, Under-Secretary General, United Nations, Executive Director, UN-Habitat and Mr. Atul Singh, Deputy President – Coca-Cola (Pacific Group). This comprehensive compendium details overall wellbeing of communities through water and the journey of the collaboration between Coca-Cola sanitation led projects. and UN-Habitat in promoting water sustainability in several countries. Senior ministers from Jordan and Laos joined the discussion on ‘The Power of Partnerships and the The theme of the compendium ‘From Water to Urban Future’ to address collaboration and expansion Wellbeing’ encapsulates the overall approach of of partnership among state, social sector and the multi-year partnership which goes beyond corporates for sustainable urbanization and improved providing access to water and sanitation, to impact water and sanitation.
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UN Global Compact
The UN Global Compact is a strategic policy initiative Compact. We communicate our plans and progress for businesses that are committed to aligning on 24 advanced criteria in the areas of ‘strategy, their operations and strategies with 10 universally governance and engagement’, ‘UN goals and issues’, accepted principles in the areas of human rights, ‘implementation of Global Compact principles’, ‘value labor, environment and anti-corruption. The Coca-Cola chain implementation, verification and disclosure’. Company committed to the principles of the UN Global The ten principles fall within 4 aspects listed below and Compact in March 2006. The Coca-Cola Company is are covered within our global polices, which we are a participant at the Advanced Level of the UN Global required to adhere to in our India operations.
I. Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. Principle 2: Make sure that they are not complicit in human rights abuses.
II. Labour Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 4: The elimination of all forms of forced and compulsory labour.
Principle 5: The effective abolition of child labour. Principle 6: The elimination of discrimination in respect of employment and occupation.
III. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges. Principle 8: Undertake initiatives to promote greater environmental responsibility. Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
IV. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
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3. Governance and Ethical Conduct
3.1 Committees under the Board
Coca-Cola India Private Limited is a ‘Limited’ company incorporated under the Companies Act, 1956, in India. The Company is headed by the Deputy President – India & South-West Asia Business Unit, who is assisted by Advisory Boards. The boards that govern the functioning of the Coca-Cola system in India, their constitution and functions are described as below
India Advisory Board (IAB)
The IAB is the foremost advisory body within CCIPL. The India Advisory Board is ably led by its Chairman Mr. Naresh Chandra, a retired Indian Administrative Services (IAS) Officer and former Ambassador to the United States. Mr. Chandra is a leading expert in the country on Corporate Governance and has served on several committees Advisory Council on Environment and under the Government of India. He was awarded Sustainability (ACES) the country’s second highest civilian award – Padma Vibhushan in 2007. The IAB guides The ACES advices CCIPL and its bottlers on issues the management on various operational and pertaining to the environment and sustainability. environment-related matters to help us formulate This body is headed by General V. P Malik (retired), short and long term strategies. The Advisory Former Chief of the Indian Army who has also been Board meets three to four times a year and a member of the National Security Advisory Board, reviews the performance of the Coca-Cola System Government of India and Honorary Advisor to the in India. Centre for Policy Research. The ACES visits bottling locations and meets once every quarter. The board Coca-Cola India Foundation Advisory is constituted of experts from the fields of water, Board environment and pollution control, among others.
The Coca-Cola India Foundation is registered Health and Wellness Advisory Council under Section 25 of the Companies Act, 1956. (HWAC) The objectives and functioning of the Foundation have been described earlier. The operations of the CCIPL is committed to provide its consumers a Foundation are guided by an Advisory Board. This variety of hydration choices that are safe and healthy. Board was constituted under the Chairmanship of In this endeavour we are assisted by HWAC, which Justice (Late) Shri. J.S. Verma, former Chief Justice guides and assists CCIPL to: of India and comprises of eminent personalities who have provided distinguished service to the public, (a) Identify and highlight the evolving nutritional and who have expertise in fields covered by the needs of Indian consumers; objectives of the Foundation. The members of this (b) Suggest viable health & wellness solutions for Board include Dr. Mithu Alur, Dr. Shyama Chona, beverage applications; and Ms. Diya Mirza, Mr. Bunker Roy, Mr. Roshan Seth and (c) Support consumer education programs that Dr. Naresh Trehan. promote a healthy and active lifestyle.
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3.2 Systems to ensure and monitor Ethical Conduct
Integrity is fundamental to The Coca-Cola Company. all applicable anti-bribery laws, including the U.S. Along with the other values of leadership, passion, Foreign Corrupt Practices Act, and local laws in every accountability, collaboration, diversity and quality, country in which we do business. Additionally as a it is a pillar of our 2020 Vision. signatory to the United Nations Global Compact, we are committed to avoiding all forms of corruption. The Coca-Cola group is one of the most admired All employees who have exposure to government businesses in the world - a reputation that has been employees undergo annual training on our Anti- enhanced and safeguarded over the years by a rich bribery policy. The policy has a two pronged purpose culture of integrity and ethical conduct. Our business of preventing improper payments and ensuring is built on this trust and reputation. It influences how accurate reporting of all permissible payments. This consumers feel about our products and how we are policy provides the foundation for conducting our viewed by other stakeholders. business in a fair, ethical and legal manner.
With company guidelines, such as our Code of TCCC conducts periodic anti-bribery assessments Conduct and Workplace Rights Policy, we have set and audits of its businesses worldwide to raise overall standards to ensure that we all do the right thing, awareness, detect potential misconduct and monitor every time. compliance with anti-corruption laws and policy. CCIPL was assessed and no incidents of corruption Code of Business Conduct and its or bribery were detected. applicability Administration of the code The Coca-Cola Company’s Code of Business Conduct The administration of the Code is taken care of at (Code) guides the conduct of our business and all the global level by TCCC’s Ethics and Compliance our personnel. This is a single standard applicable Committee – composed of members of TCCC’s senior to all our operations across the globe. The Code leadership. A similar code is applicable for non- addresses our responsibilities towards The Coca- employee directors of the Company. To ensure an Cola Company, each other, and customers, suppliers, ongoing commitment to, and understanding of, the consumers and governments. The Code is applicable Code, TCCC offers online training to all associates, to all employees of The Coca-Cola Company and its which discusses topics related to ethics and majority-owned subsidiaries. compliance, including the Anti-Bribery Policy. All new hires of CCIPL receive the Code of Business Conduct The Code articulates TCCC’s expectation of training upon joining the organization. Employees accountability, honesty and integrity in all matters. All are provided with multiple touch-points – including associates of our Company and its majority-owned an online portal and global Ethics Hotline number to subsidiaries are required to read and understand the report any Code of Conduct violations. Code and follow its precepts, both in the workplace and in the larger community. Reporting Violations It is extremely important for us to ensure that all other businesses that we associate with also believe Upon any incidents of Code of Conduct violations in the same standards of ethical and fair behavior. We being reported by any associate, fair and therefore have a Code of Business Conduct (COBC) independent enquiries are conducted by the global for Suppliers that seeks to extend and clarify similar team with support from the local Legal and Ethics ethical expectations to our suppliers. Suppliers officer and the Human Capital team. At the end additionally are encouraged to report potential of the enquiry, appropriate recommendations are improper conduct by Coca-Cola employees who provided to the head of the relevant company. interact with them. Systems and procedures adopted by Anti-corruption and anti-bribery the Foundation
The Coca-Cola Group is committed to doing Grant requests from Non-Government Organizations business with integrity. The Coca-Cola Company are considered only if the proposal falls within the has also incorporated a prohibition against bribery mission objectives (stated earlier) of the Foundation into its Code of Business Conduct. We abide by and the applicant satisfies the Foundation on its
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commitment to the same. The applicant seeking the proper monitoring and audit of all funds sanctioned. grant has to be transparent and forthcoming on its The audit is conducted by independent auditors aims and objectives, financial status, performance appointed for this purpose by the Board of Directors. and experience in the past. Grant requests are In addition, the Foundation conducts periodic social assessed based on: audits of the projects through direct participation of the beneficiaries. This process, known as Jan Sunwayi • Nature of the Project or Public Hearing, is a tool for gauging public opinion • Project Feasibility on the project. • Project Impact • Grant Seeker’s Track-record Each possible project undergoes a set of reviews by a Project Steering Committee, that includes members The disbursement of the funds is on the basis of the of the board. The Foundation does not consider any milestones set forth in the Grant Agreement between proposal that have any direct or indirect linkage to any the NGO and Anandana. The Foundation ensures of the Company’s plants or commercial operations.
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4. Stakeholder Consultation
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Coca-Cola India Private Limited has identified its stakeholders based on the nature of its operations; the following compilation provides details of categories of our stakeholders, their expectations and how we engage with them.
Stakeholder Means of Key topics of How we have group engagement interest responded identified Consumers Consumers are one of the The expectations of our CCIPL places utmost importance on most important section of consumers include choice responsible marketing and transparent our stakeholders. Multiple of beverages that are made communication of nutritional information touch points are available available, nutritional impact relating to our products, even beyond for our consumers to reach of products, approach to regulatory requirements. CCIPL has also us; further, CCIPL also resource sustainability and been promoting sporting activities with conducts annual consumer programs promoting music the view of creating awareness around satisfaction surveys (please and sporting activities. the importance of leading an active and refer the section on healthy life style. Full details of such ‘Consumer Satisfaction’ for initiatives are covered in the subsequent details). sections of the report.
Customers This category refers to The expectations of our CCIPL has come up with an innovative retailers who procure stock customers are regularly cooler – eKOcool – that operates on and sell our beverage taken stock of by our solar power; 300 pieces of eKOcool brands to our consumers. bottling partners. Topics have been distributed free of cost to Our bottling partners are that have been of interest women retailers. We have also started in direct contact with our to our customers include distribution of Hydro Fluoro Carbon customers, regularly taking availability of energy efficient (HFC2) -free coolers. We have also been stock of, and responding to cooling equipment for our undertaking retailer capacity building their expectations. products and retailer training through our Parivartan and Pragati programs. programs. Civil Society The Coca-Cola India We are approached Projects that have been undertaken Organizations Foundation funds directly by several by the Foundation in this reporting projects focused on organizations for grants period have been described in the water conservation and for activities in the Environmental Well-Being section. CCIPL renewable energy use. areas our Foundation has developed eligibility guidelines and The nature of projects focuses on. grant application formats; these help supported and criteria the civil society members/organizations for funding etc have been better understand eligibility criteria for described in the previous our project funding. Social audits are chapter. also undertaken to ensure that projects meet their stated objectives. CCIPL is also supported by civil society members/organizations in some of our community programs like the Support My School (SMS). Furthermore, our bottling partners may also engage with locally relevant partner NGOs for needs assessment and project execution. Employees We believe that our Topics of interest include We have several policies and practices employees are the face training and professional aimed at employee well-being. There of the organization. There growth, diversity, work-life are several training programs at are several channels balance etc. different hierarchical levels for employee available to our employees development. Please refer the section on to communicate with the Human resources for complete details. company. One such key channel is the periodic employee engagement survey.
2 HFCs are a class of chemicals that are known to have a high Global Warming Potential.
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5. Materiality & Defining Reporting Content
With respect to Coca-Cola India’s operations, the details of stakeholder groups, means of engagement with different categories of stakeholders and their topics of interest are presented in the earlier chapter.
TCCC has developed a group-level sustainability framework – referred to as the ‘Me-We-World’ framework. This framework, in addition to addressing stakeholder expectations (including those of our stakeholders in India), also covers aspects important to us, given the nature of our operations.
The ‘Me-We-World’ has been adopted as CCIPL’s materiality matrix.
WE
ME WORLD
Growing our business by making a positive difference in the Aspiration communities we serve
Me We World Together we can promote Together we can create Together we can create a well-being for the people who a better future for local better future for enjoy our brands every day communities where our the finite natural resources operations help raise the that we all share standard of living
• Nutrition • Women’s economic • Replenish water • Product quality and safety empowerment • Recycle packaging • Responsible marketing • Strengthening community • Reduce Carbon • Active healthy living foundations • Source sustainably • Human and workplace rights
Reporting content and quality
The Coca-Cola System in India has been focusing its efforts in sustainability based on the Me-We-World framework. We have strong internal management systems for collection of data that has been reported in this disclosure, including those data points relating to our company and franchisee owned bottler locations – which have been subjected to internal quality and consistency checks. Any assumptions used in calculation of reported data have been explained in adequate detail in the respective sections where such data is presented.
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6. Me – Enhancing Personal Well-Being
6.1 Nutrition
The Coca-Cola group is the largest beverage In addition to offering great taste, some of our manufacturing and distributing system in the world products also offer functional benefits. Such products with operations in over 200 countries and offers in are listed below: excess of 3500 beverage options. We offer great tasting Non-Alcoholic Ready To Drink (NARTD) • Vitingo (powder) – Iron, Vitamin C, Vitamin A, beverage options for every life-style and occasion. Vitamin B 2, B12, Folic acid and Zinc From the added benefits of vitamins and minerals to • Fanta Fun Taste (powder) – Vitamins B3, B6, B9 new ingredients, sweeteners, tastes and innovations in and B12 package sizes, we are constantly challenging ourselves • Burn (energy drink) – Inositol to identify high-quality additions to our portfolio. In 2011, we started an initiative focused on reducing Our portfolio in India includes Coca-Cola, Diet Coke, the sugar content in Minute Maid though the use Sprite, Fanta, Minute Maid (these are some of our of Stevia - a stable and approved sweetening global billion dollar brands available in India), Thums alternative. In the Indian markets, our low/no calorie Up, Maaza, Burn (energy drink), Kinley Water, Kinley offering is limited to Diet Coke. Our marketing teams Soda, Schweppes, Georgia Gold (coffee) Vitingo are currently assessing the potential for other low/no (powder) and Fanta Fun Taste (powder). Thums Up calorie options. and Sprite, respectively, are the largest and second largest selling beverage brands in the country. New None of our products contain saturated fats or trans- products unveiled in 2012 in India include Rim-Zim fats; sodium content in our packaged drinking water (Masala soda) and the Mixed Fruit variant of brands – Kinley and Bonaqua- is limited to fractional Minute Maid. milli-grams.
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Case study: Project Vitingo
Iron deficiency is widely prevalent in India with an estimated 69% children below 5 years being deficient in Iron. 72% pregnant women and nearly 70% young women are also reported to be Iron deficient. Food fortification and supplements are a solution to this problem. Coca-Cola India has developed a nutritional beverage option – Vitingo - that can address the issues of Iron Deficiency and Iron Deficiency Anaemia.
Vitingo has been launched with the following long term vision:
• Build awareness on Iron deficiency and balanced diet, make Vitingo available at an affordable cost • Do it in a way that is sustainable and creates micro-entrepreneurs in a community driven model
Vitingo was originally developed with five micro-nutrients; later, based on the recommendations of the National Institute of Nutrition, this was expanded to cover 7 essential nutrients. Clinical trials have validated the efficacy of Vitingo in reducing Iron Deficiency, Iron Deficiency Anaemia and Vitamin-C deficiency.
Priced at INR 2.5 per sachet of 18 grams, Vitingo aims to address the nutritional challenges of the people (primarily women and children) at the bottom of the pyramid.
Distribution of Vitingo was started on a pilot basis in 2011 in the states of Bihar and Maharashtra through Village Level Entrepreneurs (VLEs); there-by, also creating an opportunity for livelihood generation. Such VLEs were ideally targeted to be women, thus also contributing to women’s economic empowerment.
The Vitingo Project was scaled-up in 2012; distribution of Vitingo has been expanded to cover 21 districts across 6 states - including Uttar Pradesh, Karnataka, Rajasthan and New Delhi. Promotion of Vitingo was undertaken through mass engagement campaigns, ‘youth ambassadors’ programs in urban slums and social media. By end-2012, product awareness has been created in approximately 300,000 households (800,000 potential consumers).
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6.2 Product Safety and Quality
Our products are manufactured following strict suppliers to comply with safety, environmental and policies, requirements and specifications (defined quality standards. These may include (as applicable): by TCCC) provided through an integrated quality management program. The program promotes the • FSSAI Standard highest standards in product safety and quality, • Global Food Safety Initiative (GFSI) occupational safety, and health and environmental • ISO 9001 (quality) standards across the entire Coca-Cola system. The • ISO 14001 (environmental management) quality and safety standards for production and • OHSAS 18001 (safety) distribution of our beverages are common across the globe, and at minimum, comply with applicable Stringent checks are undertaken to ensure the legal requirements. Health and Safety impacts quality and safety of all material procured. For some of all our products are considered right from the of our key ingredients like sugar, batch-wise tests stage of Research & Development. Furthermore, are undertaken. For further details on our global all our bottling locations are compliant with the product safety and quality standards, please visit the requirements of the Food Safety and Standards following web-link: http://www.coca-colacompany. Authority of India (FSSAI). We also expect our com/stories/quality
“Being one of the country’s leading non-alcoholic beverage manufacturing and distribution system, we strive to provide safe, great-tasting quality beverages to consumers each and every time. Our beverages offer hydration, refreshment, and moments of affordable happiness for people across the country, nearly 500 times per second. We are committed to making sure that all the beverages we produce, meet the highest standards for safety and quality. Our products are tested in modern laboratories using state-of-the-art methods and appropriate technologies, against stringent requirements. We measure key product and package quality attributes by focusing on ingredients and materials, as well as samples collected from the trade. In order to create and maintain safety and quality, we stay current with new regulations, industry best practices and marketplace conditions, and engage with standard setting and industry organizations. We consistently reassess the relevance of, and continually improve and refine, our requirements and standards throughout the entire supply chain. Ensuring the safety and quality of our products has always been at the core of our business and is directly linked to the success of the company in India and across the globe. In addition we undertake “ activities in a manner which is socially and environmentally responsible.” - T. Krishnakumar, CEO, HCCBPL
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6.3 Responsible Marketing Management Approach: (Product Responsibility)
The Coca-Cola group is committed to offering a range of tasty, healthy and high quality products and marketing them responsibly, to provide consumers with information they can trust.
The Coca-Cola Company has always taken seriously its commitment to market its beverages responsibly, across all advertising media. The global responsible marketing practices of TCCC are extended to CCIPL as well. Our approach is to meet, if not exceed, all Indian standards for responsible marketing. We also work with the business community to encourage better representation of products and targeting customers of the right age.
The quality attributes of our products are common across the globe and are managed across the value chain through strong management systems and effective interventions. We believe it is our responsibility to provide fact-based nutrition information about our products to facilitate consumer choice. In terms of product labeling, we comply with and go beyond applicable regulations and guidelines on nutrition. We have also undertaken voluntary initiatives focused on communication to vulnerable groups (children); it is our endeavour to make useful information available to consumers easily.
Consumer satisfaction is tracked on a regular basis through surveys. The integrity of consumer information collected during such surveys (and at other instances) is preserved at all times.
We believe that transparent communication of and drink. In line with our global marketing policies, product nutritional information in conjunction with we consciously do not advertise on children centric effective consumer education, is essential to help channels (for example – cartoon channels. Even with consumers meet their refreshment needs in a healthy respect to General Entertainment Channels (GEC), manner. We have well defined management systems we do not sponsor or advertise in programmes for any information disbursed in our marketing where the viewership of children below 12 is likely to communications. All claims made in marketing be greater than 35%. communication are subjected to rigorous internal checks and sign-off by a competent authority. The India Pledge
Communication of calorie information Coca-Cola India has signed the ‘India Pledge’ along with eight other Fast Moving Consumer Goods We believe that it is essential for our consumers to (FMCG) companies; this is a voluntary self regulation know the calorie intake through our beverages in initiative by members of the Indian Food and order to maintain a ‘calorie balance’ and a healthy Beverage Industry to demonstrate their commitment lifestyle. Complete nutritional information of our to a high level of social responsibility in marketing products is made available on the packs; in the food and beverage products to children in India. As Indian context, this is also a legal requirement. per this commitment, we do not advertise food and All returnable glass bottles (RGBs) that we have beverage products to children under the age of 12 purchased after March 19, 2009 have nutritional on TV, print or the Internet, except for products that labelling on the bottle itself, while for bottles that fulfil specific nutrition criteria based on accepted have been purchased prior to this date, we provide scientific evidence and/or applicable national and this information on the bottle closures (crowns). international dietary guidelines. We also do not The Coca-Cola group has gone beyond legal engage in any commercial communications related requirements in India and provides Front of Pack to food and beverage products in primary schools (FOP) calorie labels; for larger stock keeping units except for where specifically requested by or (SKUs) i.e., over 500 ml, we provide the FOP calorie agreed by the school administration for educational labels indicating calories per serving (250 ml). purposes.
Marketing to Children Additionally, entities of the Coca-Cola system in India do not sell any of our products in schools until and We believe parents and caregivers are in the best unless specifically requested by or agreed by the position to make decisions about what children eat school administration.
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Consumer engagement and satisfaction Satisfaction (C-Sat) Survey. Every month, we reach out to 5% (picked randomly) of the consumers The Coca-Cola system has been proactive in who have posed queries to us through our toll-free engaging with consumers. We provide our number. These consumers are requested to answer five questions sequentially in order to collect their consumers with several windows for communicating feedback on the way the query has been responded with the company; in India, we were among the to. This feedback is subsequently collated for further early adopters of the toll free number system. The action and improvement wherever possible. toll-free number and the consumer helpline email ID ([email protected]) are displayed on all The C-Sat score at the end of 2012 was 98.6%. product packages. Adequate information security measures are We endeavour to respond to every query received in undertaken to safeguard privacy of our consumers. In a manner satisfactory to our consumers. To this end, the reporting period, there have been no incidents of the company has instituted a streamlined Consumer consumer data loss/theft/ breach of consumer privacy.
How can consumers reach us? How do we respond to consumer queries?
Consumer helpline e-mail ID Telephonic response
Toll-free consumer helpline number E-mail response Brand Facebook page
Through salesteam, retailers and distributors Personal meetings
Consumer forums Invitations to bottling plant visits Letters
Visit our offices & depots Information dissemnation through other media
Case study
To help enhance our consumers’ understanding of the manufacturing of Coca-Cola products, we invite them to our manufacturing plants across the country. The plant tours provide visitors a first-hand experience of our processes, while also helping in dispelling misconceptions, if any. These plant tours have become one of the most preferred and cherished ways for our consumers to get to know more about the products they love. In the year 2012, we were delighted to host 3,482 plant visits for 178,365 consumers. The visitor profile includes people from different stakeholder groups including consumers (including students groups), media, government officials, distributors, retailers, corporate representative & others.
The Company actively encourages plant tours for the consumers through outreach programs aimed at increasing the number of visitors.
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6.4 Promote Active Healthy Living
Globally, TCCC and our group companies inspire consumers to adopt an active lifestyle through several programs and interventions. The pursuit of an active outdoor sport of interest is an enjoyable and effective way of keeping fit. Some programs that are driven by CCIPL in India for promotion of active healthy living are presented below.
Under-15 Football - The Coca-Cola Cup
Coca-Cola India Private Limited and the All India Football Federation (AIFF) launched the national grassroots football tournament in 2009. This initiative is part of CCIPL’s commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. It takes forward The Coca-Cola Company’s commitment to nurture potential football stars by providing them with a platform and an opportunity to develop their inherent talent into a real-life profession. As a company which has a worldwide focus on football and believes in promoting a healthy, active lifestyle, CCIPL believes that Indian football has huge potential. By supporting AIFF for this tournament, we are tapping young football talent to train them according to international
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football standards. In 2012, the program involved these young talented budding cricketers. Through participation of 41,760 young footballers from this initiative, CCIPL intends to provide a perfect 2,600+ schools across 87 cities. This year the opportunity and platform to all the youngsters youngsters from Meghalaya beat their opponents across the country to showcase their talent, skill from Odisha in an evenly fought contest at Father and equally important, pride and loyalty to their Agnel Football Stadium in Vashi, Mumbai. school. It gives the State Cricket Associations and their affiliated scouts a great arena to identify It’s not just a quest of Trophy or the Cup that these potential match winners. young talented footballers look forward to, but also a chance that couldn’t have been possible if this The tournament began in 2011 and so far has initiative did not exist. The National U-16 Soccer completed 2 seasons successfully. In season 2 (2012- team of India is drawn up from the talent pool of 13), this tournament was played across 10 states this tournament; plus this is a chance for some in over 66 districts and involved more than 12,000 exceptionally talented players, who will be absorbed young players from 756 schools. by AIFF-FIFA academy, to train at world class academies and become a part of the talent pipeline for the future. Undoubtedly, this is India’s biggest Sprite Gully Cricket Champs and most inspiring Grassroots Sports program and a step towards providing these soccer heroes – An Cricket is one of the most popular sports across all experience that money can’t buy. age groups, geographies and economic sections of the society in India. ‘Sprite Gully Cricket Champ’ (SGCC) is one of our largest programs on Active Coca-Cola Under-16 Cricket Healthy Living and taps into the enormous popularity of the sport. Started in 2011, SGCC’s popularity and Coca-Cola Under-16 Cricket Cup is the largest Inter- footprint has increased enormously in 2012. The School Cricket tournament in India. The interschool contest saw active participation across the country grass root level cricket initiative aims to discover and is in sync with Sprite’s marketing theme – Stop budding cricketing talent in the country. The program preaching, start playing! is open to all young cricketers in the age group of 12-15 years. Through the tournament, 24 talented We scaled up the number of playing centers to 112 players selected from the Coca-Cola Inter- state cities in 2012 (up from 27 in 2011); extensive pre-event Challenge get a chance to attend a week long publicity through a variety of media (television, radio, ‘Coaching Clinic’ under the guidance of Cricket India print, internet, road shows and others) resulted in Academy (affiliated to Cricket Australia) and meet the number of team registrations soaring to 7,935, prominent former cricketers of the country. Post the week long coaching, the final Coca-Cola XI team is representing an increase of over 9 fold. The Northern selected and given an opportunity to prove their region led the number of registrations (2,590), mettle by participating in a competitive tournament closely followed by the South (2,427). Our franchisee against an invited International U-16 team from other bottlers actively contributed to SGCC in the states of cricket playing nations. Post this, 3 of the brightest West Bengal, Uttarakhand, Uttar Pradesh and parts players are chosen as ‘Ratnas’ or Coca-Cola Cricket of Andhra Pradesh. A total of 1,816 teams registered Stars – and are sent across to world class training across these locations. The remainder (1,102 academies for a professional excellence course of 4 registrations) was from the central region. weeks. One such ‘Ratna’ – Sarfaraz Khan from season 1 - has recently been selected for National U-19 Winners from each of the zones were rewarded Cricket side of India. handsomely with INR 5 lakhs, intended to help these budding stars develop their talent further. Seeing the vast potential and growing popularity of this game, CCIPL has a vision of facilitating Through this program we were able reach out to the quest to nurture and tap cricketing talent. It and impact 6.4 lakh people across the country, from believes that the future of Indian cricket lies in different walks of life.
28 WE. Building Stronger Communities Coca-Cola India Sustainability Report 2012
7. We – Building Stronger Communities
Management Approach: Society
As a global company with local roots, we recognize the impact that we have on the communities in which we operate. As we conduct our business, we are committed to listen, learn and take into account the views of these communities. As a part of our dedicated approach to create economic opportunity in the communities in which we operate, we undertake initiatives that are locally relevant.
Our programs in the community extend to partners, suppliers and retailer and also reach out to the underprivileged and resource deprived communities. We place specific emphasis on the empowerment of women, as we believe them to be what binds community together and we realize that economic development can only be carried forward with the inclusion of women across the economic spectrum. We realize that our employees are our first contact within the local community and we design our employee programs keeping this in mind. Our extensive reach provides a unique opportunity to maximize our positive impact. Through the innovative ‘Vitingo’ project (details of this project are covered in the earlier chapter on balanced diets), we are able to deliver a low-cost beverage, with functional benefits through a socially relevant and sustainable business model.
At minimum, all bottling plants are expected to comply with applicable regulations; we have devised strong management systems that track and monitor regulatory compliance across bottling units. Our Code of Conduct guides all employees and our business as a whole. Anti-bribery and anti-corruption related trainings are provided to all relevant employees.
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In India, the 5by20 program is focused on driving 7.1 Women’s Economic women’s empowerment through entrepreneurship for inclusive growth. The program’s key focus is to build Empowerment – The capability and provide women with access to resources, these being some of the key barriers that women ‘5by20’ Initiative face towards economic empowerment. The program enabled and enhanced the livelihood of around 7000 women as of end 2012 through 4 key initiatives. In September 2010, The Coca-Cola Company announced a 10-year global initiative to empower 1. eKOcool Solar Cooler program: India has been a 5 million women through the Coca-Cola system. This front runner in piloting this initiative with regard initiative aims to help women in our global business to providing access to eco-friendly solar coolers. system break down the barriers that can prevent The innovative eKOcool solar cooler program them from growing their businesses. provides income generation opportunities for low-income women retailers in rural areas, By providing access to business skills, financial helping them gain a competitive advantage services, assets and support networks of peers and and improve family income. The cooler has the mentors, the 5by2O initiative globally is helping capacity to accommodate 2 cases of products women achieve their entrepreneurial dreams, while and also has value added features like mobile also creating thriving, sustainable communities. and solar lantern charging ports. Over 300 Solar Coolers have been deployed across women run Following the announcement of the 5by20 initiative outlets in rural India in the villages around Agra, in September 2010, the program began in four Bareilly, Faizabad, Calcutta and Rajahmundry. pilot countries - Brazil, India, South Africa and the Philippines. In 2012, the program has expanded its Piloted in 2011, the eKOcool Solar Cooler program outreach to 12 countries. has been scaled up in 2012.
“Enhancing economic opportunities for women in the Coca-Cola value chain will result in increased incomes, enhanced skills in business, increased stature within the community, and improved potential for communities” - Muhtar Kent, CEO, The Coca-Cola Company
“It helps when we can decode the consumer’s voice, not just for launching new products, but also newer packages, price points’ etc. Solar cooler is one such example of an innovation based on local insights and ground realities.” - Atul Singh Deputy, President – Pacific Group
“Every woman empowered is equivalent to a family being empowered. Teaching new retailing techniques to women will help ensure better livelihoods for them and solar coolers will improve transactions. I welcome this initiative of a private player contributing to community well-being.” - Dr. I.S. Tomar – Mayor, Bareilly “ 31 Coca-Cola India Sustainability Report 2012
Further the program got an impetus when the 4. Project Unnati is a supply chain program to lndia Advisory Council on Environment and increase the productivity of mangoes required Sustainability, under the able leadership of General for our juice drinks while also enhancing the Malik, visited the villages of Bareilly. General Malik income of farmers (please refer the section presented the coolers and training certificates to ‘Source Sustainably’ for full details of the select women retailers alongside Dr. I.S. Tomar project). ). The program is enabling mango - the Mayor of Bareilly and Shri S.N. Ladhani, farmers to adopt Ultra High Density Framing Managing Director, Brindavan Beverages Pvt. Ltd. (UHDP) technique, allowing them to plant more trees in less space. Combined with a drip 2. Pragati a business skills program led by HCCBPL, irrigation system, the program helps farmers is focused on training and engaging women double their crop yield and also their income. retailers in rural India. The program was piloted Out of 50,000 farmers being trained and in 2012 and has been rolled out nationally in 6 enrolled for adoption of a special technique vernacular languages. Other than training and called UHDP (Ultra High density Plantation) certification on business skills, the key elements over the next 5 years, 10% -15%, will be women of the program include an inspirational video, farmers. Under the 5by20 program, the objective imparting product knowledge through plant visits of the project is to provide and enhance and business start-up support communication. livelihood of women farmers covered under ‘Project Unnati’. Building capability of these 3. Parivartan training program: The Business women farmers through exposure to Good Skills Capability Program led by the Coca-Cola Agricultural Practices and UHDP technology University for Franchise Bottling Operations, is a key focus area. We are prioritizing was extended to women retailers in 2011. The resource allocation to women farmers and program saw further expansion in 2012 to are emphasizing on enrolling as many women reach out to more women retailers. The training farmers as possible. Of the 200 demonstration sessions are primarily held in customized buses farms that have been created under the project, (CCU on wheels) and are led by Coca-Cola 88 farms belong to women farmers. 250 certified trainers (further details of the Parivartan women farmers have been trained on the UHDP program are available in the following section) technique and good agricultural practices under the program. Earlier this year, Chairman and CEO Muhtar Kent visited Agra and met with several women We are committed to raising the bar next year to retailers. He acknowledged the initial progress enter into a dialogue with our partners and the made by Coca-Cola India as a part of the global government on how to further strengthen and 5by20 program. leverage these initiatives through partnerships.
“I no longer need to shut shop just because it is sunset, The solar lantern enables me to keep the shop open for longer hours, helping me earn more income. The mobile charging ports attract customers. When people line up to use the mobile charger, they stay longer and buy more food and beverages while they wait,” Roop Devi owner of kirana store in a remote village in Bareilly, Uttar Pradesh.
“The solar cooler program, combined with Parivartan training, is a unique model benefitting the Company as well as retailers. It increases business for the Company, improves transaction volumes, protects the environment, builds retailing capacity and, most importantly, focuses on women-inclusive growth. We need more such initiatives to create practical advantages for the rural population.” General V. P. Malik, Head - Advisory Council on Environment and Sustainability (ACES) “32 Coca-Cola India Sustainability Report 2012
7.2 Strengthening Community Foundations Parivartan – Retailer Training Program
Parivartan program was started in 2007 with an aim of training the traditional Kirana store owners to adapt themselves to the changing and evolving socio- economic scenario of our country. The entry of the culture of modern trade has redefined customer shopping habits, expectations and experience. This has put new demands on the mom and pop - traditional Kirana - retail stores to remain competitive.
Our mission through the Parivartan program is to equip traditional retailers with the skills, tools and techniques to meet consumer expectations created by these demands.
In order to design the curriculum for this training program, an in-depth market research was conducted through which it was found that the Kirana retail essentially revolves around four pillars – Customer, Regular feedback is taken from all retailers to Stock, Shop and Financial Management. The Coca- improve the training program and its effectiveness. Cola university then developed a tailor made capacity After analyzing the feedback received from building program around these four pillars the retailers over the last few years, in 2012, we added the 5th pillar to the Parivartan program. The two hour program is conducted in vernacular In this pillar, the practical example of Coca-Cola languages. For impactful communication, the training is used to make the participants understand the is supported by a 20 minutes video depicting the implications of the four pillars. It helps drive home life of a Kirana shop owner who learns to cope with the actionables from each of the four pillars and the changing retail scenario to emerge as a better results in improved business performance and businessman. margins for the retailers.
Apart from the classroom training which is typically The response to the program has been overwhelming conducted in the cities, the training module is also and till December 2012, we have covered almost 1, delivered through our customized learning bus 35,000 retailers across 3000 cities & semi- urban ‘CCU on wheels’ in the rural and semi – urban areas. areas. In 2012, we covered over 1000 women retailers Through this, we ensure that we are able to reach the under the Parivartan program, contributing to the retailers in far flung areas where classroom facilities 5by20 program. The response received from these may not be available. Currently, Coca-Cola system women retailers is heartwarming. We plan to cover has 4 such mobile buses. over 10,000 women retailers in 2013.
“I attended the Parivartan program and liked it very much. I implemented the learnings from the program and this has helped increase my sales. I am glad that a company like Coca-Cola is investing in our training.” - Ms. Uma Gupta (retailer), Kolkata
“I loved the program and I am optimistic that this training will be very beneficial for me and will make my business more profitable.” - Mr. Kunal Jindal (retailer)
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Support My School (SMS)
Children’s education is among the most basic of human rights and human capabilities issues in any society. Even as India continues to grow economically, there is much cause for concern when one looks at the education and nutrition status of its children. According to the Annual Survey of Education Report (ASER) 2012, more than half of all children in Standard V are at least three grade levels behind where they should be.
The very first step to learning is having children turn up at school every day. However, school drop out rate in India continues to be high. While there are many factors that contribute to this situation, several studies suggest that lack of basic amenities like toilets and access to water and basic infrastructure contribute to the creation of an unwelcoming and non-conducive environment at schools. This leads to children not turning up at school and increased absenteeism, which finally results in children dropping out of school completely.
With a desire to change this situation, Coca-Cola, Locations and number along with NDTV, UN-Habitat and Charities Aid of schools revitalized under Support My School Foundation, launched the Support My School (SMS) program in 2012 campaign in 2011. The campaign has twin objectives of improving school infrastructure (for sanitation, drinking water, playgrounds, campus greening
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and rain water harvesting) as also drawing public lack of sanitation, water and dilapidated schools. attention to the status of schools. Leading corporates such as Tata, Reliance, Merck, Tetrapack, amongst others have joined hands. With Sachin Tendulkar as the campaign ambassador World Vision, Plan India, Charities Aid Foundation, and a multimedia campaign spread across many as also several dozen local NGOs are the civil months, SMS has generated tremendous interest society partners. Other than these, numerous and reached millions of people. NDTV led the youth organizations such as AIESEC and students way through impactful stories on the cause and of leading universities have come forward and concluded it by hosting a live 12 hour telethon for contributed to the campaign. fundraising in September 2011. At the telethon, commitments worth over INR 60 million were In summation, the success of Season 1 was reflected received from several organizations and hundreds of not only in revitalization of several schools, but also individual donors. The funds collected subsequently, the unprecedented interest that was generated in were then utilized to revitalize schools across India, highlighting the urgent need for more initiatives through the following interventions: that improve schools to become healthy, happy and active schools. In September 2012, Season 2 • Improving access to drinking water for school children of the campaign was launched in San Francisco - • Improving access to sanitation (especially for California, in the heart of Silicon Valley. At the launch girls) in schools event, The Coca-Cola Foundation, World Vision and • Creating rain water harvesting facilities at school Plan International committed funds and resources level equivalent of 100 schools being revitalized. Thus • Improving access to sports amenities and Season 2 began with commitments, which paralleled facilities in the schools the entire Season 1 achievement thus giving a • Landscaping the school compound new scale and scope to the campaign. The target envisioned for Season 2 was raised to 250 schools, The campaign has succeeded in igniting a spirit and as at end 2012, we are confidently working of partnership in resolving this pressing issue of towards the same.
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Limca Book of Records 2012- ‘Music- Special Edition’
The Limca Book of Records (LBR), now in its 23rd edition, is a record book that celebrates the outstanding achievements of Indians across the globe, celebrating India at her Best.
The 2012 Limca Book of Records, launched in January, is a ‘Music Achievers Special’ edition, dedicated to the outstanding contribution of 10 Indian Musical maestros. The record book acknowledged their significant contribution to the school students of class 8 to 12. The quiz began world of music by felicitating them as ‘People of the in 2008 and has continuously been reaching out Year’ for 2012. With 20 refreshing and informative to more than 4,300 schools each year in 80 cities chapters, the 2012 edition of the record book across India. This year saw participation from 24,000 celebrates over 10,000 remarkable achievements students. The multi-city initiative has been launched out of which 6,000 are new records, all showcasing in partnership with Derek O’ Brien and Associates, extraordinary feats of Indians across the globe. a company run by renowned quizmaster Derek O’ Brien. The quiz provides a platform for students to Limca Book of Records Quiz is a national quiz showcase their knowledge and quizzing skills in an competition organized annually across India for engaging yet competitive process.
Career Development Centre (a HCCBPL Initiative) Career Development Centre (CDC) near Dasna is form of entrepreneurial ventures. The initiative also an initiative of Hindustan Coca-Cola Beverages Pvt. aspires to be a ‘model’ that can be replicated and Ltd. Started in January 2011, the objective of the scaled up. CDC is to tap into the potential of the educated, unemployed and underserved youth and provide Since its inception and till December 2012, over 360 the right training to enhance their employability. On youth completed their training at CDC and over 209 completion of the training, these youth are provided have been successfully placed with organizations with opportunities for sustainable livelihoods either like Big Bazaar, KFC, McDonald’s, Easy Day and through jobs in the organized industry or in the Hindustan Coca-Cola Beverages to name a few.
Akhil’s success story
Akhil’s introverted disposition always came in the way of his plans for success. He hails from Galand village, Ghaziabad. He was very hesitant to speak and felt very comfortable being with himself. It so happened that he got to know about CDC and decided to explore it. He joined basic IT Course at CDC in August 2011. An introvert by nature and hesitant while speaking, Akhil paid attention in the class and participated in all activities. It is no surprise that he successfully overcame his hesitation and now communicates with confidence. The decision to join CDC proved to be a blessing. After successful completion of the course, he joined IOSR as a Project Assistant. Seeing the change in Akhil, his younger brother Nikhil also expressed his desire to pursue a course at CDC, Dasna to support his family. Akhil stepped forward to support and finance his younger brother’s course. Today Nikhil is pursuing a Certificate Course in Food and Beverages.
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Local Community Initiatives
All our major community initiatives described above are ably supported by our bottlers in their respective regions of operation. Additionally, our bottlers also take up CSR activities in the vicinity of their plants based on the local needs. The following table provides a cumulative summary of such CSR activities that were undertaken by our bottling partners (company owned and franchisee owned).
CSR Focus Activities undertaken Approximate Approximate Area Monetary number of Spends (INR) beneficiaries Education Development of infrastructure in educational institution 15,858,162 8,060 Access to clean Infrastructure for Protected water supply 1,503,000 6,270 drinking water Installation of hand-pumps Public health and Monetary contribution for healthcare Medical/ 7,918,105 9,230 safety awareness camps Rural development Rural infrastructure development 2,874,887 3,220 Other social Assistance to self-help groups, under-privileged 4,080,700 4,840 activities sections of the society etc Other environmental Celebration of thematic events like World 1,209,252 640 programs Environment Day etc towards creating awareness Total 33,444,106 33,660
Notes: 1. The activities undertaken as shown above are only a sample list of most common activities that have been undertaken by bottlers. This is not an exhaustive list. 2. Where accurate data is not available for number of beneficiaries, a reasonable and conservative estimate has been used.
Protected Water Supply Project, Atmakuru
People from the village of Atmakuru (close to HCCBPL plant in Guntur district of Andhra Pradesh) were dependent on water from Guntur Channel for their domestic and drinking water needs. This water was highly turbid (>30NTU) in nature and not fit for drinking as well as domestic purposes. Incidence of water borne diseases was very high among the local community. The local Gram Panchayat had installed one open bed sand filtration system for water purification as a solution to the problem. But this system was getting blocked and required frequent sand replacement due to the high turbidity of the incoming water. The local community approached HCCBPL to seek assistance in upgradation of the system.
HCCBPL funded a protected water system consisting of two pressure sand filters, one dual media filter and an automatic online hypo-dosing system, making it a unique initiative in the rural water supply schemes. The unit has the capacity of 75KL/hour and reaches out to more than 2,300 households, thereby meeting the water requirements of local community members.
Mrs. Kandru Kamala, MLA of Mangalagiri, at the dedication of the protected water supply project, Atmakuru
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7.3 Respecting Human and Workplace rights
Management Approach: Human rights
We consider human and workplace rights—as articulated in the United Nations Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work—to be inviolable. We take a proactive approach to respecting these rights in every workplace in India and throughout our global bottling system, in our supply chain and in the communities in which we operate.
The foundation of our approach is articulated in four key documents which are influenced by the United Nations (UN) and International Labour Organization (ILO) declarations. Together, they describe our high standards and expectations in addressing such subjects as child labor, forced labor, freedom of association, discrimination, health and safety, hours of work and the 30 articles contained in the Universal Declaration of Human Rights.
• Human Rights Statement: Our Human Rights policies by emphasizing expectations on how statement is our overarching commitment to employees treat each other and those that respecting human rights; it emphasizes a set of they interact with on behalf of the Company, values that represent the highest standards of specifically related to valuing diversity integrity, excellence, compliance with the law and creating an environment free from and respect for human rights and the unique discrimination and harassment. customs and cultures of communities where we operate. We require all associates of The Coca-Cola Company to know our human rights and • Workplace Rights Policy: The Workplace workplace standards and to apply them in their Rights Policy (WRP) is guided by international work. Managers, in particular, receive intensive human rights principles and provides a training. We encourage our associates to speak consistent approach to workplace and human up immediately if they believe our policies rights worldwide. WRP applies to all of on human rights and workplace rights have the entities that the Company owns, holds been violated. Associates can report perceived a majority interest, and has management violations confidentially and without fear of responsibility or where a bottler has adopted retaliation through numerous channels, including the policy. The WRP articulates expectations our EthicsLine—a global Internet and telephone related to Freedom of Association and information and reporting service for associates, Collective Bargaining; Forced Labor; Child customers, suppliers and consumers who perceive Labor; Discrimination; Work Hours and Wages; violations of our Code of Business Conduct, Safe and Healthy Workplace; Workplace our Workplace Rights Policy, our Global Mutual Security; Community and Stakeholder Respect Policy, our Human Rights Statement Engagement. or applicable laws and regulations. We treat all inquiries confidentially and investigate all • Supplier Guiding Principles: Our Supplier concerns. Guiding Principles (SGP) communicate our values and expectations of suppliers and In cases where claims are substantiated, we take emphasize the importance of responsible corrective action. Depending on the violation, workplace practices that respect human rights corrective action may take the form of back and comply, at a minimum, with applicable pay, reassignment of duties and in severe cases, environmental and local labor laws and core separation from the Company. Further details on international conventions. these policies are available at the following web-link:
• Global Mutual Respect Policy: The Global http://www.coca-colaindia.com/sustainability/ Mutual Respect policy builds on the above workplace.html
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Respecting human rights and protecting workplace Human rights in procurement practices rights is fundamental to our culture and imperative for a sustainable business. According to the United Nations The Supplier Guiding Principles, associated Guiding Principles on Business and Human Rights, trainings and audits have helped us come a long implementing respect for human rights in a corporate way in incorporating sustainability along the context has three primary components: supply chain of the Coca-Cola system.
1. A policy commitment to meet the responsibility to In addition to socio-economic and environmental respect human rights performance (as envisaged in the SGP), the 2. A due diligence process to identify, prevent, mitigate quality of supplied goods, supplier location and and be accountable for human rights abuses other operational aspects are also key factors that 3. Processes to enable the remediation of any adverse determine monetary spends on any particular human rights impacts the company causes or to supplier. which it contributes In the Indian context, the group defines any The policies outlined above are based on internationally supplier from the same geographic region recognized standards, including: (Northern, Southern, Eastern, Western and Central) as ‘local’. Edible raw material and • United Nations Universal Declaration of Human packaging material used by us are commonly Rights available across the country; there are very few • International Labour Organization’s (ILO) instances when a bottler may be required to Declaration on Fundamental Principles and Rights source any material from suppliers located in other at Work states/regions. Hence, for our bottling units in • United Nations Global Compact’s (UNGC) ten India, local procurements may account for as high principles as 90% of total procurement spends.
Any major business agreements signed with suppliers, Based on the material, freight costs may account bottling partners and other business associates for upto 15% of the total procurement cost. Local would include human and workplace rights clauses. procurement also provides cost advantage in the New bottlers/ suppliers to the Coca-Cola system are form of savings in freight charges and applicable expected to undergo workplace assessments before the interstate taxes. commencement of business transactions. Within the Coca-Cola system in India, any supplier SGP trainings are conducted regularly for in-scope providing key and trademarked promotional suppliers of materials and services (e.g., security material worth US$60,000 are subjected to SGP services) covering topics including (but not limited to) audits; about 80% of these suppliers were found avoidance of child labor, forced labor and discrimination, to be compliant with standards prescribed by our and compliance with applicable regulations on policies. Action plans for achieving compliance minimum wage requirements and hours of work. to required standards have been provided to the others and their progress in this direction would SGP audits are conducted on a regular basis to confirm be monitored in the future. ongoing compliance at bottling and in scope supplier sites. In India, during the year 2012, SGP audits of In terms of quality, all suppliers of edible material suppliers of strategic materials and those in areas of are expected to comply with applicable standards high risk were conducted (95% of in-scope suppliers prescribed by the Food Safety and Standards were covered). Authority of India (FSSAI). As applicable, suppliers are also expected to comply with Good To help our Company, our bottling partners and our Agricultural Practice standards and implement direct suppliers achieve compliance with our policies management systems including ISO 9001, ISO and principles, third-party auditors trained on our 14001 and OHSAS 18001. standards conduct regular workplace assessments. We conduct annual assessments of new suppliers and We are a leading member of AIM-PROGRESS, suppliers with a history of noncompliance. For suppliers a forum of 37 fast-moving consumer goods with a history of compliance, we conduct assessments manufacturers and suppliers working together to every three years. In cases where non-compliances promote responsible sourcing practices. Through are observed, action plans for meeting compliance AIM-PROGRESS’s joint training initiative, the group are developed. As a policy, we do not purchase from conducts in-person and virtual supplier training suppliers with egregious findings and may need to sessions around the world. Trainings cover the four resort to de-authorizing them if required. major pillars of responsible sourcing:
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a) Human rights and labour standards in our operations. The TCCSMS also provides b) Health and safety appropriate training modules for operators and c) Environmental compliance management staff; internal and external audits are d) Business integrity conducted at our bottling locations to ensure the standards are being implemented as expected. Leaders from participating companies provide The TCCSMS is also covered under Coca-Cola perspective on why responsible sourcing is Company requirements known as ‘KORE’ and important to customers, stakeholders and each facility is periodically audited for ‘KORE’ sustainable businesses. In 2012, sugar suppliers compliance. were trained in India under this initiative. In the year 2012, a total of 40 lost time incidents Workplace safety were reported within our system (includes company and franchisee owned bottler locations); this is a Within the Coca-Cola system, we ensure that our substantial improvement year-on-year (number of workplace is clean, safe and healthy and provides such incidents in 2011 – 59). Likewise, the Lost Time the right work environment for our employees. Incident Rate (LTIR) also came down by about 13% to 0.26, calculated on the basis of 30.6 million man- The Coca-Cola group has developed stringent hours of work. internal standards for worker safety and loss prevention, collectively known as the ‘The Coca- Sadly, there were a total of 10 fatalities in the Cola Safety Management System (TCCSMS)’. The reporting period (1 employee and 9 contract TCCSMS is based on BSI OHSAS 18001 and applies laborers). Detailed investigations into each to all group companies and bottling partners. The of these cases have been conducted and risk TCCSMS contains operational controls that help mitigation measures have been implemented us identify, reduce or eliminate risks and hazards across all locations. 85% percent of our bottling plants are OHSAS 18001 certified.
Fundamental safety principles of the Coca-Cola system
Safety and Health can and will be managed Management is ultimately accountable for improved OSH performance and must be supported with the necessary resources. Occupational injuries and illnesses are preventable It requires a systematic process of building awareness, assigning accountabilities, training, setting goals, measuring performance and continually improving. Nothing we do is worth being injured for Concern and care for the health and safety of people is as important as other business objectives. Safe behaviour is fundamental job requirement We promote a culture that values safe behavior in all of our actions, and we commit to comply with applicable legal and The Coca-Cola Company Occupational Safety & Health requirements. Everyone is responsible for safety and health We recognize that maintaining a safe and healthy work environment is dependent on a culture of safety, where everyone is involved and accountable. Our safety performance is important for our business It is integral to operational excellence and the integrity of our brand.
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Human Capital
Management approach: Labour
Globally, Coca-Cola has been an employer of choice since many years; we attract the best of talent and strive to retain all employees. The wages and benefits we offer are competitive and consistent with the market. Our employees at all levels receive appropriate functional and behavioral trainings. We are an equal opportunity employer and do not discriminate on the basis of gender, religion, ethnicity, race etc. We provide a safe, discrimination-free workplace, providing our employees the opportunity to bring out the best in them.
In the Indian context, number of women employees in our ranks is tracked as a key indicator of workplace diversity.
At CCIPL, we believe that our people are our most Our pay structures include retirement benefits as per important assets. Our people, the face of our applicable rules and regulations. These include: brands, are talented, passionate and take immense pride in being a part of the Coca-Cola System. At • Provident Fund (PF) – 12% of the monthly basic CCIPL they find an employer who values them, pay of the employee contributed to a dedicated nurtures them and provides them with abundant PF Account; an equivalent contribution is also opportunities for learning, growth and development. made by the CCIPL (for which the company has a dedicated fund). This is applicable to all Employee hiring and benefits employees of CCIPL (corporate and plant) and Coca-Cola India Foundation. Coca-Cola India Private Limited is an equal • Gratuity – company contributes 15 days’ basic opportunity employer. We do not discriminate pay for each year of employment completed, people based on ethnicity, religion, caste, starting from the 5th year of continuous nationality etc at the time of recruitment or employment. This contribution is met through anytime during an employee’s tenure at CCIPL. general resources of the company and the While filling open positions, only the individual ‘fit’ foundation respectively. This benefit is applicable for the positions is considered. Furthermore, as a for all employees of CCIPL and the Coca-Cola policy, we strive to offer open positions to existing India Foundation. employees before sourcing talent from the market. Such internal transfers are encouraged with the Other benefits offered to our employees include view of offering employees exposure to diverse roles/business functions. • Medical/accident/ life insurance • Free health check-ups for employees and 50% We pay competitive wages to our employees expense coverage for their families and constantly benchmark our compensation • Loans for purchase of vehicles and utility loans levels with the industry. For our entry level • Parental leave – 120 days for women, 14 days for workers (concentrate plant), the wages we pay men at the time of child birth are substantially higher than those stipulated by • Partial sponsorship (up to INR 35,000) for Indian law. At any level, employee compensations promoting active lifestyle of employees under are based on the position held/responsibility our ‘Health Works’ policy (includes purchase handled, experience, tenure in the organization and of sporting equipment, payments made for qualification. membership in gymnasiums, etc.)
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Employee turnover
(1) Number of employees (3) Number of people availing parental leave
Following are the total number of employees on the Following are the number of people who availed payrolls of the company as on 31st December 2012. parental leave in the year 2012
Corporate Concentrate plant Gender Corporate Office Concentrate plant Office Male 14 1 Gender Total Operators Staff Total Female 4* 0 Count Total 18 1 Male 175 29 38 67 Female 55 0 17 17 *Of the above, 2 female employees quit employment after child birth. Total 230 29 55 84
Women employees constitute about 24% and 20% of our workforce at the corporate office and concentrate plant respectively.
(2) New joinees and employees leaving the organization (by age group)
Following are the number of people who joined the company’s payrolls and those who left the organization in the reporting period. As can be seen in the table below, our attrition rate is quite low and we believe it is in-line with the industry standards.
New Hires Employees leaving the organization Gender Age groups Corporate Concentrate Corporate Office Concentrate plant Office plant Male 20-29 years 5 2 1 0 30-39 years 27 6 10 0 40-49 years 9 0 10 2 50-59 1 0 1 0 Total 42 8 22 2 Female 20-29 years 7 3 2 0 30-39 years 8 1 4 0 40-49 years 0 0 1 0 50-59 1 0 0 0 Total 16 4 7 0
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Discrimination free work-place Employee trainings and feedback
We have a zero tolerance policy to all forms of CCIPL aims to contribute to learning and professional discrimination. All employees are expected to abide growth of all employees. Depending on the roles by the company’s ‘Code of Business Conduct’; we are and responsibilities of different employee groups, committed to providing a work environment that is appropriate skill/behavioral training programs are free from all forms of harassment or discrimination. offered. Details of some of these training programs Multiple touch points are available for employees are given in the table on the next page. to report any concerns in this aspect – including a ‘Global Ethics Hotline’. Upon receipt of any In addition to nominating employees for the complaint, enquiries are conducted independently above programs as applicable, the concentrate and impartially by the ‘Global Ethics’ team and plant also provides appropriate Health, Safety findings are reported to the local human capital and Environment (HSE) training to employees. team and the CEO. Subsequently, the management In the reporting period, 61.35 hours of training formulates its action plan which is vetted by the per employee was undertaken in the plant (on an Business Unit Ethics Lead. average). Likewise, male and female associates at our corporate office underwent 3 trainings per person on an average. This corresponds to 12-hours and 19-hours, respectively, for male and female associates.
At the end of each assessment year, all employees across hierarchies and role functions receive performance feedbacks which help them identify areas of strength and development.
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Training initiatives
Program Purpose & program details Number of participants (2012)
First Few Sips This is the induction program for CCIPL’s new hires; the intent of the 44 program is to introduce the new talent to the company - its vision, mission, policies (including those relating to Human Rights and internally developed codes) and goals. The 5-day program provides a functional overview and also includes a plant tour.
Pegasus The program seeks to develop the organization’s top talent for future 23 roles within the company.
Mantra Mantra is our B-School relations program; students from top B-Schools 25 in the country are offered 2-month internship stints at CCIPL. The program is designed for maximum learning and consists of project work, coaching and assignments.
Management The outstanding performers from the Mantra (summer internship 4 Trainee Program program) are recruited for full-time roles in the company. Such ‘Management Trainees’ undergo this comprehensive, cross-functional program of 18-month duration. Management trainee program also includes a short stint in the company’s CSR activities.
Women in We consider the number of women employees in our organization as 1 Leadership an important indicator of diversity in our workforce; this program is Program* intended to groom our women employees in the middle management for higher responsibilities.
Catalyst* The program is for selected managerial staff who are at a relatively 1 high position in the hierarchy – intended to groom them for senior management positions.
Chrysalis • To provide development platforms for Job Grade 9 - Job Grade10 21 associates • Create pipeline of talent for future mid-management level roles and people management roles • Recognize the hi-pot talent in JG9-JG10 in the Company which will fill in the Next Generation of leadership • Create a ‘Ready Now’ talent pool for local as well as global positions • To continually challenge the collective energies of this select group with innovative business efficiency for JG 9 – JG 10
*Note: Women in Leadership and Catalyst programs are driven by TCCC; these programs are offered to associates who are at relatively high positions in the organizational hierarchy. The program size is limited and participation is on a nomination basis from Business Units around the world. For the year 2012, one associate was nominated for each of these programs from the India & South-West Asia Business Unit.
44 Protecting World. the Environment Coca-Cola India Sustainability Report 2012
8. World – Protecting the Environment
Management approach: Environment
Environmental performance is yet another key cornerstone for our operations. As a global beverage major, environmental sustainability is important to our continued business operations. Important facets of our environmental management efforts are highlighted below:
• Water: The Coca-Cola system in India is committed to returning more water to nature and the society than what is used in our own operations. Our bottling plants work continuously to identify opportunities to reduce consumption, recycle and reuse water. Treated wastewater discharged, at minimum, comply with all the applicable the regulatory requirements. • Material and waste: Over the years, we have successfully reduced the amount of packaging material used per litre of beverage. Recycling of PET, glass and other packaging material is carried out by our bottlers. TCCC has also introduced PlantBottle™ packaging – a fully recyclable PET variant made partially with plant material; the use of PlantBottle in our Indian operations commenced in 2010-11. • Energy and Carbon: Ongoing effort is made at all plant locations to implement energy conservation and efficiency measures. Energy efficiency is seen as an opportunity that, in addition to contributing to our bottom-line, also helps to reduce our Carbon footprint. • Compliance: We have in place proper systems to monitor compliance of our bottling locations to all regulatory requirements – including those related to Environment and Occupational Health & Safety. • Transport: Our fleets are progressively moving towards use of environment friendly fuel (CNG), even in states where this is not a legal requirement.
Water is possibly the most important resource for our industry and hence management and responsible use of this precious resource is imperative to our business. All our bottling units have undertaken Source Vulnerability Assessments (SVA) for all water sources used by them; where necessary, Source Water Protection Plans (SWPP) have also been developed to help bottlers successfully mitigate any impact on any source.
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8.1 Water Replenishment
The total water consumption of all bottling units Water balance (in India) put together for the year 2012 was 8.299 Million Kilo-litres. Ground water, drawn through wells, 200% has been the primary source. Quantity of water withdrawn from different sources is summarized in 150% the following table:
100% Source Quantity (KL) Percentage
Well water 54,08,935 65.17% 50% Municipal water 11,78,956 14.20% Surface water 16,89,693 20.35% 0% 2008 2009 2010 2011 2012 Others 21,732 0.26% Water Balance Water Balance Total 82,99,316 100% (w.r.t. Total Water) (w.r.t. Ground Water)
We use two cardinal indicators to measure and manage our water performance. These indicators and (2) Water use ratio – measured as the ratio of their significance are explained as follows: liters of water per liter of product produced (litres per litre of beverage), this indicates the (1) Water replenishment ratio – this indicates efficiency of water use in our operations. the amount of water returned to nature and communities as a percentage of water used at our facilities. Water use ratio (Litres/litre of beverage)
Globally, TCCC targets to replenish as much water 3.32 as used in beverages and their production by the 2.8 year 2020. The water replenishment performance 2.5 2.27 in India over the past few years has been depicted 2.12 in the table and graph below.
Our efforts to replenish water are focused on harvesting rainwater, constructing check dams, restoring ponds and other natural water bodies as well as supporting agricultural water use 2008 2009 2010 2011 2012 efficiency improvements – such as laser leveling and drip irrigation. NGOs and local communities help our bottlers identify priority areas, implement projects and mobilize community members Water Use Ratio of 2.12 in the year 2012 represents to ensure local input in project planning and a remarkable improvement of over 36% in the last assessment. 5 years. This stands testimony to our un-tiring efforts in the direction of minimization of water use and wastage. Year Water Balance Water (w.r.t. total Balance Water reuse and treated wastewater discharge: water used) (w.r.t. ground water alone) With respect to water use the 3R’s – Reduce, 2008 51% 78% Recycle & Reuse – summarizes our approach. All our bottling plants have adequate facilities to 2009 65% 93% treat the wastewater generated, and use it for 2010 90% 131% secondary applications – such as gardening and 2011 99% 151% toilet flushing. Any discharge outside our premises is as per valid consent from the local pollution 2012 118% 195% control authorities.
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The Coca-Cola Company’s global standard for The following table summarizes the treated treated wastewater quality is confirmed by wastewater discharge and reuse across all bottling sustenance of aquatic life in the treated waste water. locations in the country.
Treated wastewater destination 30,82,348 1,64,007 2,78,316 18,20,510 Wastewater Treated Treated Treated treated onsite wastewater Wastewater wastewater discharged to sent to Local recycled or natural water Treatment re-used bodies Plants for (secondary further applications) treatment Volume in m3 (total in 2012)
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Water replenishment projects undertaken by Anandana
Project SANTUSHTI: A Drinking Water Project in Sambhar Lake, Rajasthan
The Foundation for Rural Recovery & Development, Central Salt & Marine Chemicals Research Institute. (FORRAD) in collaboration with MANTHAN, has Each RO Unit is driven by 6 KW solar power generated undertaken a ‘Drinking Water Project through Solar through 72 panels and comprises of batteries, panels Powered Reverse Osmosis Technology’ in the villages and an inverter. Each unit has an average production of Sinodiya, Jhag, and Der ki Dani in District Ajmer and capacity of 700 litres of water per hour and is being Mordikala and Solawata in District Jaipur, Rajasthan. The run over a period of ten hours a day. This yields a daily fabrication of the RO units has been undertaken by the output of 7,000 litres of drinking water a day.
“We used to share the water at Dheera talaab (Dheera lake) with cows, goats and camels. When that water dried up in the summer we had to rely on the private tankers coming in from Bhilawat. When the tankers came in, the rich had greater storage facilities for water and the poor much less – they only had a few pots. For the poor, water was more valuable than gold. I used to watch the people coming in from the outside with pure water in litre bottles – water that only the rich could afford. Now, in my village, I fill a 5000 litre tank with very pure water every single day and everyone gets to drink that water – the rich and poor. As charity, rich people set up drinking water kiosks (pyaoos) for a few days in Baisakhi (for a period that lasts 15 days in April-May). Our pyaoo that we set up just outside our unit as a service to passersby offers clean water for all 365 days of the year. This gives me the deepest joy.” – Raja Ma, RO unit operator, Jhaag
“Ever since I got married and came to Jhag, I remember going to Dheera talaab with pots on my head to get water. If water in Dheera talaab dried up, we had to go as far as Gudda (a village about 6 kms away from Jhag). This is my only memory as “ a newly-wed bride in the village. But now it is much easier. I go to fetch water from the RO unit now. At least we know that we are drinking safe water…and the unit is close to my house as well.” – Chhoti Devi, RO water user, Jhaag
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Project NeerJal: A Water Sustainability Project in Rajasthan
Under this project, Tilonia Shodh Evam Vikas Sansthan (TSVS, an independent NGO) identified the hills of Mandavaria and Paluna villages in Kishangarh and Jawaja blocks respectively, and constructed dams to harvest rainwater for recharging groundwater.
Jan Sunwayi of Paluna Dam, Rajasthan 10 10,000 20,000 150 160 40 Beneficiary population cattle hand open ponds villages pumps wells
Mangiji recalls “year after year, droughts have become a curse on us. Unavailability of water has left our lands barren and infertile. Earlier I used to say we were cursed because we were born in this area. Today I take my words back. These check dams constructed by TSVS with Anandana have changed our destiny. Of course, not all our problems are solved, but now water has given us confidence and improved our chances of survival in this bleak place. For the first time in many years, we are smiling.” “ Mangiji, a forty five year old lives in Mandavaria village of Ajmer District
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Village Jhag Village Nosal
Project SANTUSHTI – II: A Watershed Project in Sambhar Lake, Rajasthan
The project area falls into the semi-arid zone of Sambhar Salt Lake. More specifically, it envisages the Rajasthan, with a yearly average of 460 mm of rain, construction of 31 rainwater harvesting structures and it experiences recurring droughts. Added to spread over 20 villages in Ajmer, Jaipur and Nagaur the problem of salinity is the presence of excess districts in the north-western state of Rajasthan. fluoride in drinking water in Rajasthan in general. The total planned water storage capacity of these People are left with the option of either drinking the structures will be approximately 170 million liters. In contaminated water or buying water from privately- all, around 110,000 people and 210,000 animals will owned tankers. The population is largely agrarian and directly benefit from this work. in the absence of adequate income from agriculture, is dependent on casual labour for income. Through this project, local people will also receive Agricultural productivity is suffering immensely employment opportunities in the construction and because of poor soil quality an lack of irrigation on-going maintenance of watershed structures. water, and people are increasingly unable to depend Additionally, people will receive skills training in areas on farming for their livelihoods. like watershed planning and water testing.
This project proposal addresses a long-term Till end of December 2012, we have completed 7 watershed development program that will eventually water harvesting structures in village Jhag, Nosal, cover the entire catchment area around the Kotri, Bawli, Ringi & Habaspur.
Village Jhag Village Nosal 210 5,500 181 5,000 MM Litres population MM litres population Dam Storage benefitted Dam Storage benefitted capacity capacity
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Project UNNATI – II: A Watershed Development Extension Project in Mahoba, Bundelkhand
Bundelkhand, known for its rich past, has now been region. HARITIKA, the local partner responsible for identified as one of the most backward districts the implementation of the project, constructed ten of India. The region experiences low agricultural additional water harvesting structures and facilitated yield, lack of other sustainable source of livelihood, provision of household water through piped water depletion of natural resources and recurring natural supply thereby benefitting 8670 people directly. calamity in the form of draught. These 10 dams together created a storage capacity of 149,676 m3 of water. The Coca-Cola India Foundation, after successful execution of its first water sustainability project The Foundation, on completion of the second phase in Bundelkhand in 2010, replicated the model to of the project, conducted social audit ensuring reach out to more water-stressed villages in the transparency of the whole initiative.
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Project JALADHARA: A Watershed Development Project in Banswara, Rajasthan
The project area, district Banswara, is backward in undertaken on 3073 hectares of land covering 1961 terms of agricultural productivity, irrigation potential, households. education, health etc. The district is extremely poor and it has only 9.20 % of total area (20.56 % total Activities undertaken in this project : arable land) under irrigation, which is very low as compared to other districts of the state. The Banswara • SMC (Soil & Moisture conservation): SMC is the district has lowest (40.78 %) rural literacy rate in the most and primary requirement of the watershed state. Also nearly 73.0 % of total rural households of treatment. It includes CCT (Continuous Contour Banswara District live Below Poverty Line (BPL). The Trenches), SCT (Staggered Contour Trenches), district ranks 26th in Human Development Index (HDI) WAT (Water Absorption Trench), Contour and 24th in Gender Development Index (GDI) out of Bunds, Farm Bunding etc. These structures are 32 districts of the state. constructed across the land slope and create a kind of obstruction against the runoff. This activity Watershed area development is an approach for increases the soil moisture, reduces the soil sustainability in which natural resources based and erosion and helps to raise the ground water. other allied activities are integrated for a common cause (development of the community). It is a • Land Area treatment by Farm & stone bunding. holistic development of the geographical unit, which is termed as watershed, for socio-economic and • Dug-out Wells: Considering the irrigation ecological development using and regenerating and drinking water constraints of the farming natural resources. community near our project area, efforts have been undertaken for well renovation (well The project is underway in all 20 villages of deepening and lining). Significant increase in the Kushalgarh taluka of Banswara district located water level and span of water availability has been in Rajasthan. In all, watershed activities would be observed as a result of this work.
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8.2 Reducing Carbon
The consensus on climate science is increasingly energy use from biomass as a percentage of total unequivocal – global climate change is happening energy (primary and secondary energy combined) and man-made greenhouse gas emissions are a continued to be about 19.58% - which is similar to crucial factor. The implications of climate change what was reported in the previous year. for our planet are profound and wide-ranging, with expected impacts on biodiversity, water resources, Across all our bottling locations, we are making public health, and agriculture. continuous efforts to reduce our direct and indirect energy consumption. We help bottlers in identifying Across the Coca-Cola system, we recognize that and implementing on priority a certain number of climate change may have long-term direct and projects for energy efficiency enhancement known indirect implications for our business and supply as Top-10 Energy Conservation initiatives developed chain. As a responsible multinational company, along with WWF. we have a role to play in ensuring we use the best possible mix of energy sources, improve the energy At Coca-Cola we are conscious of our GHG emissions efficiency of our manufacturing processes, and reduce across our value chain and are moving towards the potential climate impact of the products we sell. integrated indicators for measuring our emissions. We define Energy Use Ratio as the amount of energy The direct energy consumption of the Coca-Cola used for producing a litre of beverage. For the year system in India for the year 2012 was 2,192 Million Mega 2012, the EUR was 0.79 MJ/L (as compared to 0.80 Joules; this represents an increase of about 11.8% from in the previous year). 1960 Million Mega Joules reported for the year 2011. The following table summarizes significant direct The table and graphic below represents the share of emissions from our operations. different fuels in our primary energy consumption. Gas Quantity (tons) We have been substituting fossil fuels with bio-mass (briquettes made of agricultural residue) as fuel. Carbon Dioxide (primary fuels) 34,492.28 Electricity consumed constitutes indirect energy N O 2,635.86 use; for the reporting period, electricity consumption 2 stood at 1,092.52 Million MJ. This represents an Methane 0.47 increase of close to 39% from the corresponding CFC 98.68* figure for the previous year (785 Million MJ). Despite HCFCs 0.22 the increase in secondary energy consumption, the *Note: This quantity corresponds to refilling the refrigeration units; we have started recording this data across the system in 2012.
Direct energy consumption (MJ)
We further estimate our indirect CO2 emissions (based on grid electricity consumption) to be about 222,862.57 tons. 27.77% Bio Mass 30.16% We are also working on innovative measures to Heavy Fuel Oil 1.33% reduce our emissions across our value chain. We Other Bio have come up with designs for HFC-free coolers; Fuel efforts will be scaled up in the future to increase the 1.10% 35.42% penetration of this cooler. Efforts are on to distribute Natural Gas Light Fuel Oil HFC-free coolers to our retailers. Coca-Cola India 4.22% has also pioneered ‘eKoCool’ – a cooler that runs on Propane solar power (please refer the section on the 5by20 initiative for further details on eKoCool).
Heavy Fuel Oil Light Fuel Oil Biomass Propane Natural gas Other bio-fuels 661,047,395 776,322,237 608,791,907 92,564,348 24,093,207 29,218,857
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Non-conventional energy use projects undertaken by the Foundation
Project Ujala: Solar Lighting Project, Rajasthan & Bihar
A pilot project, supported by the Foundation, has Advancement (SARA) lit 1000 households in 20 non- demonstrated as to how a community based approach electrified small villages through imparting training to to tap solar energy could enhance the quality of life in women in the fabrication of solar units. This project was remote villages with no access to grid electricity. successfully implemented in the states of Rajasthan and Under this project, the Social Action for Rural Bihar.
The impact till now: 1000 20 20 4,645 households women rural electronic villagers electrified empowered workshops benefitted established
eKOcool
CCIPL came up with an innovative solar powered cooler encouraging. Several retailers have indicated that – the ‘eKOcool’ with the objective of making chilled sales at their outlets have significantly increased, since beverages available to people in remote areas with installation of eKOCool. limited or no grid power supply. This offers the retailer a winning edge in areas where no chilled beverages are By end 2012, 300 eKOcool units have been installed. In available. The cooler also comes with a solar lantern addition to creating greater income potential for the port – enabling the retailers to keep their shops open women retailers, eKOcool also helps use solar energy after sunset, and helping increase business hours. The rather than relying on traditional grid power. Going solar cooler also comes with a mobile charging dock forward, CCIPL plans to develop a variant of eKOcool which helps in increasing footfall in the shops. Therefore, that has twice the capacity. the eKOcool units help increase income potential for the retailers in multiple ways. Currently, the cooler is being placed with women led retail establishments (under the 5by20 initiative).
The first model of eKOcool, which we have been distributing since May 2011, has the capacity to accommodate 2 crates of beverages (48 bottles of 200 ml each). The response to eKocool has been very
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Project JYOTI: Solar Lantern Project, Rajasthan
Anandana partnered with Mahila Sewa Trust, an initiative of Self Employed Women’s Association, to encourage production and use of solar lanterns. The project has successfully achieved its target of electrifying 2,193 households from 40 villages under Phase I and 2,500 from 59 villages under Phase II.
The impact till now:
4,693 120 5 25,200 non-electrified women schools villagers households trained on provided solar benefitted provided solar fabrication and lighting lighting maintenance of lanterns
“With light from the solar lantern, I am able to clean grains, cook food and wash utensils without any problems. My kids now can study in the evenings. We also use the lantern to charge our mobile phones. And with the money we saved by not buying kerosene, we recently bought a used cassette player. We are able to plug this into our lantern and play some music for entertainment”. Lalita, a beneficiary of the Project
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8.3 Recycling of Packaging Material
The packaging in which our beverages are served an “Advanced Renewable Fuel” by the United to our consumers need to help us preserve the States Environmental Protection Agency—so its quality of the beverage safely. There are four manufacture has a lower environmental impact package forms in which our beverages reach and does not consume agricultural resources that the consumer – Recyclable Glass Bottles (RGB), could otherwise be used for food production. PET bottles, Tetra-pack and Aluminum cans. In Globally TCCC intends to use PlantBottle™ line with TCCC’s global aspirations, the system in packaging for all of our PET plastic bottles by India has been making a full-on effort to reduce 2020. Since 2009, over 15 billion PlantBottle™ and recycle the amount of material used in packages have been delivered to markets in 25 packaging. Over the years we have worked with countries, including India. However, as of now the our partners across the supply chain to identify use of this material in India is not significant and opportunities to reduce the weight of packaging will be scaled up in the coming years. material. TCCC aims to source 25 percent of our PET from recycled or renewable materials by Our bottling partners use the services of 2015. To help in this endeavor, TCCC came out authorized third party to recover and recycle with a revolutionary new packaging material in packaging material. The following table provides 2009 – the PlantBottle™. This material is made a list of such packaging material and quantities from sugarcane-based ethanol, designated as recycled.
Packaging material Quantity recycled (tons) Aluminum 64.83 Glass 23,749.72 PET 1,933.39 Caps 35.37 Others (plastic, metal and wood) 18,938.93
The Coca-Cola system in India recycled about 84% (by weight) of all the waste that was generated within our bottling plants.
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8.4 Sourcing Sustainably
Project Unnati
Background The project shall help us manage a sustainable supply of mango Maaza is the biggest fruit based juice brand in India, fruit in the long term, enhance contributing to about 40% of India’s total volume. quality of the mango produce and Totapuri and Alphonso are the two mango varieties improve livelihood for farmers which form the pulp input for Maaza Juice. Total including women farmers through demand for Totapuri Mango pulp is growing at 20% training on ‘Good Agricultural year-on-year whereas supply growth is 2%. Practices’ and ‘Ultra High Density Plantation (UHDP) technique’. The The project was set up after understanding grass project scope is to impact 50,000 farmers (including root challenges and issues in mango cultivation, 7,500 plus women farmers – please refer the section in close collaboration with the constituents of on ‘5by20’ for details) over 5 years. The plants would the Golden Triangle (Horticulture board, Farmer’s start yielding fruits from the 3rd year and shall be fully associations, Rural banks, Local government mature by 6th year, unlike traditional plantations where bodies and Agriculture universities), where in, it takes 10 years for the saplings to fully mature. We plan Farmer Backward Integration emerged as a priority to support the initiative for 5 years. intervention to tackle low yield. Project Details The Project The program has a 2 pronged intervention for ‘Project Unnati’ is our collaborative effort with our productivity improvement and to increase yield: largest supplier of Mango Pulp - ‘Jain Irrigation’, who are also India’s largest and world’s second largest 1. Promote adoption of UHDP technique through: micro irrigation company, to facilitate a large scale a. Creating Demo Farms farm intervention. b. Imparting training sessions 2. Impart GAP (Good Agricultural Practices)
Progress in 2012
200 Training Enabling 2,000 demo farms created, Module with a live- Facilities created. farmers approximately in more than 350 acres of demo feature created Establishment of soil trained on ways of farms in Chittoor (Andhra and sessions being and water testing labs in increasing their farm Pradesh) on UHDP. We conducted in mobile Chittoor. yield. have subsidized the cost training classes under of creating these demo the supervision of Coca- farms in the farmers land. Cola University.
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Celebrating the environment
We celebrated the World Environment Day and the World Water Day with enthusiastic participation from our employees and bottler across the country. We strive to use such occasions as platforms for creating awareness in the community; such occasions provide us with an excellent opportunity to engage with stakeholders as well as to communicate our approach towards sustainable development.
World Environment Day World Water Day (22nd March 2012)
The World Environment Day was celebrated on 5th For the year 2012, UN Water and the Food and June 2012. We view W.E.D as another opportunity Agriculture Organization (FAO) unveiled the theme to reaffirm our commitment and to actively ‘Food and water security’. Following activities were contribute towards the protection and preservation undertaken at our bottling units. of the environment. Our bottling plants and other associates were involved in the following activities: • Dedication of water conservation projects for • Oath taking ceremonies (on preservation of communities environment) within plant premises • Go-live of water efficiency projects in plants • Plantation of saplings in the vicinity of plants • Community engagement drives and events for • Activities focused on environmental clean-up in awareness creation including – tree plantations, the vicinity of plants rallies, audio-visual presentations, quiz/painting • Drawing/poster making/quiz competition/ competitions for students etc debates in schools • Rallies focused on environmental themes
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9. Appendix: GRI Content Table
Indicator Section reference Extent of Reporting Section Section Name Number Strategy and Analysis 1.1 Strategy and analysis Message from the 1 Full President and CEO 1.2 Description of key impacts, risks and opportunities Message from the 1 Full President and CEO Organizational Profile 2.1 Name of the organization Introduction to the 2.1 Full Coca-Cola System 2.2 Primary brands, products or services Full 2.3 Operational structure of the organization Full 2.4 Location of organization’s headquarters Full 2.5 Number of countries where organization operates Full 2.6 Nature of ownership and legal form Full 2.7 Markets served (geographic/types of customers) Full 2.8 Scale of the reporting organization Full 2.9 Significant changes during the reporting period None Full 2.10 Awards received in the reporting period Awards and recognitions 2.3 Full Report Parameters 3.1 Reporting period About this report Page 1 Full 3.2 Date of most recent report Report for the year 2011, N.A Full published in 2012 3.3 Reporting cycle About this report Page 1 Full 3.4 Contact point for questions regarding the report About this report Page 1 Full 3.5 Process for defining report content About this report Page 1 Full 3.6 Boundary of the report About this report Page 1 Full 3.7 Scope limitations About this report Page 1 Full 3.8 Reporting of activities not under operational control About this report Page 1 Full 3.9 Data measurement techniques and the basis of Explained under the N.A Full calculations, including assumptions and techniques various sections where underlying estimations applied to the compilation of the data has been provided Indicators and other information in the report 3.10 Explanation of the effect of any re-statements of This report contains no N.A Full information provided in earlier reports, and the reasons restatements for such re-statement (e.g., mergers/acquisitions, change of base years/ periods, nature of business, measurement methods) 3.11 Significant changes from previous reporting periods in the Nil N.A Full scope, boundary or measurement methods applied in the report 3.12 Table identifying the location of the Standard Disclosures This table (Appendix 1) N.A Full 3.13 Assurance approach No external assurance N.A Full has been obtained for this report
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Indicator Section reference Extent of Reporting Section Section Name Number Governance, Commitments and Engagement 4.1 Governance structure of the organization Governance and Ethics 3.1 Full – Committees under the 4.2 Indicate whether the Chair of the highest governance body Full board is also an executive officer 4.3 Independent board members Full 4.4 Mechanisms for shareholders and employees to provide Governance and Ethics 3.2 Full recommendations – Systems to ensure and monitor Ethical Conduct 4.6 Processes in place to avoid conflicts of interest Governance and Ethics 3.2 Full – Systems to ensure and monitor Ethical Conduct 4.8 Mission, values, codes of conduct and principles Mission, Vision and 2.2, 3.2 Full Values, 4.9 Procedures for board overseeing management of Governance and Ethics 3.1 Full economic, environmental and social performance – Systems to ensure and monitor Ethical Conduct 4.12 Endorsement of charters, principles or other initiatives External Sustainability 2.4 Full commitments 4.13 Memberships in associations (such as industry Full associations) and/or national/international advocacy in relevant organizations 4.14 List of stakeholder groups engaged by the organization Stakeholder consultation 4 Full 4.15 Basis for identification and selection of stakeholders with Full whom to engage 4.16 Approaches to stakeholder engagement, including Full frequency of engagement by type and by stakeholder group 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting Economic FP1 Percentage of purchased volume from suppliers compliant Respect human & 7.3 Full with company's sourcing policy. workplace rights – Human rights in procurement practices FP2 Percentage of purchased volume which is verified as being Respect human & 7.3 Full in accordance with credible, internationally recognized workplace rights responsible production standards, broken down by – Human rights in standard. procurement practices EC2 Financial implications and other risks and opportunities for World – Environmental 8.2 Partial the organization's activities due to climate change Well-being (Reducing Carbon) EC3 Coverage of the organization’s defined benefit plan Respect human & 7.3 Full obligations. workplace rights – Human Capital EC4 Significant financial assistance received from government Nil N.A Full EC5 Range of ratios of standard entry level wage compared to Respect human & 7.3 Full local minimum wage at significant locations of operation workplace rights – Human Capital EC6 Policy, practices, and proportion of spending on locally- Respect human & 7.3 Full based suppliers at significant locations of operation workplace rights – Human rights in procurement practices
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Indicator Section reference Extent of Reporting Section Section Name Number EC7 Procedures for local hiring and proportion of senior Respect human & 7.3 Full management hired from the local community at significant workplace rights – locations of operation Human Capital EC8 Development and impact of infrastructure investments 1. Strengthening 7.2, 7.1 Full and services provided primarily for public benefit through Community commercial, in-kind, or pro bono engagement. Foundations 1.2. Empower Women
Environmental EN3 Direct energy consumption by primary energy source. World – Environmental 8.2 Full Well-being (Reducing EN4 Indirect energy consumption by primary source. Full Carbon) EN5 Energy saved due to conservation and efficiency Partial improvements. EN6 Initiatives to provide energy-efficient or renewable energy Partial based products and services, and reductions in energy requirements as a result of these initiatives EN7 Initiatives to reduce indirect energy consumption and Partial reductions achieved. EN8 Total water withdrawal by source. World – Environmental 8.1 Full Well-being (Replenish EN9 Water sources significantly affected by withdrawal of water. Partial water) EN10 Percentage and total volume of water recycled and reused. Full EN11 Location and size of land or waters owned, leased, Not applicable N.A managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN12 Description of significant impacts of activities, products, Not applicable N.A and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. EN13 Habitats protected or restored. Not applicable N.A EN14 Strategies, current actions, and future plans for managing Not applicable N.A impacts on biodiversity. EN15 Number of IUCN Red List species and national Not applicable N.A conservation list species with habitats in areas affected by operations, by level of extinction risk EN16 Total direct and indirect greenhouse gas emissions by weight. World – Environmental 8.2 Full Well-being (Reducing EN17 Other relevant indirect greenhouse gas emissions by weight. Full Carbon) EN18 Initiatives to reduce greenhouse gas emissions and Full reductions achieved. EN19 Emissions of ozone-depleting substances by weight. Full EN20 NO, SO, and other significant air emissions by type and weight. Full EN21 Total water discharge by quality and destination. World – Environmental 8.1 Full Well-being (Replenish Water) EN22 Total weight of waste by type and disposal method World – Environmental 8.3 Partial Well-being (Recycling packaging material) EN26 Initiatives to mitigate environmental impacts of products World – Environmental 8.1, 8.2, Full and services, and extent of impact mitigation. Well-being (Replenish 8.3 Water, Reducing Carbon & Recycle Packaging) EN27 Percentage of products sold and their packaging materials World – Environmental 8.3 Partial that are reclaimed by category. Well-being (Recycling packaging material)
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Indicator Section reference Extent of Reporting Section Section Name Number Labor Practices and Decent Work LA1 Total workforce by employment type, employment Respect human & 7.3 Full contract, and region. workplace rights (Human Capital) LA2 Total number and rate of employee turnover by age group, Respect human & Full gender, and region. workplace rights (Human Capital) LA3 Benefits provided to full-time employees that are not Respect human & Full provided to temporary or part-time employees, by major workplace rights (Human operations. Capital) LA7 Rates of injury, occupational diseases, lost days, and Respecting Human and 7.3 Full absenteeism, and number of work related fatalities by region. workplace rights LA8 Education, training, counseling, prevention, and risk- Local community 7.2 Full control programs in place to assist workforce members, initiatives their families, or community members regarding serious diseases. LA10 Average hours of training per year per employee by Respect human & 7.3 Full employee category. workplace rights (Human Capital) LA11 Programs for skills management and lifelong learning that Full support the continued employability of employees and assist them in managing career endings, LA12 Percentage of employees receiving regular performance Full and career development reviews. LA13 Composition of governance bodies and breakdown of Partial employees per category according to gender, age group, minority group members LA14 Ratio of basic salary of men to women by employee category. Full Human Rights HR1 Percentage and total number of significant investment Respect human & 7.3 Partial agreements that include human rights clauses or that have workplace rights undergone human rights screening. HR2 Percentage of significant suppliers and contractors that have Partial undergone screening on human rights and actions taken. HR3 Total hours of employee training on policies and Partial procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. HR4 Total number of incidents of discrimination and actions Respect human & 7.3 Partial taken. workplace rights HR5 Operations identified in which the right to exercise Respect human & 7.3 Partial freedom of association and collective bargaining may be at workplace rights significant risk, and actions taken to support these rights. HR6 Operations identified as having significant risk for incidents Partial of child labor, and measures taken to contribute to the elimination of child labor. HR7 Operations identified as having significant risk for incidents Partial of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. HR8 Percentage of security personnel trained in the Full organization's policies or procedures concerning aspects of human rights that are relevant to operations. HR9 Total number of incidents of violations involving rights of Not applicable N.A indigenous people and actions taken.
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Indicator Section reference Extent of Reporting Section Section Name Number HR10 Percentage and total number of operations that have Respect human & 7.3 Partial been subject to human rights reviews and/or impact workplace rights assessments. Society SO1 Nature, scope, and effectiveness of any programs We- Environmental 8.1 Partial and practices that assess and manage the impacts of Wellbeing (Replenish operations on communities, including entering, operating, water – SVA) and exiting. SO2 Percentage and total number of business units analyzed Governance and Ethics 3.2 Full for risks related to corruption. – Systems to ensure and monitor Ethical Conduct FP4 Nature, scope and effectiveness of any programs and 1. Promote active 6.4 Full practices (in-kind contributions, volunteer initiatives, healthy living 6.1 knowledge transfer, partnerships and product 2. Nutrition 7.2 development) that promote healthy lifestyles; the 3. Strengthening 8.1 prevention of chronic disease; access to healthy, nutritious Community 8.2 and affordable food; and improved welfare for communities Foundations in need. 4. Replenish water 5. Reducing Carbon SO3 Percentage of employees trained in organization’s anti- Governance and Ethics 3.2 Full corruption policies and procedures. – Systems to ensure and monitor Ethical Conduct SO4 Actions taken in response to incidents of corruption. Partial SO6 Total value of financial and in-kind contributions to political No aid given for political N.A parties, politicians, and related institutions by country. purposes Product Responsibility PR1 Life cycle stages in which health and safety impacts of 1. Nutrition 6.1 Full products and services are assessed for improvement, and 2. Product Safety and percentage of significant products and services categories Quality subject to such procedures. 3. Responsible Marketing
PR2 Total number of incidents of non-compliance with 1. Product Safety and 6.2 Partial regulations and voluntary codes concerning health and Quality 6.3 safety impacts of products and services during their life 2. Responsible cycle, by type of outcomes. marketing PR3 Type of product and service information required by Responsible marketing 6.3 Full procedures, and percentage of significant products and services subject to such information requirements. FP5 Percentage of production volume manufactured in sites Product Safety and 6.2 Full certified by an independent third party according to Quality internationally recognized food safety management system standards. FP6 Percentage of total sales volume of consumer products, by Nutrition 6.1 Partial product category, that are lowered in saturated fat, trans fats, sodium and sugars. FP8 Policies and practices on communication to consumers Responsible marketing 6.1 Full about ingredients and nutritional information beyond legal requirements. PR5 Practices related to customer satisfaction, including results Consumer Engagement 6.3 Full of surveys measuring customer satisfaction. and satisfaction PR6 Programs for adherence to laws, standards, and voluntary Responsible marketing 6.1 Full codes related to marketing communications, including advertising, promotion, and sponsorship. PR8 Total number of substantiated complaints regarding Consumer Engagement 6.3 Full breaches of customer privacy and losses of customer data. and satisfaction
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Neelima Khetan GM, Public Affairs and Communications E-mail: [email protected]
Coca-Cola India Pvt. Ltd. Enkay Towers, Udyog Vihar Phase 5, Gurgaon - 122016, Haryana, India