Corporate Responsibility & Sustainability Report 2015/2016

Recommendations

Info

CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016 Issue sheet: Sustainable Sourcing How can we sustainably source our key agricultural ingredients? OUR COMMITMENT We will sustainably source 100 percent of our key agricultural ingredients by 2020. ISSUE INSIGHTS 9 billion The world’s population is set to reach nine billion people by 2050. 1 Double Global food production will need to double by 2030 to support growth in the world’s population. 2 70% Globally, the agricultural sector consumes about 70 percent of the planet’s accessible fresh water. 3 36% Agriculture represents 36 percent of the world’s land surface which is estimated to be suitable for crop production. 4 INTRODUCTION Sustainably sourcing our key agricultural crops, and supporting the communities that produce them, is a critical issue for Coca-Cola Enterprises. As a business, we rely on a sustainable supply of agricultural crops – such as sugar cane and sugar beet as sweeteners, pulp and paper for our packaging and labels, and coffee and juices as the main ingredients in some of our other products. However, as populations continue to grow, and food demand increases – climate change is directly impacting the quality and quantity of this supply base. We recognize that changing weather patterns, rainfall and soil quality in different parts of the world in the future may result in decreased availability or increased cost of some of the agricultural ingredients we rely on. As a result, we have a responsibility to hold ourselves and our suppliers to high sourcing standards – ensuring that the agricultural ingredients we use are sourced sustainably, in a way which respects human and labor rights, minimizes environmental impacts, supports farmers and sustains local livelihoods. Moreover, we have a responsibility to ensure that our suppliers are employing workers in a legal way – avoiding any form of slavery, forced labor or human trafficking. That is why we have made a commitment to source 100 percent of our key agricultural ingredients sustainably by 2020. We have set rigorous processes to embed sustainability across our value chain, developed a set of Sustainable Agriculture Guiding Principles (SAGPs), for our agricultural ingredients, as well as Supplier Guiding Principles (SGPs) which apply to all suppliers, and have introduced a rigorous audit process for key suppliers. Sustainable sourcing is a growing, and significant issue across the entire food and beverage industry. We have seen how issues concerning modern slavery, poor harvesting methods, and unsustainable supply, have impacted many industries, including the food and beverage industry, over the past year. As ingredient supply chains are long and complex, it is therefore critical that we collaborate with other stakeholders, through programs like the Sustainable Agriculture Initiative, and organizations such as Rainforest Alliance and the Forest Stewardship Council, to develop industry standards and share best practices on sustainable sourcing. ISSUE SHEET 21/32 1 The United Nations. 2 Stockholm Environment Institute. 3 WWF. 4 Food and Agriculture Organisation (FAO).
CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016 A view from CCE Dim Mozin Director, Procurement, Coca-Cola Enterprises CCE is a local business, producing approximately 90 percent of its products in the country where they are sold. We source the vast majority of our agricultural ingredients from within Europe. It is important to ensure that we have a positive impact on the environment we operate in, from a social, economic and environmental perspective. Some of our ingredients – for example, our juices, coffee and cane sugar, are sourced through long and complex global supply chains. Often, working conditions in other countries are not as well regulated as in Europe, and this can mean that there is a risk that suppliers are not meeting basic labor and human rights standards. The lack of supply chain transparency and traceability can heighten the risk that these types of breaches exist. This can have a negative impact on the livelihoods of local employees, on our suppliers, and our corporate reputation. Through our commitment to implement our SAGPs across all of our key agricultural ingredients by 2020, we are helping to drive further transparency across our supply chain. We cannot make progress in this area alone. We are collaborating with trade associations and third parties to influence the industries that are already developing sustainability governance models. We cannot make progress in this area alone. We are collaborating with trade associations and third parties in order to influence the industries that are already developing sustainability governance models, such as the Sustainable Agriculture Initiative (SAI) Platform. We are also supporting wider business initiatives with NGOs and customers to identify new opportunities for collaboration. By working with The Coca-Cola Company, we have an opportunity to take the lead and set the standard for sustainable sourcing. By doing so, we can help to ensure a sustainable, cost-effective supply of ingredients, while providing stable livelihoods for local farmers. A view from Rainforest Alliance Edward Millard Director, Asia Pacific Landscapes and Livelihoods, Rainforest Alliance For any company, especially one like Coca-Cola Enterprises which has a sustainable sourcing commitment, it’s essential to ‘lift the veil’ off your supply chain and know what’s going on behind your immediate first-tier suppliers. For the sake of corporate reputation and a broader ‘social’ license to operate, companies need to identify and eliminate unacceptable practices within their own supply chains. There are many tools which companies can use to verify sustainability practices within their own supply chains – including independent third-party certification schemes or internally developed standards or systems, such as Coca-Cola’s Sustainable Agriculture Guiding Principles. Ultimately it is a matter of working directly with suppliers – after all, their knowledge goes further up the supply chain than end-users. It’s essential to ‘lift the veil’ off your supply chain and know what’s going on behind your immediate first-tier suppliers. Once companies have developed a detailed understanding of the challenges and opportunities within their own supply chains they then need to develop collaborative and realistic plans for improvement. This will often require engagement with specialist technical partners who can help change social and environmental practices and implement responsible sourcing standards and policies. Many successful companies are now including sustainability as a key purchasing criterion, alongside the quality, reliability and price of the product. As a result, the relationship with a supplier obviously changes. CCE can’t change what’s happening within its supply chain on its own, but it can use its scale to show suppliers that sustainability and purchasing policies need to work in tandem. It can also make long-term contracts dependent upon a demonstration of support for key sustainability priorities. In our experience at Rainforest Alliance we find that more forward-thinking suppliers are already keen to embrace sustainability and the business advantages it can bring. ISSUE SHEET 21/32
Page 1 and 2: Corporate Responsibility & Sustaina
Page 3 and 4: CORPORATE RESPONSIBILITY & SUSTAINA
Page 41: CORPORATE RESPONSIBILITY & SUSTAINA
Page 68: Coca-Cola Enterprises, Inc. 2500 Wi

Corporate Responsibility & Sustainability Report 2015/2016

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?