ACTION ON CLIMATE The world is at a critical point and we must all play our part to cut GHG emissions, to limit global temperature increase to 1.5°C in line with the Paris Agreement, and protect the future of our planet. CCEP’S COMMITMENT TO SDGS AFFORDABLE AND CLIMATE CLEAN ENERGY ACTION Our ambition is supported by a three-year €250 million OUR STRATEGY investment which will provide targeted financial support to We’ve made strong progress over the last decade, reducing decarbonise our business between 2020 and 2022. We have Greenhouse Gas (GHG) emissions across our entire value also integrated a full value chain carbon reduction target chain by 37.7% since 2010. However, much more needs to be into our Long-Term Incentive Plan (LTIP), incentivising our done. management team to deliver a reduction in GHG emissions across our value chain. The carbon reduction metric has a That is why we launched a new climate strategy in December 15% weighting and sits alongside traditional financial metrics, 2020, including an ambition to reach net zero GHG emissions including earnings per share (EPS) and return on invested by 2040 and a target to reduce our absolute GHG emissions capital (ROIC). across our value chain by 30% by 2030 (versus 2019). Our GHG reduction target has been approved by the Science Based Targets initiative (SBTi) as being in line with a 1.5˚C reduction Our progress pathway, as recommended by the Intergovernmental Panel on Climate Change (IPCC). % GHG emissions reduction across our value chain since 2010 Over 90% of our value chain GHG emissions come from our and 2019 supply chain. This is why we have also committed to support VERSUS 2010 our strategic suppliers to set their own science based carbon reduction targets, and to shift to 100% renewable electricity 37.7% by 2023. We are focused on reducing our GHG emissions as far as VERSUS 2019 possible. When we can’t reduce emissions any further we’ll 11.9% focus our investment in projects which remove carbon from the atmosphere, or verified carbon offset projects, to achieve Electricity purchased from renewable sources our net zero 2040 ambition. 100% 100% 2019 2020 CONTENT FINALISED AT BEGINNING OF MAY 2021 RELATED TO CCEP’S OPERATIONS IN WESTERN EUROPE 1 May 2021 Scope 1 figures include direct sources of emissions such as GHG EMISSIONS (SCOPE 1, 2 AND 3) the fuel we use for manufacturing and our own vehicles plus Details of our Scope 1, 2 and 3 GHG emissions in tonnes of our fugitive emissions of CO2. CO2 equivalent (stated as CO2e) during 2020 are set out in the table. Our Scope 1 and 2 emissions are independent of Scope 2 figures include indirect sources from the generation any GHG trades, and our Scope 2 emissions are reported of electricity we use at our sites. We report against this using both a location based and a market based approach. on both a location based and a market based approach. Commitments and key performance indicators are tracked Details about our Scope 3 GHG emissions in our value chain using the market based approach. (including emissions related to our ingredients, packaging, cold drink equipment (CDE) and third party transportation), Scope 3 figures include emissions from purchased goods and are also reported below. Additional Scope 3 figures will also services (specifically the packaging we put on the market be included in our 2020 CDP response. and the ingredients we use in our products); fuel and energy related activities not already included in Scope 1 and 2 (e.g. Our carbon footprint is calculated in accordance with emissions from well-to-tank and transmission and distribution); the WRI/WBCSD GHG Protocol Corporate Standard, upstream transportation and distribution; waste generated in using an operational control approach to determine operations; business travel (including employee business travel organisational boundaries. by rail and air); upstream leased assets (including the home charging of company vehicles); use of sold products (including In 2020, our Scope 1 and 2 emissions decreased by 14.4% CO emissions released by consumers); end of life treatment compared to 2019. Our total Scope 1, 2 and 3 GHG emissions 2 of sold products; and downstream leased assets (including (full value chain) have reduced by 11.9% versus 2019 and by the electricity used by our hot and cold drink equipment at 37.7% versus 2010. our customers’ premises). This accounts for over 90% of our Scope 3 emissions. Additional Scope 3 emissions, from capital INTENSITY RATIOS goods and employee commuting, are not included in our value CCEP chain figures below and we will report on these separately as GHG emissions (Scope 1 and 2) per litre of product produced part of our 2020 CDP response. All other Scope 3 categories (market based Scope 2 approach): 17.22g CO2e/litre of are not currently applicable to CCEP. product produced. Emission factors used include industry and supplier data, BEIS GHG emissions (Scope 1 and 2) per euro of revenue (market 2020 and IEA 2018 emission factors. 0.35% of our value chain based Scope 2 approach): 19.03g CO2e/euro of revenue. carbon footprint is based on estimated emissions (e.g. leased offices where energy invoices or the square metre footage size UK AND UK OFFSHORE of the site is not available). The figures for 2020 in the table, GHG emissions (Scope 1 and 2) per euro of revenue (market along with selected information on our website, are subject to independent assurance by DNV GL in accordance with the ISAE based Scope 2 approach): 15.96g CO2e/euro of revenue. 3000 standard. The full assurance statement with DNV’s scope NOTE ON SOURCES OF DATA AND of work, and basis of conclusion, has been published on CALCULATION METHODOLOGIES our website in May 2021. Under the WRI/WBCSD GHG Protocol, we measure our Tonnes of CO2e 2019 Scope 1 Direct emissions (e.g. fuel 196,919 229,713(A) emissions in three scopes, except for CO2e emissions from used in manufacturing, biologically sequestered carbon, which we report separately own vehicle fleet, as well outside these scopes. Our baseline year has been updated as process and fugitive to 2019, following approval of our new science based GHG emissions) emissions reduction target at the end of 2020. Our baseline Scope 2 (market 4,815 6,051(A) based approach) figures for 2019 have been restated to include new emission Indirect emissions Scope 2 (location (e.g. electricity) 144,011 170,245(A) sources and more accurate data. based approach) Scope 3 Third party emissions, 3,144,035 3,561,980(A) Data is consolidated from a number of sources across our including those related to business and is analysed centrally. We use a variety of our ingredients, packaging, methodologies to gather our emissions data and measure CDE, third party transportation and each part of our operational carbon footprint, including distribution, waste in our natural gas and purchased electricity data, refrigerant gas operations, business travel and use of sold products losses, CO2 fugitive gas losses and transport fuel, water supply, wastewater and waste management. We use emission factors GHG emissions Scope 1, 2(B) and 3 3,345,769 3,797,744(A) (Full value chain) relevant to the source data including UK Department for Business, Environment & Industrial Strategy (BEIS) 2020 Energy use and International Energy Agency (IEA) 2018 emission factors. Direct energy consumption (Scope 1) (kWh) 708,998,235 804,677,475 Direct energy consumption (Scope 2) (kWh) 575,929,963 644,114,285 (A) Restated – as described above. (B) Market based approach only 2 May 2021 In addition, all of our manufacturing sites are verified by our TARGETS AND MEASUREMENT external third party certification to The Coca-Cola Company’s WHAT ARE YOUR CARBON REDUCTION TARGETS? (TCCC) audited quality, environmental and safety certification We launched a new climate strategy in December 2020, system, KORE. including an ambition to reach net zero GHG emissions by 2040 and a target to reduce absolute GHG emissions across HOW DO YOU MANAGE CLIMATE RELATED RISKS our value chain by 30% by 2030 (versus 2019). Our GHG AND OPPORTUNITIES? reduction target has been approved by SBTi as being in line The process for identifying, assessing and responding to with a 1.5˚C reduction pathway, as recommended by the IPCC. climate related risks – including those to our direct operations, as well as upstream and downstream risks – is integrated into Over 90% of our value chain GHG emissions come from our our Enterprise Risk Management (ERM) processes and our supply chain. For that reason we have also committed to company’s overarching governance processes. support our strategic suppliers to set their own science based carbon reduction targets and shift to 100% renewable In 2020, our annual Enterprise Risk Assessment (ERA) electricity by 2023, and to begin sharing their carbon identified 12 principal risks – including climate and water footprint data with us. related risks. Principal risks are those that have been identified as those risks which could materially and adversely HOW ARE YOU PLANNING TO ACHIEVE YOUR CARBON affect our business, or could cause a material difference to REDUCTION TARGETS? our financial results. To reach net zero by 2040, our focus is on achieving a 30% reduction in GHG emissions between 2019 and 2030. To do To support this process, and to enhance our understanding this, we will need to work together in partnership with of the climate related risks that we face, we completed a suppliers across our value chain. climate risk scenario assessment in partnership with TCCC in 2019, in line with guidance from the Task Force on Climate- Our plan is supported by a three-year, €250 million related Financial Disclosures (TCFD).