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 2 Coca-Cola India Sustainability Report 2012 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 3 4 Coca-Cola India Sustainability Report 2012 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 5 Coca-Cola India Sustainability Report 2012 6 Coca-Cola India Sustainability Report 2012 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