Coca Cola Business Environmental Social Governance Report 2020
Coca Cola Business Environmental Social Governance Report 2020
Coca Cola Business Environmental Social Governance Report 2020
Make a Difference.
Chairman &
and now—is that ESG remains core to what we do.
CEO Message
efforts in 2020, even in the midst of many temporary
disruptions. Across markets representing 30% of our
global volume, we offer 100% recycled plastic packaging
options in at least one brand. This number grew in 2020,
and we’re now offering packages made of 100% recycled
PET in around 30 markets.
I’ve long believed that history
provides lessons that can apply In 2020, we also developed a goal to reduce our use of
virgin PET by a cumulative 3 million metric tons globally
to life today. by 2025. This is the equivalent of taking out one whole
year’s worth of virgin plastic over the next five years.
And the Netherlands and Norway became the second
Looking back, The Coca-Cola and third markets after Sweden to announce that we’ll
manufacture entire local portfolios in 100% recycled PET.
Company has weathered
many difficult times over its 135 Packaging has a close link to climate, and 2020 also saw
important progress in defining our goals. The company
years. Each time, we’ve turned supports a vision to be net-zero carbon by 2050, and
we have set a 2030 science-based target to reduce our
adversity into opportunity. greenhouse gas emissions by 25% as compared to a
2015 baseline.
JAMES QUINCEY
Chairman and Chief Executive Officer
In 2020, we experienced history We’ve been on a journey to drive progress against
once again. intersecting priorities like water and building resilient
communities. We’ve developed a science-based 2030
water strategy focused on achieving water security Great brands begin with a deep understanding The Coca-Cola Foundation, total more than $90 million,
where the company operates and sources ingredients. of consumers, what they want and converting that benefiting more than 25 million people in 118 countries
We will maintain 100% replenishment globally, focusing insight into superior, quality products. We will continue and territories.
on improving watershed health in water-stressed areas to grow our brands through focused execution and
that are critical to the business and that support our targeted innovation. But the pandemic wasn’t the only crisis of 2020. Last year,
agricultural supply chain. Since 2010, our water, sanitation we were again reminded that there’s no place in our world
and hygiene programs have also reached more than Despite the challenges we faced in 2020, we saw strong for racism. We have a duty to strive for greater justice
13.5 million people globally. performance in key segments of our portfolio, including: and equity within our own company as well as within the
communities where we operate. Our pledge is that we will
Finally, 2020 marked an exciting milestone in our social • T
rademark Coca-Cola returned to growth in the do our part to listen, learn and act. Our company must
impact work. We surpassed our goal of enabling the back half of the year, with strong performance from play a visible and proactive role in creating change.
economic empowerment of 5 million women through our Coca-Cola Zero Sugar, which grew volume 4% for
5by20® program, creating shared value for these women, the year. A diverse and inclusive workplace is both the right thing
their families and communities. to do and a strategic business priority. Diversity fosters
• As consumers shifted to drinking more beverages creativity, innovation and connection to the communities
at home, we saw Simply and fairlife grow double digits we serve. To that end, we have announced our 2030
Changing to a Networked Organization in North America. aspirations:
Our ongoing commitment to ESG goals in 2020 was an • Certain water brands saw strong growth, including • To mirror the diversity of the markets we serve.
example of where we left critical objectives unchanged— AHA and Topo Chico Sparkling Mineral Water.
indeed, we enhanced them. • In the United States, our ambition is to align our
We also made strides in innovation. For example, we race and ethnicity representation to census data
In other places, there were vast changes, including in the introduced our first touchless Freestyle machines in the across all job levels.
way we operate our business. United States, which allow consumers to choose and pour
drinks from their phones in just a few seconds without the • For our company to be 50% led by women globally.
In 2020, we announced plans to build a new, networked need to create an account or download an app.
organization that combines the power of scale with the In this report, we share data that reflects our company’s
deep knowledge required to win in markets locally. Nine We also continued to change the recipes of our beverages current diversity across both race (in the United States)
operating units were established to focus on regional and reduce added sugar, along with offering smaller and gender for the general employee population, as well
and local execution, working closely with five marketing portion sizes. We removed approximately 125,000 as at the leadership level. We will continue to report this
category leadership teams that span the globe. tons of added sugar on an annualized basis through data annually.
approximately 140 product reformulations in 2020. We’re
This structure is supported by our new Platform Services innovating and bringing drinks with additional benefits to Finally, our resilience in 2020 gives me renewed
organization and center functions, which collectively market and promoting options with low or no calories. confidence that our best years remain ahead. Thankfully,
provide global services and expertise across a range of a good starting point matters. As a system, we went
critical capabilities. Finally, we are on a journey to strengthen our marketing into the crisis in a strong position. We are emerging
efficiency and effectiveness. By improving our processes, even stronger.
Together, this networked organization will accelerate our eliminating duplication and optimizing spending,
transformation as a digitized, data-driven enterprise that we will increase our effectiveness and fuel reinvestment
can execute marketing, commercial, sales and distribution in our brands.
strategies in both the online and physical worlds.
Board of “In 2020, the world weathered challenges that will forever shape
history—and it is through these challenges that The Coca-Cola
Directors
Company is emerging even stronger. Our Board of Directors is
proud of the company’s resilience and strong leadership in the
face of adversity. The company took meaningful steps in 2020 to
reorganize the business, creating a networked organization that
is poised for growth. And these actions always remain grounded
in strong values and purpose: to refresh the world and make a
difference. This is especially meaningful now, and we look toward
the future with confidence.”
Herbert A. Allen4, 5, 6 Marc Bolland1, 7 Ana Botín 2, 5 Christopher C. Davis3, 5 Barry Diller2, 4, 5, 6 Helene D. Gayle3, 7
President, Chief Executive Head of European Executive Chair, Chairman, Chairman of the Board and Chief Executive Officer,
Officer and Director, Portfolio Operations, Banco Santander, S.A. Davis Selected Advisers-NY, Inc. Senior Executive, The Chicago Community Trust
Allen & Company Incorporated The Blackstone Group Inc. IAC/InterActiveCorp and
Expedia Group, Inc.
Alexis M. Herman3, 7 Robert A. Kotick 5, 6 Maria Elena James Quincey4 Caroline J. Tsay1, 7 David B. Weinberg1,6
Chair and Chief Executive Officer, Chief Executive Officer and Lagomasino2, 3, 6 Chairman and Chief Executive Officer and Chairman and
New Ventures LLC Director, Chief Executive Officer and Chief Executive Officer, Director, Chief Executive Officer,
Activision Blizzard, Inc. Managing Partner, The Coca-Cola Company Compute Software, Inc. Judd Enterprises, Inc.
WE Family Offices
1 Audit Committee
2 Committee on Directors and Corporate Governance
3 Talent and Compensation Committee
4 Executive Committee
5 Finance Committee
6 Management Development Committee
7 ESG and Public Policy Committee
Our Response
to COVID-19
Throughout our history, The Coca-Cola Company has
persevered through turbulent times—emerging stronger
from world wars, natural disasters, economic crises
and more. As COVID-19 spread in 2020, we mobilized
quickly to safeguard the health and well-being of our
employees; maintain the continuity and safety of our
beverage production and delivery operations; ensure
resiliency of our supply chain (including supporting
suppliers); assist bottling partners and customers; and
support communities. We also pivoted our operations,
commercial strategies and innovation priorities to meet
fast-changing market dynamics, all while advancing our
sustainability goals.
$1B
boosted investment in digital promotions;
interactions and requirements for in financing and increased in-app visibility with e-delivery
personal protective equipment (PPE). accelerated payment grocers; and piloted digitally enabled
processes offered
fulfillment methods to manage orders
to suppliers
and deliveries.
Pivoting to Produce Needed Direct-to-Consumer (D2C) Contactless Innovations Supporting Vaccine Rollout
PPE and Supplies Delivery in Africa
Safety and hygiene concerns fueled
Bottling and concentrate plants in countries An online platform, developed at the contactless innovations, including the The Coca-Cola Foundation has provided a
including France, Brazil, Ireland, Swaziland initiative of Coca-Cola Argentina, enabled nationwide rollout of touch-free technology $2 million grant to Project Last Mile to
and Japan pivoted production to make hand small retailers across Latin America to serve for Coca-Cola Freestyle fountain dispensers support the rollout of COVID-19 vaccines
sanitizer for hospitals, clinics and nursing customers safely without having to open in the United States. In Japan, Coke ON in Africa in 2021. Project Last Mile is our
homes. The North America Operating Unit their stores. When a shopper places an order mobile app users can make touch-free pioneering partnership to improve the
teamed up with supply chain partners and via the free Wabi app, the system pings purchases on 30,000 vending machines in availability of life-saving medicines across
a national network of volunteers to produce nearby retailers. The first retailer to accept train stations, hospitals and other public Africa by leveraging our system’s distribution
and distribute protective face shields to delivers the items to the shopper’s home in areas. Buttons and dispensing slots on the network and marketing capabilities. This
healthcare workers and first responders. 30 minutes or less. Read more. machines were covered with antiviral and partnership is a legacy of collaboration
antibacterial film. between The Coca-Cola Foundation,
The Coca-Cola Company, the U.S. President’s
Emergency Plan for AIDS Relief (PEPFAR),
USAID, The Global Fund for HIV/AIDS, Malaria
and Tuberculosis, and The Bill and Melinda
Gates Foundation.
Water Reducing
Leadership Added Sugar
Our
More than a decade ago, The Coca-Cola 2020 GOAL Sugar reduction remains a top priority.
Company set a pioneering goal to 100% As we continue to evolve as a total
Priorities
replenish the water we use in our drinks beverage company and respond to
and their production. We also set 17 150% consumers’ desires for more choices
targets to use water more efficiently across categories, we are reducing added
18 155%
& Progress
and to treat all wastewater in our sugar while providing more drinks with
production processes. 19 160% nutrition benefits; optimizing our mix
of products; offering smaller package
In each of the last six years, we met and 20 170% choices; and providing consumers with
exceeded our 2020 replenish goal. At clear nutrition information.
Percentage of water used in our finished
the same time, we have continued to beverages returned to nature and communities2
Our publicly reported improve the efficiency of our water use. We offer a wide range of beverages—
We now need only 1.84 liters of water per including sparkling soft drinks, water,
sustainability goals drive liter of final product, a 19% improvement 2020 GOAL coffee, tea, dairy, juices, sports drinks and
us to continually improve, compared to 2010. While we are proud of 25% plant-based options. We track the results
working in concert with our progress, this is short of our goal due of our sugar reduction efforts, the majority
1.75T+
priority goals. Our vision is to increase
water security where we operate, source
ingredients and touch people’s lives –6%
by improving water availability,
liters of water replenished quality, access and governance.
globally since 2012
1 Calculated with self-reported and internally validated data. 3 The company acquired Costa in January 2019. In 2019, with
the exception of ready-to-drink products, the company did not
2 As estimated working with our many external partners and report unit case volume for Costa. However, unit case volume
using generally accepted, independently peer-reviewed in 2020 includes both Costa ready-to-drink and non-ready-to-
scientific and technical methods. External assurance of 100% drink products.
annual replenishment rate. Finished beverages based on global
sales volume. Water in production based on total system 4 Average sugar per 100ml for 2019 has been updated to reflect
consumptive use. a more complete data set.
90% 11.5%
conversation about plastic pollution— the risks a changing climate have on our sustainably source our priority agricultural
and calls for urgent, collaborative company; and by collaborating with key ingredients, including our main natural
action—are intensifying. We continued stakeholders to amplify our actions. sweeteners, fruit juices, coffee, tea, soy
to make progress in 2020, despite and timber products.
of our packaging recycled material
the challenges from the pandemic. recyclable globally 1 in PET plastic
Our climate strategy supports our
packaging globally2 sustainable agriculture, water and World In 2020, we faced many challenges.
Without Waste strategies. And our COVID-19 impacted the ability of our
New Virgin Plastic approach to climate governance responds suppliers to arrange on-farm
to increased interest from investors and assessments, as well as our ability
Reduction Goal COLLECT other stakeholders to provide disclosures to meet with suppliers and farmers.
Collect and recycle a bottle or can for aligned with the Task Force on Climate- While this had an impact on our
We have set a new goal to reduce each one we sell by 2030. related Financial Disclosures (TCFD). performance in cane sugar and corn,
our use of virgin plastic derived from we continued to make progress across
non-renewable sources by a cumulative 2030 GOAL
Having achieved our “drink in your hand” most of our other priority ingredients.
3 million metric tons over the next five 100% goal to reduce relative carbon emissions
years. In 2025, depending on business by 25% by 2020, against a 2010 baseline, While we’re proud of the progress made
growth, we project that we will use 18 56% we are now working toward our 2030 toward our ambitious 2020 goal, we
approximately 20% less virgin plastic Science-Based Target to reduce absolute recognize that we have to push
than we do today.
19 60% GHG emissions 25% by 2030. Our ambition forward with our integrated approach to
20 60%2 is to achieve net-zero carbon emissions ensuring sustainable practices across
READ MORE: by 2050. our agricultural supply chain.
World Without Waste Percentage of bottles and cans we refilled
or helped recover equivalent to what we Goals READ MORE: Sustainable Agriculture
introduced into the marketplace
~$800M
and 95% of our direct and authorized Percentage of bottling partners that achieved We are committed to increasing
compliance with our Supplier Guiding Principles
suppliers will validate compliance transparency and disclosure, and we share
with our Human Rights Policy and our diversity metrics with senior leaders on a
Supplier Guiding Principles (SGPs) by 20211 GOAL quarterly basis. Starting with this report,
the end of 2020. The global pandemic, 95% we are publicly providing representation spent by the Coca-Cola
however, interrupted our in-person audit by race2 and gender for our overall system with diverse suppliers
capabilities, leading to a decrease in 17 88% workforce and leadership, and we are also in the U.S. in 2020
compliance percentages for 2020 and providing data submitted to the U.S. Equal
forcing us to push the goal date to the 18 89% Employment Opportunity Commission.
end of 2021. As of Q4 2020, 93% of our
company-owned facilities, 90% of bottlers 19 91% READ MORE: Diversity, Equity & Inclusion
and 87% of suppliers reached compliance 20 87%
with our Human Rights Policy and SGPs.
Percentage of direct suppliers that achieved
compliance with our Supplier Guiding Principles
READ MORE: Human Rights
1 The global pandemic forced us to push the goal date from the 2 We are only reporting racial/ethnic data for our U.S. workforce,
end of 2020 to the end of 2021. since some countries prohibit diversity tracking.
Enabling Giving
Women Back
$1.2B+
In 2010, we announced a global initiative 2020 GOAL The Coca-Cola Foundation is committed
to enable the economic empowerment of 5M to making a difference in communities
5 million women entrepreneurs by the end around the world. The convergence of
of 2020. This initiative, known as 5by20®, 17 2.4M the COVID-19 pandemic and urgent calls
donated by The Coca-Cola Foundation
set out to address structural inequalities for social justice in the U.S. and beyond
and economic barriers that women 18 3.2M created unprecedented levels of need
since its inception in 1984
entrepreneurs face by providing business in 2020. The Coca-Cola Foundation
skills training, mentoring networks,
19 4.6M stepped up its charitable giving and
financial services and other assets to 20 6M+ donations to respond, contributing
support women and their businesses. $139.1 million—more than in any previous 1.9%2 of operating income
Cumulative number of women entrepreneurs
enabled around the world year—to 432 organizations around the invested back into local
In 2013, we expanded the scope of world. Approximately $56 million of those communities from
6M+
5by20 to allow for independent donations targeted COVID-19 relief. The Coca-Cola Company
contributions by The Coca-Cola
Foundation and other partners. READ MORE: Giving Back
and The Coca-Cola
Foundation—well above our
By the end of 2020, we surpassed annual goal of 1%.
our goal, enabling the economic
empowerment of more than We surpassed our goal, In 2020, contributions
6 million women. enabling more than 6 million totaled $186.1 million
women by the end of 2020. ($139.1 million from
READ MORE: Enabling Women
The Coca-Cola Foundation
and $47.0 million from the
400,000+1 women enabled The Coca-Cola Company)
through community water
stewardship programs
At a Glance
26.7 27.7 28.2 28.6 29.2 29.3 29.2 29.6 30.3 29.0
Climate Sustainable People & Sparkling
Agriculture Communities flavors 11 12 13 14 15 16 17 18 19 20
Operate
THE COMPANY
Concentrates
The Coca-Cola Company markets, and Syrups INNOVATION, CREATION
manufactures and sells: & MARKETING
~225
sparkling soft drinks; nutrition, Finished
juice, dairy & plant; hydration, Products
sports, tea & coffee; and emerging Bottlers
categories). bottling partners
worldwide
In our concentrate operations,
The Coca-Cola Company typically
~900
generates net operating revenues by
selling concentrates and syrups to
authorized bottling partners.
1.9B
Our finished product operations consist
primarily of company-owned bottling,
sales and distribution operations.
servings a day
We also operate retail outlets through
Costa Limited, which has nearly 4,000
coffeehouses in the United Kingdom,
China and other markets across Europe,
Asia Pacific, the Middle East and Africa.
The company’s portfolio also includes a
coffee vending business, at-home coffee
Customers & Consumers
solutions and a roastery.
1 T
he Coca‑Cola Company and its bottling partners are
collectively known as the Coca-Cola system. The Coca‑Cola
Company does not own, manage or control most local
bottling companies.
Financial Highlights
Summary of Operations
Net income attributable to shareowners of The Coca-Cola Company 6,434 8,920 7,747
18 5% 18 7% 18 13% 18 73%
19 6% 19 13% 19 9% 19 96%
20 –9% 20 0% 20 –2% 20 108%
Organic Revenue Growth1 Operating Income Growth2 Diluted Net Income Per Share Growth3 Adjusted Free Cash Flow Conversion Ratio 4
1 O
rganic revenue is a non-GAAP financial measure. Reported net income per share declined 13% and grew 38% and 419% for For more Financial Data, see the
net operating revenues declined 11%, grew 9% and declined 5% the years ended Dec. 31, 2020, 2019 and 2018, respectively.
for the years ended Dec. 31, 2020, 2019 and 2018, respectively. 4 Adjusted free cash flow conversion ratio = free cash flow
Data Appendix.
2 R
eflects comparable currency neutral operating income, which adjusted for pension contributions divided by net income
is a non-GAAP financial measure. Reported operating income adjusted for noncash items impacting comparability. Adjusted
declined 11% and grew 10% and 18% for the years ended Dec. 31, free cash flow conversion ratio is a non-GAAP financial
2020, 2019 and 2018, respectively. measure.
3 R
eflects comparable currency neutral diluted net income per Note: See page 63 for a reconciliation of non-GAAP financial
share, which is a non-GAAP financial measure. Reported diluted measures to our results as reported under GAAP.
Beverage Company
to grow in a fast-changing marketplace. As part of this new,
networked global organization, we have reduced the number
of master brands to approximately 200. We are curating a tailored
collection of global, regional and local brands with the greatest
potential to scale and grow.
Since its birth at a soda fountain In 2020, we announced plans to reshape flavored sparkling water, Topo Chico and finding new ways to deliver our
in downtown Atlanta in 1886, our beverage portfolio and transition Hard Seltzer and Coca-Cola Energy. products, such as the Wabi mobile app.
The Coca-Cola Company has grown from 400 master brands to approximately The portfolio reset also better positions
through innovation. The company’s 200—the ones that are best positioned us to nurture local innovations and propel
iconic drink went from the fountain for growth and scale. We’re challenging successful regional brands to the global “Our goal is to converge on
into bottles before entering markets ourselves to think differently about marketplace. disruptive innovations that are
around the United States—and, our brands, identifying the greatest going to move the needle—not just
eventually, the world. opportunities and prioritizing our Our innovation teams are focused on in the marketplace, but at a scale
investments and resources. creating drinks that fit into our consumers’ that’s relevant to The Coca-Cola
More than a century later, we’re still lives, including categories such as Company.”
committed to innovation while staying Discontinuing some brands allows us to enhanced hydration and plant-based
focused on our Beverages for Life invest in growing trademarks like Minute drinks. And our innovation lens isn’t JAMES QUINCEY
ambition to provide drinks for every Maid and Simply and to put more weight only focused on beverages—we’re Chairman and Chief Executive Officer
The Coca-Cola Company
occasion. behind promising innovations like AHA also innovating packaging solutions
Launched in 2020, our new line of Following the successful 2019 launch by consumers for the last 50 years. Our breakthrough innovation, which In early 2021, we launched this
sparkling water comes in eight flavors of Costa Coffee’s ready-to-drink cold The beans that go into this blend are sips like a Coke and finishes like a new line of premium waters with
with no sweeteners, no calories and coffee in a can in both the UK and always Rainforest Alliance certified— coffee, piloted in Japan in 2018 and unique ingredients and flavor
no sodium. Some of them include Poland, 2020 has seen the category whether they are served in a can, is now available in nearly 50 markets extracts, such as ginseng and green
a spark of caffeine. The brand also continue to grow. The brand has bottle, cup or pod. worldwide. It also has zero-sugar tea, dandelion and lemon, and
unveiled two new flavors in early launched its range into markets options and is available in flavors such ashwagandha (an ancient herb)
2021: Raspberry + Acai and Mango + including Switzerland, Ireland and as vanilla and caramel. and tangerine.
Black Tea. In the fast-growing flavored Costa’s second biggest market, China.
unsweetened sparkling water
category in North America, Within its first year, the ready-to-drink
AHA showed strong results in its range delivered strong performance.
first year, carving out a market share In China, ready-to-drink has helped
of about 8% and outperforming accelerate the Costa brand by
competitors. creating opportunities to reach
consumers in new coffee occasions—
with distribution continuing to
expand. In 2021, a strong new product
development pipeline will build on
the core range currently on offer.
Engagement & around the world. pressing need for systemic change
and created a greater sense of urgency
engagement, reporting and disclosure.
When engaging with stakeholders, we
Partnerships
Multi-stakeholder collaboration is for businesses to move the needle apply the principles of transparency,
especially critical if we intend to make on environmental, social and governance inclusiveness, consistency and
significant strides toward eliminating initiatives. The pandemic also further accountability to promote positive
plastic waste, reducing carbon emissions, underscored the intersection of impact and create a virtuous cycle of
At The Coca-Cola Company, we ensuring access to clean water and The Coca-Cola Company’s own collaboration.
believe that companies must play achieving racial equity. Throughout this sustainability goals amidst the converging
a role in creating the systemic report, we seek to demonstrate our crises of climate change, social inequality We take a similar collaborative,
change necessary to achieve a ambition and leadership in the industry, and economic uncertainty. multi-stakeholder approach to our efforts
more just and equitable society, using our leverage on the most pressing to promote systemic change through
a more sustainable economy global challenges that require broad We are committed to engaging proactively public policy.
collective action. with partners and stakeholders in all
and a healthier planet.
of the countries in which we operate. READ MORE: Public Policy feature
If the COVID-19 pandemic has taught us The insights and feedback of our key
We also believe that businesses,
anything, it is that we cannot act alone. stakeholders inform our sustainability
governments, NGOs and civil society can
The deep vulnerabilities exposed have strategy across our goals. Stakeholder
achieve effective outcomes when working
been a moment of convergence that has feedback is also fundamental to our
together through meaningful partnerships
At the World Economic Forum’s Annual Each year, through the UN Global In October, we hosted (virtually) our Also in October, Chairman and CEO
Meeting in January, our Chairman and CEO Compact, we participate in a range of 12th annual Business & Human Rights James Quincey helped to unveil the
and leaders of our sustainability teams events surrounding the United Nations Conference, in partnership with the Ceres’ Roadmap 2030, a 10-year action
met with leaders across government, General Assembly, including ESG-focused U.S. Council for International Business, plan for sustainable business leadership
the private sector and civil society, panel discussions. This year, it was held the U.S. Chamber of Commerce and that aims to stabilize the climate, protect
speaking on the role that corporations virtually in September, and we were the International Organization of water and natural resources, and build
can play on critical issues ranging from pleased to join more than 1,200 CEOs from Employers. Michelle Bachelet, the UN a just and inclusive economy. Quincey
packaging waste reduction to water other companies in over 100 countries High Commissioner for Human Rights, called the roadmap “a bold action plan
scarcity. Following that, as meetings to sign the Statement from Business presented the keynote address. for companies to grow and strengthen
moved to a virtual format, we participated Leaders for Renewed Global Cooperation, their businesses while taking on critical
in a range of Forum events including the supporting the UN mission and inclusive environmental and social issues.”
Virtual Oceans Dialogue. multilateralism.
Water
Leadership
The Coca-Cola system is a global leader
in water stewardship, with a legacy of
ambition, innovation and partnerships
to “Reduce, Recycle and Replenish”
the water we use globally. Over the
170% 13.5M+
past 10 years, together with our GOAL
1 C
alculated with self-reported and
Photography: Global Environment & Technology Foundation internally validated data.
2030 WATER
VISION
Increase water security where we operate, source ingredients and touch people’s lives by improving water availability, quality, access and governance.
2030 Desired
REDUCED SHARED WATER CHALLENGES ENHANCED COMMUNITY WATER RESILIENCE IMPROVED WATERSHED HEALTH
Outcome
• 100% regenerative water use in all leadership locations • 1 00% of priority communities supported with water • 100% watershed stewardship implementation in
• Drive advanced water efficiency improvements in and sanitation access priority watersheds
High-level water-stressed contexts 1 • 1 00% WASH (water, sanitation and hygiene) provision • 1 00% advanced water management practices for
Targets in bottling system and supply chain ingredients grown in water-stressed regions
• 1 00% compliance with global water stewardship
requirements • Support community climate adaptation and recovery
Global
Maintain at least 100% global replenishment of direct water use through contextualized interventions for operations, communities and watersheds.
Replenishment
Priority Levers
ADVOCACY AND GOVERNANCE / COLLABORATION AND COLLECTIVE ACTION / TRANSPARENCY AND REPORTING
for Change
Our Water Footprint Scaling Solutions published two new guides, including the
report Rising to Resilience: How water
stewardship can help business build
climate resilience, which provides tools to
Meeting 21st-century water challenges
prepare and respond to climate change’s
requires persistence and collaboration
THE COCA-COLA COMPANY ENTERPRISE WATER FOOTPRINT effects on water resources. It highlights
across geographic and organizational
the company’s climate resilience pilot with
boundaries.
During 2020, we completed an enterprise water footprint that showed that WWF in Guatemala.
93% of our system’s total blue water footprint is in the supply chain—with the
The Coca-Cola Company is a global
largest part attributed to growing the ingredients needed for our products. We also work with WWF in the Yangtze
member of the 2030 Water Resources
River basin in China, which is home to
Group (2030WRG) which works to address
INGREDIENTS PACKAGING MANUFACTURING DISTRIBUTION COOLING & hundreds of millions of people and to
DISPENSING the growing gap in water resource
incredible biodiversity. Together with
availability by transforming agricultural
the Hunan provincial government, we’ve
value chains, promoting circular water use
partnered to improve the health of
and championing technological innovation
the Liuyang River, the Xiang River and
through multi-stakeholder engagement,
Dongting Lake.
project investment and policy reform.
92% 1% 7%
CEO Water Mandate’s Water Resilience
liters and facilitated nearly $900 million
Coalition and WASH4WORK, became a
of investment into infrastructure and
signatory of Business for Nature’s Call to
technology.1
Action, “Nature is Everyone’s Business,”
and engaged in multiple collective
Through our decade-long partnership
action initiatives to advance common
with WWF, we have supported projects
approaches to quantifying and advancing
WATER RUNS THROUGH IT: in 39 countries that focused on water
corporate water stewardship.
CONNECTING OUR KEY ISSUES access, security or resilience. In 2020, we
Our 2030 water strategy is built on a recognition that water risks and
opportunities intertwine with many of the key issues for our company, customers
and communities now and in the future. For example, climate change is increasing
water stresses, so building climate resilience into our water strategy helps us to
address business risks and to harness investment opportunities and solutions,
especially using nature-based solutions. Agriculture depends on water and is
critical to managing our carbon emissions. Our new Principles for Sustainable
Agriculture and our new 2030 Water-Ag roadmap will highlight the opportunities Through our decade-long
for progress on sustainable agriculture, climate and water. Our work on access to
partnership with WWF,
clean water and sanitation provides multiple quantifiable benefits for women’s
empowerment. These threads come together through our strategies and key we have carried out joint
initiatives such as RAIN. water resilience and security
projects in 39 countries.
2020 Highlights
In northern Uruguay, the Lunarejo Valley provides a Coca-Cola Foundation Philippines, through its Agos In southwest Ontario, Canada, draining of wetlands over
unique refuge for native flora and fauna. But over the last Program, collaborated with Del Monte Foundation, Inc. time has led to increased runoff and pollution of Lake Erie.
decade, the Valley’s biodiversity, water resources and Philippines and the local government unit of Barangay In partnership with The Coca-Cola Foundation, Ducks
soil health have been threatened by overgrazing, logging, Kulasi in Sumilao, Bukidnon to provide farmers and their Unlimited Canada and Ducks Unlimited, Inc. restored 22
and population growth. Since 2017, Coca-Cola de Uruguay, families access to clean and potable water. Before the wetlands totaling about 10 hectares through a nature-
together with INDRA Foundation and AVINA have worked construction of the water system, villagers had to walk based solution that uses the wetlands to reduce runoff
in alliance with producers, families, NGOs and government to and queue up at a single faucet. Now, they have 25 and nutrient pollution and slow the release of water.
institutions toward a goal of protecting at least 3,000 community faucets, which has also allowed increased This “green infrastructure” approach cuts down on
hectares of the native forest of the Lunarejo Valley. In production of crops and vegetables. The project lifted the phosphorus entering Lake Erie, helping to prevent algal
2020 we have reached 3,000 hectares protected through poorest community members out of extreme poverty and blooms and oxygen depletion that threaten both the
agreements with producers on sustainable water use, enabled 61 families to install sanitary toilets. By making ecosystem and human health. The restored wetlands are
native forest and soil conservation and the promotion of safe water accessible to more families, projects like this projected to treat 1.4 billion liters of water per year.
rural ecotourism. also reduce the incidence of water-borne diseases.
6M+
(RAIN) to improve water access— their hands.1
and measurably improve lives.
The initiative enabled the empowerment
Over the course of a decade, RAIN made of more than 400,000 women through GOAL
catalytic investments to impact more than access to water, saving them significant
ACHIEVED
6 million people across 41 countries and time from water collection and people
territories through a range of water-based creating opportunities for employment,
initiatives that were tailored to address entrepreneurship and skills generation
local community needs. Managed by through water-related projects in their
the Global Environment & Technology communities. (Learn more about our
Foundation, RAIN harnessed resources 5by20 initiative.) RAIN also provided
4,000+ 41
from a vast network of more than more than 1,200 schools with clean water
300 partners, including governments, access, sanitation facilities, handwashing
the private sector and civil society stations and hygiene training. With communities African
to support projects with multiple reduced risks of disease and absenteeism,
served countries
socioeconomic benefits. children in these schools now have a
400,000+ 1.1M+
“We launched RAIN with a goal
healthier learning environment and an of transforming lives and
opportunity to reach their full potential. building more resilient
women people with
communities through water— enabled improved
from supplying sources of clean sanitation
1,200+ 450,000+
sanitation and hygiene to
supporting climate-smart
agriculture and returning water schools with hectares of land
back to nature. The program improved water with improved water
demonstrates the power access management
of partnerships and the
successes that can be achieved
WATER, SANITATION & PRODUCTIVE USE WATERSHED
HYGIENE (WASH) OF WATER PROTECTION when we work together for
Community access to water Projects to promote efficient Conservation projects in
long-term solutions.”
2 Impact data includes several projects from 2008 that were
and sanitation projects, and sustainable use of water critical water basins that grandfathered into the initiative.
promoting improved hygiene for economic development provide upstream economic BEA PEREZ
behaviors for positive impacts services and downstream Chair and President of
on health and development community water supply The Coca-Cola Foundation
Shaping a
Growth Portfolio
and Reducing
Added Sugar
We’re refreshing the world through a portfolio
of beloved brands and beverages. As we continue
to evolve as a total beverage company and
respond to consumers’ desires for more choices
across categories, we are reducing added sugar
while providing more drinks with nutrition benefits;
optimizing our mix of products; offering more small
packaging choices; and providing consumers
with clear nutrition information.
~200
Coca-Cola
master brands across the following
beverage types:
Our Portfolio
of consumers, we’re staying focused on the four
key actions at the heart of our beverage strategy:
Providing smaller
package choices
so it’s easier for
consumers to control
Giving people the
added sugar intake
information they need
to make informed choices
Reducing
Added Sugar
~125,000
tons of added sugar
18
of our 20 top brands
The Coca-Cola system in Australia
exceeded its commitment to reduce sugar
by 10% by 2020 from a 2015 baseline,
removed on an are low- or no-sugar achieving an overall reduction of 11.2%.
annualized basis or have a low- or
through recipe no-sugar option, and
This reduction forms part of an industry-
Leading health authorities recommend changes in 2020. ~36% 3 of our beverage wide pledge coordinated by the Australian
that individuals should consume no more portfolio is low- or Beverages Council for a 10% sugar
no-sugar. 4
than 10% of their total daily calories from TOTAL RECIPE Original Taste, reduction by 2020 and 20% by 2025.
added sugar. The Coca-Cola Company CHANGES GLOBALLY:
embraces this recommendation, providing 2017 = ~310
Less Sugar In North America, we’re part of the
choices that support what consumers 2018 = ~400 American Beverage Association’s Balance
want and need. 2019 = ~275 In some markets around the world, Calories Initiative, which has committed
2020 = ~140 zero-calorie beverages have not to decrease beverage calories in the
Sugar reduction remains a top priority, yet developed a strong consumer American diet by 20% per person by 2025.
In 2020, Coca-Cola base. But many consumers tell us According to an interim report released
and we continue to adjust our recipes
Zero Sugar grew
to reduce added sugar, promote low- by double digits in they want more drinks that have in September 2020, beverage calories
and no-calorie beverage options, and The UK is the first 59 countries and less sugar and fewer calories than had fallen by 5.6% from 2014 to 2019; the
make smaller packages more available country in the world territories. our original recipes. In response, report noted that 2019 represented the
where we sell more we have created reduced sugar largest single-year reduction in calorie
to enable portion control. Over the
no-sugar cola than
past decade we have invested heavily regular Coca-Cola
variations of our classic Coca-Cola consumption—and the third consecutive
in natural sweetener research leading (sales of diet and POWERADE™ recipe. Our Coca-Cola recipe with year of calorie decreases. While we were
to the discovery, development and zero-sugar combined). has grown its zero- 30% less sugar began in Mexico in pleased the report showed a decrease in
sugar, zero-calorie
commercialization of sweeteners by 2018, and has since expanded to calories, we recognize there’s much work
options over the last
The Coca-Cola Company and partners. five years, which nearly 40 countries globally. to be done to achieve the 20% reduction
aided in a 22% calorie by 2025. The Mexican Beverage Industry
reduction across
We’re exploring and bringing to market Association, meanwhile, has committed to
total volume.
new alternatives that maintain the great reducing the calorie content of its member
Sugar Reduction
tastes people love but with less added companies’ portfolios by 20% between
sugar and fewer calories. Globally, In 2020, average sugar per 100 ml 2018 and 2024.
Coca-Cola Zero Sugar has become a declined slightly along with an overall
decline in sales, impacted by the COVID-19
Initiatives
popular alternative to our original formula
pandemic. The previous year, we reduced
and has continued to show strong added sugar while increasing global We participate in nearly
growth in 2020. sales. 5, 6 In cooperation with our industry peers, 40 calorie/sugar reduction
Average sugar per 100 ml
we participate in many sugar reduction initiatives globally.
We track the results of our sugar- Unit case volume growth initiatives around the world, tailoring our
reduction efforts; the majority of the approach to help reduce intake of added
added-sugar reductions stem from sugars to meet expectations of local
changes to our sparkling beverage recipes 2018 2019
consumers and stakeholders.
23%
and packaging size reductions. Average
2% 2% 2020
calories per pack 1 dropped by 2.3% in The European soft drink industry,
2018 and by another 7.0% in 20192;
–2%
-2% –1%
-1% UNESDA, announced in 2020 that the
in 2020, however, average calories per –3%
-3% industry collectively reduced added growth for mini
pack increased by 4.9%— the result of a sugars in drinks across Europe by an cans in North
shift in consumer purchasing patterns due –6%
-6% average of 14.6% between 2015 and 2019, America in 2020,
to the pandemic, as many outlets were offering portion
exceeding the 10% reduction commitment.
closed. This led to a decrease in individual control to
consumers
servings and out-of-home consumption In the UK, Public Health England’s
and an increase in purchases of larger October 2020 Sugar Reduction Progress Smaller packaging options aim to help
pack sizes for sharing at home. 4 Low- or no-sugar products have between zero and 5g of
added sugar per 100 ml. Report found that Coca-Cola Great Britain people control added sugar intake more
easily for themselves and their families.
1 The calories per pack metric takes into account both levers to
5 The company acquired Costa in January 2019. In 2019,
with the exception of ready-to-drink products, the company
achieved a 24% reduction for sparkling Globally, about 42% of our sparkling soft
reduce sugar: recipe changes and package size changes. did not report unit case volume for Costa. However, unit beverages between 2015 and 2019, drink brands come in packages of 250 ml
2 Average calories per pack for 2018 and 2019 have been case volume in 2020 includes both ready-to-drink and non-
updated to reflect a more complete data set. ready-to-drink Costa products. exceeding a voluntary 20% reduction (8.5 oz) or less.
3 This metric is based on the number of products in our
beverage portfolio.
6 Average sugar per 100 ml for 2019 has been updated to
reflect a more complete data set.
target.
We are bringing drinks such as plant- micronutrients. They contain a blend of We are a leader in the food and beverage
based beverages and juices, fortified seven micronutrients—iron, zinc, vitamin industry by putting clear, easy-to-find
beverages and purified water to more B2, vitamin B12, folic acid, vitamin A and nutrition information on the front of our
people in more places. vitamin C, which are all essential nutrients packages to support informed consumer
for the healthy development of children. choice.
We’re also adding vitamins and essential
micronutrients to our beverages to make OWERADE® POWER WATER, available
P Nearly 100% of our products globally,
FUZE TEA them more nutritious. in three flavors, offers a zero-sugar way except water, provide front of pack
to power through a workout. It is packed energy/calorie information.1 We’re also
Fuze Tea with zero sugar is a Some examples include: with B vitamins and our unique ION4 making our online product nutrition
raspberry and mint flavored Advanced Electrolyte System. information more transparent and easier
beverage with concentrated black inute Maid Vita Punch is a range
M to navigate.
tea infusion and mint extract of juice drinks containing a blend of Simply Almond Unsweetened has just
with sweeteners. apple, pineapple, mango and guava juice. four simple, all-natural ingredients, and is Front-of-pack nutrition labels have
The drinks also contain micronutrients, dairy free and gluten free. been identified as being able to help
including magnesium and potassium, improve the dietary habits of populations
and provide 100% of one’s daily Launched fairlife® ultra-filtered milk and aid in the prevention of obesity
requirement of vitamin C to support in Canada, made with 100% local Canadian and non-communicable diseases.
immunity. milk in partnership with Dairy Farmers They can help consumers interpret
of Ontario. the nutritional quality of products
Minute Maid Nutriforce is a ready-to- by providing simplified nutritional
serve juice drink containing delicious Read more about fairlife in their Annual information. There are several labeling
blends of home grown fruits from Stewardship Report. schemes being used globally, and we will
India with the added benefits of ensure ongoing compliance or voluntarily
implement labeling schemes that help
AHA SPARKLING WATER consumers make informed choices.
Launched in 2020, our new line Read our Responsible Marketing Policy
of sparkling water comes in eight and our new Global Policy On Alcohol
flavors with no sweeteners, no Responsibility.
calories and no sodium. Some of
them include a spark of caffeine.
The brand also unveiled two new RESPONSIBLE MARKETING FOR
flavors in early 2021: Raspberry + NON-ALCOHOLIC BEVERAGES
Acai and Mango + Black Tea. In the
fast-growing flavored unsweetened We do not target our advertising to children under
sparkling water category in North age 12, anywhere in the world. Our policy applies
America, AHA showed strong to all our products, regardless of nutritional profile,
results in its first year, carving out as we honor the rights of parents and caregivers to
a market share of about 8% and make choices for their children.
outperforming competitors.
Our policy responds to changing societal concerns
and we partner with industry to scale collective
action, including in responsible marketing pledge
1 Calorie information (expressed as calories, kilocalories,
or
kilojoules) is provided on the front of our packages,
with
programs of the International Food & Beverage
the exception of returnable or refillable proprietary
and Alliance (IFBA) at the global level, the EU Pledge
multipurpose bottles (glass and plastic) with permanent
printed labels; and unflavored and unsweetened still or in the European Union and The Children’s Food
sparkling bottled water, including mineral water. and Beverage Advertising Initiative (CFBAI) in the
United States.
60%
of the equivalent bottles and
cans we introduced into the
market in 2020 were refilled,
collected or recycled.1
Partner
Partnership across business,
government and civil society is
fundamental to scaling solutions
and critical to reaching our climate
target and achieving a circular
economy. We remain committed
to help drive collective action,
working with stakeholders, Asia Circulate Capital, an investment Global Joined The Consumer Goods Europe Our R&D team in Brussels
fund focused on ventures, infrastructure Forum (CGF) Plastic Waste Coalition collaborated with Danish startup Paboco
suppliers, nonprofits, communities,
and innovations that prevent the flow of Action, a CEO-led effort to develop to develop a recyclable paper bottle
customers and industry peers
of plastic into oceans and advance the a framework for Extended Producer prototype, which will be piloted in 2021
to invest in recycling innovation, circular economy, took steps in 2020 to Responsibility (EPR) programs to support via an online retailer in Hungary with our
facilities, organizations and invest in seven pioneering companies in the improvement and development of plant-based beverage brand AdeZ.1
initiatives. India and Indonesia using technology to waste management systems around
fight plastic pollution and transform the the world. The Coalition published an
waste management and recycling value aligned position on extended producer
chain. This includes two Indian companies responsibility (EPR) and is now working to
poised to become the first food-grade, advance more progressive policy in key
bottle-to-bottle rPET producers in that priority countries.
market. We were an inaugural investor in
the fund, which has raised more than 1 First-generation paper bottle prototype includes plastic
closure and plastic lining made from 100% recycled PET.
$100 million since its launch in 2019. All components of the bottle are recyclable.
Ghana Coca-Cola joined the steering Global Signed a business manifesto Philippines Coca-Cola Beverages Thailand Part of a global initiative to
committee for Africa’s first national calling for a UN treaty on plastic pollution Philippines signed an agreement with remove waste from rivers, The Coca-Cola
Plastic Action Partnership in Ghana. to urgently address the fragmented Indorama Ventures to establish PETValue, Foundation and Benioff Ocean Initiative
Ghana generates more than 1 million tons landscape of regulation, and complement the country’s largest bottle-to-bottle have partnered with the TerraCycle Thai
of plastic waste per year, with only existing voluntary measures, and as such recycling facility, capable of processing Foundation to install two marine waste
5% collected for recycling. We are working help drive the transition to a circular almost 2 billion plastic bottles per year. traps in the Lat Phrao Canal to reduce
with more than 120 affiliated partners economy for plastic—at speed and scale. Indorama Ventures—our largest PET debris entering into the Chao Phraya River
to support Ghana in the transition toward We fully support this initiative for a global supplier—recently purchased and is in Bangkok, Thailand. From mid June to
a fully circular economy for plastics. agreement to tackle plastic pollution, led expanding PET recycling facilities in Brazil December 2020, over 133 metric tonnes of
by WWF, the Ellen MacArthur Foundation, and Poland, adding to their recycling waste was collected from the canal, with
and others. facilities in Mexico, the United States, a highest daily collection rate of nearly
France, the Netherlands, Thailand and the 2.5 tonnes in a single day.
Philippines joint venture.
Since global challenges such as plastic with governments, often through trade the-art infrastructure, including $4 million Climate Action
waste and climate change are far associations, to provide evidence of the invested in 2020 to recycle nearly 38
too great for any single government, safety and quality of recycled materials. million pounds of PET plastic in Dallas, In 2020, we took steps to support several
company or industry to solve, To expand the Coca-Cola system’s use of Texas; Kenosha, Wis.; and Oklahoma City, policy positions that align with our
partnership is more critical than ever. rPET in our packaging, we have engaged Okla. Similarly, in January 2021, we joined climate reduction targets. We were part
The need to further align our advocacy with industry partners to work with 30 other companies, including customers of the working group that developed the
efforts and our sustainability goals governments to establish rPET standards Loblaw and Walmart, in launching the Business Roundtable’s (BRT) updated
served as a catalyst for greater for food and beverage packaging. Over Canadian Plastic Pact. climate position announced in October
collaboration and more proactive the last year, two governments set such 2020. The statement outlines high-level
engagement in 2020—a year in which standards: Bangladesh and Nigeria. In Ghana, building on the model first climate actions U.S. federal policymakers
we worked to drive meaningful policy tested in Indonesia, through the World can take and calls for public/private
change with business peers, civil We work with policymakers and industry Economic Forum’s Global Plastic Action partnerships to achieve the greenhouse
society organizations and all levels partners to advocate for effective Partnership (GPAP), we have a multi- gas (GHG) emission reductions outlined in
of government. Extended Producer Responsibility stakeholder, national action plan in the Paris Agreement.
(EPR) systems that provide an efficient, place for plastics. And we continue to
“The pandemic has further highlighted the financially sustainable collection program explore opportunities to expand the PET We also joined a coalition of companies
need for collaboration among business, for all recyclable materials to ensure Recycling Company (PETCO) model—an in successfully petitioning the U.S.
government and civil society through we can collect more bottles and cans industry body first introduced in South Chamber of Commerce to update its
effective policymaking, which sets the for recycling and reuse. Recently, we Africa that promotes and regulates PET policy on climate change. We sent a letter
framework for engagement and action,” developed an industry position on the recycling, and partners with recyclers encouraging the Chamber to embrace the
said Michael Goltzman, Vice President optimal design of EPR programs through to create new products made from BRT statement and continue to play an
of Global Policy and Sustainability, the Consumer Goods Forum (CGF) Plastic recycled PET—to other countries in Africa, active role in both the Chamber’s Climate
The Coca-Cola Company. “By actively Waste Coalition of Action—extending including Kenya, where recycling rates Task Force Advisory Group and Climate
participating in these discussions, we beyond the beverage industry. And for PET packaging have increased from Solutions Working Group.
seek to provide informed, constructive we continue to support well-designed, 5% to around 40% in the first two years of
contributions that create shared value well-managed Deposit Return Schemes implementation. We supported “America Is All In,” a
for our business, our planet and society in more than 35 markets to increase statement made by the “We Are Still In”
as a whole.” packaging collection that provides the We also joined more than 30 other movement calling on U.S. President
raw material to create more recycled companies in signing a business Joe Biden and his administration to rejoin
content for our bottles. manifesto calling for a global UN treaty the Paris Agreement. The coalition of
Recycling and Reuse on plastic pollution to urgently address nearly 4,000 NGO, business, government
In 2020, we joined the U.S. Plastics the fragmented regulatory landscape and civil society leaders (with coordination
An efficient circular economy for our Pact, championed by The Recycling and accelerate progress toward a circular from WWF) supports aggressive plans
packaging requires collaboration and Partnership, World Wildlife Fund (WWF) economy for plastics, supporting an to address the dual threats of climate
financing. Use of recycled materials in and the Ellen MacArthur Foundation existing call from WWF and the Ellen change and COVID-19.
our packaging is only possible when to partner with state and local MacArthur Foundation. Collectively, we
governments allow it and encourage it, governments to enable legislation that believe a global framework of goals Read more in the Climate section.
and the same is true for effective waste drives toward a circular economy. The and targets, together with national
management and recycling systems. U.S. Plastics Pact builds on the American government action plans and consistent
Beverage Association’s Every Bottle Back measurement, are needed to harmonize
Like many issues, no globally accepted initiative, which is marshaling nearly policy efforts, enhance investment
standard exists for food-grade recycled $500 million to educate consumers and planning, stimulate innovation and
content PET (rPET), so we must work improve recycling systems with state-of- coordinate infrastructure development.
Read more stories 1 2 3 4 5 6
Climate
Our Renewed Ambition
Climate change affects our
operations and the communities
where we operate. We are
increasing our ambition to
reduce our own carbon footprint
while ensuring we understand
2050
GOAL
ACHIEVED
SCIENCE-BASED
TARGET
and prepare for climate risks in
the short and long term.
25% NET ZERO
Achieved our “drink
in your hand” goal to
reduce relative carbon
AMBITION
emissions by 25%
by 2020 against a absolute GHG emissions
2010 baseline reduction by 2030
Supplier
Product Less heavy fuel Vehicle Customer
renewable
reformulation
RCG across & coal use
Improvement innovation
Optimized route partnerships
energy use
BioPET HFC-free
Product Portfolio in Co2 Yields design
Hydrofluoro-
Bio-based Improvement Optimized
Additional Light carbon-(HFC)
packaging
weighting in CO2 yields route design
free
Additional light-
weighting
2/3 15
Science-Based Target and highlights the
role of suppliers to achieve our planned
Scope 3 reductions. It also motivates
supplier action by providing information of suppliers responded suppliers indicated that
to our request to they have already set
on our 2021 goal to have 95% of direct
report their climate Science-Based Targets
and authorized suppliers comply with our data to the CDP of their own
Supplier Guiding Principles, upholding our
Human Rights Policy.
Sustainable
Agriculture
A sustainable and resilient
agricultural supply chain has
never been more critical to our
interrelated goals, especially around
climate, water, human rights and
women’s enablement. In 2020, we
completed a comprehensive review
of our Sustainable Agriculture
56%
Guiding Principles (SAGP) and their of our priority
ingredients volume
governance, and in 2021 we issued was sourced sustainably
in 2020, compared
new Principles for Sustainable to 54% in 2019 and
8% in 2013
Agriculture (PSA) while continuing
to work with our suppliers and
partners to create systemic change
in our agricultural supply chain.
1 Our sustainable agriculture program started back in 2013 with 2 Data is based on supplier reporting according to our assurance 3 The sustainably sourced percentage for grape was incorrectly
14 global priority ingredients. Due to changes in our business requirements, which is consolidated and internally validated. reported as 41% in our 2019 report, and the 2020 report FOCUS
and portfolio, palm oil and stevia purchases have been either Results can fluctuate due to changes in volumes and sourcing corrects this figure to 31%.
discontinued or significantly reduced. We do not include them origins while we get new suppliers on board with our AREA
in the reporting on a global level. requirements. 4 92% sustainably sourced Pulp & Paper relates to the ~83% WATER
of our global purchase volume for which we have data. In 2019,
we had data for ~75% of our global purchase volume.
Protecting Water Through Raising Sustainable Corn Strengthening Recruitment Nurturing Sustainable Lemons
Sustainable Practices in the UK in the U.S. Heartland and Farming Practices and Native Forests
in Mexico
WWF and Coca-Cola have been working Through an innovative collaboration Citromax, a key lemon supplier in
together in the UK since 2012 to protect with Tate & Lyle, one of our ingredient Since 2017, we have been working in Argentina, has been working with
and replenish unique rivers and streams partners, and Truterra, a conservation Mexico with Solidaridad and others to The Coca-Cola Company to implement
while aiding supply chain sustainability solutions provider, we are supporting U.S. support 16 sugar mills and mill-owned sustainable lemon growing practices
in East Anglia, one of the most water- Midwestern corn growers to implement farms, training farmers on sustainable while also restoring native forests.
stressed areas of Great Britain and a sustainable agriculture practices on land agricultural practices, with a focus on
major area of sugar beet production. equivalent to acres used to grow the corn women and youth, and advising mills on In 2020, 100% of the lemons supplied
The initiative has provided local farmers used in our products. responsible recruitment practices. to Coca-Cola by Citromax groves
tailored advice to enrich soils and reduce were produced at Farm Sustainability
runoff and nutrient leaching, which in Participating farmers use cutting-edge • 600+ farmers trained Assessment (FSA) Gold level. This is
turn helps to improve river health, water technology and a network of agronomy • 13,000+ hectares of land under demonstrated through their Global
quality and habitats. advisors to embed up to 26 conservation agronomy best practice GAP + FSA add-on.
practices, including ones that improve • 1,700 workers benefitting from
Over a three-year period, the program soil health, protect biodiversity and improved practices Citromax manages 59% of its own
replenished around 1.2 billion liters of potentially sequester carbon. The property as native forest, where it has
water, engaged thousands of farmers and Coca-Cola Company was Tate & Lyle’s We are also founding members of been restoring populations of valuable
directly supported more than 100 farmers first customer to pilot the program, which ASACAM, an alliance of companies, trees, including mahogany, that have been
to introduce more soil-sensitive practices, is part of the Field to Market program industry associations and the Mexican removed through illegal logging.
resulting in 4,000+ acres of land being and now covers 1.5 million acres of government, working together to drive The remaining 41% is in citrus plantations.
farmed more sustainably. WWF and sustainably grown corn. improvements across the sugar cane The company’s commercial nursery
Coca-Cola have also piloted innovative sector in responsible recruitment has raised 50,000 native trees for local
watershed-scale programs with other Results from 148,000 acres continuously and farm resilience, and to reduce reforestation to date.
food and drink businesses that source enrolled since the start of the pilot negative environmental impacts.
from the region to drive collective action have demonstrated the impacts of the
on water issues. program: 10% reduction in greenhouse
gases; 6% reduction in topsoil erosion;
and 4% improvement in the soil
conditioning index, an indicator of soil
quality and its ability to retain carbon.
700K+
We nurture a culture that values how we work as
much as
what we achieve—emphasizing inclusivity, empowerment, Reorganizing for
curiosity and agility. We champion diversity, equity and Future Growth
inclusion by building a workforce as diverse as the consumers employed by
In 2020, we announced plans to redesign
we serve. And we use our global scale to be a force for The Coca-Cola Company
our organization, which included the and our bottling
progress and for good. difficult decision to reduce the number partners 1
of Coca-Cola positions globally. We are
Our company’s impacts on people extend well beyond our
80,300
accelerating our transformation and
own business. We are committed to caring for those who make moving to a new, networked organizational
our success possible, whether through respecting human structure. This will drive clearer decision-
rights across our operations and supply chain, empowering making and empower the company to
access to equal opportunities, supporting more sustainable focus on innovation and growth. employed by
The Coca-Cola Company
agriculture practices, or giving back to communities through
our philanthropic initiatives.
See additional performance indicators
in the Data Appendix. 1 We have approximately 225 bottling partners.
2,279
In 2003, we set a goal that 98% of our company our Principles for Sustainable
locations and system bottlers and 95% of our direct and Agriculture help ensure that, as
authorized suppliers will validate compliance with our a system, we strive to create
Human Rights Policy and our SGPs by the end of 2020. audits conducted a positive impact in the
The global pandemic, however, impacted our in-person in 2020 communities where we operate,
audit capabilities, leading to a decrease in compliance reduce social and environmental
percentages for 2020 and forcing us to push the goal date risks, and address issues when
1 SGP is part of all contractual agreements between
out to the end of 2021. As of Q4 2020, 93% of company- they arise. These policies and The Coca-Cola Company and our direct and authorized
suppliers. The Human Rights compliance metric reflects
owned facilities, 90% of bottlers and 87% of suppliers practices are aligned with the the performance of sites and suppliers critical to the
reached compliance with our Human Rights Policy UN Guiding Principles on Business development of the product, including company operations,
bottling partners, co-packers and direct suppliers of
and SGPs. and Human Rights. ingredients, primary packaging and dispensing equipment.
SGP audits may occur in other areas as well, such as
trademarked marketing and promotional equipment;
however, these are not included in the metric.
ENABLING WOMEN
A Decade of
Achievement
In 2010, we announced a global initiative to
enable the economic empowerment of 5 million
women entrepreneurs by the end of 2020.
6M+
women enabled
GOAL
ACHIEVED
400,000+
women enabled through
community water stewardship
programs1
Learn more about 5by20 in our
1 USAID/Global Environment and Technology Foundation
(GETF) research on water access leading to time savings
10-year compendium report, A Decade
that is used for economic activity. of Achievement.
6M+
our goal, we recognize the devastating GOAL
impacts of COVID-19 on women in ACHIEVED
Our 5by20® initiative set out to address particular. The United Nations noted that
structural inequalities and economic even limited gender equality gains made
barriers that women entrepreneurs face over recent years risk being rolled back
by providing business skills training, because of the pandemic. 3 We surpassed our goal,
mentoring networks, financial services enabling more than 6 million
and other assets to support women and Our efforts to enable the economic women by the end of 2020.
their businesses. empowerment of our communities,
and to making a positive difference,
In 2013, we expanded the scope of 5by20 will continue. However, the challenges
to allow for independent contributions facing female entrepreneurs across
by The Coca-Cola Foundation and other the world remain enormous. Collective
partners. Through generous grants from and deliberate action over time—
the Foundation, through its Women’s HARNESSING THE
among the private sector, government
Entrepreneurship Empowerment pillar, Number of Women Enabled in the
POWER OF TECHNOLOGY
and civil society—will be essential
and the company’s collaboration with our for transformative change. We intend Top 5 Countries from 2011-2020
bottling partners, government agencies, Around the world, the use of
to expand our current programs
community leaders and NGOs, scalable technology is a powerful tool to
and industry engagement. 1. UNITED STATES 1,054,034
partnerships were developed to create enable economic empowerment.
2. KENYA 948,168
and implement more than 300 programs A number of the 5by20 programs
Learn about our 5by20 work in 3. POLAND 706,505
across 100 countries. provide online business skills training
the Philippines. 4. CHINA 530,629
and mentorship opportunities for
5. NIGERIA 476,478
By the end of 2020, we surpassed women to start or expand a business
See additional performance
our goal, enabling the economic and network with their peers. Some
indicators in the Data Appendix.
empowerment of more than 6 million of these programs enable women to
women.1 achieve financial independence. In
the Ukraine, for example, the #ICAN
All of the 6 million-plus
Water stewardship is a core sustainability empowerment program, delivered
beneficiaries:
pillar for the company, and we have seen by the Olena Pinchuk Foundation,
evidence that water is linked to women’s Were at least in their 16th offers online peer mentorship and
Coca-Cola Azerbaijan recently
economic empowerment. A 2018 Ipsos year of age networking opportunities for women
received the U.S. Secretary of seeking to grow their businesses.
research study2 explored the larger
Participated in one or
State’s Award for Corporate In the U.S., our support of digital
benefits to women through water access more 5by20 economically
programs. (Learn more in the RAIN feature
Excellence in the category programs run by the Adelante
enabling activities
on page 25). of Women’s Economic Movement, the Women’s Business
Faced barriers addressed by the
Empowerment Enterprise Council and the National
programs’ enabling activities
There are several lessons to be Minority Supplier Development
Were current or prospective Council has helped women
learned from our 5by20 programs.
female entrepreneurs entrepreneurs of color strengthen
Effective partnerships with like-minded
organizations—and the ability to scale and their businesses and helped keep
adapt programming to local challenges— 1 As of Dec. 31, 2020.
the initiatives running during the
were essential factors in achieving our pandemic.
2 Assessing the “Economic Empowerment Impacts of WASH and
goal. From the outset, we wanted our Water Access Intervention on Women.” Ipsos 2018 Report.
impact to be measurable, backed by data 3 United Nations Policy Brief, “The Impact of COVID-19 on
Women,” 9 April 2020. Available at: www.unwomen.org/en/
digital-library/publications/2020/04/policy-brief-the-impact-of-
covid-19-on-women
Supporting Micro-Businesses
in the Philippines
In the Philippines, sari-sari stores drop in sales and profits during COVID-19
are a ubiquitous element of local lockdowns. “With the help of Coca-Cola,
life—part convenience store, part we are now doing OK, and we were able
230,000+
gathering place and integral to to get back to our usual business profits,”
the archipelago’s economy and she said.
culture. “Sari-sari” means “variety”
Annie, another loan recipient with a women enabled in the
or “sundry” in Tagalog, and the
Manila-based shop, said support from Philippines since 2011
tiny one-stop-shops stock a broad ReSTART allowed her to get back to through our 5by20 STAR
range of foods, beverages and “almost normal” operations. Program (Sari-Sari Store
everyday necessities. Training and Access to
Resources)
“Coca-Cola has long recognized the
About 86% of the sari-sari owners and significant role that micro-retailers play
operators are women. Over the last in helping sustain the Philippine economy
decade, as part of our 5by20 commitment, and our own business,” said Jonah De
15,000
The Coca-Cola Company has invested Lumen-Pernia, Coca-Cola Philippines
in targeted economic empowerment Public Affairs and Communications
programs to support these female Director. “The COVID-19 crisis did not
entrepreneurs, building their business change our commitment and in fact
Corazon women enabled through
skills and financial acumen. pushed us to go even further, ramping up ReSTART
our support to help their recovery. Indeed,
But the COVID-19 pandemic hit sari-sari their resilience is the nation’s resilience.”
owners especially hard. According to
the Philippine Association of Stores and
AWARDS
Carinderia Owners, 42% of sari-sari stores
and 75% of carinderias—small food stalls—
were forced to close in the early months Over the last
of 2020. Many of those that managed decade, our 5by20 Coca-Cola Philippines was
program in the honored with two UN Women
to stay open had trouble keeping
Philippines reached: 2020 Asia-Pacific Women’s
their shelves stocked, forcing them to Empowerment Principles Awards
significantly downsize their operations. for Gender-Responsive Workplace
and Community & Industry
Seeing an urgent need, Coca-Cola Annie Engagement Categories. The
17 81
Philippines partnered with government awards recognize exemplary
agencies and two leading micro-finance business practices that promote
with low service fee rates from 0.0% to gender equality aligned with UN
institutions to create the Rebuilding less than 1%. ReSTART also distributed Regions Provinces
Sustainable Development Goals
Sari-Sari Stores Through Access to “safe store” kits of plastic covers, personal
778 530
Resources and Trade (ReSTART) initiative. protective equipment and safety
The program allocated approximately information guidelines for retail shops.
$3.2 million in loan packages to some Cities and Trainers
15,000 micro-retailers so they could Corazon, who runs a sari-sari store in municipalities accredited
reopen safely. The loan packages include Manila, received a loan to help her get
30% goods and products, and 70% cash, back on her feet after suffering a large Read more stories 1 2 3 4 5 6
Diversity, equity and inclusion (DEI) ADVOCATING: Together with our across our U.S. supply chain—by at least Reflecting the Diversity
are at the heart of our purpose, bottling system, we will leverage $500 million cumulatively—over the next of Our Markets
values and growth strategy. We our network and resources to embrace five years. Related to this commitment,
aspire to create a better shared public policies that matter. For example, we announced new outside legal counsel Cultivating a diverse, equitable and
future for people everywhere by Coca-Cola Brazil joined a coalition of guidelines in January 2021. U.S.-based inclusive workplace is a strategic
consumer goods companies to create a law firms that service the company business priority that fuels greater
fostering an inclusive culture in
plan to address structural racism in Brazil. must commit that at least 30% of billed creativity, innovation and connection for
our own operations and advancing
As part of its racial equity action plan, associate and partner time will be from our company—and a sense of belonging
diversity, equity and inclusion in
the company’s Europe operating unit is diverse attorneys, with at least half of for our employees. While we currently
the markets we serve. these amounts from Black attorneys.
working with 10 external racial-equity track and measure progress against
experts from countries all over the region gender globally and race and ethnicity
~$800M
COVID-19 and the multiple social injustices
to kickstart anti-racism action. in the United States, our inclusion efforts
witnessed globally in 2020 brought
worldwide span five dimensions: gender
DEI to the forefront of communities
While the United States is at the epicenter, identity, culture and heritage, generation
around the world, including for our
our framework is designed for global and life experience, LGBTQ+, and ability
company, challenging us to take a hard spent by the
operating units to adapt and implement and wellness.
look at where we were and where we Coca-Cola system
in the most meaningful and relevant ways
need to be. In response, we developed with diverse
locally. Learn about the creation of our suppliers in the
a Global Social Justice Framework for
Racial Equity Plan in the United States. U.S. in 2020
Action, with four pillars:
8
advised senior leaders on goals,
LEADING: We have reviewed strategies and initiatives to greatest strengths, we are U.S. Business Resource Groups (BRGs)
are focused on creating an inclusive
and updated our internal policies advance People of Color within our putting in place resources workplace culture.
and practices—from recruitment to organization in the United States. and energy toward helping
development to diverse representation Comprised of leaders from across end the cycle of systemic
across all job levels—to help ensure our North America operating unit racism. We don’t have all
and corporate functions, the MLC
fairness. This includes rolling out DEI
will help drive the initiatives in
the answers. But I believe
education for all employees globally. that, together with civic We believe we can make a bigger
our Racial Equity Plan. impact toward a more inclusive world
and community advocates, through collaboration. We recently
INVESTING: We will invest our
government officials, fellow joined The Valuable 500, a global
resources to advance important causes
business leaders and our movement to advance disability
and use the voices of our brands to inclusion, and we signed on to the
weigh in on important conversations. Accelerating Our Supplier partners—and with the views
Partnership for Global LGBTI Equality,
For example, in the United States, Diversity Commitments and voices of those who a coalition of organizations committed
The Coca-Cola Foundation and the challenge injustice—we can to accelerating LGBTI inclusion in
company (through our Coca-Cola and We are focused on increasing the find solutions.” the workplace and in communities.
The partnership is supported by the
Sprite brands), have contributed overall diversity of our suppliers and are
Office of the United Nations High
more than $5 million to date through committed to spending $1 billion annually Commissioner for Human Rights and
JAMES QUINCEY
grants, company funds, in-kind donations with diverse suppliers in the coming Chairman and Chief Executive Officer operates in collaboration with the
and employee matching funds to years. We are more than doubling our The Coca-Cola Company World Economic Forum.
social justice causes. spending with Black-owned enterprises
50%
CURRENT U.S. CENSUS DATA:
leadership positions and grow our pipeline hourly and salaried employees in the
13% 18% 6%
of female talent. In 2020, the council same or similarly situated jobs are paid
continued a sponsorship program pairing fairly and equitably for their work, without
led by women
more than 30 senior female associates globally regard to gender (globally) or race and
from around the world with members of BLACK HISPANIC ASIAN ethnicity (in the United States). This
the company’s executive leadership team. process gives us confidence that our
WE WILL ALWAYS SELECT THE MOST QUALIFIED PERSON FOR THE ROLE pay structures are fair and we adjust if
We recently announced that, by 2030, disparities arise.
our U.S. employee population across all
job levels will aspire to align with census
REPRESENTATION DATA BY LEVEL1 Transparency and Reporting
data by race and ethnicity.
Level Female (global) Male (global) People of Color (U.S.)
We are committed to increasing
Senior Leadership 34% 66% 29% transparency and disclosure. We share
In 2020, 20% of Global Women’s diversity metrics with senior leaders on
Leadership Council members Middle Management 49% 51% 35%
a quarterly basis. Starting with this report,
were appointed to senior Professionals 36% 64% 51% we are publicly providing representation
leadership roles. data by race3 and gender for our overall
Total 42% 58% 43% workforce and leadership, and including
data submitted to the U.S. Equal
Coca-Cola Women in STEM Employment Opportunity Commission
(Science, Technology, Engineering (EEO-1 survey results), available on
2020 TEAM MEMBER DIVERSITY
and Math) is an organization Ethnic Composition of U.S. Employees2
2% our website.
0.4%
Two or More
dedicated to empowering female
talent to build successful STEM 4% American Indian/
careers. In 2020, more than
500 employees participated 7% Not Specified Alaskan
0.3%
in capability development Asian Native Hawaiian/
programs, internal events and Pacific Islander
“Our chairman and CEO, James
careers workshops. Quincey, has made it very clear
14% that we pledge to do our part
to listen, learn and act with
Hispanic
measurable and sustainable
In 2021, we became a founding 53% actions. This alignment from the
member of the World Economic White very top will ensure that senior
Forum’s Partnering for Racial leaders are invested in building
Justice in Business Initiative, a 19% accountability and leading by
coalition designed to eradicate Black example.”
racism in the workplace and set
new global standards for racial LORI GEORGE BILLINGSLEY
equity in business. G lobal Chief Diversity, Equity
& Inclusion Officer
1 Data as of December 31, 2020, for salaried and hourly employees. 2 Data as of Dec. 31, 2020, for U.S. salaried and hourly
People of color is for U.S. workforce only. In 2020, we improved our employees. This data excludes fairlife employees.
See additional performance indicators approach to calculating representation data, rendering year-over-
year comparison less meaningful at this time. This data excludes 3 We are only reporting racial/ethnic data for our U.S. workforce,
in the Data Appendix. BIG, Costa and fairlife employees. since some countries prohibit diversity tracking.
“We were empowered right out of the Step one was a deep dive into our stepping up diversity recruitment resources to promote empathy and
gate,” said Tanika Cabral, Vice President company’s diversity, equity and inclusion efforts to implementing mandatory DEI authentic conversations about race with
of Customer Leadership, North America (DEI) journey to understand past barriers training—and community advocacy and the goal of creating a more inclusive,
Operating Unit, and team co-lead. “We and missed opportunities. Strategies engagement efforts such as publicly equitable workplace.
were challenged to think big and to bring launched in the early 2000s worked supporting legislation to increase
to this work an unprecedented degree of for those times, and notable progress penalties for crimes of prejudice and This work will continue to evolve, and we
nontraditional thinking and energy. We was made in hiring, promotion and donating to partner organizations know we won’t always get everything
told ourselves from the start that if our compensation practices for Black pursuing social justice. right. We believe it is vital to continually
plans didn’t scare us a little, then they employees. But over time, progress listen, learn and adapt.
were not the right plans.” stalled. The team pushed boundaries and
challenged conventional processes for “Our goal,” said Booker, “is to drive the
The team’s approach was grounded in What was missing, the team concluded, everything from pay equity analyses to change that will make future Coca-Cola
listening and learning, tapping into a was a resolute focus on internal policies political giving criteria. They brought fresh employees—and the world—point back to
cross-cultural, cross-functional network and practices. “Disrupting systemic energy and perspectives, asking tough 2020 as a major turning point.”
of colleagues, plus stakeholders, partners racism and achieving true equity requires questions to ultimately generate more
and leading social advocates. Senior first taking a close look at ourselves ideas and results.
leaders empowered the team to devote as an organization,” said Jamal Booker,
significant time to this important work, Strategic Communications Director, Latin This led to a roadmap built with progress
and an executive steering committee America Operating Unit, and team co-lead. and permanence in mind. Highlights
provided weekly input. include diverse employee and leadership
These insights informed five workstreams representation goals to mirror the
focused on workplace priorities—from markets we serve by 2030 and other Read more stories 1 2 3 4 5 6
$139.1M
See additional performance indicators
The Coca-Cola system donations and in the Data Appendix. $13.0M
independent contributions from The Education &
Youth Development 10%
Coca-Cola Foundation total more than 2020 Contributions
$90 million to date to support COVID-19
relief efforts in communities around
the world through a combination of
product donations, in-kind services and $16.3M 12%
12%
equipment, monetary donations and
grants to relief agencies and personal
Recycling
$17.2M
Water & Environment
protective equipment, among other
1.9%
initiatives. Learn more on page 6.
Disaster Relief
of operating income1 invested
The Coca-Cola Foundation provided back into local communities from
more than $5.5 million in immediate relief The Coca-Cola Company and Learn about The Coca-Cola
support to nonprofits in 15 countries The Coca-Cola Foundation—
well above our annual goal of 1%
Foundation’s investment in
impacted by natural disasters in 2020— The Replenish Africa Initiative
from forest fires in Australia to typhoons (RAIN), a groundbreaking
in the Philippines to earthquakes in
program that has improved
Turkey—a 60% increase over 2019.
$1.2B+ DONATED
access to clean water, sanitation
The company’s Employee Disaster Relief
Fund provided $678,321 to associates
and hygiene for 6 million people
impacted by natural disasters and in 41 countries and territories.
COVID-19—a 695% increase over the by The Coca-Cola Foundation since
previous year. its inception in 1984
Operations
Highlights
In 2020, The Coca-Cola Company announced
strategic steps to reorganize and better enable
the Coca-Cola system to pursue its Beverages for
Life ambition. This new, networked organization is
1.9B
comprised of operating units focused on regional
and local execution that will work closely with five
marketing category leadership teams that span 2020 Worldwide Unit Case Volume
by Operating Segment
the globe to rapidly scale ideas. This structure is
supported by our new Platform Services organization
18% 3%
segments—Asia Pacific; Europe, Middle East & Africa; Latin America; and the world
North America—plus Global Ventures and Bottling Investments Group.
The following pages offer a look at our operations, their business results North America Global Ventures
and some key activities. All results are reflected using the company’s
2020 operating structure.
Asia Pacific
2020 Highlights 2020 Unit Case Volume 2020 Unit Case Volume
by Business Unit by Category Cluster 1
Note: See page 63 for a reconciliation of non-GAAP financial 1 Excluding Energy Drinks Cluster.
measures to our results as reported under GAAP.
• EMEA showed resilience despite days of the COVID-19 outbreak and 2020 Unit Case Volume by Business Unit 2020 Unit Case Volume by Category Cluster2
experiencing varying levels thousands of Costa Coffee cans
of lockdown throughout most of delivered to hospitals.
the year.
Western
• In response to COVID-19, Coca-Cola 7% Europe 5% 2%
• We saw strong volume performance Beverages Africa set up foot-operated 10% Central & 12%
28%
in West Africa, primarily led by the community handwashing stations Eastern
Europe
sparkling soft drinks category. at bus and train stations and outside Middle East & Sparkling
13%
bottling plants in Tanzania and Ethiopia, North Africa Soft Drinks
• In the UK, Costa Coffee gave National with donated water and soap. South & Water and
East Africa Sports Drinks
Health Service (NHS) workers a well- Turkey, Juice, Dairy
deserved coffee break with 250,000+ 20% 22% Caucasus &
81% and Plant-
Central Asia Based
free hot drinks donated in the initial
West Africa Tea and Coffee
18 19 20
Germany 8% Russia 5% Juice, Dairy
South Africa 7% Nigeria 4% and Plant-Based (2%) (1%) (9%)
Achieving 50% rPET Portfolio Turkey 6% Pakistan 4% Sparkling
in Great Britain and Belgium Great Britain 6% France 4% Soft Drinks 2% 2% (4%)
Spain 5% Other 51% Tea and Coffee 3% 3% (18%)
Water and
PET, our highest-volume packaging
Sports Drinks 3% 3% (18%)
material, is versatile, lightweight,
recyclable and can be made into
refillable bottles. We now offer
beverages packaged in 100% recycled
PET plastic (rPET)1 in around 30
markets. Despite availability and pricing
Organic Revenue Growth (Non-GAAP) Comparable Currency Neutral Operating
challenges during COVID-19, Coca-Cola Income Growth (Non-GAAP)
Great Britain and Coca-Cola Belgium
transitioned their full portfolios to
50% recycled material (up from 25%)
18 7% 18 7%
by the end of 2020. In the UK alone, 19 5% 19 9%
this latest milestone means that we
are removing more than 21,000 tonnes 20 (13%) 20 (1%)
of new (virgin) plastic per year, although
our goal is to go even further. 1 Excludes cap and label
Note: See page 63 for a reconciliation of non-GAAP financial 2 Excluding Energy Drinks Cluster
measures to our results as reported under GAAP.
Latin America
2020 Highlights
• In 2020, Brazil’s volume results aquifers that supply water to our 2020 Unit Case Volume by Business Unit 2020 Unit Case Volume by Category Cluster 1
remained strong, and Mexico improved Santa Cruz plant and the local
sequentially in the second half community. This project established
of the year. agreements to protect nearly 28,000
hectares of native forest, with water 14% 6% 2%
18 19 20
Delivering Groceries Mexico 47% Peru 3% Juice, Dairy
to Consumers Brazil 23% El Salvador 2% and Plant-Based 4% (1%) (6%)
Argentina 6% Bolivia 2% Sparkling
Chile 4% Ecuador 2% Soft Drinks 0% 0% (1%)
COVID-19 lockdowns put tremendous Colombia 3% Other 8% Tea and Coffee 0% 6% (1%)
pressure on all retailers, particularly
Water and
small, independently operated stores in
Sports Drinks 1% 5% (4%)
high-density urban areas that depend
almost solely on foot traffic. The Wabi
app, an online platform created at
the initiative of Coca-Cola Argentina,
allowed operators to stay open
during the pandemic and safely serve
“With Wabi, I was able to Organic Revenue Growth (Non-GAAP) Comparable Currency Neutral Operating
customers without having to physically Income Growth (Non-GAAP)
reach a previously unimagined
open. When a shopper places an order
customer segment. I was able
via a free mobile app, the platform
pings nearby retailers. The first store to
to retain them and generate 18 11% 18 16%
higher income.”
accept the order delivers the items to 19 13% 19 17%
the shopper’s doorstep in 30 minutes or OMAR P.
less. Wabi is now live in 23 major cities Shop owner and Wabi app user 20 (1%) 20 12%
from Peru
across Latin America, as well as Kenya,
Vietnam and Malaysia.
Note: See page 63 for a reconciliation of non-GAAP financial 1 Excluding Energy Drinks Cluster.
measures to our results as reported under GAAP.
North America
2020 Highlights 2020 Unit Case Volume by Business Unit 2020 Unit Case Volume by Category Cluster 1
• C
oca-Cola Zero Sugar grew volume and including multiple brands and
2% for the year, and mini cans continued packaging sizes. 5% 6%
to grow double digits. 13%
• Launched new fairlife creamers with
• Sparkling water trends remained robust just five ingredients, including real Sparkling
with the expansion of AHA and Topo ultra-filtered milk, and available in four Soft Drinks
Chico Sparkling Mineral Water. varieties: Hazelnut, Caramel, Vanilla and 17% Water and
Sports Drinks
Sweet Cream. All four varieties of fairlife
64% Juice, Dairy
• In early 2021, our North America creamers are made without artificial and Plant-
business announced a series of 100% flavors or sweeteners and have 40% 95% United States Based
Canada Tea and Coffee
rPET innovations spanning our portfolio less sugar than regular coffee creamers.
18 19 20
DASANI Recycled Bottle Caps: Juice, Dairy
A New Twist and Plant-Based (3%) 0% (4%)
Sparkling
Soft Drinks 1% 0% (7%)
Coca-Cola North America is bringing a
Tea and Coffee 0% (1%) (15%)
new twist to sustainable packaging by
using caps made from 30% recycled Water and
Sports Drinks 2% 1% (4%)
high-density polyethylene (HDPE)
plastic—a beverage industry first—on
DASANI bottles. The breakthrough
development won the coveted Plastics
News’ 2020 Plastics Caps & Closures
Innovation Award as the first beverage
Organic Revenue Growth (Non-GAAP) Comparable Currency Neutral Operating
closure made from post-consumer
Income Growth (Non-GAAP)
recycled content. An initial pilot in
California also included a monolayer
label for DASANI bottles featuring 18 0% 18 (6%)
40% less plastic than existing labels. 19 3%
The labels separate more easily in the
19 5%
recycling stream, which means bottles 20 (5%) 20 6%
can be more easily recycled and used
to make new bottles.
Note: See page 63 for a reconciliation of non-GAAP financial 1 Excluding Energy Drinks Cluster.
measures to our results as reported under GAAP.
COSTA
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
Data
Appendix
To respond to stakeholder interest 62 Financial & Portfolio Data
62 Revenue, Operating Income and
Reporting Framework Indexes
Global Reporting Initiative
and provide greater disclosure and Unit Case Volume by Operating Group Task Force on Climate-related
financial and sustainability data, including 68 2020 Sustainability Goals UN Guiding Principles Reporting
Framework
Some data provided is for 73 Workplace, Safety & Giving Back World Without Waste: Our 2019 Progress
The Coca‑Cola Company, while some 75 Human Rights, 5by20 & Agriculture Human Rights in The Coca-Cola Company
Sugar Supply Chain: Lessons and
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
2018–2020 Revenue, Operating Income and Unit Case Volume by Operating Segment
(Dollars are in millions) Net Operating Operating Unit Case Net Operating Operating Unit Case Net Operating Operating Unit Case
Revenues Income Volume Growth Revenues Income Volume Growth Revenues Income Volume Growth
Europe, Middle East & Africa $ 7,099 $ 3,693 2% $ 7,058 $ 3,551 2% $ 6,057 $ 3,313 (6%)
Latin America 4,010 2,318 0% 4,118 2,375 1% 3,499 2,116 (2%)
North America 11,630 2,318 0% 11,915 2,594 0% 11,477 2,471 (7%)
Asia Pacific 5,185 2,271 4% 5,327 2,282 5% 4,722 2,133 (9%)
Global Ventures 770 152 8% 2,562 334 7% 1,991 (123) (13%)
Bottling Investments 6,787 (197) (15%) 7,440 358 24% 6,265 308 (15%)
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
Reported (GAAP) $ 36,212 $ 7,755 $ 0.29 $ 34,300 $ 9,152 $ 1.50 $ 37,266 $ 10,086 $ 2.07 $ 33,014 $ 8,997 $ 1.79
Items Impacting Comparability:
Asset Impairments — 737 0.15 — 450 0.22 — 42 0.18 — 238 0.11
Strategic Realignment — — — — — — — — — — 413 0.08
Productivity and Reinvestment — 534 0.10 — 440 0.09 — 264 0.05 — 99 0.02
Equity Investees — — 0.02 — — 0.03 — — 0.02 — — 0.05
Transaction Gains/Losses — 302 0.49 — 158 0.24 — 149 (0.08) — 51 (0.22)
CCBA Unrecognized Depreciation
and Amortization — (90) (0.01) — (372) (0.04) — (148) (0.02) — — —
Other Items 6 368 0.06 (9) 58 0.08 14 16 (0.03) (15) (28) 0.07
Certain Tax Matters — — 0.83 — — (0.02) — — (0.08) — — 0.05
Comparable (Non-GAAP) $ 36,218 $ 9,606 $ 1.92 $ 34,291 $ 9,886 $ 2.08 $ 37,280 $ 10,409 $ 2.11 $ 32,999 $ 9,770 $ 1.95
Note: Certain columns may not add due to rounding. Certain growth
rates may not recalculate using the rounded dollar amounts provided.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
Free Cash Flow and Adjusted Free Cash Flow Conversion Ratio
(In millions)
2 A
djusted free cash flow conversion ratio is calculated by
dividing adjusted free cash flow by adjusted net income
attributable to shareowners of The Coca-Cola Company.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
Reported (GAAP) $ 7,099 $ 4,010 $ 11,630 $ 5,185 $ 7,058 $ 4,118 $ 11,915 $ 5,327 $ 6,057 $ 3,499 $ 11,477 $ 4,722
Items Impacting Comparability:
Other Items — — — — — — — — (9) 1 1 1
Comparable (Non-GAAP) $ 7,099 $ 4,010 $ 11,630 $ 5,185 $ 7,058 $ 4,118 $ 11,915 $ 5,327 $ 6,048 $ 3,500 $ 11,478 $ 4,723
Reported (GAAP) $ 6,822 $ 4,026 $ 10,629 $ 5,162 $ 7,099 $ 4,010 $ 11,630 $ 5,185 $ 7,058 $ 4,118 $ 11,915 $ 5,327
Items Impacting Comparability:
Other Items — — (10) — — — — — — — — —
Comparable (Non-GAAP) $ 6,822 $ 4,026 $ 10,619 $ 5,162 $ 7,099 $ 4,010 $ 11,630 $ 5,185 $ 7,058 $ 4,118 $ 11,915 $ 5,327
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
Reported (GAAP) $ 3,693 $ 2,318 $ 2,318 $ 2,271 $ 3,551 $ 2,375 $ 2,594 $ 2,282 $ 3,313 $ 2,116 $ 2,471 $ 2,133
Items Impacting Comparability:
Asset Impairments — — — — — — — 42 — 10 215 —
Strategic Realignment — — — — — — — — 78 19 115 31
Productivity and Reinvestment (3) 4 175 (4) 2 1 62 — (5) — — —
Other Items — — 37 — — — (4) — (9) 1 1 1
Comparable (Non-GAAP) $ 3,690 $ 2,322 $ 2,530 $ 2,267 $ 3,553 $ 2,376 $ 2,652 $ 2,324 $ 3,377 $ 2,146 $ 2,802 $ 2,165
Reported (GAAP) $ 3,585 $ 2,215 $ 2,472 $ 2,136 $ 3,693 $ 2,318 $ 2,318 $ 2,271 $ 3,551 $ 2,375 $ 2,594 $ 2,282
Items Impacting Comparability:
Asset Impairments — — — — — — — — — — — 42
Productivity and Reinvestment 26 7 241 10 (3) 4 175 (4) 2 1 62 —
Other Items — — (14) — — — 37 — — — (4) —
Comparable (Non-GAAP) $ 3,611 $ 2,222 $ 2,699 $ 2,146 $ 3,690 $ 2,322 $ 2,530 $ 2,267 $ 3,553 $ 2,376 $ 2,652 $ 2,324
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
Portfolio
Year ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020
RESPONSIBLE MARKETING
(Market responsibly, including no advertising to
children under the age of 12 anywhere in the world.1)
Print 100% 100% 100% 100% 100% 100% not available not available not available
Online 100% 100% 99.5% 99.8% 100% 99.8% not available not available not available
Television 94% 96.9% 88.5% 97.0% 95.2% 95.0% not available not available not available
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
Portfolio Data Goals Emissions & Waste & Giving Back 5by20 & Agriculture Statements
CARBON
Reduce the carbon footprint of the “drink in your hand” Draft reduction targets have been set
by 25% (2010 baseline).1 through 2020 by business units. 12% 14% 19% 21% 24% 25%
GIVING BACK
WATER
% of Sales Volume Replenished 94.0% 115.0% 132.9% 150.0% 155.0% 160.7% 170%
Total Water Replenished (liters of water in billions) 4 153.6 190.9 221.2 248.3 257.0 273.7 277.8
Ratio of Water Used Per Liter of Product Produced 2.03 1.98 1.96 1.92 1.89 1.85 1.84
% Water Used Reduction Since 2010 10% 12% 13% 15% 16% 18% 19%
WOMEN
1 The calculation of progress toward our “drink in your 2 This number includes charitable grants awarded
hand” goal has been internally vetted using accepted by The Coca-Cola Foundation and donations made
and relevant scientific and technical methodologies, by The Coca‑Cola Company.
which are aligned with GHG Protocol Scopes 1, 2 and 3.
Due to the nature of our franchise bottling system, 3 This percentage was calculated excluding Bottling
our manufacturing emissions are normally split between Investments.
Scopes 1 and 2 for company-owned facilities and 4 Peer-reviewed methodologies were used to calculate
Scope 3 for bottling partner facilities. However, in our benefits per project and business unit. All replenish data
“drink in your hand” calculations, we consider the full is internally validated and verified. The equivalent volume
Coca‑Cola system (including franchise bottling partners) for 100% Replenish rate (170.0 ML) is externally assured.
in the calculation of our manufacturing, distribution Benefits fall into three categories: Watershed Health
and refrigeration emissions. (219.9 ML), Productive Use (40.6 ML) and Community
Access projects (13.1 ML).
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Year ended December 31, 2013 2014 2015 2016 2017 2018 2019 2020
HUMAN RIGHTS
% of Direct Suppliers Compliant 86% 90% 92% 90% 88% 89% 91% 87%
% of Bottling Partners Compliant 83% 88% 90% 89% 87% 89% 92% 90%
PACKAGING
AGRICULTURE
Sustainably source our key agricultural ingredients.
% of key ingredients sustainably sourced 8% not available not available 44% 54% 56%
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Packaging
Year ended December 31, 2014 2015 2016 2017 2018 2019 2020
PACKAGING MIX
Plastic (primarily PET) bottles 45.5% 45.2% 44.9%
Aluminum and steel cans 23.5% 23.8% 24.7%
Other 12.1% 11.8% 13.4%
Refillable glass bottles 11.7% 11.1% 9.3%
Non-refillable glass bottles 2.3% 2.0% 1.4%
Beverage cartons and juice boxes 2.5% 2.8% 2.7%
Refillable (primarily PET) plastic bottles 1.6% 1.5% 1.6%
Pouches 0.6% 0.5% 0.4%
NUMBER OF PACKAGES
Plastic (primarily PET) bottles ~117B ~120B ~112B
Aluminum and steel bottles and cans ~60B ~63B ~62B
Refillable glass bottles ~30B ~30B ~23B
Non-refillable glass bottles ~6B ~5B ~4B
Refillable (primarily PET) plastic ~4B ~4B ~4B
Beverage cartons and juice boxes ~6.7B ~7.3B ~6.8B
Pouches ~1.7B ~1.3B ~0.9B
1 Our method to track our packaging collection rate against 2 This is the focused scope of Primary Consumer Packaging 4 Our percentage calculations of progress toward collection data, we are revising the percentage of our rPET usage from
our 2020 goal focused on our predominant package types (PET, Glass, Cans, Cartons). of 100% of the equivalent of the consumer packaging we 9.7% to 9.4%. Our 2020 World Without Waste metrics are
(glass bottles, steel and aluminum cans and PET plastic sell has been internally vetted using relevant scientific and currently under review by our assurance provider.
3 In 2019, we modified the methodology we use for calculating technical methodologies. This collection measure has been
bottles). Because of new data that we have available to
the amount of recycled material used in our Primary replaced by a more expansive collection measure (as noted 6 T
his result is preliminary and final numbers will be reported
us, our collection rate against our World Without Waste
Consumer Packaging. These changes are designed to in footnote 1). in the 2020 World Without Waste report.
goals takes into account a more inclusive collection rate,
integrate a more accurate dataset, including primary data
representing all of our consumer packaging—including
where it is available. Moving forward, we expect that these 5 We are continuously improving the quality of our data
beverage cartons, juice boxes and pouches, etc.
numbers will continue to evolve as data sources improve, by reviewing our sources and introducing more precise
at the same time that we work to increase rates of recycled processes and methodologies. Based on a review of 2019
material use.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Water
Year ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020
Water Use Ratio 1 2.12 2.08 2.03 1.98 1.96 1.92 1.89 1.85 1.84
1.88 3 1.96
Total Water Withdrawn (megaliters) 302,103 299,756 301,068 300,733 294,925 288,990 298,797 295,014 281,991
40,375 3 36,946
1 Liters of water used per liter of product produced by 3 Due to joint venture or merger and acquisition activities in
the Coca‑Cola system 2019–2020, certain brands may not be accounted for in
this metric.
2 Peer-reviewed methodologies were used to calculate
benefits per project and business unit; calculated benefits
per project and BU using peer-reviewed methodologies;
all replenish data is internally validated and verified;
the equivalent volume for 100% Replenish rate (170.0 ML)
is externally assured; Benefits fall into three categories:
Watershed Health (219.9 ML), Productive Use (40.6 ML)
and Community Access projects (13.1 ML).
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GHG EMISSIONS
Direct, from manufacturing sites (metric tons) 1 (in millions) 1.8 1.8 1.7 1.7 1.6 1.78 1.79 1.83 1.49
Total, from manufacturing sites (metric tons) 1 (in millions) 5.48 5.53 5.55 5.58 5.45 5.54 5.55 5.56 5.24
Emissions Ratio (gCO 2 /L) 37.81 37.10 36.89 36.23 35.29 33.96 34.83 34.74 33.96
ENERGY USE 3
Total Energy Use (megajoules) (in millions) 61,853.2 61,599.8 61,764.0 61,037.4 61,558.7 59,070.9 61,464.0 62,419.9 58,888.1
11,758.9
4 10,985.2
4
Energy Use Ratio (megajoules per liter of product) 0.43 0.43 0.42 0.41 0.40 0.40 0.39 0.39 0.38
0.54
4 0.58
4
HFC-FREE COOLERS
Number of pieces of HFC-free refrigeration equipment placed 623,160 730,876 886,693 918,009 571,753
Percentage of all coolers introduced in year that are HFC‑free 3 61% 65% 80% 82% 83%
WASTE 3
Total Waste Generated (kilograms) (in millions) 1,441.3 1,360.5 not available not available not available
Total Waste Ratio (grams per liter) 9.42 9.42 not available not available not available
Total Waste Recovered (kilograms) (in millions) 1,264.6 1,181.3 not available not available not available
Waste Recycling Percent (%) 87% 86% not available not available not available
1 Due to the nature of our franchise bottling system, 3 Systemwide total based on estimated total use
our manufacturing emissions are normally split between
Scopes 1 and 2 for company-owned facilities and 4 Due to joint venture or merger and acquisition activities in
Scope 3 for bottling partner facilities. 2019, certain brands may not be accounted for in this metric.
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LOST-TIME INCIDENT RATE 2.3 1.9 1.9 1.6 1.29 0.57 0.38 0.32 3 0.34 3
NUMBER OF EMPLOYEES
Global Workforce 1 150,900 130,600 129,200 123,200 100,300 61,800 62,600 86,200 80,300
North America 3,500 3,900 7,000 10,000 10,700 11,000 12,100 10,800 10,000
Bottling Investments 71,000 69,200 64,700 57,200 46,600 7,700 — — —
Latin America 2,300 2,400 2,500 2,400 2,500 2,500 2,400 2,400 2,200
Bottling Investments 12,000 2,200 2,200 2,000 2,000 1,900 — — —
Europe, Middle East & Africa 4,800 5,200 5,100 4,900 4,400 4,100 4,300 5,700 5,300
Bottling Investments 12,800 12,000 10,400 10,700 — 15,300 15,400 17,000 17,300
Asia Pacific 2,800 3,000 2,800 2,600 2,600 2,600 2,600 2,900 2,700
Bottling Investments 41,700 32,700 34,500 33,400 31,500 16,700 25,800 25,700 23,800
Female (global)
Senior Leadership 34%
Middle Management 49%
Professionals 36%
Total 42%
Male (global)
Senior Leadership 66%
Middle Management 51%
Professionals 64%
Total 58%
1 Corporate associates are included in the geographic area in which they work. 3 The total number of employees includes our acquisition of Costa Limited.
Bottling Investments is an operating segment with associates located in two However, those employees are currently excluded in our 2019 and
of our four geographic operating segments. Numbers are approximate and as 2020 reporting of LTIR.
of Dec. 31, 2020.
2 Data as of Dec. 31, 2020, for salaried and hourly employees. People of color
is for U.S. workforce only. In 2020, we improved our approach to calculating
representation data, rendering year-over-year comparisons less meaningful
at this time. This data excludes BIG, Costa and fairlife employees.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Year ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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AGRICULTURE
Sustainably source our key agricultural ingredients
% of key ingredients sustainably sourced 8% not available not available 44% 54% 56%
The Coca‑Cola Company Coca‑Cola System 3 The sustainably sourced percentage for grapes was
incorrectly reported as 41% in our 2019 report, and the 2020
1 Includes reports and allegations raised through report corrects this figure to 31%.
The Coca‑Cola Company’s Human Rights Policy
reporting process 4 92% sustainably sourced Pulp & Paper relates to the ~83% of
our global purchase volume for which we have data. In 2019,
2 Independent third-party audits we had data for ~75% of our global purchase volume.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Assurance
Statements
5by20® Program Assurance Statement
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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We have reviewed The Coca-Cola the Subject Matter and performing The information included in
Company Schedule of Selected such other procedures as we considered The Coca-Cola Company’s 2020 Business
Sustainability Indicators (the “Subject necessary in the circumstances. & Environmental, Social and Governance
Matter”) included in the Appendix for A review is substantially less in scope Report, other than the Subject Matter,
the year ended December 31, 2020 than an examination, the objective of has not been subjected to the procedures
in accordance with the Selected which is to obtain reasonable assurance applied in our review and, accordingly,
Sustainability Indicators Criteria set forth about whether the Subject Matter is we express no conclusion on it.
in Note 2 (the “Criteria”) included in the in accordance with the Criteria, in all
Appendix. The Coca-Cola Company’s material respects, in order to express an Based on our review, we are not aware
management is responsible for the opinion. Accordingly, we do not express of any material modifications that should
Subject Matter, in accordance with the such an opinion. A review also does not be made to the Schedule of Selected
Criteria. Our responsibility is to express provide assurance that we became aware Sustainability Indicators for the year
a conclusion on the Subject Matter of all significant matters that would be ended December 31, 2020, in order for it
based on our review. disclosed in an examination. We believe to be in accordance with the Criteria.
that our review provides a reasonable
Our review was conducted in accordance basis for our conclusion.
with attestation standards established
by the American Institute of Certified In performing our review, we have also
Public Accountants (AICPA) AT-C section complied with the independence and
105, Concepts Common to All Attestation other ethical requirements set forth in
Engagements, and AT-C section 210, the Code of Professional Conduct and
Review Engagements. Those standards applied the Statements on Quality Control April 19, 2021
require that we plan and perform our Standards established by the AICPA.
review to obtain limited assurance about
whether any material modifications should As described in Note 3 of the Appendix,
be made to the Subject Matter in order the Subject Matter is subject to
for it to be in accordance with the Criteria. measurement uncertainties resulting from
A review consists principally of applying limitations inherent in the nature and the
analytical procedures, making inquiries methods used for determining such data.
of persons responsible for the subject The selection of different but acceptable
matter, obtaining an understanding of the measurement techniques can result
data management systems and processes in materially different measurements.
used to generate, aggregate and report The precision of different measurement
techniques may also vary.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Greenhouse gas emissions The Coca-Cola System CO2e emissions in millions of metric tonnes 5.24
(manufacturing activities)
Water replenish Projects funded by The Coca-Cola Company, Liters of water replenished per liters of finished More than 100%
The Coca-Cola Foundation and/or beverages sold
The Coca-Cola System
Water use ratio The Coca-Cola System Liters of water used per liter of 1.84
product produced
Lost Time Incident Rate The Coca-Cola Company Number of lost time incidents multiplied 0.34
by 200,000 and divided by the number
of hours worked
The Coca-Cola global business system is composed of the Coca-Cola company (TCCC) and
225 bottling partners. The bottling partners manufacture, package, merchandise and distribute the
final beverages to customers and/or consumers. TCCC and its bottling partners together are
collectively known as the Coca-Cola system (TCCS), or simply “system.” TCCC does not own, manage,
or control most local bottling companies.
Although the system is not a single entity from a legal or managerial perspective, TCCC strives
to positively influence environmental activities and policies throughout the bottling system and to
become more transparent by reporting information from both company-owned operations and
the broader system. Contract manufacturers are also used to manufacture and distribute
Coca-Cola brands.
In accordance with TCCC’s policies and procedures, newly acquired facilities have up to two years
to begin reporting data for inclusion in the external reporting of the Selected Sustainability Indicators.
Overview Financial & 2020 Sustainability Packaging Water Greenhouse Gas Workplace, Safety Human Rights, Assurance
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Greenhouse gas emissions The criteria can be found in the “Carbon Accounting Manual.” This includes scope 1 and 2 carbon dioxide equivalent (CO2e) emissions from manufacturing and
(manufacturing activities) scope 3 CO2e emissions from franchises. Emissions from standalone (i.e., not co-located) warehouses, distribution centers and offices (based on emissions
being lower than the threshold of five percent of total Scope 1, 2 and 3 emissions) are excluded, CO2 loss during productionand AC/Chiller are excluded.
Water replenish The intent of the replenish program is to develop a global portfolio of Community Water Partnership (CWP) projects that yield an annual volumetric water
benefit equivalent to the company’s annual global sales volume. Water replenish is defined as the ratio of water safely provided to communities and to nature
by the community water partnership portfolio divided by sales volume of company beverage products as disclosed in the 2020 10-K.* Volumetric project
benefits are quantified using TCCC’s peer reviewed methodology as outlined in the Corporate Water Stewardship: Achieving a Sustainable Balance paper
published in the Journal of Management and Sustainability in November 2013. There are three primary CWP project types:
1. Watershed Protection and Restoration
2. Water Access and Sanitation
3. Water for Productive Use
While public education, awareness programs and business engagement on water policy reform are critical responses to water risks and challenges, the water
replenish contributions from such efforts cannot reliably be quantified and are not included in the water replenish indicator. As many replenish projects are co-
financed with partners, TCCC claims the portion of the total water benefits equivalent to the company’s cost share for the project. TCCC also claims the annual
water benefits from each project following a benefit duration framework of 15 years as long as the projects remain in productive service.
For individual projects with benefits greater than 5% of global sales volume, benefits are capped at 5% of global sales volume or 100% of the business unit
sales volume, whichever is greater.
Water use ratio Water use ratio (efficiency) is defined as liters of water used per liter of product produced. Total water used is the total of all water used by the Coca-Cola
system in all global production facilities and co-located distribution centers, from all sources, including municipal, well, surface water, and collected rain
water. This includes water used for: production; water treatment; boiler makeup; cooling (contact and non-contact); cleaning and sanitation; backwashing
filters; irrigation; washing trucks and other vehicles; kitchen or canteen; toilets and sinks; and fire control. This does not include return water or non-branded
bulk water donated to the community. Liters of product produced include all production, not just saleable products.
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Lost time incident rate The Lost Time Incident Rate (LTIR) represents the number of Lost Time Incidents (LTI) per 100 employees. Total LTI is multiplied by 200,000 (100 full time
equivalent employees working 40 hours per week for 50 weeks) then divided by the number of hours worked for the reporting period.
Scope: The scope of reporting is limited to self-reported data collected for TCCC and active company-owned or controlled production facilities, distribution
centers, offices, laboratories and route-to-market (fleet) operations as of December 31, 2020.
Lost Time Incident: An LTI is a self-reported work-related injury or illness, including fatality that results in one or more Lost Days. TCCC’s LTIR was determined
as of April 14, 2021, for the year ended December 31, 2020 as a minor incident developing into an LTI over time could result in additional LTIs.
Lost day: A Lost Day occurs when, in the opinion of the medical professional of record, the employee’s workrelated injury or illness prevents the person from
being able to work. The first counted Lost Day is the first day following the injury, regardless of whether it was a scheduled workday, and ends when the
person is able, in the opinion of the medical professional of record, to return to work, leaves employment, or reaches 180 Lost Days.
Hours worked: The hours worked include total hours worked during the reporting period by all employees. This excludes hours not worked, such as vacation,
holidays, or absences.
Employees: Employees include all hourly, salary and temporary employees who are on the payroll of the company (as well as non-payroll contractors and
temporary employees for whom facility or fleet management provides day-to-day supervision of their work and provides the details, means, methods and
processes by which the work objective is accomplished).
Uncertainties in reported LTIR: LTIR is subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used for
determining such data. The number of LTIs is based upon employees self-reporting work-related injuries or illnesses to TCCC which may be affected by culture,
societal norms and/or regulations. To the extent an LTI is not self-reported, it would not be included in the LTIR calculation.
The Subject Matter is subject to measurement uncertainties resulting from limitations inherent in the
nature and the methods used for determining such data. The selection of different but acceptable
measurement techniques can result in materially different measurements. The precision of different
measurement techniques may also vary.
Reporting
Frameworks &
SDGs
In a separate PDF document available GRI provides a globally recognized framework
for companies to measure and communicate
here, we index the contents of this report their environmental, economic, social and
governance performance. We prepared this report
to several important reporting frameworks in accordance with the 2016 GRI Standards: Core
and standards. option. This is the tenth consecutive year that these
reporting principles have informed our reporting
process, and we assess our progress against
Global Reporting Initiative (GRI) these guidelines. In this report, the GRI General
Disclosures are solely for The Coca-Cola Company.
The Sustainability Accounting Standards Board (SASB) For all other indicators, the scope is identified in
the referenced documents. Beyond reporting on
performance indicators required by the GRI, we
The Task Force on Climate-related Financial Disclosures (TCFD)
report on additional indicators important to our
broad range of stakeholders.
The United Nations Sustainable Development Goals (SDGs)
This report also meets the requirements of the
The United Nations Global Compact (UNGC) UNGC Advanced Communication on Progress
and aligns with the UNGPRF, which addresses
The United Nations Guiding Principles Reporting reporting on human rights.
Framework (UNGPRF)
We review our reporting regularly and
aim to be as responsive as possible to our
stakeholders’ feedback.
www.coca-colacompany.com
Version 3: 5/21/2021