2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria

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2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
2020
REFRESHINGLY
SUSTAINABLE
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
2                                                                                                                                                                                 About this report   3

    EVERYTHING                                                     ABOUT THIS
    AT A GLANCE                                                    REPORT
                                                                   Coca-Cola Austria reports on its sustainability activities
                                                                   as Coca-Cola System.

    3    About this report                                         Coca-Cola Austria reports on its sustainability activities as Coca-Cola System.
    4    Sustainability in numbers                                 The following 2020 Sustainability Report offers a wide-ranging overview of essen-
    6    Full of optimism towards a sustainable future, together   tial sustainability topics and performance indicators for Coca-Cola HBC Austria
                                                                   and Coca-Cola GmbH, which make up Coca-Cola System in Austria (see page 12).
    8    World Without Waste progress report
                                                                   As was the case in 2017 (the only sustainability report provided by Coca-Cola HBC
                                                                   Austria at the time), this report was created in accordance with the Global Report-
                                                                   ing Initiative (GRI) Standards: Core option. Since 2018, the report has been pub-
         AT A GLANCE                                               lished for the entire Coca-Cola System in Austria. It meets the requirements for
    11   This much of Austria can be found in Coca-Cola            the preparation of an environmental statement under EMAS Regulation
                                                                   2018/2026, 2017/1505, and EMAS 1221/2009. Furthermore, in this report,
    14   Our management teams
                                                                   Coca-Cola Austria voluntarily fulfills the main requirements of the NaDiVeG
    15   Responsible corporate governance
                                                                   (Nachhaltigkeits- und Diversitätsverbesserungsgesetz [Sustainability and
                                                                   ­Diversity Improvement Act]) to disclose non-financial information. This report
                                                                    documents key figures collected between 2018 and 2020. It also includes
         STAKEHOLDERS                                               ­additional relevant activities and information up to the May 1, 2021, editorial
                                                                     deadline. References to GRI contents are shown in the GRI Index starting on page
    17   Stakeholder dialogue and key issues
                                                                     66. The most important sustainability topics were determined by means of a
                                                                     materiality assessment. The assessment was carried out based on an internal
                                                                     employee survey and an external stakeholder survey (see page 18f). To ensure the
         ECONOMY                                                     quality of this report, we were mindful of balance, comparability, accuracy, and
    23   Anchored locally, together!                                 currency of the information and data. The information in this report applies mainly
                                                                     to Coca-Cola HBC Austria and Coca-Cola GmbH. Some of the specified data are
    24   Our position: sustainable and proactive management
                                                                     results from the entire Coca-Cola HBC Group or The Coca-Cola Company. In
    25   Our suppliers                                               these cases, reference is made to the Coca-Cola HBC Group’s integrated
                                                                     ­Business and Sustainability Report, or the information provided by The Coca-Cola
                                                                      Company. The materiality process, and the essential sustainability figures derived
         COMMUNITY                                                    from it, were reviewed by our external auditor. The respective confirmation from
                                                                      Kanzian Engineering & Consulting GmbH can be found on page 72.
    27   Our commitment to our team
    35   Quality management                                        For environmental protection reasons, this report is only available as a free
    36   Product responsibility                                    ­download, in German or English, on our website www.coca-colahellenic.at.
    38   We invest in the community
                                                                   Gender equality is important to us. We therefore use gender-neutral wording
                                                                   throughout this report. The forms of speech used relate to all genders equally.
         ENVIRONMENT
    45 Our resources, packaging, and waste                         If you have questions or comments, please contact Mark Joainig,
    49 Water as a valuable resource                                Public Affairs & Communications Director Coca-Cola HBC Austria
    51 Protection for the life source of our products              under mark.joainig@cchellenic.com or Philipp Bodzenta,
    52 Environmental protection and energy                         Public Affairs Director Coca-Cola Austria at pbodzenta@coca-cola.com.
    57 Environmental Program 2021
    59 Our environmental key figures at a glance
    62 ABC analysis according to EMAS regulations
    64	
       Direct and indirect environmental aspects according
       to EMAS regulations
                                                                                                                                                             REG.NO. AT-000059

    GRI INDEX                                                                                                                                              This sustainability report meets
                                                                                                                                                           the requirements for the preparation
    67   GRI Standards – Core option                                                                                                                       of an environmental statement in
                                                                                                                                                           accordance with EMAS 2018/2026,
                                                                                                                                                           2017/1505 and EMAS 1221/2009.
                                                                                                                                                           The data provided applies to the
                                                                                                                                                           year 2020.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
4   Key figures                                                                                                                                                                                                                                  Key figures   5

    SUSTAINABILITY IN NUMBERS                                                                                                                                            SOCIAL ENGAGEMENT

                                                                                                                          During the COVID-19 crisis,                                     Since 2017 we have been providing young
    We vigorously pursue our sustainability goals, even in challenging times such as these. We continue                   Coca-Cola provided                                              people with new career prospects through
    to focus on a balanced and sustainable packing mix that meets various needs and occasions, paying particular
    attention to the careful use of water resources, working actively to reduce our CO₂ footprint. We are                 aid over €600,000                                               our #YouthEmpowered initiative. Around
    committed to our team and the communities we are active in and engage in activities that positively                   through the Miteinand (Together)                                4,300 JOBSEEKERS
    impact the lives of our consumers.                                                                                    Emergency Fund, The Coca-Cola                                   have received support up to date.
                                                                                                                          Foundation and beverage deliveries.

     LOCAL FOOTHOLDS

                  Around
                                                                                                                          As part of the Get Active Social Business
                                                                                                                          Award, we promote social entrepreneurship and
                                                                                                                          innovation with cash and non-cash benefits worth over   €90,000.
          402 MILLION
           LITERS                                                                  In 2020, around                                    PACKAGING
                  of beverages
                                                                           €1.7 million
                                                                                                                                                currently contains – based on the production volume – around 12.5%.
                  included in our
                  portfolio are produced                                       was invested in resource conservation             & RECYCLING   The portion of reusable packaging included in our portfolio

                  per year in Austria.                                         projects (raw materials, water, energy).
                                                                                                                              With the innovative
                                                                                                                              Grip&Gopackaging    KeelClip™
                                                                                                                                         for our six-packs of cans,
                                                                                                                                                                                                         We were able to unite

                                                                                                                                            we will save around                                         35 LEADING,
                                COMMITMENT                                                                                                50 TONS                                                        DOMESTIC BEVERAGE BRANDS
                                                                                                                                     of plastic annually in the future                                   under one sustainable roof with the RecycleMich
                                   TO OUR TEAM                      Women presently hold      39 %.
                                                                of our senior leadership positions. Currently,
                                                                                                                                                 in Austria.                                             initiative (RecycleMe).

                                                                6 out of 10 members                                                                                                                                            We currently

                                                                                                                                                                                                                1.70 liters
                                                           in our senior leadership team at Coca-Cola HBC Austria                                                                                                             require approx.
                                                                    are women.                                                                                                           WATER
    Our team is as diverse as                            Our team dedicated approximately                                                                                                                               of drinking water
                                                       12,400 hours
    our portfolio: Coca-Cola’s
                                                                                                                                                                                                                                 per liter
    employees come from
                                                                                                                                                                                                                          of beverage produced.
    26 NATIONS.
                                                                                                                                    7.9 million
                                                         to talent development.                                             Through optimizations in our
                                                                                                                            production process, we have
                                                                                                                           been able to save an additional

               With coffee,
                                                    PRODUCT RESPONSIBILITY
                                                                                                                          liters of water per year.
                                       3
             premium spirits
            and hard seltzers,
     we successfully tapped into
         new beverage segments.                                                                                            ENVIRONMENTAL
                  9 BRANDS                         Overall, we were able
                   were integrated                 to surprise our consumers                                                 PROTECTION & ENERGY
                  into our portfolio
                     through this.
                                                   with37 innovations,
                                                               10       of which have                                     Our Edelstal plant
                                                                                                                                                                                                                   The 2.86               MWp
                                                                                                                                                                                                                    photovoltaic system of the operators
                                                                                                                                                                                                                    Selina Photovoltaic GmbH and SOL
                                                                                                                                    CO₂
                                                                reduced sugar or                                          is supported by

                                                                                                                                                                                                      2.9
                                                                calorie contents.                                                                                                                                   Photovoltaik Capital GmbH on the roof
                                                                                                                          100% green power. This reduces                  emissions by
                                                                                                                                                                                                                    of our production site in Edelstal feeds

                                                                                                                          4,000 TONS A YEAR.                                                                       gigawatt hours of solar power
                                                                                                                                                                                                            into the grid each year.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
6   Editorial                                                                                                                                                                                                                                                                                Editorial   7

    FULL OF OPTIMISM TOWARDS A
    SUSTAINABLE FUTURE, TOGETHER
    2020 has yet again shown us:     Both these values are not only anchored within our business philosophy, but our everyday
    solidarity and responsibility    lives. Particularly in these challenging times it is more important than ever for Coca-Cola in
    for and within society are the   Austria to act as the responsible and reliable partner our clients, consumers, partners, and
    foundation of sustainable        employees value.
    crisis management.
                                     Since the start of the pandemic, the Coca-Cola System has set strong and targeted initia-
                                     tives to overcome the corona crisis, both internationally and regionally. In Austria, our
                                     Edelstal plant is a critical part of the infrastructure due to its key position within the food and
                                     beverage industry. As part of our top priority to secure the health and safety of our employ-
                                     ees and their families, we were able to provide Austrians with our products at all times. This
                                     represents an unparalleled achievement which was only made possible thanks to the com-
                                     mitment and dedication of every single person involved, showing us, yet again, that our team
                                     is the most important ingredient to our success.

                                     From the get-go of the pandemic, we supported our clients and partners, bundling our                  Not least due to the situation surrounding corona, 2020 saw the e-commerce sector gain
                                     efforts and resources where they are most needed: with the Miteinand Emergency Fund                   importance given the variety of digital sales potentials it presents for us and our clients and
                                     and additional programs such as Das erste Coke geht auf uns (The First Coke Is On Us) and             consumers. Through involvement with getsby and Alfies, we accommodate this develop-
                                     Gast Wirt Kultur (Guest, Host & Culture) we were able to strengthen the hotel, food service,          ment and work alongside our partners to advance sustainable initiatives and innovative
                                     and events sectors which were particularly affected. As Coca-Cola System, in Austria, and             solutions. As an innovation leader in the field of digital solutions, the RecycleMich initiative,
                                     The Coca-Cola Foundation worldwide, we were able to implement far-reaching measures,                  brought to life by Coca-Cola Austria in partnership with the environmental management and
                                     donating a total of $120 million in COVID-19 aid, as well as supporting aid organizations and         collection expert Reclay, also has one single aim in uniting the beverage industry: the sus-
                                     medical facilities in their work.                                                                     tainable increase of collection and recycling rates in Austria.

                                     In 2020 we also showed that we made a strong impact on equal opportunity and diversity,               In 2020, we were able to continue our path towards being a beverage company that offers a
                                     despite the challenging situation. We teamed up with the international women’s network, the           product for every taste and situation and delighted our consumers with various new product
                                     female factor, expanding our long-term partnerships with organizations such as Special                innovations. With our entry into the category of spirits, hard seltzers, and coffee, we were
                                     Olympics. Our program #YouthEmpowered, helping us positively impact the lives of unem-                able to tap into new market segments during this challenging year. These additions will
                                     ployed youths since 2017, was continued in 2020 through virtual means.                                sustainably enrich the Austrian market with products such as Topo Chico or Costa Coffee.
                                                                                                                                           Not only our development into a one-stop-shop provider for clients within the food and
                                     And even if the corona pandemic seems to currently overshadow all else, we always had a               beverage sector is on a positive path: despite challenging conditions we were yet again able
                                     sustainable and optimistic future in mind and an ambitious goal to support it: since 2018, a          to expand our market share of non-alcoholic beverages in Austria by 0.4* percentage points.
                                     “World Without Waste” has been the vision behind every activity in every one of our regions.
                                     In 2020 we continued to pursue this goal behind the backdrop of the pandemic, somewhat                These strategies, measures, and initiatives stem from a philosophy that has guided
                                     less vigorously but no less persistently. We continue to rely on a balanced and sustainable           Coca-Cola for over 130 years: we stand for optimism, joie de vivre, openness, and courage to
                                     packaging mix to meet our customers’ and consumers’ wide variety of needs. With the                   try new things. Therefore, when we set goals to benefit our clients and consumers, we don’t         * market value share of non-alcoholic beverages 2020:
                                                                                                                                                                                                                                                  24.3%: Source: Nielsen Markettrack, Total
                                     expansion of our reusable glass portfolio now including 1L Coca-Cola and Römerquelle                  just want to help get out of this situation together, we have an overreaching, more positive,          Non-Alcoholic Beverages, LH incl. H/L, FY2020 vs.
                                     bottles, we are increasing our reusable ratio within the retail sector. Reusability and recycling     and sustainable future for us all in sight.                                                            FY2019
                                     material ratio play a large role when it comes to a lot of our packaging. In 2020, we were able
                                     to integrate Grip&Go cardboard packaging and sustainable and innovative packaging solu-
                                     tions for our aluminum multipacks.

                                     We are also well ahead of schedule in terms of energy and resource efficiency and were able
                                     to achieve significant process improvements when it comes to the use and treatment of a
                                     valuable resource: water.                                                                             Herbert Bauer                                     Philipp Bodzenta
                                                                                                                                           General Manager Coca-Cola HBC Austria             Public Affairs Director Coca-Cola Austria
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
8   World Without Waste Progress report                                                                                                                                                                                                                                       World Without Waste Progress report   9

    WORLD WITHOUT WASTE
    PROGRESS REPORT
                                                                                                                                                           Collection rate (PET)                  Recycling rate (PET)                            Recyclability rate

    Even in challenging times,                                                                           is the RecycleMich app that was presented in      100 % by 2030                          50 %       by 2030                              100 %	of packaging by 2025
                                                                                                                                                                                                                                                                                       World Without Waste
    we pursue our vision of a                                                                            March 2021. The app rewards correct                                                                                                                                           Goal
    world without waste.                                                                                 collection and recycling behavior with
    Although the well-being of our employees,                                                            attractive prices and intends to contribute to                                           30 %	recycled PET incorporated
                                                                                                                                                           90 %     by 2029                                                                       90 %	by 2025                        EU requirement
    clients, and consumers has been in the                                                               the increase of consciousness and commit-                                                      by 2030
    foreground for us this past year: we still                                                           ment towards recycling within the popula-         70  %	3 out of 4 bottles              100 % for Römerquelle                           100 %	technical recyclability
    vigorously pursued our ambitious goal in                                                             tion. The pilot project will be evaluated for            enter the recycling                                                                    of packages in AT             This is where we stand
                                                                                                                                                                                                  38 %       for the entire portfolio*
    2020. Since 2018, a “World Without Waste”                                                            the first time in Q3 2021.                               process.                                                                                                             in Austria
    has been our vision of a sustainable future                                                                                                                                                   *PET products bottled in 2020 in Edelstal
    for trade in every region we are present in. By
    2030 we would like to collect and recycle the                                                        We are driving the
    same number of bottles and cans as we                                                                circular economy together.
    introduce into the market. The Coca-Cola                                                             Strong partnerships are at the heart of our
    Company set an ambitious milestone to                                                                focus when it comes to increasing collection
    achieve a collection rate of 90% by 2025.                                                            and recycling rates for primary packaging in
    With these important and self-imposed                                                                Austria. Coca-Cola continuously works
    goals, we have even exceeded the EU               Waste strategy, we act as an innovation            towards this goal together with local part-
    guidelines.                                       leader regarding packaging, and we con-            ners such as Altstoff Recycling Austria (ARA)
                                                      stantly work on optimizing existing packag-        or Reclay Group. Together with our clients       PET has had its most successful year so               in 2020, we were able to integrate an innova-
    Collection rates play a large role within our     ing and creating package-free and more             we have also worked on concepts to raise         far: over 28,200 tons of PET material –               tive and eco-friendly solution into our
    strategy given that we are aware that our         eco-friendly alternatives for our products.        awareness and attention for collection and       ­corresponding to around 1.13 billion PET             process: the Keel-Clip™ is an external
    packaging and how we handle it are at the                                                            proper recycling, while simultaneously            bottles – were recycled, helping us gain             Grip&Go packaging that removes plastic film
    center of the discussion on plastic waste. We                                                        offering practical solutions with added value:    valuable secondary raw material for new PET          from our sixpack of cans, therefore consid-
    are committed to leading a constructive           We encourage proper                                since September 2020, Alfies, Vienna’s            bottles. This represents a 7.3% increase in          erably contributing to the decrease of plastic
    dialogue with our stakeholder groups and          collection and recycling.                          fastest online supermarket, collects as a         comparison to the previous year.                     in secondary packaging. This change will lead
    have set sustainable targets to be a part of      A high collection rate is indispensable for the    part of a co-operation with Römerquelle                                                                to an annual saving of around 50 tons of
    the solution. Within our World Without            reuse of PET bottles. A deciding factor for        used PET-bottles from consumers during                                                                 plastic in Austria. We want to stay on this
                                                      this is also the contribution our consumers        their next delivery, and disposes of these       We accelerate recyclability.                          road and create more eco-friendly packag-
                                                      make. With the RecycleMich initiative, which       correctly.                                       One hundred percent of the materials we               ing and continue to save packaging material
           http://www.recyclemich.at
           Further information about the              started as a pilot project in Vienna,                                                               use for our PET bottles and cans are recycla-         where we can.
           ­RecycleMich app can be found              Coca-Cola Austria was able to unite the            The PET to PET Recycling plant in Müllen-        ble. To close material cycles, we use a
            on the website.                           Austrian beverage industry behind the EU           dorf, founded by Coca-Cola HBC in cooper-        complex process adding high-quality re-
                                                      aims of achieving a 90% collection rate for        ation with four other beverage producers, is     granulate from PET bottles to new PET                 We are expanding
                                                      one-way beverage packaging by 2029. At the         a prime example of the success of our            bottles. Since 2019, various Römerquelle              our reusable portfolio.
                                                      heart of this initiative, which seeks out active   efforts with strong partnerships to increase     PET bottles are made exclusively out of               We rely on a balanced and sustainable
                                                      solutions to achieve the collection rates set,     the collection and recycling rates. PET to       100% recycled PET. In terms of the propor-            packaging mix to meet a wide variety of
                                                                                                                                                          tion of recycled material in new PET bottles,         customer and consumer needs as well as our
                                                                                                                                                          the EU specifies a recycling quota of 25% by          ambitious sustainability goals. The increase
                                                                                                                                                          2025, and 30% by 2030 at the latest. With             of reusable rates and the expansion of our
                                                                                                                                                          our Römerquelle PET bottle made from                  portfolio within this area was therefore          the 1-liter Coca-Cola refillable glass bottles.
                                                                                                                                                          100% recycled material, this puts us over 10          vigorously pursued in 2020. At Coca-Cola          Our 0.33-liter Coca-Cola glass bottles are
                                                                                                                                                          years ahead of the EU aims. At the end of             HBC Austria, most of our brands have              available in selected grocery stores.
                                                                                                                                                          2020 our bottles across the entire portfolio          successfully been available in reusable glass
                                                                                                                                                          of PET bottles produced at the Edelstal plant         bottles for years in the food service and         Due to the partial closure of the food service
                                                                                                                                                          yielded a recycling material rate of 38%. This        hotel industry – from our Römerquelle             sector during the corona pandemic – a
                                                                                                                                                          decline in comparison to the previous year is         mineral water to sodas such as Coca-Cola,         sector in which we use reusable containers
                                                                                                                                                          due to the low availability of recycling materi-      Fanta, and Sprite, and even FUZETEA, and          to a large extent – our share of reusable
                                                                                                                                                          al leading back to the increased demand. We           Cappy. Refillable premix and postmix con-         packaging slightly declined despite the
                                                                                                                                                          aspire to significantly increase this share in        tainers are available for our clients using       introduction of new reusable packaging in
                                                                                                                                                          2021 compared to 2020, particularly against           dispensing systems. In the retail sector, our     the retail sector in 2020. Overall, this share
                                                                                                                                                          the backdrop of the continuous develop-               refillable portfolio was expanded through the     – measured in terms of production volume
                                                                                                                                                          ment of processes for PET recycling, aimed            introduction of the 1-liter Römerquelle and       – currently lies around 12.5%.
                                                                                                                                                          to increase the availability of material.

                                                                                                                                                          As is the case with our PET bottles, recycling
                                                                                                                                                          percentage and reusability play a large role                     ttps://www.coca-cola-oesterreich.at/sustainability
                                                                                                                                                                                                                          h
                                                                                                                                                          when it comes to all other packaging we use                     https://at.coca-colahellenic.com/de/a-more-sustainable-future
                                                                                                                                                          – such as our films or reusable glass bottle                    Further information for a “World Without Waste” can be found on Coca-Cola ONE and
                                                                                                                                                          cases. With the repacking of aluminum cans                      the Coca-Cola HBC website.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
AT A GLANCE                                                                                           Coca-Cola Austria at a glance   11

              THIS MUCH OF AUSTRIA CAN
              BE FOUND IN COCA-COLA
              Coca-Cola HBC Austria is one of the leading drink companies in Austria and a strategic
              bottling partner of The Coca-Cola Company. Together, these two companies form the
              Coca-Cola System in Austria and always offer the right drink for every occasion with their
              innovative product range tailored to the needs of consumers.

              Around 900 team members work every day for Coca-Cola                 The companies
              System clients in Austria. The Coca-Cola HBC Austria employ-
              ees work in our headquarters in Vienna, in our sales offices in      Coca-Cola HBC Austria GmbH
              the federal states, and our state-of-the art production and          Clemens Holzmeister Straße 6
                                                                                   1100 Wien
              logistics center in Edelstal (Burgenland). From there, we supply
              the entire Austrian market with Coca-Cola products. We deliver
                                                                                   Tel: 01-61060-0
              to around 60,000 clients in the food retail and food service         E-Mail: info@coke.at
              sector, through which our products reach our consumers.              www.coca-colahellenic.at
               Additionally, around 5,600 drink coolers ensure that these
                products are cooled nationwide.                                    Production and logistics center:
                                                                                   Edelstal
                 At The Coca-Cola Company (Coca-Cola GmbH), we also
                  ensure that our brands and products stay in demand               Branches and depots:
                   among consumers. To do so, we stay on top of current            Asten, Premstätten, Salzburg, Innsbruck,
                                                                                   Klagenfurt, Dornbirn
                    trends and develop marketing strategies for the Austrian
                     market in cooperation with our globally active col-
                                                                                   Coca-Cola HBC Austria is part of the
                      leagues.                                                     ­Coca-Cola HBC Group.

                                                                                   General Manager: Herbert Bauer
                        We produce locally and distribute exclusive                ÖNACE-Code: 11.07-0
                        premium brands.
                         In addition to the known brands, Coca-Cola, Fanta,        Coca-Cola GmbH
                         Sprite, and Mezzo Mix, our product portfolio also         Am Europlatz 2
                          includes the Austrian mineral water Römerquelle,         1120 Wien
                           FUZETEA, the premium bio brand Honest, Cappy,
                                                                                   Tel: 01-66171-0
                           as well as energy drinks from Coca-Cola Energy
                                                                                   E-Mail: info@coke.at
                            and Monster, and the sports drink Powerade.            www.coca-cola-oesterreich.at
                            Coca-Cola HBC Austria is also an exclusive distri-
                            bution partner of Costa Coffee as well as the inter-   Coca-Cola GmbH is part of
                            national premium spirit brands Glendalough,            The Coca-Cola Company.
                            Lucano, Nemiroff, Padre Azul, the Famous
                             Grouse, and Tonka Gin. In 2020 we entered the         Country Manager: Fabio Andrea Cella
                             hard seltzer market with Topo Chico.

                            Aside from bottling directly at the production site
                           in Edelstal, specific products for the Austrian
                           market are produced in other Coca-Cola HBC
                           Group plants. Austria also produces drinks for the
                           Slovak market.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
12   Coca-Cola Austria at a glance                                                                                                                                                                                                                                            Coca-Cola Austria at a glance   13

     Coca-Cola HBC Austria’s                         Our memberships:                                bag-in-boxes are produced on one line each.       Creating value together
     warehouse                                       We are a member of numerous industry-­          Per hour and line, we can produce between         Our business model is at the heart of everything we do. It defines which activities we pursue, the relationships we build on,
                                                     relevant associations and represent our         twelve and up to 45,000 containers. The           and the performance and results we aim to achieve in order to create value for all stakeholders – both in the short, medium
     Internal surface:                               company and the interests of the beverage       glass line produces a maximum capacity of         and long term.
     30,000 m2                                       industry within these associations.             45,000 containers and is therefore one of
                                                     –	Charta der Vielfalt (Diversity Charter)      the fastest lines and extremely energy
     Overall capacity:
     Around 1 million pallets per year
                                                     –	forum ernährung heute (f.eh) (Forum          efficient. Not only is its speed impressive but   CAPITALS
                                                        Nutrition Today)                             so are the highest safety standards it func-
                                                     –	Forum Natürliches Mineralwasser (Forum       tions under. Since 2020, Coca-Cola HBC             We carefully manage inputs to       Financial                            Natural                               Social
     Storage capacity
     2018: 45,000 pallets                               Natural Mineral Water)                       Austria also fills Coca-Cola, Fanta, Sprite,       our business with a focus on        Shareholders’ equity, debt           Water, energy, eco-system            Communities, customers,
     2019: 45,000 pallets                            –	GS1 Austria                                  Mezzo Mix, and Römerquelle cans on a new           preserving the resources            Manufactured
                                                                                                                                                                                                                                 services, biodiversity               suppliers, diverse groups of
                                                                                                                                                        available to us.                                                                                              stakeholders, NGOs, IGOs,
     2020: 44,500 pallets                            –	UN Global Compact                            canning line. The high-tech line produces                                              Plants, warehouses, distribution     Intellectual                         industry coalitions
                                                     –	Union of European Beverages Association      around 90,000 cans per hour, which                                                     centres                              Brands, standards, processes,
     Gate2Gate time:                                    (UNESDA)                                     amounts to approx. 25 cans per second.                                                                                      corporate reputation                 Partnering
     2018: 02:26 h                                                                                                                                                                          Human
                                                     –	Verband der Getränkehersteller               With the implementation of innovative                                                                                                                            With The Coca-Cola Company
     2019: 01:43 h                                                                                                                                                                          Employees, partners
                                                        ­Österreichs (Association of Austrian        packaging technologies such as the
     2020: 01:37 h
                                                         Beverage Manufacturers)                     KeelClipTM system – cardboard-based
     Throughput
                                                     –	American Chamber of Commerce                 sixpack packaging – we are able to produce
     (Pallets moved per man hour)                    –	Österreichischer Markenartikelverband        sustainable secondary packaging solutions.        VALUE ADDED BY
     2018: 32 pallets/hour                               (Austrian Association for Brands)
     2019: 33 pallets/hour                           –	Österreichische Industriellenvereinigung     The blow molding hall is where the PET                                                          Broadening our
     2020: 31 pallets/hour                               (Federation of Austrian Industries)         preforms are blown into their typical bottle                   Optimising                      distribution while                     Joining forces                         Winning
                                                     –	Österreichischer Gewerbeverein               shape before being transported to the                        our production                   gaining efficiencies                with our customers                       the trust of
     Loaded pallets/day                                                                                                                                    infrastructure continuously            through outsourcing                 for flawless execution                   our consumers
                                                         ­(Austrian Craft and Trade Association)     bottling plant. Not to be missed is our
     2018: 4,042 pallets (average)                   –	Österreichischer Süßtoffverband              automated warehouse that can house a
     2019: 3,853 pallets (average)                        ­(Austrian Sweeteners Association)         remarkable 45,000 pallets. Here, “LGVs”
     2020: 3,382 pallets (average)
                                                     –	Österreichisch-Amerikanische Ge-             – driverless forklifts – use a laser to scan                                                                                                                            Value created
                                                           sellschaft (Austro-American Society)      their position, allowing them to automatical-                                                                                                                           We endeavour to
                                                     –	Österreichische Sporthilfe (Austria Sports   ly move between two products. Automated                                                                                                                               deliver value through
                                                                                                                                                           Manufacturing                                                                                                   desired outputs with
                                                           Aid)                                      logistic management enables exact planning
                                                                                                                                                                                                                                     Community                             maximum efficiency
                                                     –	Österreichische Gesellschaft für Er-         for efficient loading and unloading of goods          We use these inputs to                      Bottling the
                                                                                                                                                                                                                                     engagement                                  and care.
                                                           nährung (Austrian Nutrition Society)      to be transported.                                    manufacture our beverages.                 manufactured
                                                                                                                                                                                                                                    We engage with consumers,
                                                     –	Verband der Ernährungswissenschaften                                                                                                            beverages
                                                                                                                                                                                                                                    employees and communities.             Unit cases of beverages
                                                           Österreichs (The Association for Nutri-                                                                                                                                  Our aim is to build a solid
                                                                                                                                                                                                                                                                                2.1 billion
                                                           tional Scientists Austria)                The Coca-Cola Company                                                                                                          foundation of trust in our
                                                                                                                                                                                                                                    Company so that our business                 Customers
                                                     –	Verband der Diätologen Österreichs           The Coca-Cola Company is a Total Beverage
                                                           (Austrian Association of Dieticians)      Company offering 500 brands in over 200                                                                                        can thrive.                                1.6 million
                                                     –	Protective Association                       countries. In addition to the company’s                                                                                                                                 Consumers served
                                                       – Österreichischer Spirituosenverband        Coca-Cola brands, the portfolio includes                                                                                                                              over 600 million
                                                              (Austrian Spirits Association)         some of the world’s most valuable beverage                                                                                                                             Direct employment
                                                                 – Österreichischer Kaffeeverband   brands, including plant-based beverages of                                                                                                                                   27,722
                                                                    (Austrian Coffee Association)    the brand AdeZ, Ayataka Green Tea, Costa                  Distribution                     Sales and execution
                                                                                                                                                              We distribute the final           We work with our customers                                                 (Data: Coca-Cola HBC Group)
                                                                                                     Coffee, Dasani water, Del Valle juices and
                           Brand Ownership                                                                                                                    products through our              to reach consumers.
                                                                                                     fruit nectars, Fanta, Georgia coffee, Gold
                          Consumer Marketing                                                                                                                  unique logistics
                                                                  High-Tech in Edelstal              Peak Tea and Coffee, Honest Tea, innocent
                         Portfolio Development                                                                                                               ­infrastructure.
                                                                  Our production and logistics       smoothies and juices, Minute Maid juices,
                          Concentrate Supply                      center in Edelstal sets new        Powerade sports drinks, Simply juices,
                                                                  standards in many areas. A         smartwater, Sprite, vitaminwater and ZICO
                                                                  core element of the plant is       Coconut Water. The company is listed on the       VALUE SHARED WITH
                                                                  our water treatment and syrup      New York Stock Exchange.
                            Data & Insights
                                                                 hall. The highly modern infra-                                                         We create value for our             Employees                             Communities                         Consumers
                          Portfolio Strategy                                                                                                                                                                                      and environment
                                                               structure of the water treatment                                                         ­stakeholders which, in turn,       Rewarding our people                                                      Meeting consumer needs by
                  Investments in Revenue Growth
                                                              system enables water prepara-          The Coca-Cola HBC Group                             builds value for our business      Secures a skilled and motivated       Enriching the lives of              offering them choice and quality
                           Talent Exchange                      tion of around 300 m3 water per      Coca-Cola HBC Austria is a subsidiary of            over time.                         workforce                            ­communities, contributing to        Generates revenue, contributing
                       World Without Waste                       hour, while the syrup room          Coca-Cola Hellenic Bottling Company AG                                                  The Coca-Cola Company
                                                                                                                                                                                                                                  the public good and safeguarding    to the sustainability of the
                                                                                                                                                                                                                                  the environment                     business
                                                                  mixes and prepares the             based in Switzerland. The company is a                                                 Investing in our business and         Makes us local and earns us the
                                                                  concentrate for our soft drink     growth-oriented consumer goods and                                                     executing flawlessly                                                        Shareholders
                                                                                                                                                                                                                                  trust of our communities
                                                                  production. The room con-          strategic filling partner of The Coca-Cola                                             Ensures a fruitful partnership for                                         Delivering strong sustainable
                                                                  sists of 16 tanks with multi-      Company, with a sales volume of over 2                                                 years to come                        Customers                             earnings and dividends
                                                                                                                                                                                                                                 Helping customers increase sales      ­Establishes a supportive
                                                                  functional programming and is      billion unit cases, with production and
                      Production of Beverages                                                                                                                                                                                    Provides us with channel diversity   ­shareholder base
                                                                 designed for easy mainte-           distribution centers in 28 countries, supply-
                       Customer Marketing,                      nance. A total of 11 bottling        ing around 618 million consumers annually.
                     Execution & Management                   systems (“lines”) are available for    The company is listed on the London stock
                  Portfolio Sales & Route to Market          bottling in the production center.      exchange and has a secondary listing in
                    Bottling Capex Investments            We use two lines to bottle our reusa-      Athens. Coca-Cola HBC is listed in the Dow
                                                       ble glass bottles and five lines for our      Jones Sustainability Index as well as in the
                                                    PET bottles while premix, postmix, and           FTSE4 Good Index.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
14   Coca-Cola Austria at a glance                                                                                                                                                                                                                                          Coca-Cola Austria at a glance   15

     OUR MANAGEMENT TEAMS                                                                                                                            RESPONSIBLE CORPORATE
                         Coca-Cola
                                                                                                                                                     GOVERNANCE
                        HBC Austria
                                                                                                                                                     Coca-Cola strives to achieve the best possible economic and ecological business results and sustainable
                                                                                                                                                     growth. We are firmly convinced that these goals can only be achieved through careful business activity and
                                                                                                                                                     require compliance with the highest corporate and social responsibility standards. Respect for the individual
                                             Herbert Bauer                                                                                           and compliance with rules and guidelines are the core of our integrative business culture.
                               Country General Manager Coca-Cola HBC Austria

                                                                                                                                                     Values are a                                      Focus on knowledge                               Responsibility within
                                                                                                                                                     commitment.                                       transfer & transparency                          Coca-Cola Austria
                                                                                                                                                     Coca-Cola HBC Austria depends on the              When joining the company, every employee         Our sustainability goals are based on the
                                                                                                                                                     trust of its clients, consumers, and the          undergoes extensive online training which        global goals for sustainable development put
                                                                                                                                                     community in which the company works. We          clearly communicates the contents of our         forth by the UN (see page 17). We have set
                                                                                                                                                     all must earn this trust every day anew. Our      guidelines and the manuals. The training is      ourselves specific environmental goals
           Francesca Pasini                Bettina Augeneder                   Mark Joainig                                  Andreas Hosiner         workplace culture and our market success          followed up by a brief multiple-choice test to   relating to energy and water consumption,
          Chief Financial Officer        Human Resources Director         Public Affairs &                                  Country Sustainability   are founded on our values: to win over            verify the knowledge retained. Random            as well as CO₂ emissions, and are pursuing
                                                                       Communications Director                                    Manager            clients, promote our employees and                knowledge checks are also carried out            their implementation at the highest man-
                                                                                                                                                     high-performance standards, integrity,            among all employees throughout the year in       agement level. Our management, in Austria,
                                                                                                                                                     learning, and cooperation. We treat each          addition to tailored, personalized training      unites competencies in sales, marketing,
                                                                                                                                                     other with respect at the workplace and           sessions being held for specific employee        commercial excellence, supply chain, fi-
                                                                                                                                                     value the contributions of all team members.      groups. In 2020, one of our annual focus         nance, human resources, public affairs &
                                                                                                                                                     We know that we can only be successful if we      weeks on the topic of “Ethics & Compliance”      communications, legal and business solution
                                                                                                                                                     create an inclusive, fair, and positive work-     was dominated by the new and revised             systems (IT) skills. Corporate responsibility is
                                                                                                                                                     place environment. We act firmly within the       guidelines as well as a general knowledge        integrated into the duties of Coca-Cola HBC
             Christoph Till                  Manuela Unger                  Claudia Simon                                      Nicole Gruber         market, but our actions are always legal and      refresher for all employees.                     Austria and Coca-Cola GmbH Public Affairs
              Sales Director                Marketing Director           Legal Director Austria                             National Environment     ethically correct. We keep our promises and                                                        & Communications departments. These
                                                                                                                                  Manager            do the right thing, not just the easiest thing.   Coca-Cola HBC and The Coca-Cola Com-             departments report directly to the General
                                                                                                                                                     Above all, we always act with integrity           pany have been official members of the UN        Manager or the Public Affairs & Communica-
                                                                                                                                                     towards the community we live in and work         Global Compact since 2006 and are com-           tions Director Europe.
                                                                                                                                                     in.                                               mitted to its goals. Naturally, we follow this
                                                                                                                                                                                                       commitment locally in Austria. The program,      Maintaining and improving the environmen-
                                                                                                                                                                                                       which was founded in 2000, brings together       tal management system is one of the central
                                                                                                                                                     Guidelines as an                                  companies, UN organizations, labor, and civil    tasks of Coca-Cola HBC Austria’s six-mem-
                                                                                                                                                     essential benchmark                               societies as well as governments in order to     ber Sustainability Team. In addition to
                                                                                                                                                     Coca-Cola HBC and The Coca-Cola Com-              promote universal principles in the fields of    environmental issues, the team manages
           Saskia Gutmann                    Felix Sprenger                Gabriele Bergler
                                                                                                                                                     pany’s Code of Business Conduct serves as         human rights, labor, environment, and the        occupational safety, quality, and legal com-
              Commercial                      Country Supply            BSS Country Manager &
           Excellence Director                Chain Manager            E-Commerce Coordinator                                                        our group-wide guideline, extensively listing     fight against corruption.                        pliance tasks. The Sustainability Manage-
                                                                                                                                                     all standards for employee conduct within                                                          ment Department then reports directly to
                                                                                                                                                     business life. Coca-Cola Austria applies this     Additionally, the Coca-Cola HBC manage-          the Supply Chain Manager. As part of the
                                                                                                                                                     code locally. Our commitment to integrity         ment team encourages everyone to speak           management system, legal requirements
                                                                                                                                                     and ethical conduct is particularly important     up when guidelines or rules are not ob-          such as the Employee Protection Act, Waste
                          Coca-Cola
                                                                                                                                                     in regard to the prevention and detection of      served. With the help of the Speak Up!           Management Act or Trade Regulation Act
                             GmbH
                                                                                                                                                     corruption. Coca-Cola System’s attitude           Hotline, external stakeholders can also          (incl. all associated regulations) are regularly
                                                                                                                                                     toward bribery and corruption is clear and        anonymously report potential violations or       established and checked for compliance
                                                                                                                                                     simple: we have a zero-tolerance policy.          ask questions regarding guideline topics,        with the support of a legal management
                                                                                                                                                     Every Coca-Cola Austria business location is      electronically or via telephone.                 solution. Our compliance with these legal
                                           Fabio Andrea Cella                                                                                        regularly reviewed for corruption risks. The                                                       requirements is determined during internal
                                Franchise Country Manager Coca-Cola GmbH                                                                             anti-bribery guidelines and our compliance                                                         audits or special internal legal compliance
                                                                                                                                                     handbook deliver a detailed understanding                                                          audits, such as official inspections. We had
                                                                                                                                                     of our anti-bribery and anti-corruption                                                            no environmental sanctions or transgres-
                                                                                                                                                     program.                                                                                           sions last year. That is why we can conclude
                                                                                                                                                                                                                                                        that we adhered to legal obligations in the
                                                                                                                                                                                                                                                        2020 assessment year and can confirm this
                                                                                                                                                                                                                                                        in our management review.

           Philipp Bodzenta                   Petra Burger                 Katharina Rößl          Gregoire Martinez            Katerina Saraki
          Public Affairs Director        Communications Director           Marketing Manager      Business and Commercial        Finance Manager             ttps://at.coca-colahellenic.com/de/about-us/gtc-policies-and-guidelines
                                                                                                                                                            h
                                                                                                     Strategy Manager                                       https://www.coca-colacompany.com/shared-future/people-values
                                                                                                                                                            You can find the download link for our policies and guidelines on these websites.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
STAKEHOLDER                                                                                          Stakeholder   17

              STAKEHOLDER
              DIALOGUE AND KEY ISSUES
              Within the scope of our sustainability strategy, we strive to optimize our measures
              and initiatives. That is why Coca-Cola Austria maintains an open and transparent
              dialogue with its stakeholders. We also use this dialogue to identify the main sustainability
              issues and risks.

              Coca-Cola and its stakeholders have been engaging in a structured
              dialogue for years. Based on the processes of the Coca-Cola HBC Group,
              we were able to define the following relevant stakeholder groups for
              Coca-Cola Austria:

              –  Employees
              –  Clients and trade partners
              –  Suppliers
               –  Trade organizations/interest groups
                 –  NGOs/environmental organizations
                   –  Media
                     –  Universities/academic institutions
                      –  Politics and administration (including local communities)

                     Regular exchanges with our stakeholders in all the countries we
                      are present in, builds the basis for our materiality process and
                       provides essential feedback on our actions. The annual group-
                       wide materiality process supports the following aspects:

                         –  Identification/verification of key issues
                         –  Materiality for our stakeholders
                          –  Effects on the environment and society
                           –  Sustainability risk management

                           With the support of stakeholder assessments, we were able
                           to identify twelve topics pertaining to the three dimensions
                           “economy”, “environment” and “society”, which we then
                            rated according to their relevance (please see description
                            of the twelve sustainability topics on page 20).

                            Our selection of the key issues, and our sustainability
                            ­strategy, Mission 2025, are based on the 17 Sustainable
                             Development Goals (SDGs) of the United Nations. The
                             SDGs set clear sustainability aims for all countries and the
                             international community until 2030. Coca-Cola HBC
                            analyzed these 17 goals on a group level, to identify which
                            ones are particularly relevant to our business activities and
                            which of these aims we can contribute to (see Coca-Cola
                            HBC Sustainability Report, 2020: page 50–51).

                               ttps://www.coca-colahellenic.com/en/investor-
                              h
                              relations/2020-integrated-annual-report
                              You can find the current Coca-Cola HBC Annual Report under
                              the link above.
2020 REFRESHINGLY SUSTAINABLE - Coca-Cola HBC Austria
18         Stakeholder                                                                                                                                                                                                                                                                                                                           Stakeholder      19

           At group level, Coca-Cola HBC organizes an                                  the topicality and public discussions in                During the assessment of solutions in the
           annual stakeholder forum. In 2020, this                                     Austria, we asked questions targeting the               discussion surrounding beverage packaging,
           forum was held online due to the COVID-19                                   issue of “beverage packaging” and provided              “reduction of packaging material” was rated
           pandemic. The forum was attended by 100                                     the option for respondents to give free feed-           highest, followed by “use of 100% rPET”, and
           participants from 20 countries. The virtual                                 back on sustainability measures:                        the “use of environmentally friendly alterna-
           event, titled Climate Action in the New                                                                                             tives” or the “expansion of reusable packag-
           Normal, focused on climate action in light of                               In the materiality assessment, the two topics           ing”.
           the pandemic. Speakers for this current                                     “packaging” and “environmental protection
           issue included Lučka Kajfež Bogataj, Profes-                                & energy” (both 9.3) again stood out as the             With an average rating of 8.0 on a scale of
           sor of Climatology at the University of                                     leading topics – with a clear gap to the                1–10, stakeholders viewed the 2019 sustain-
           Ljubljana, Tomas Nauclér, Senior Partner &                                  third-ranked topic (“water,” 8.9). The com-             ability report as largely positive. However,
           Global Leader of Aftermarket & Services and                                 ments and criticisms expressed focused on               there were a few critical suggestions for
           Sustainability Practices at McKinsey, and                                   the topics of “packaging” (deposit, reusable),          improvement. For example, it was noted that
           Andrea Cipolloni, CEO Europe at Autogrill.                                  “circular economy,” and “health & nutrition”.           self-criticism could also be expanded on in
           Additionally, annual stakeholder surveys are                                The large number of comments concerning                 the report and key figures could be explained
           held in many countries.                                                     “reusable beverage containers” strongly                 in more detail.
                                                                                       reflect the current public debate.
                                                                                                                                               In 2020, the sustainability measures put into
           Stakeholder surveys in Austria                                              The largest difference between materiality              place by Coca-Cola were ranked as follows:
           In March 2021, Coca-Cola Austria intro-                                     and Coca-Cola Austria’s performance can                 “returnable glass containers for food service
           duced an anonymous country-specific                                         be found in the four topics “packaging”,                industry clients” was noticed the most (79
           online survey for the fourth time in a row,                                 “environmental protection & energy”,                    %), followed by “local involvement” such as
           reaching out to over 180 stakeholders. With                                 “sustainable procurement”, and “health &                “Special Olympics” or “Youth Empowered”
           56 respondents, we had a response rate of                                   nutrition”. The perceived performance is                (72%) and the “increase of the reusable
           almost 30%, similar to the previous year. The                               considerably below the materiality. This                share in retail” (61%).
           survey asked stakeholders to rate the                                       suggests that there is potential for optimiz-                                                                Our materiality topics
           materiality of the twelve sustainability topics                             ing either the measures themselves or the                                                                    The results of this year’s stakeholder survey   to Coca-Cola Austria and its stakeholders.        Sustainability Report, 2019: page 55). The
           we identified. They also had the option to                                  corresponding communication.                                                                                 were incorporated in the reevaluation of our    The values concerning the significance of         assignment of topics to the Global Report-
           rate Coca-Cola Austria’s management of                                                                                                                                                   materiality matrix. The matrix now specifies    the impacts were adopted from the consoli-        ing Initiative (GRI) indicators can be found in
           these topics (on a scale from 1-10). Due to                                                                                                                                              which themes are of particular importance       dated annual report (see Coca-Cola HBC            the GRI index (page 67–70).

                                         Materiality matrix Coca-Cola Austria 2020                                                                                                                  The top issues                       Beverage packaging 2021
                                                                                                                                                                                                    for our stakeholders:                Regarding the current discussion surrounding beverage packaging in Austria:
                                    10
                                                                                                                                                                                                                                         How useful do you find the following solutions?
                                                                                                                                                                                                    2019:
                                                                                                                                                                                                    1.	Packaging
                                                                                                                                                                                                    2.	Environmental protection                               Reduction of
                                                                                                                                                                                                        & energy                                         packaging materials                                                                           9.0
                                                                                                                                                                                                    3.	Water
                                                                                                                                                         Packaging                                                                                               Use of 100%
                                                                                                                                                                             	Environmental                                                                                                                                                     8.4
                                                                                                                                                                               protection &         2020:                                                       recycling PET
                                                                                                                                                                               energy               1.	Environmental protection
                                                                                                                                                                                                        & energy
                                    9                                                                                                                                                                                                                     Use of eco-friendly
                                                                                                                                                                                                                                                                                                                                            8.2
     Materiality for stakeholders

                                                                                                                                                                                                    1.	Packaging                                                alternatives
                                                                                                            Water                                                                                   3.	Health & nutrition
                                                                                                                              Sustainable procurement
                                                                                                                                                                                                                                                      Expansion of reusable
                                                                                                                                                                                                    2021:                                            packaging offer in trade                                                               8.1
                                                   Product quality                Health & nutrition
                                                                                                                                                                                                    1.	Packaging
                                                                                                Employee satisfaction
                                                                                                                                                                                                    2.	Environmental protection
                                                                                                                                                                                                        & energy                                       Expansion of separate
                                                                                             Human rights & diversity                                                                                                                                                                                                                      7.9
                                                                                                                                                                                                                                                    collection for PET bottles
                                                                                Corporate governance                                                                                                3.	Water
                                                                        Investment in the community
                                                                                                                                                                                                                                                        System of incentives
                                    8            Responsible marketing                                                                                                                                                                                       for consumers                                                       7.2
                                                                                                              Direct & indirect
                                                                                                              economic impacts
                                                                                                                                                                                                                                                       Deposit on single-use
                                                                                                                                                                                                                                                                  packaging                                                6.3

                                                                                                                                                                                                                                                                Subsequent
                                                                                                                                                                                                                                                            waste separation                                         5.7

                                                                                                                                                                                                                                                                                 0   1    2     3     4       5      6       7         8          9          10
                                    7                                                                                                                                                                                                                                                    Usefulness of beverage packaging measures
                                         7                                                 8                                               9                                                   10
                                                                                                                                                                                                                                                                                             1 = not very useful, 10 = very useful
                                                                                    Importance of economic, environmental, and social impacts

                                                                   Rating on a scale of 1–10     … Economic dimension     … Environmental dimension     … Social dimension
20   Stakeholder                                                                                                                                                                                                                                                                                    Stakeholder    21

     The management approaches for our 12 sustainability topics

     1. Corporate governance,                          5. Responsible marketing                          9. (Responsible) Water management
     business ethics and anti-corruption               Effective product marketing is one of the         The main ingredient in our beverages is
     To us, it is important to conduct all our         most important business activities of the         water. Water is central to our production       Managing sustainability risks
     business activities with integrity and respect    Coca-Cola system. Our responsible ap-             process as well as to the growth of the         Our risk management is very closely aligned             Exact procedures and approaches are            Due to the increasing relevance of sustaina-
     for the community. This concerns all aspects      proach can be seen in our marketing activi-       plant-based ingredients of our beverages.       with the key issues identified. This is imple-          defined within the EMR process and risks and   bility topics, we split the sustainability risks
     of corporate governance: We have zero             ties. Elementary schools, for instance, are       Safe, high-quality and available water is       mented at a Group level within the Enter-               benefits are to be represented equally         into three separate risk groups in 2019. This
     tolerance for violations of our Code of           marketing-free areas to us. Furthermore,          essential to human health as well as to the     prise Risk Management (ERM) framework                   (Smart Risk programs). The likelihood of       was done in order to enable more targeted
     Business Conduct and our anti-corruption          several years ago we committed not to             health of ecosystems. It supports sustaina-     and supervised by the Chief Risk Officer                occurrence and possible consequences to        processing. These risk groups consist of
     policy.                                           market to children under 12 anywhere in the       ble communities and economic growth.            (CRO) of the Group in close coordination                the company are defined for each risk.         “packaging”, “environmental protection” and
                                                       world. Our consumers can find all informa-                                                        with the person responsible for each topic.                                                            “water”. We currently cover a total of 13 risk
     2. Direct and indirect economic impacts           tion about ingredients and calorie content        10. Investments in the                                                                                                                                 areas. An exact description of the risks, their
     As an international company, we ensure            on all our packages – per portion as well as in   community/regional responsibility                                                                                                                      possible effects, and how we encountered
     positive socio-economic contributions and         relation to the daily requirement as part of a    The success of our business strongly de-                                                                                                               them, can be found in the consolidated
                                                                                                                                                         Area of risk and description                              Relation to the topic of sustainability
     support measures to increase the quality of       balanced diet.                                    pends on the strength and well-being of our                                                                                                            Annual Report (page 54). An overview of the
     life in the communities in which we are                                                             communities. Our investments in the             Plastic and packaging waste                                                                            sustainability risks covered can be found in
     active. We can see these progresses in our        6. Climate protection and energy                  community, as well as our commitment to it,     –	Increasing stakeholder concerns about                  –	Packaging, recycling, and waste           the table to the left.
     contributions, especially when it comes to        For Coca-Cola, the effects of climate             can mainly be seen in the fields of youth,         ­packaging waste and plastic contamination                management
     wages, tax payments, payments to suppli-          change carry potential risks such as rising       environment, water, and community                                                                         –	Sustainable procurement
     ers, and contractual partners as well as          energy costs, CO₂ taxation, a threat to the       well-being.                                     Environment and CO₂                                                                                    Climate risks and
     investments in community projects aiming          supply of sustainable water and raw materi-                                                       –	Growing climate crisis                                 –	Environmental protection and energy       financial repercussions
     to improve environmental and social               als, as well as slumps in business due to         11. Employee satisfaction                       –	Failure to meet our CO₂ reduction targets              –	Sustainable procurement                   We are attracting worldwide attention
     ­aspects.                                         changed weather conditions. For Coca-Cola,        and engagement                                  –	Availability of raw materials                                                                       thanks to our management of climate
                                                       measures for climate protection have              The success of our business strongly de-                                                                                                               change risks and their financial consequenc-
                                                                                                                                                         Water
     3. Health and nutrition                           strategic priority. We also see economic          pends on whether we manage to fill talented,                                                                                                           es. Coca-Cola HBC believes that the Task
                                                                                                                                                         –	Water availability                                     –	Water management
     Coca-Cola HBC is aware of the fact that           advantages thanks to a long-term invest-          healthy, happy, and committed people with       –	Water scarcity in regions with business activities     –	Sustainable procurement                   Force on Climate-related Financial Disclo-
     personal health and the well-being of the         ment in energy efficiency and low-CO₂             enthusiasm and whether we can keep them         –	Poorer water quality due to climate change                                                          sures (TCFD) recommendations constitute
     community are moving into the center of           technologies.                                     in our company. Education and training,                                                                                                                important steps towards creating a volun-
     attention. We understand the importance of                                                          motivation and commitment to our employ-        Consumer health and well-being                                                                         tary set of rules for the disclosure of climate
     a balanced diet and want to help consumers        7. Packaging, recycling,                          ees, access to well-being programs as well      –	Failure to adapt to health and consumption             –	Health and nutrition                      risks and their financial consequences. When
                                                                                                                                                            trends                                                 –	Responsible marketing
     make responsible beverage choices. We             and waste management                              as to a safe work environment are the core of   –	Public health policies affecting the ingredients,      –	Product quality and integrity             considering climate risks, a general distinc-
     offer a wide range of beverages in different      Every year, Coca-Cola HBC sells more than 2       our corporate culture.                             sugar content, and health effects of our                                                            tion can be made between physical and
     packaging sizes, which are often available as     billion unit cases (product units) for which                                                         products                                                                                            transition risks:
     sugar-free or low-sugar options. Additional-      different packaging materials with clear          12. Human rights and diversity
                                                                                                                                                         Employees
     ly, we provide clear and transparent nutri-       quality requirements are used. As an integral     Respecting human rights is central to                                                                                                                  Physical risks are direct consequences of
                                                                                                                                                         –	Too unattractive as an employer to acquire             –	Employee satisfaction & commitment
     tional information on all our products.           component of our products, packaging is a         corporate responsibility. That is why we aim       sufficient numbers of qualified and experienced        –	Human rights & diversity                  climate change such as flooding, storms,
                                                       key element for our business processes,           to create a work environment which pro-            workers                                                –	Community/regional responsibility         temperature increases or the rise in sea
     4. Product quality and integrity                  especially when considering the raw material      motes diversity and inclusion and fully                                                                                                                level.
                                                                                                         respects human rights along the entire value    Quality
     Our business strongly depends on product          demand, and the possibility for recycling and
     quality and integrity, market leadership, sales   reuse after consumption.                          chain. Today, human rights are a key indica-    –	Incidents regarding quality/food safety                –	Product quality and integrity             Transition risks encompass all indirect
                                                                                                                                                         –	Product contamination
     volume, sales figures and the community’s                                                           tor for companies everywhere in the world.                                                                                                             aspects which are a result of changing
     trust. To Coca-Cola, product integrity            8. Sustainable procurement                                                                        Ethics and compliance                                                                                  political conditions, laws, taxes or consumer
     means offering beverages of the highest           The procurement of raw materials has a big                                                        –	Fraud risk to companies                                –	Corporate governance, business ethics     behavior.
     quality in order to meet customers’ and           impact on our economic, operational, and                                                          –	Sanctions due to employee or partner non-­                and anti-corruption
                                                                                                                                                            compliance with anti-bribery or corruption laws
     consumers’ expectations in every aspect.          environmental footprint. That is why our                                                                                                                                                                 Coca-Cola Austria explicitly committed to
     Apart from functionality, quality, safety,        suppliers’ behavior has a direct effect on                                                        Strategic partnerships                                                                                 the climate protection goals and measures
     taste, and design this also includes intangible   Coca-Cola HBC’s sustainability perfor-                                                            –	Deterioration of cooperation within the                –	Direct and indirect economic              to proactively address both these risk areas
     values such as brand values.                      mance and obligations, which have many                                                               Coca-Cola System                                          ­consequences                             (see Coca-Cola HBC Group – Sustainability
                                                       different economic, environmental and                                                                                                                                                                    Report, 2020: page 62f).
                                                                                                                                                         Health and safety
                                                       social effects.
                                                                                                                                                         –	Insufficient management on behalf of health and        –	Employee satisfaction & commitment
                                                                                                                                                            safety team
                                                                                                                                                         –	Workplace accidents with deaths or injuries
ECONOMY                                                                                                           Economy     23

          ANCHORED LOCALLY,
          TOGETHER!
          Coca-Cola is home all over the globe and has been firmly rooted in Austria
          for over 90 years. Resource efficiency and sustainability are the center of our
          investments in our regional location.

                              Since 1929, Coca-Cola has been a perma-       We believe in Austria.
                              nent component of the local economy and       Since 2013, Coca-Cola HBC Austria bottling
                              has been making valuable contributions to     and logistics have been unified under one
                              the value chain with its investments. The     roof in our high-tech production center in
                              Coca-Cola System currently provides           Edelstal. Within a few years, the plant devel-
                              around 900 jobs with an employment effect     oped into one of the largest within the
                              of almost 12,000 jobs in other economic       Coca-Cola HBC Group. Between 2012 and
                              sectors. Each job within the Coca-Cola        2019, we invested around €104 million in the
                              System therefore guarantees another           site. In the past year, another €21 million
                              eleven jobs within the Austrian economy.      went into various infrastructure projects.
                              (Source: Steward Redqueen: Socio-eco-         The largest projects in 2020 include the
                              nomic impact of the Coca-Cola System in       establishment of another filling line for cans,
                              Austria, 2017). We cover Coca-Cola Austria    supporting the future reduction of 50 tons of
                              and Coca-Cola GmbH’s economic accom-          plastic packaging yearly through the integra-
                              plishments in the Integrated Annual Reports   tion of the packaging options using the
                              of the Coca-Cola HBC Group, or rather, The    innovative Grip&Go external cardboard
                              Coca-Cola Company.                            packaging – the so-called KeelClip. Our
                                                                            investment in two new hot water boilers,
                                                                            including an efficient control system, guar-
                                                                            antees that we are able to sustainably and
                                                                            precisely reduce the consumption of natural
                                                                            gas and electricity and thus our CO₂ emis-
                                                                            sions. Overall, €1.7 million was invested in
                                                                            projects which brought along resource
                       around                                               conservation (energy, water, raw materials).
                       402 million
                       liters of beverages from our portfolio are
                       produced annually in Austria.

                    »	Our strong commitment to the region in which we operate is
                       demonstrated not least by the investments made in our site in
                       Edelstal in the Burgenland. In 2020, we were able to send
                       another strong signal for local production and value creation
                       by commissioning a new canning line.«                                     Patrick Redl
                                                                                                 Plant Manager Edelstal
                                                                                                 Coca-Cola HBC Austria

                        ttps://www.coca-colahellenic.com/en/investor-relations/2020-integrated-annual-report
                       h
                       https://www.coca-colacompany.com/reports/business-sustainability-report-2019
                       You can find Coca-Cola HBC’s and The Coca-Cola Company’s current Annual Report here.
24   Economy                                                                                                                                                                                                                                                   Wirtschaft   25

     OUR POSITION:
     SUSTAINABLE AND
     PROACTIVE MANAGEMENT
     We are committed to customer and consumer satisfaction and growth. We actively pursue this goal
     by fostering dedicated and efficient teams by supporting our community and protecting the environment.

                       Our products guide                                     We grow through competitiveness
                       you through your day.                                  and innovation.
                       Our consumers’ tastes and preferences                  We want to strengthen our competitive
                       constantly change. That is why they are at             ability and be dynamic and flexible within the
                       the heart of all our activities and why we offer       market. That is why we continuously work to
                       an innovative and tailored range of products.          provide the best possible conditions for our
                       We aim to provide the right product for every          economic activity. We also rely on new
                       taste and situation – 24 hours, 7 days a week.         technologies to simplify our processes,
                       The following applies to each of our prod-             reduce costs, increase speed, and ultimately

                                                                                                                               OUR SUPPLIERS
                       ucts: it complies with the highest quality             create extraordinary customer experiences.
                       standards, is labeled with clear nutritional           The careful use of our resource plays an
                       information, and is offered chilled at all             important role in this.
                       times, if possible. We take our responsibility
                       towards consumers very seriously. That is
                       why we do not advertise in media targeting             We tackle the issues
                       children under the age of 12 (see page 37).            in our surroundings.                             We focus on building relationships with suppliers who are guided by the same principles and
                       Since 2019, we do not offer drinks with                We are convinced that our business can only      run ethical businesses. We strive to treat our partners the same way we would like to be treated.
                       added sugar in secondary schools.                      be successful if the same applies to the
                                                                              economic, social, and environmental
                                                                              ­surroundings we work in. Sustainable,
                       We celebrate our market                                 responsible actions build trust, and trust                  OUR GROUP-WIDE                 There is a whole lot of Austria in Coca-Cola:   we try to positively influence our carbon
                       success with our clients.                               builds the foundation of our relationships                  GOALS 2025:                    we produce around 402 million liters of soft    footprint when it comes to purchasing. For
                       Our close and long-standing customer                    with our stakeholders. Sustainability is                                                   drinks in Austria, per year. When procuring     example, we keep delivery routes as short as
                                                                                                                               Raw material procurement
                       relationships build the foundation of our               therefore deeply rooted in our business                                                    our raw materials, we specifically work with    possible when it comes to one of our most
                                                                                                                               100% of the most important ingredients
                       success. The needs and wishes of our clients            philosophy: we set ourselves ambitious and                                                 regional suppliers as much as possible. In      important suppliers for promotional displays
                                                                                                                               from agricultural cultivation are pro-
                       are the top priority for our employees. We              long-term goals, position ourselves as an                                                  doing so, we count on raw Austrian materials    at the point of sale.
                                                                                                                               cured from suppliers who adhere to the
                       not only deliver the best quality goods on              environmentally aware market leader, and                                                   and services that carry a monetary value of
                                                                                                                               guidelines for sustainable agriculture.
                       time but as a strong business partner we                consistently work to reduce our carbon                                                     around €139 million.
                       also create added value for both sides along            footprint while supporting society. With                                                                                                   Sustainability as selection criteria
                       the entire value chain.                                 these goals always in mind, we continuously                                                                                                For us sustainability starts during the bidding
                                                                               work to optimize our business processes and                                                Our suppliers meet high standards.              process and when contracts are signed with
                                                                                                                                           WHAT WE DO
                                                                               decisions. Through regular assessments, we                                                 All our suppliers sign our Code of Conduct      new suppliers. Our membership in the
                                                                                                                                           IN AUSTRIA:
                       We foster our                                           commit ourselves to live up to our responsi-                                               and commit to high standards within pro-        Ecovadis sustainability platform allows us to
                       employees’ potential.                                   bility and our activities and foster open and   Sustainable ingredients                    duction and work safety, human rights,          monitor the CSR performance of our busi-
                       The best teams deliver the best customer                transparent communication.                      are our winning formula                    anti-corruption, and environmental protec-      ness partners and assess the risk to our
                       service. That is why we aim to create a                                                                 In 2020, in Austria, we were already       tion. Every supplier must fulfill the           company. The platform thereby provides a
                       workplace environment that encourages our                                                               procuring around 95% of our most           Coca-Cola HBC Group and The Coca-Cola           win-win for both sides: our membership with
                       employees to fully utilize their potential. We                                                          important agricultural ingredients from    Company's Supplier Guiding Principles.          Ecovadis promotes transparency regarding
                       highly value diversity (see page 30) as we                                                              suppliers who satisfy the guidelines for                                                   CSR practices, using reliable ratings and
                       believe that different talents and points of                                                            sustainable agriculture.                   Environmental protection and sustainable        global benchmarks. As members, our
                       view increase customer satisfaction.                                                                                                               procurement hold global importance within       partners can benefit from these advantages.
                                                                                                                                                                          Coca-Cola and particularly in Austria. Our      In 2020 we were able to introduce 17 new
                                                                                                                                                                          Supplier Guiding Principles form the prereq-    suppliers to Ecovadis.
                                                                                                                                      ttps://at.coca-colahelleniccom/
                                                                                                                                     h                                    uisites for our business relationships. These
                                                                                                                                     de/about-us/gtc-policies-and-        also contain our partners’ environmental
                                                                                                                                     guidelines                           assessment. New suppliers are subject to a
                                                                                                                                     https://www.coca-colacompany.        tender and evaluation process. Additionally,
                                                                                                                                     com/our-company/supplier-            external environmental certification institu-
                                                                                                                                     guiding-principles                   tions (Ecovadis) are also involved and regu-
                                                                                                                                     Our Supplier Guiding Principles      larly monitor compliance with the standards.
                                                                                                                                     are also available for download.     Through cooperation with regional partners,
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