Corporate Responsibility & Sustainability Report 2015/2016

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CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016 Innovate for the Future WHAT WE ACHIEVED Rethinking Business We launched our series of Executive Roundtables in conjunction with the Financial Times. Sustainable Manufacturing Six-month research project held in partnership with Cranfield University. HOW WE’RE DOING IT We are focused on collaborating with others to develop innovative solutions which will benefit ourselves, our industry and broader society. We will do this through: • Thought leadership to explore and develop solutions to new issues and challenges • Collaboration and engagement with suppliers, customers and other stakeholders to drive innovation and unlock new ideas and opportunities • Accelerating the pace of change by developing and harnessing innovation and technology INTRODUCTION Innovation will be critical if we are to meet the targets set out in our Sustainability Plan. We know that tackling the sustainability challenges in our value chain will require strong and continued collaboration, and that we will need to accelerate the pace of change. We cannot do this alone and will need to work with stakeholders to develop innovative new solutions to shared problems. “ Rethinking Business” Executive Roundtable series in conjunction with the Financial Times Roundtable 1 Finance and Sustainability Hosted by our CFO, Nik Jhangiani and run in partnership with SustainAbility June 2015 Attendees included: Carbon Disclosure Project Lafarge Tarmac Accounting for Sustainability Schroders Share Action See here for summary report and video Roundtable 2 Resource Scarcity Hosted by our Senior Vice President, Supply Chain, Ron Lewis, in partnership with Forum for the Future Oct 2015 Attendees included: WWF-UK WRAP Veolia Forum for the Future Tesco See here for summary report and video THOUGHT LEADERSHIP “Rethinking Business” Stakeholder Roundtables Following two broad stakeholder sustainability summits hosted in 2013 and 2014; we focused our efforts in 2015 on a series of smaller Executive Roundtables. The series, called “Rethinking Business”, developed in conjunction with the Financial Times provided the opportunity for in-depth discussions with key stakeholders on our most material issues. We know that as the global population continues to grow and urban transformation gathers pace, key global development challenges must be addressed to meet the needs of future generations. Limited availability of natural resources, the long-term impact of climate change and the inevitable strain on public infrastructures and services, will all have profound implications for society. The “Rethinking Business” series aimed to answer questions about how businesses can practically integrate social responsibility into their core operating strategies; driving profitability and enhancing their corporate reputation. See above infographic for more information. Roundtable 3 Climate Change Hosted by our European President, Hubert Patricot and run during COP21, in partnership with the Climate Leaders Group Dec 2015 Attendees included: Kellogg’s Europe UN Global Compact Circular Economy Institute EDF The Prince of Wales’s Corporate Leaders Group See here for summary report and video Collaboration and engagement To achieve our Sustainability Plan commitments we will need to work in close collaboration with others – such as our stakeholders, customers, and suppliers; as well as with academics and NGOs to help drive new thinking. In 2015, we ran a six-month partnership with Cranfield University, exploring the current sustainability landscape across the supply chain, investigating topics such as resource security, the circular economy, sustainable technologies and waste management. The research aimed to develop a vision of what the factory of the future could look like in Great Britain in 2050, and involved 43 experts on manufacturing from industry and academia. The two resulting white papers, were published in June 2015, and April 2016 (see case study). During 2015, we also increased our partnerships with retailers and held campaigns to encourage shoppers to recycle across Great Britain, France and Belgium (see Factsheet 17). FACTSHEET 06/32
CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016 Sustainable Manufacturing for the Future People Big data Technology Value Collaboration Resilience Five paths to a sustainable future Anticipating the future Providing nutrition Sharing the benefits Inspiring the next generation Joining forces Farm to fork data Personalized products Co-creation and collaboration Connect classroom to boardroom Loyalty across full supply chain Sensors and real time data Localized resourcing and production Shared IP for sustainability Nurture skill and professionalism Connect with consumers Assess and share resource risks ‘Smart’ ingredients and efficiency Big company leadership Communicate ethical and social contribution Help society adopt sustainability We also work closely with our suppliers to encourage them to improve their own sustainability performance. Our Supplier Relationship Management (SRM) process helps us to collaborate with suppliers and provides a management framework whereby each supplier is evaluated on their sustainability performance. For more information, see Factsheet 23. We partner with The Coca-Cola Company and our key suppliers, to develop our approach to sustainable agriculture, ensuring that by 2020 the global Coca-Cola system sources its key agricultural ingredients sustainably. We are working with our suppliers and third-party organizations like Rainforest Alliance, the Forest Stewardship Council (FSC) and the Sustainable Agriculture Initiative (SAI), to help develop a pathway to sustainably sourced ingredients (see Factsheet 22). Accelerating the pace of change We know that to accelerate the pace of change, we will need to increase our use of technology, and develop new partnerships with stakeholders such as our customers and suppliers. For example, our $12 million joint venture investment with Plastipak (formerly APPE) in a state of the art recycling facility in France (Infineo Recycling) has helped us to create a step-change in recycling and support our commitment to reduce our value chain carbon footprint. The facility produces enough high-quality recycled PET (rPET) to cover our requirements in France, Belgium and Luxembourg. Through steps like this 34 percent of the PET we purchased in 2015 was rPET. We have also been investing in new technology in our manufacturing facilities, to help reduce the amount of energy and water we use – helping us to reduce the carbon footprint from the manufacturing of our products by 52.9 percent per liter, compared to 2007. We have also been investing in new technology in our cooling and vending equipment – introducing the new iCOOL range across our territories, investigating gas-free refrigeration, and introducing even more efficient plug-andplay Energy Management Systems (EMS) that will help reduce our carbon footprint from refrigeration even further. Our efforts from this year alone helped to reduce our absolute carbon footprint from cold drinks equipment by 41 percent vs 2007. These investments not only help reduce our carbon footprint, but also support our customers’ carbon and energy reduction goals as well. CASE STUDY Sustainable Manufacturing for the Future In 2015, CCE partnered with Cranfield University to undertake a six-month piece of research on the future of Sustainable Manufacturing, resulting in two white papers that provided an insight into what a factory of the future could look like in Great Britain in 2050. In March 2015, we held a roundtable event attended by industry and academia, resulting in an initial white paper around six major themes that the food and drink industry would need to address to accelerate its journey towards sustainability. These six themes – People, Big Data, Technology, Collaboration, Value, and Resilience – were investigated further in a second white paper, released in March 2016. This research outlined the five pathways, and the key actions necessary for the manufacturing industry to build towards a sustainable future. These pathways are outlined in more detail in the infographic above. We are playing our part – pledging to invest $86.9 million in our operations in Great Britain in 2016, for new, more efficient lines and equipment. The full research is available here. FACTSHEET 06/32
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Coca-Cola Enterprises, Inc. 2500 Wi
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