Coca-Cola India Sustainability Report 2014 1 growing together Happiness is 2014 Sustainability Report
Coca-Cola India Sustainability Report 2014
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growingtogether
Happiness is
2014Sustainability Report
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Coca-Cola India Sustainability Report 2014
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growingtogether
Happiness is
2014Sustainability Report
Contents
Leadership Speak 6Sustainability, what it means to us 102020 Sustainability Commitments - Our progress 11The Coca-Cola system in India 14
Enhancing personal well-being Well-being 22Product and Ingredient Safety 25
Building stronger communities Women’s Economic Empowerment 30Human and Workplace Rights 34Workplace Safety 37Human Capital 39Creating Sustainable Communities 42
Protecting the environment Water Stewardship 52Sustainable Packaging 58Climate Protection 62Sustainable Agriculture 65
Working Responsibly 67How we wrote the report 71Annexure I – Employee Data 75Annexure II – Aspect Boundary 76Independent Assurance Statement 79Annexure III – GRI Index 82
World
We
Me
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Leadership SpeakCoca-Cola India is guided by The Coca-Cola Company framework that encourages us to integrate sustainability in everything we do. I am proud to share with you our third Sustainability Report covering the period January 1, 2014 to December 31, 2014. This report is aligned with the latest Global Reporting Initiative (GRI) G4 guidelines. The adoption of these guidelines for reporting represents a key milestone in our sustainability journey.
As in the past, this report is structured around our global ‘Me-We-World’ sustainability framework.
I am glad to share with you that in the year 2014 we made significant progress towards meeting our 2020 sustainability commitments while also delivering on our business priorities. While I am outlining some of the highlights of 2014, I know that there is so much more that needs to be done.
MeWe want our brands and our business to be an enabler of healthy, active lifestyle. So, on the one hand we offer pack and product choices for hydration and refreshment, on the other, we are partners with like-minded organisations like All
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India Football Federation (AIFF), Indian Premier Tennis League and others to support activity and movement. The Under-15 Football tournament, “The Coca-Cola Cup”, in partnership with AIFF is our flagship activity, becoming one of India’s leading grassroots sporting events in a short span of time. This year, 376 young footballers were selected for this tournament from amongst 3100 schools spread across 106 cities of India.
WeOur women empowerment programme, 5by20TM, now in its fourth year, has been impacting lives of women across our value chain by helping build their retail and farming skills. During
2014, we worked with about 24,000 women across India taking the cumulative number of women entrepreneurs under this programme to over 50,000.
The Support My School (SMS) campaign, launched in the year 2011 in partnership with UN Habitat, CAF and NDTV, has revitalised more than 400 schools across India. It has helped reduce school drop-out rates especially among girls by revitalising essential amenities around sanitation, water and sports. The campaign also aids in furthering the ‘Swachh Bharat, Swachh Vidyalaya’ initiative launched by the Government of India in 2014. We continue to look for partners and supporters who can join hands to take this project further.
Anandana, our Foundation for philanthropy and community giving purposes, runs participatory community projects in several remote and disadvantaged parts of the country. Through its work over the years, it has impacted lives of over 500,000 people across more than 500 villages in areas of water conservation, women’s empowerment and solar energy in partnership with local grassroots NGO’s.
In recognition of the small part that we play in people’s lives, Coca-Cola India was ranked among the top ten major Indian corporates in the Corporate Social Responsibility (CSR) space by Economic Times.
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WorldWater is a top priority for Coca-Cola. It is a key ingredient in all our products. It is also critical to the communities we serve and the ecosystems on which we all depend. It therefore lies at the centre of our sustainability approach. Our bottling partners have been working continuously to reduce our fresh water intake across our value chain. Our efforts have resulted in 23% improvement in our Water Use Ratio compared to our 2010 baseline measured in our bottling operations. As a result of our collaborative work for replenishing watersheds, we can proudly say that we have created over 100% water replenishment potential compared to the amount of water we consume in manufacturing our beverages.
We understand that water is an issue that extends beyond the four walls of our operations and impacts a variety of stakeholders. We therefore believe in collaborating with the larger community in the water space with the objective of solving the water issue in a holistic manner. In 2014, the Coca-Cola Department of Regional Water Studies at TERI University was established with the aim to develop a specialised talent pool of water professionals. The department will train future water
stewards and equip them with interdisciplinary skills for water management.
Project Unnati, our sustainable agriculture project, has been helping mango farmers in Andhra Pradesh adopt modern farming techniques like drip irrigation and Ultra-High Density Plantation. Given the success of the project we have now moved into the second phase of the project where we, along with our partner Jain Irrigation, will invest close to INR 50 crores (500 million) over a period of ten years. We aim to double the current reach of the project from 25,000 farmers to 50,000 farmers in the next few years.
Upholding human and workplace rights across our business operations and supply chain is another value we are truly committed to. We work together with our bottlers and direct suppliers to first understand and then appropriately mitigate human rights risks across our supply chain by adherence to our Human Rights Policy and Supplier Guiding Principles (SGP). In collaboration with AIM PROGRESS, we co-hosted a responsible sourcing supplier forum in Gurgaon, which drew approximately 300 people from the supplier community. In 2014, we updated our Supplier Guiding Principles (SGP) to include, inter alia, industry
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leading commitments to protect land rights of farmers and communities in the world’s top sugarcane producing regions, such as India. As part of this commitment we will conduct baseline studies in India in 2015 by third party research and audit agency, the results of which will further help us understand issues in our upstream sugar supply chain and drive correction through a multi-stakeholder process.
Our business in India
Government of India’s “Make in India” programme recognizes “Food Processing” as an important sector and specifically mentions the non-alcoholic beverage industry under the line item category of “Consumer food: packaged food, aerated soft drinks, packaged drinking water and also Beverages: fruit-based and cereal-based.” This Industry in India is increasingly seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and agriculture. It is expected to attract phenomenal investment in capital, human, technological and financial resources in the coming years. The Coca-Cola system in India alone employs 25,000 people directly and 150,000 people indirectly. We procure 2 lakh metric tonnes of mango, 1000 metric tonnes of guava and 400 metric tonnes
of banana and papaya, through our supply chain partners, for our juice and juice based products. This means that several thousand farmers and their families depend on our business for their livelihoods. In addition, there are 2.6 million retailers that stock our products and hence are an integral part of the value chain. It is therefore imperative that we drive our business in a successful and sustainable way, thereby adding value to the lives of lakhs of people along the way.
I am glad to report that our business has continuously been growing over the last decade, thereby satisfying the hydration and refreshment needs of millions of Indian consumers. In 2014, we added another product to the list of choices that we provide to our consumers by launching ‘Coca-Cola Zero’ – a product that offers the taste of Coca-Cola without any sugar in it. On our existing suite of packaged water, juices and sparkling products, we introduced multiple serve sizes ranging from 100 ml Maaza Tetrafino packs to small single serve tetrapaks. Going forward, we intend to continue offering choice and value-for-money options to consumers.
In Summary
We are happy with the progress that we are making towards
achieving our sustainability goals, but there are many areas where we need to improve. Expanding the reach of our Active Healthy Living programmes is one of them. This calls for intensifying our work with on-ground implementing partners. We are also passionate about taking the PET recovery initiative to the next level. At present, this is limited to select bottling units and communities but we know that real and sustained change will emerge only by driving behavioural change at the consumer level.
This sustainability report is meant to serve as our report card and as a tool to solicit your feedback on our progress. This report also represents our shared vision for how we can work together to create enduring value and make a positive difference to the consumers and communities we serve.
I thank each one of you for joining us in our sustainability journey and placing your trust in Coca-Cola.
Warm regards
Venkatesh Kini
(President – Coca-Cola India and South West Asia)
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Sustainability, what it means to us
Well-being• Offer low or no-
calorie beverage options in every market
• Provide transparent nutrition information, featuring calories on the front of all our packages
• Help get people moving by supporting physical activity programmes in every country where we do business
Responsible MarketingMarket responsibly, including no advertising directly to children under 12 anywhere in the world
Water Stewardship• Safely return to
communities and nature an amount of water equivalent to what we use in our finished beverages and their production
• Improve water efficiency in manufacturing operations by 25% compared with a 2010 baseline
Sustainable PackagingWork with our partners to recover and recycle the equivalent of the bottles and cans we introduce into developed markets
Climate ProtectionReduce the carbon footprint of the “drink in your hand” by 25%
Sustainable AgricultureSustainably source our key agricultural ingredients
WomenEnable the economic empowerment of 5 million women across our global value chain
Human and Workplace RightsComply with Human and Workplace Rights standards
Sustainable CommunitiesCreating sustainable communities
WorldProtecting the environmentMe
Enhancing personal well-being
WeBuilding stronger communities
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2020 Sustainability Commitments - Our progress
Our publicly announced goals and commitments drive us to continually improve. In this report, we provide information about our progress and activities. They include goals in the areas of personal well-being, women’s economic empowerment, sustainable management of water, energy, and packaging use as well as sustainable sourcing of agricultural ingredients. The dashboard below provides an overview of our 2020 sustainability commitments.
Me-We-World element Global/local material issue
Global goal India progress/status
Me Well-being Offer low- or no-calorie beverage options in every market.
Status: On-track In the Indian markets, our low - and no - calorie offerings include Diet Coke, the newly launched Coke Zero, Kinley water, Kinley soda and Schweppes soda.
Provide transparent nutrition information, featuring calories on the front of all of our packages.
Status: On-track All products manufactured and packaged in India contain Front of Pack (FOP) calorie declarations with exception of those bottled in Returnable Glass Bottles (RGB).
Help get people moving by supporting physical activity programmes in every country where we do business.
Status: On-track In India we are promoting sporting events at grassroots level like Under-15 Football- the Coca-Cola Cup. 376 young footballers from 3100 schools spread across 106 cities of India were selected for the tournament in 2014.
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Me-We-World element Global/local material issue
Global goal India progress/status
Market responsibly, including no advertising directly to children under 12 anywhere in the world.
Status: Work-in-progress As per our code, we ensure no advertisements in programmes meant for kids below 12 years of age.
We Women’s Economic Empowerment
Enable the economic empowerment of 5 million women across our global value chain by 2020.
Status: On-track In India, we enabled about 24,000 women in 2014 and the total number of women entrepreneurs impacted by our 5by20 initiative since 2010 stands at over 50,000.
Human and WorkplaceRights
By 2015, achieve and maintain, going forward, at least a 98% compliance level for Company owned and Company-managed facilities upholding the standards set in our Human Rights Policy. By 2015, achieve at least 90% compliance with our Supplier Guiding Principles among independent franchise bottling partners and suppliers. By 2020, achieve at least 98% compliance with our Supplier Guiding Principles among independent franchise bottling partners and 95% compliance among our suppliers.
Status: On-track96% of company owned with bottling operations in India meet the standards set in our Human Rights and Workplace Rights Policy.
98% of our core supply chain met our SGP standards as well as the Human and Workplace Rights standards.
Sustainable Communities
Creating sustainable communities.
Status: On-trackSince inception till the end of 2014, The Coca-Cola India Foundation has reached out to over 500 villages impacting the lives of over 500,000 people.
Water Water Stewardship Safely return to communities and nature an amount of water equivalent to what we use in our finished beverage and their production.
Status: On-trackIn 2014, we created a water replenishment potential of 146% compared to the amount of water we consume in manufacturing our beverages.
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Me-We-World element Global/local material issue
Global goal India progress/status
Improve water efficiency in manufacturing operations by 25% compared with a 2010 baseline.
Status: On-track23% improvement in our Water Use Ratio (litres of water consumed per litre of produced beverage) as compared with a 2010 baseline.
Sustainable Packaging In partnership with consumers, industry and governments, we aim to work together to recover and recycle 50% of the equivalent bottles and cans we introduce globally each year by 2015.
Status: On-trackIn excess of 50% of our beverage sale takes place in RGB which is completely recovered from the market except for breakages.
Climate Protection Reduce the carbon footprint of the “drink in your hand” by 25%.
Status: Draft reduction targets and metrics have been establishedWe have developed a Carbon Scenario Planner to help standardize a forecast methodology for carbon in the system supply chain and to support target setting. In 2014, we utilized the Planner to evaluate a portfolio of carbon reduction interventions and develop initial annual reduction targets.
Sustainable Agriculture Sustainably source our key agricultural ingredients.
Status: Work-in-progressOur project Unnati established approximately 200 demonstration farms, provided on-site training and support to an estimated 18,000 farmers and enabled 3,000 women mango farmers.
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The Coca-Cola system in India
For more than two decades since our return to India, we have been refreshing people through our range of beverages, inspiring moments of happiness in the lives of our consumers.
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The Coca-Cola Company (TCCC) is a global soft drink leader headquartered at Atlanta, Georgia (USA). It operates through its subsidiaries and the local businesses are responsible for bottling and selling the beverages within their territorial boundaries while maintaining the same taste and quality known around the world. Our global reach through local operations is a successful approach built on the stability and strength of the Coca-Cola system. The same approach defines how we embed sustainability throughout our global operations. Our management approach to each material sustainability aspect is rooted in our global sustainability framework – ‘Me-We-World’ and the associated global sustainability commitments. The global vision is then further tailored to the local context and regional operations individually contribute towards meeting TCCC’s global sustainability vision and commitments.
The Coca-Cola system is not a single entity from a legal or managerial perspective, and The Coca-Cola Company (TCCC) does not own or control the majority of its bottling partners. The Coca-Cola system in India includes Coca-Cola India Private Limited (CCIPL) - a wholly owned subsidiary of TCCC; Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCBPL) - another wholly owned subsidiary of TCCC and independent franchise bottling partners of TCCC. The functions of the key entities of TCCC system in India are explained below.
Coca-Cola India Pvt. Ltd. (CCIPL): is a wholly owned subsidiary of TCCC in India since 1992. CCIPL is a private limited company incorporated under the Companies Act 1956 in India. CCIPL manufactures and sells concentrates, beverage bases and syrups to the authorised bottlers of TCCC in India who prepare, package, distribute
Coca-Cola India Private Limited
(CCIPL)
Anandana: The Coca-Cola India
Foundation (wholly owned subsidiary of
CCIPL)
Franchisee Bottlers
(operating in India under license from TCCC)
Hindustan Coca-Cola Beverages Private
Limited (HCCBPL, wholly owned
subsidiary of CCIPL)
The Coca-Cola Company (TCCC), Atlanta, USA
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and sell beverages to the customers and vending partners and onwards to consumers. Its functions include managing franchise bottling operations, brand management and marketing activities in India. The product portfolio in India includes the following:
• Aerated: Coca-Cola, Coke Zero, Diet Coke, Sprite, Fanta, Thums Up, Limca, Schweppes, Kinley Soda, Rim Zim
• Juice based: Minute Maid (Pulpy Orange, Nimbu Fresh, Guava, Mango, Mixed Fruit), Maaza and Maaza Milky Delight
• Energy drink: Burn
• Packaged water and enhanced water: Kinley water, Kinley Glucojal (Orange & Lemon), Bonaqua
• Tea and coffee: Georgia Gold
Anandana, The Coca-Cola India Foundation: Anandana, a Company registered under Section 25 of the Companies’ Act, is a wholly owned, not for profit charitable subsidiary of CCIPL. It provides monetary grants and other assistance to Civil Society Organisations who can be suitable partners in implementing projects for community development and social welfare. The Foundation seeks to ensure project execution, maintenance and sustainability through the active involvement and direct participation of the beneficiary community at the grass-root level.
Our bottling partnersOur bottling partners prepare, package, distribute and sell the final branded beverages to our customers and vending partners, who, in turn, sell our products to consumers. We work closely with all our bottling partners to ensure that our Company values are embedded throughout the Coca-Cola system in India.
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• Hindustan Coca-Cola Beverages Pvt. Ltd. (HCCBPL): HCCBPL is a wholly-owned subsidiary of TCCC and is the largest bottler in India. It is a part of the Bottling Investments Group (BIG) of TCCC, now the largest bottling partner in the Coca-Cola system in terms of unit case volume. HCCBPL has 24 bottling plants at strategic locations spread across the country and covers about 65% of bottling operations for the Coca-Cola System in India. BIG is dedicated to investing in Coca-Cola’s bottling operations around the world. It provides leadership to drive sustainable growth in critical markets and also provides venture capital to move quickly.
• Independent Franchise Bottling Partners (FBOs): FBOs operate in India under license by TCCC. Their core function is to prepare, package, distribute and sell our beverages. Following is a list of FBOs located across the Country:
• Amrit Bottlers Pvt. Ltd.
• Brindavan Agro Industries Pvt. Ltd.
• Brindavan Beverages Pvt. Ltd.
• Brindavan Bottlers Pvt. Ltd.
• Bengal Beverages Pvt. Ltd.
• Diamond Beverages Pvt. Ltd.
• Enrich Agro Food Products Pvt. Ltd.
Franchise Bottlers
HCCBPL Bottling Plants
Co-Packers of HCCBPL
• Kandhari Beverages Ltd.
• Ludhiana Beverages Pvt. Ltd.
• Moon Beverages Ltd.
• Narmada Soft Drinks Pvt. Ltd.
• Sri Sarvaraya Sugars Ltd.
• Superior Drinks Pvt. Ltd.
• Udaipur Beverages Pvt. Ltd.
• Wave Beverages Pvt. Ltd.
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Our value chain Our success in being a trusted and recognized brand is in large part due to our reliable partners across our value chain. Our bottling partners, suppliers, distributors, retailers, customers and the communities in which we operate help us grow our business and continually improve our sustainability performance.
Our value chain has 3 distinct parts:
• Upstream – Farmers and suppliers providing raw materials for ingredients, packaging, etc.
• Operations – Includes manufacturing concentrates and all governance functions of headquarters
• Downstream – Includes the Bottling Investments Group and independent franchise bottling partners, distribu-tion centers, customers, consumers and product recycle and recovery.
At CCIPL, we have always endeavoured to conduct business responsibly and ethically. CCIPL’s approach to embed responsible business practices extends across our value chain and is based on
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Upstream Operations Downstream
Agriculture and key ingredients
Bottling Partners and distribution
Consumers, recycling and
recovery
Coca-Cola India +Anandana
Customers
The Supplier Guiding Principles (SGP) is a vital pillar of The Coca-Cola Company’s human rights and workplace accountability programme. These programmes are driven by the belief that good corporate citizenship is essential to our long-term business success and must be reflected in our relationships and actions in our workplaces and the workplaces of those who are authorized to directly supply to our business. The Supplier Guiding Principles communicate our values and expectations and emphasize the importance of responsible workplace policies and practices that comply, at a minimum, with applicable environmental/labour laws and regulations.
international guidelines of United Nations Declaration of Human Rights, International Labour Organization’s Declaration on Fundamental Principles and Rights at work and United Nations Global Compact. Our acknowledgment
of these international principles is consistent with our dedication to enriching the workplace, respecting all human rights, preserving the environment and strengthening the communities where we operate.
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Our commitment to consumers’ well-being encompasses each and every beverage we serve. We ensure that our products are safe, delicious and refreshing. We inspire our consumers to pursue happier, healthier lives through the wide variety of products we offer, our transparent labelling practices, our responsible marketing practices and the active healthy living programmes we support in the communities we serve.
MeEnhancing personal well-being
Well-beingWorking to inspire happier healthier lives
Product & Ingredient SafetyPursuing the highest standards in product safety and product quality
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Well-beingWe encourage and support more responsible, healthier and happier consumer lifestyle.
Modern lifestyle related issues like obesity, diabetes are serious challenges especially in an emerging economy like India. At CCIPL, we care about the personal well-being of our consumers and actively engage with them for promoting responsible product and lifestyle choices.
1. Low or No Calorie Beverage Options
Global Goal: Offer Low- and No- Calories Beverage options.Our progress: On-track
Considering our products are enjoyed by different consumer segments, accordingly their lifestyles and dietary
requirement are also varied. It is our endeavour to offer options for every lifestyle and occasion. Our portfolio of beverages and package sizes are designed to meet consumers’ needs for refreshment, enjoyment, nutrition and hydration. In the Indian markets, our low and no calorie offerings include Diet Coke, the newly launched Coke Zero, Kinley water, Kinley soda and Schweppes soda. We continue to further explore the potential for other low/no calorie options to refresh and delight all segments of our
customers.
2. Transparent Nutrition Information
Global Goal: Provide trans-parent nutrition information, featuring calories on the front of all of our packages.Our progress: On-track
TCCC voluntarily became the first beverage company to place calorie information on the front of packaging worldwide in 2011. This helps our consumers to select the right product as per
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their hydration and nutrition needs. Information pertaining to nutritional content of our products is also available at the company’s website.1
Presently, all products manufactured and packaged in India contain Front of Pack (FOP) calorie declarations with exception of those bottled in Returnable Glass Bottles (RGB).
3. Help Get People Moving
Global Goal: Help get peo-ple moving by supporting physical activity programmes in every country where we do business.Our progress: On-track
1 http://www.coca-colaindia.com/our-products/product-list-descriptions/
We are promoting sporting activities that not only engage people for a healthy living but also empowers them by providing a platform to hone and showcase skills. Globally, we support more than 330 active, healthy living programmes in 112 markets, and we are working to ensure that there are robust active, healthy living programmes wherever we operate.
In India we are promoting sporting events at grassroots level like the Coca-Cola U-15 Football Cup. We have partnered with specialized agencies with credible track record and technical competence to drive these programmes which promote active healthy living.
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Nurturing tomorrow’s star athletes:Coca-Cola U-15 Football Cup
At Coca-Cola, grassroots football has been a key element of the Active Healthy Living (AHL) programme, to promote sporting culture and a healthy lifestyle. In collaboration with the All India Football Federation (AIFF) the national grassroots football tournament has been expanded since 2009. The tournament identifies potential football stars and provides them with a platform and an opportunity to develop their inherent talent into a real-life profession. As a company which has a worldwide focus on football we firmly believe that Indian football has huge potential. By supporting AIFF and IMG Reliance in this tournament, we are helping tap young football talent and train them at par with international football standards.
2014 Programme highlights
106Cities
3100Schools
376Young footballers
4. Market Responsibly
Global Goal: Market respon-sibly, including no advertis-ing directly to children un-der the age of 12 anywhere in the world.Our progress: Work-in-progress
This tournament acts as a platform for scouting talents for the upcoming 2017 U-17 Football World Cup which will take place in India.
As part of our global commitment, we adhere to the following code:
• No advertisements in programmes meant for kids below 12 years of age
• Policy applies to television, radio, print, internet and
mobile phones, where ever there is data and options are available for segmented communication delivery.
• Conduct periodic audits by external organisations to monitor our actions towards implementing the policy.
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Ingredient safety and product quality
We measure and manage key product and package quality attributes so that our products meet applicable regulations, TCCC requirements and consumer expectations in the marketplace. To ensure suchconsistency and reliability, globally the Coca-Cola system is governed by the Coca-Cola Operating Requirements (KORE).
KORE is an integrated quality management system that holds all of our operations to the same standards of production and distribution. It is the framework of governance and management system which enables sustainable performance, allows us to meet customer and consumer demands, and drives continuous improvement. KORE integrates business and quality objectives and aligns them with consistent metrics for monitoring performance. We keep refining our requirements to ensure that our management system (KORE) embodies the most recent and stringent manufacturing requirements and align to internationally recognized standards in manufacturing and
distribution. To stay updated with regulations, industry best practices and marketplace conditions, we periodically reassess the relevance of our requirements and guidelines not only in manufacturing, but throughout our value chain.
Globally, all business units of TCCC implement and maintain a food safety and quality management system in accordance with KORE requirements and compliance to these requirements are systematically monitored. At every step of production and with random sample analysis from market place, we keep testing our beverages for quality and safety attributes.
Health and safety impacts of all our products are considered throughout the product lifecycle stages. From product development at the R&D stage to the bottling locations, compliance with the requirements of the Food Safety and Standards Act is ensured at each stage. Our Quality Systems require all our suppliers to comply with safety, environmental and quality standards including (as applicable):
For greater level of confidence in the quality of our products and to ensure we are delivering the best to our consumers, we adhere to a range of global best practices, standards and guidelines for ensuring consistent product quality and safety. Stringent checks are undertaken to ensure the quality and safety of all material procured.
Product & ingredient safetyYour loved beverage is an outcome of the highest standard of product quality & ingredient safety that we follow. Our internal controls are designed to refresh consumers in a safe and healthy way.
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• Food Safety and Standards Act
• Global Food Safety Initiative (GFSI) recognized Food Safety Management System Certification for all suppliers of primary ingredients and packaging material
Consumer satisfaction
We have established multiple channels to connect with our consumers. In India, we are accessible over our toll-free number 1800-208-2653 and the consumer helpline email ID: [email protected]. These are prominently displayed on all product packages. Consumers can also reach out to us through social media platforms.
In 2014, around 1, 75,000 consumers have reached out to us with their queries and feedback. Each query is paid due attention and an appropriate response is sent via email, phone call and even personal meetings in some cases. To help enable active consumer interaction, The Coca-Cola system in India has a network of dedicated Consumer Response Coordinators (CRC) spread across the country.
To ensure continuous process improvement, the company has instituted a streamlined
2 For further details on our global product safety and quality standards, please visit thefollowing web-link: http://www.coca-colacompany.com/stories/quality
Consumer Satisfaction (C-Sat) Survey. Every month, we reach out to 5% (randomly selected) of customers/ consumers who have posed queries to us regarding quality or non-quality concerns through our toll-free number. These consumers are requested to answer five questions sequentially in order to gather their feedback on how the query has been responded to. This feedback is subsequently collated for further action and improvement wherever possible.
To help enhance understanding of the manufacturing of Coca-Cola products, consumers are invited to our manufacturing plants across the country.These plant tours have become one of the most preferred and cherished ways for our consumers to get to know more about the products they love. We were delighted to connect with over 250,000 visitors through 4000 plant visits this year. The visitor profile includes people from different walks of life including students, media, government officials, distributors, retailers, corporate representatives and others. The plant tours have provided the visitors a first-hand experience of the rigour and quality that is behind each Coca-Cola product. 2
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Community well-being lies at the core of our sustainability vision. We firmly believe that our businesses are as strong as the communities we serve. Women play a crucial role in our society and we believe that enabling them through economic empowerment is one of the ways to make a lasting contribution to families and communities.
Women’s Economic EmpowermentSupporting Women’s entrepreneurial potential through our ‘5by20TM’ initiative
WeBuilding stronger communities
Human and Workplace RightsOur commitments to respecting human rights, creating safe and inclusive workplaces, engaging employees and stakeholders to strengthen our business
Creating Sustainable CommunitiesApplying our scale and building partnerships to address community needs
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Unleashing the entrepreneurial potential of women is one of the most enduring ways to help families and communities prosper. It is also an important way to help make our business more sustainable.
Global Goal: Enable the economic empowerment of 5 million women across our global value chain by 2020.Our progress: On-track
TCCC is striving to empower 5 million women within its value chain by 2020, we refer to this programme as 5by20TM. Through 5by20, we enable women entrepreneurs overcome social and economic barriers by providing business skills training, access to financial services and/or assets, and access to peer networks and mentors. In India, we enabled approximately 24,000 women in 2014 and the total number of women entrepreneurs impacted by our 5by20 initiative since 2010 stands at over 50,000.
In India, we are working towards the 5by20 goals through the following five programmes:
1. Parivartan:
Parivartan is a capability building initiative to provide training to rural retailers on various aspects pertaining to retailing. These programmes are conducted by certified trainers across the country. To reach out to women retailers in remote parts of India, buses have been converted into customized mobile class rooms.
Women’s Economic Empowerment
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In total, over 12,800 women retailers were trained in 2014 by certified trainers of Coca-Cola University (CCU) and more than 24,000 women retailers have been trained till date under the Parivartan programme.
2. Pragati:
This programme is also focused on building the retailing capabilities among women entrepreneurs by providing training and product knowledge. As part of this programme, women are invited to our bottling locations so that, along with the class room session, they get an understanding of the actual manufacturing process. The programme is conducted by our bottling partner Hindustan Coca-Cola Beverages Pvt. Ltd (HCCBPL).
Over 22,000 women retailers have been trained till 2014 under Pragati, of which close to 9,000 were trained in the reporting year itself.
3. Unnati:
In addition to the retailer segment of the value chain, we are also supporting producers through project Unnati, a supply chain initiative that would enable up to 50,000 mango farmers, of which 15% are expected to be women farmers who shall adopt modern farming techniques and good agricultural practices. Combined with a drip irrigation system, the programme helps farmers double their crop yield and their income. The programme has enabled over 2,500 women farmers till date, of which 1800 women were covered in 2014 itself.
4. eKOcool solar cooler distribution:
‘eKOcool’ is an innovative solar cooler that has been pioneered by us and provides income generating opportunity for women retailers in electricity deficit areas of rural India. The benefits have ranged from providing employment to women for entering untapped markets and increased sales. Till end of 2014, over 1,700 eKOcool units had been installed across 5 states in India in women run outlets.
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5. Career Development Centres (CDC):
A partnership between HCCBPL and NIIT Foundation, Career Development Centre (CDC) aims to bring job oriented vocational training programmes within easy reach of the educated, unemployed and underserved youth. The course curriculum is designed to impart skills to enhance their employability potential.
As of 2014, 5 CDCs have been operational in Dasna (Uttar Pradesh), Ameenpur (Hyderabad, Telangana), Bidadi (Karnataka), Pirangut (Maharashtra) and Khordha (Odisha) giving training to 589 youth, of which 215 are women. While some participants go on to get a job, some become entrepreneurs.
1800women farmers empowered under Unnati
21,800women trained under Pragati and Parivartan
2014 Programme highlights
668eKOcool solar coolers distributed
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‘Doing Well By Doing Good’ – An article in Outlook Business covering the eKOcool initiative by the Coca-Cola system in India
Coca-Cola India Sustainability Report 2014
Chand Begum looks blank when you ask her how old she is. She thinks hard and guesses she must be in her early to mid-40s. The mother of 10 has never been to school and until a year ago, was too busy trying to make ends meet to care- her husband is a casual labourer and his income is erratic at best. Now, Begum, a resident of Firozpur, Jhirka Village in Haryana, a two hour drive from bustling Gurgaon, speaks passionately about how Coca-Cola India has changed her life. Thanks to the soft drink giant’s 5by20 initiative, which aims to economically empower 5 million women entrepreneurs by 2020, people like Begum now earn at least ` 4,500 a month. “Some of my children are employed, but I contribute the most to running the house,” she says, embarrassed but proud.
From the time 5by20 was rolled out in September 2010, it has already benefitted 30,000 women in India, Nepal and Sri Lanka, of which, 20,000 are from India alone.
“Globally, by end 2013, we had already empowered 550,000 women” says Sonu Grover, Director, Strategic Initiatives, Coca-Cola India and Southwest Asia. The initiative has proved a win-win for both Coke, as well as its women entrepreneurs. According to Grover, the company reaches out to 2.2 million of the 8.5 million FMCG outlets in India. “In many cases, expanding that has run into infrastructural hurdles, with power shortage being the biggest one,” she explains. Keeping this in mind, the company’s technicians came up with eKOcool, a solar-operated cooler that costs ` 35,000. Coke distributes the cooler among selected rural women, who then sells its soft drinks from their small village stores. A Village like Firozpur Jhirka is a perfect target since it never has more than five hours of power a day. Begum sells at least one crate of 24 bottles every day. “So far, I have earned ` 55,000 from this business,” says the woman who was doing odd jobs such as supplying ice before becoming a Coca-Cola retailer.
SONU GROVERDirector, Strategic Initiatives, Coca-Cola India and Southwest Asia
“The benefits have ranged from providing employment to women to entering untapped markets and increased sales for us,” says Grover. So far, Coca-Cola India has supplied over 1,000 coolers across West Bengal, Andhra Pradesh, Uttar Pradesh and Haryana- and seen a five-fold increase in sales from these markets. The plan, says Grover, is to cross 5,000 coolers in the next three to four years.
Causes involving women and children are most popular with consumer products companies and with good reason. The received wisdom is that women account for 75-85% of all purchase decision, so reaching out in positive ways to this influential group through issues that resonate with them personally or with their families almost always works.
The benefits have ranged from providing employment to women to entering untapped markets and increased sales for us,
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We work diligently to uphold the fundamental principles of international human and workplace rights across all our operations and this forms the foundation of our sustainability commitments.
Human and Workplace RightsOur commitment to respect human rights extends across all aspects of our business, including the way we interact with suppliers, colleagues, customers, consumers and communities. This commitment is foundational to the success of our company.
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Global Goal: By 2015, achieve and maintain, going forward, at least a 98 percent compliance level for Company-owned and Company-managed facilities upholding the standards set in our Human Rights Policy.
Our progress: On-track
In December 2014, TCCC launched an updated Human Rights Policy that combines the 2007 Human Rights Statement, 2007 Workplace Rights Policy (WRP) and 2012 Global Mutual Respect Policy. This unified document is guided by the principles expressed in the Universal Declaration of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, and the UN
Global Compact. The policy also references and is aligned with the UN Guiding Principles on Business and Human Rights. Our Human Rights Policy includes the following ten components:
• Respect for human rights• Community and stakeholder
engagement• Valuing diversity• Freedom of association and
collective bargaining• Safe and healthy workplace• Workplace security• Forced labour and human
trafficking• Child labour• Work hours, wages and
benefits• Guidance and reporting for
employees
We require all associates to know our human rights and workplace rights standards and
to apply them in their work. Managers, in particular, receive intensive training. We also rely on our associates to speak up immediately if they believe our policies have been violated. Through numerous channels, including KO EthicsLine (a global internet and telephone information and reporting service for employees), associates, as well as customers, suppliers and consumers, can report— confidentially and without fear of retaliation. We treat all inquiries confidentially and investigate all concerns.
In cases where claims are substantiated, we take corrective action, which, depending on the violation, may include monetary penalties, reassignment of duties and in severe cases, separation from the organisation.
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address issues like Land Rights, HIV/AIDS, Pregnancy and Non-Job Related Medical Testing and migrant worker recruitment and employment practices, grievance redressal mechanism.
Our dedicated Global Workplace Rights (GWR) group is charged with addressing global issues, identifying human rights risks throughout our value chain in phases and developing easy-to-use due-diligence tools to help us identify and mitigate human rights risks. In this regard, we are committed to working with suppliers of our key ingredients starting with sugar cane farmers3 next year wherein we plan to initiate a comprehensive study for charting human rights risks across the sugar value chain.
Some other highlights from the year include:
• 60% reduction in recidivism rates (suppliers achieving compliance and then falling back into noncompliant status)
• In collaboration with other AIM-PROGRESS members, we co-hosted three supplier capacity building events, including one in India which drew approximately 300 participants. During these day-long events, key business leaders from the participating companies discussed the importance of responsible sourcing to customers and stakeholders and to the sustainability of their businesses.
96% of company owned bottling operations in India meet the standards set in our Human Rights and Workplace Rights Policy.
Global Goal: By 2015, achieve at least 90 percent compliance with our Supplier Guiding Principles among independent franchise bottling partners and suppliers.
By 2020, achieve at least 98 percent compliance with our Supplier Guiding Principles among independent franchise bottling partners and 95 percent compliance among our suppliers.
Our progress: On-track
To meet our publicly stated compliance goals, we employ a multipronged strategy including top-level management engagement, industry engagement, internal scorecards, supplier trainings, supplier capacity building and a supplier awards system.
We work with our bottlers and suppliers to understand and mitigate human rights risks across our supply chain. Towards this purpose, our Supplier Guiding Principles (SGP) communicates our values and expectations for compliance. Our Supplier Guiding Principles (SGP) are aligned with our overarching Human Rights Policy and focus on fostering open and inclusive workplaces.
In-scope suppliers are subjected to a SGP audit as well. In 2014, we updated our Supplier Guiding Principles (SGP) protocol to further
3 http://assets.coca-colacompany.com/6b/65/7f0d386040fcb4872fa136f05c5c/proposal-to-oxfam-on-land-tenure-and-sugar.pdf
98% of our core supply chain met our SGP standards as well as the Human and Workplace Rights standards.
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Our commitment to workplace safety begins with our system wide safety vision of a goal of zero work related injuries and illnesses for our employees, contractors and the communities in which we interact. We promote a culture of safety at workplace going beyond compliance to ensure continual improvement through identification of hazards and implementation of controls to minimize risk.
Coca-Cola Operating Requirements (KORE) defines the policies, standards and requirements for managing safety, environment and quality throughout our operations. In early 2014, the TCCC’s leadership announced a system wide safety vision and commitment. Under this, Group and Business Unit Presidents are charged with supporting the implementation of robust safety response processes and ensuring that incident reduction
Workplace SafetyPeople are the most important asset at The Coca-Cola Company. We believe everyone possesses a fundamental human right to safety and we employ the best-in-class resources for ensuring a safe working environment.
action plans and intervention practices are in place.
Our goal is to reach alignment on a common safety vision, educate on good safety practices and improve safety performance throughout the system. Training programmes are conducted for new hires that are inducted and periodic refresher trainings are conducted for all associates, workers and contract labourers.
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Our performance
There was an increase in Lost Time Incidents Rate (LTIR) from 0.15 in 2013 to 0.16 in 2014. While addressing each such specific workplace related injury or illness with focussed corrective actions, we diligently continue our focus on specific areas related to fall prevention and protection, contractor safety and vehicle safety to drive a long term improvement in safety performance. Unfortunately, there were 3 fatalities involving contract labour reported in 2014. Each of these incidents were investigated thoroughly and risk mitigation measures were implemented.
Note:1. The LTIR indicated here is defined based on KORE standard and is calculated
based on 200,000 man-hours worked.2. A total of 47,946,678 man-hours of work were recorded across the bottling
operations (considering both employees of bottling companies and contract employees).
3. Fatality is considered as one lost day as per KORE system
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Lost Time Incidents
2012
2013
2014
416
368
623
Lost Days
2012
2013
2014
0.26
0.15
0.16
Lost Time Incidents Rate (LTIR)
2012
2013
2014
3.33
1.77
2.71
Lost Time Incidents Severity Rate (LTISR)
2012
2013
2014
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As a global company operating across geographies, all our business units adopt the guidelines and principles of the parent organisation, TCCC. Our commitment to diversity principles is embodied in the Human Rights Policy. We are an equal opportunity employer and do not discriminate on the basis of gender, religion, ethnicity, race etc. While filling open positions, only the individual’s fitment of skills for the position is considered. Furthermore, as a policy, we strive to offer open positions to existing employees before sourcing talent from the market. Such internal transfers are encouraged with the view of offering employees exposure to diverse roles/business functions4.
Employee benefits
The wages and benefits we offer are competitive and are benchmarked with the prevailing market practices. Our pay structure meets the statutory requirements of retirement benefits like Provident Fund (PF) and Gratuity. Additionally, we provide facilities of medical/accident/ life insurance, free health check-ups for employees, loans and advances, parental leaves for women and men,
partial sponsorship for promoting active lifestyle, etc.
Employee training
Given our increasing footprint in India, new functions and job positions are continuously being created. We have developed several learning & development modules for our employees to help them acquire the necessary skill sets for these roles. These programmes are delivered through in-house trainers or in collaboration with external agencies. We also keep recruiting laterally through open channels and fresh graduates from premier colleges/ universities across the Country.
We encourage our employees to participate in external training courses, international programmes and management development programmes for continuously updating their skills that will help them advance in their current role and also be competitive in the outside world. We have collaborated with ISB Retail Academy that allows our employees to pursue advanced education while being employed with us.
4 Data pertaining to employee profile, no. of employees hired and employee turnover is provided in annexure 1.
Coca-Cola India Sustainability Report 2014
Human Capital Our people are at the core of all our work and we take pride in being an employer of choice for many years. This is an outcome of our constant efforts to devise people-friendly policies.
We understand that in a competitive market like India, retaining talent and grooming them for work poses a significant challenge. Our human resources team works on multiple strategies to keep our employees motivated, maintain the diversity and suitably cater to aspirations. We focus on providing learning and development opportunities to our employees for building new skills.
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Employee satisfaction
Each associate brings his or her unique talents and ideas to work every day to help our company achieve the goals outlined in our 2020 Vision. Associates also represent Coca-Cola in their communities and are ambassadors of our brands to the world. Ensuring our associates are happy, healthy and treated fairly and with respect is at the core of our business philosophy and success. We strive to create open work environments as diverse as the markets we serve, where people are inspired to create superior results. We also aim to create environments where people are fully engaged and where the Company is viewed both internally and externally as an employer of choice.
To encourage a work environment of open communication and to effectively solicit and leverage innovative ideas, we engage in frequent dialogue with our associates around the world. Such dialogue provides us with valuable information,
increases awareness, promotes business strategies, shares successes and opportunities, and solicits employee opinions. Another example of our regular dialogue with our associates is our global Employee Insights Survey. The India Business Unit also conducts an Employee Insights Survey every year. The consolidated employee feedback from each department is presented to each team/ department and accordingly work streams and task force groups are formed to address specific aspects highlighted in the survey. Focused group discussions are held to capture feedback and finally the results are presented to the Leadership Council and appropriate actions are taken to address the issues voiced by employees. Further, the actions taken are closely monitored and reviews are conducted throughout the year to ensure robust implementation of initiatives planned. ‘Swayam’, our employee volunteering initiative, is a direct outcome of the feedback received from our employees through the Employee Insights Survey, and was introduced in 2014.
15 person-hoursper employee was the average training imparted for employees at corporate office
8 person-daysper employee was the average training imparted for employees at our concentrate plant
33%women among our total strength
100%employees availing parental leave resumed work
2014 Programme highlights
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Swayam – Employee engagement with a purpose
Coca-Cola believes that sustainable businesses exist only amidst sustainable communities. CCIPL has developed an Employee Volunteering policy in alignment with the Me, We and World Sustainability Framework and the Refresh 2020 goals. It aims to encourage a culture of volunteering among our employees.
Swayam engages employees through a mix of company sustainability initiatives as well as initiatives chosen by the employees themselves. The rationale is to facilitate involvement and engagement of employees in CSR and sustainability initiatives within and outside the company. A key component of this commitment
to sustainability is the involvement of our employees in their local communities. This is done through a three-pronged approach of employee volunteering:
• Company core initiatives: Two events dedicated every calendar year for volunteering initiatives. The first employee volunteering event was organized in 2014 which had an overwhelming response. 64 associates turned up at the New Delhi railway station on 8th October 2014 to collect waste PET bottles from a train and clean/clear waste bins at the platform along with waste pickers. Employees interacted with the waste pickers and shadowed them, for half a day.
Coca-Cola India Sustainability Report 2014
• Employee-led initiatives wherein an employee can choose to volunteer for a cause of his/her choice for one day in a year.
• Payroll giving with the Company matching the monetary contribution made by the employee up to a maximum of INR 60,000 per employee per annum. The payroll giving system was established in 2014 and Coca-Cola India ranked amongst the highest of 120+ Indian corporate partners of GiveIndia (implementing agency).
Employees are also encouraged to write stories about their experience which are widely disseminated through notice boards, in the newsletter, HR Portal, Facebook Blog etc.
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Our community initiatives reflect the global and local nature of our business and focus on areas where we can make a unique and sustainable difference. We engage with the local population across age-groups and gender to effectively understand their requirements from a socio-economic development perspective and embed that into the design of our programmes.
Creating Sustainable CommunitiesWe believe that our business is only as healthy and sustainable as the communities in which we operate and through our initiatives we endeavour to forge strong bonds with the communities we serve.
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Global Goal: Creating Sustainable Communities.
Our progress: On-track
Anandana, Coca-Cola India Foundation, was set up as a ‘not for profit’ Company under section 25 of the Companies Act, 1956 by its holding Company, Coca-Cola India
Anandana provides monetary grants and other assistance to civil society organisations who can be suitable partners in implementing projects for social welfare.
Geographically, Anandana focuses on some of the most backward regions of the country. Anandana constantly aspires to ensure project execution, maintenance and sustainability through active involvement and direct participation of the beneficiary community at the grass-root level. The entire system is based on the precept that people’s participation is the only means to ensuring long term sustainability of projects.
Since inception, before the beginning of 2014, The Coca-Cola India Foundation had sanctioned 27 projects in total of which 22 were related to water replenishment and balance in the field of women’s empowerment through promotion of solar energy.
Anandana is engaged in creating and replicating models of rural water supply management systems through the training, participation and active involvement of beneficiary communities. The entire system is based on the precept that people’s participation is the only means to ensuring long term sustainability of water projects. A significant feature of these projects is the strong community thrust with women participating in large numbers and attaining a supervisory role as Members of village level “Pani Samitis” to execute and formulate norms and procedures around the maintenance and sustainability of the project.
– Yogesh Chandra, CEO, Anandana
Private Limited on September 17, 2008 with a view to extend its Corporate Social Responsibility (CSR) initiatives to the community at large, particularly those that are economically and socially deprived.
The Foundation had, at the very outset, adopted four Mission Objectives:
• Mitigating water stress and promoting water sustainability
• Propagating the use of new and renewable sources of energy as a means of global climate control
• Promoting active and healthy lifestyles
• Subscribing to general social advance through effective intervention where needed
In the implementation of these objectives it was clearly recognized that community benefit, based on the involvement of women at every level, was the fundamental goal of Foundation activity.
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S. No. Organisation Details
Project Title Beneficiary Demographics
Total Project Value
1 Society for Technology and Action for Rural Advancement -TARA
Integrated watershed management, Shivpuri, Madhya Pradesh
3 Villages / 8,217 People
INR 31,712,909
2 Society for Technology and Action for Rural Advancement-TARA
Solar electrification project, Jhansi (UP)
5 Villages / 5,317 People
INR 10,133,990
3 AADHAR Research Institute
Water conservation project in Tonk district, Rajasthan
5 Villages / 13,270 People
INR 10,370,288
4 Social Action for Rural Advancement (SARA) Laxmipura
Water conservation project in Sikar & Nagaur districts, Rajasthan
4 Villages / 20,000 People
INR 8,809,000
5 Social Action for Rural Advancement (SARA) Laxmipura
Groundwater augmentation in Dantla village, Sikar district, Rajasthan
6 Villages / 15,000 People
INR 4,375,750
6 SEWA Bharat Solar electrification project in 2,800 households in 3 districts of Bihar
3 Villages / 18,000 People
INR 17,324,011
7 SEWA Skill development Centre & solar lighting in 7,500 households
40 Villages / 55,000 People
INR 45,608,240
8 Corbett Foundation
Solar electrification Project in Uttarakhand
5 Villages / 16,000 People
INR 5,908,125
Total for 2014 71 Villages /150,804 People
INR 134,242,313
The table below summarizes the new partnerships and programmes initiated in 2014:
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Socio economic development in Dholpur, Rajasthan through integrated watershed area development approach
Thousands of residents of Dholpur village have been facing severe water crisis for years. In terms of ground water, this particular district came under ‘critical category’ according to a Government survey.
There was a need for creating additional storage of rainwater and creating infrastructure for facilitating groundwater recharge. Anandana worked together with the Lupin Human Welfare & Research Foundation to construct a check dam that would not only store water, but also increase the ground water level in Dholpur area.
Anandana worked with the villagers to construct a masonry check dam on the river Bamani. The check dam is a huge water reservoir with a capacity to
store approximately 1.7 billion litres of water. The project has also revitalized most of the open dug wells and borewells. Since the implementation of the project, the ground water level has increased by 8-10 feet in most of the open wells, which is expected to benefit about 11,000 people across 5 villages. The project was carried out with the help of community members and the Gram Panchayat. The entire system will be managed by the community members to ensure sustainable maintenance.
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Solar lighting project in Bihar
The solar lighting project provides access to solar lanterns to households and has been implemented in three districts of Bihar namely, Munger, Bhagalpur, and Katihar.
Majority of project beneficiaries in these power deficit districts are agriculture labourers, domestic workers, home based workers, construction workers and street vendors. Solar lighting serves as a reliable source of lighting and allows these workers to extend their income generating activities beyond sunset. Children can also utilise these hours for their studies. Solar lighting also
replaces kerosene based lamps that require expensive kerosene fuel and often pose safety hazards. Access to solar based lighting is expected to enable women to work for additional hours as well as save through reduced expenditure on kerosene.
As part of this project we plan to light up over 2,800 households and have already touched 400 households by the end of 2014. In order to make this initiative sustainable, women from the community were trained on installation, repair and maintenance of solar home light system. These workers will install lights in their vicinity or neighbouring village or town and resolve technical complaints.
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Support My School
Children’s education is among the most basic of human rights and human capability issues in any society. Even as India continues to grow economically, there is much cause for concern when one looks at the education and nutrition status of its children. The very first step to learning is having children turn up at school every day. However, school dropout rate in India continues to be high. While there are many factors that contribute to this situation, several studies suggest that lack of basic amenities like toilets and access to water contribute to the creation of an unwelcoming and non-conducive environment at schools. Government schools in India too have been grappling with these issues. Among the children, it is the girl child who is affected more by the lack of such infrastructure.
In an attempt to address the above, we launched the Support My School programme integrating several facets of our ‘Me-We-World framework’. The campaign has twin objectives of revitalising school infrastructure (for sanitation, drinking water, playgrounds, campus greening and rain water harvesting) and also drawing public attention to the status of schools. The campaign helps in creating mass awareness on social issues amongst millions, helps in engaging communities, sets best examples of stakeholder relations, fosters multilateral and multipronged
partnerships which also builds reputation. The campaign also aids in furthering the ‘Swachh Bharat, Swachh Vidyalaya’ initiative launched by Government of India in 2014. The Coca-Cola system in India is committed to a target of revitalising 1,000 schools by 2017. The campaign covers the elements of sanitation, sports and water along with education facilities like libraries and developing a concern for environmental upkeep. The campaign that began with just Coca-Cola, NDTV, Charities
Aid Foundation (CAF) and UN-Habitat has grown to include hundreds of donors, partners and contributors. It has become one of the biggest campaigns of its kind in India. Leading organisations such as World Vision India, Plan, SRF Foundation and other NGOs have collaborated for implementing the campaign on ground. Youth organisations such as AIESEC, students of leading Universities came forward and contributed to the campaign.
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Project – VEER
In 2014, we launched the programme VEER that shares its core philosophy with Brand Thums Up; which believes everyone has potential; it’s just waiting to be unleashed. The campaign was launched in collaboration with Being Human – The Salman Khan Foundation, CNN IBN and American India Foundation (AIF). Through active engagement on ground, with NGOs and corporate sector, the campaign encourages and also showcases the strength and self-belief of people with disabilities (PwDs). The PwDs are called VEERs in recognition of their will and ability to overcome their constraints and emerge victorious. The campaign showcases stories of VEERs, who have succeeded in their endeavours despite environmental and attitudinal
barriers. It is also an initiative to raise funds for skill training and employment support (including self-employment) for more than 1000 persons with disabilities. In the very first year of the campaign, 662 people were enrolled out of which 577 were trained across centres in Delhi, Noida, Gurgaon, Mumbai, Bangalore, Guwahati, Madurai and among them 425 were successfully placed. More information is available at www.theveer.in
Till the end of 2014, 413 schools had been revitalized and work in 184 schools was underway. Approximately 150,000 children received access to better sanitation, water, recreation and other facilities. In several schools enrolment figures and children’s attendance data showed an upward trend.
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Local community initiatives by our bottlers
Our bottlers play a critical part in identifying and implementing social projects at a local level near their plant locations. We are sharing a case study of the CSR programme undertaken by them.
Education support programme of Sri Sarvaraya Sugars: Sri Sarvaraya Sugars Ltd. has been supporting Government schools by providing furniture, drinking water facilities, supply of meal plates/tumblers, notebooks to about 2,414 children in 20 primary schools. To encourage meritorious students, the Company has instituted “Sarvaraya Merit Awards” for the students achieving top ranks in the SSC exams every year in the villages of its three plant locations (Vemagiri, Kesavaram and Sathupally). Under these awards the students are paid Rs. 10,000 and Rs. 5,000 for 1st and 2nd position respectively along with a certificate of merit.
Celebrating Women Achievers in Silver Jubilee Edition of Limca Book of Records
The year 2014 was special because this year marked the launch of the Silver Jubilee edition of Limca Book of Records. Coca-Cola commemorated 25 glorious years of the Record Book by
launching the Limca Book of Records 2014 - ‘Special Silver Jubilee Edition’ on March 6, 2014 in Delhi. The all-new edition, the theme of which was Empowering Women, celebrated the achievements of women in general and those of 25 outstanding women achievers in specific as LBR ‘People of the Year 2014’ from fields as diverse as Transport and Armed Forces, to Literature and Radio.
With 20 refreshing and informative chapters, the 2014 edition of the record book continues to celebrate Passion, Ambition, Excellence, Belief and Tenacity as the hallmarks of every LBR record-holder. The 2014 edition also saluted the remarkable contributions of the country’s unsung heroes, as well as outstanding women over the years who have had the spirit and the persistence to excel and follow their goal with single-minded passion - once again truly showcasing ‘India at her best’.
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Water is key to our sustainability and is a business priority for us. It is critical to the communities around our operations and the ecosystems on which we all depend. We work with a variety of partners including farmers to promote sustainable agricultural practices. We are also focussing on energy efficiency, adoption of renewable energy, reduction & reuse of packaging material used.
Water StewardshipWorking to protect water-sheds, reduce risks to water supplies and moving towards balancing our water use
Protecting the environment
Sustainable PackagingOur efforts to reduce our materials use, source recycled and renewable materials and build a restorative packaging system
Climate ProtectionWorking to reduce our impacts and partnering to take action against climate change
Sustainable AgricultureHelping to ensure a sustainable supply of ingredients, while supporting farmers and agricultural communities
World
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For us, water is the primary ingredient in our products, it enables our manufacturing processes, and it is fundamental to the cultivation of the diverse crops we depend upon for our beverage ingredients. This creates a business imperative that compliments our ethical drive— working to ensure the sustainability of local water sources everywhere we operate, be it at our bottling partner’s facilities or the farms where we source our key agro based ingredients like sugar, mangoes etc.
Water StewardshipCommunities rely on a sufficient quantity of safe, accessible water from sustainable ecosystems for their continued prosperity. For us and our bottling partners, water is equally important.
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Water, the essence of existence
Water is possibly the most important input resource for our business. As a consumer of water, we are committed to be a collaborative partner and responsible steward of this precious resource. The Coca-Cola Company has been committed to the principles of the UN Global Compact since 2006 and environmental sustainability, including water resource management, is a key component of it. Our commitment towards water conservation and efficient management is steeped in the Vision 2020 roadmap of the TCCC system.
At CCIPL, we have developed systems and processes supported by a well-defined governance structure for effective management of this precious natural resource. All our bottling facilities are expected to adhere to the internal policies and contribute towards the goals. Furthermore, our senior management is supported by a high level committee of external experts5 to guide the management on the subject.
Across our bottlers’ network, water conservation and re-use in production or other non-industrial activities is of prime concern. Our performance trends and highlights against each of our global water stewardship goals provide further insight to our commitment.
1. Replenish
Global Goal: By 2020, safely return to communities and nature an amount of water equivalent to what we use in our finished beverages and their production.
Our progress: On-track
Our bottling partners identify and implement locally relevant projects that revitalize watersheds. Construction of check dams, restoration of ponds and natural water bodies are some examples of projects implemented towards groundwater recharge. Regular monitoring and evaluation mechanism ensure the benefits are being delivered to the community in the desired manner. As a result of these projects, we have created a water replenishment potential of 146% compared to the amount of water we consume in manufacturing our beverages.
% of water replenished
118%129%
146%
2012 2013 20145 Details for the same are presented in the ‘Working Responsibly’ chapter of this report.
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Restoration of “Shivra Taal”, Soda, Rajasthan by HCCBPLSoda is one of the Villages in Malpura Mandal in Tonk District of Rajasthan. It is one of the most backward areas of Rajasthan. Ground water available in the village has
been declared unsafe for consumption and agriculture. The water is saline and contaminated with high levels of fluoride, chloride and other minerals. Thus, rain water is the only source of drinking water and irrigation. The sarpanch of Soda village approached HCCBPL to support deepening and renovation of ‘Shivra Taal’, main community reservoir, spread over 100 acres.
The water body is extremely critical to meet the water requirement of over 900 households of Soda village and eight hamlets. The reservoir is the only source of water for drinking, agriculture, domestic and live stocks etc. Over a period of time, accumulation of silt in the pond resulted into reduction in the water storage capacity resulting into severe water shortage for the residents. HCCBPL joined hands with Soda Panchayat and World Vision India, a Non-Governmental Organisation to undertake the deepening and renovation of Shivra Taal.
As the largest bottling partner of The Coca-Cola Company in India, our consistent endeavor is to bring some of the most loved beverage brands of the world within arms’ length of desire at an affordable price, in a sustainable manner across our geographies. Our responsibility towards our customers, consumers, environment, stakeholders and specially the communities we operate within, is significant.
We are focused on creating shared value for all our stakeholders. In order to achieve this, we are focusing on increasing our distribution reach sustainably, creating economic value, reducing our environmental footprint by leveraging best-in-class technologies and investing in locally relevant community initiatives across our bottling locations.
Our journey in water stewardship continues at a consistent pace with significant success. Our core belief that sustainable businesses and sustainable communities support one another symbiotically, is the driving force for all our current practices and future initiatives.
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Laser levelling of agricultural land in PunjabThe ground water level in most parts of the state of Punjab is falling owing to overexploitation. According to studies a significant (20-25%) amount of irrigation water is lost during its application at the farm due to unevenness of the fields. Fields that are not levelled suffer from increased weed burden and uneven maturing of crops. All these factors lead to reduced yield and poor produce quality. Ludhiana Beverages Pvt. Ltd. (LBPL) is using Laser Levelling for tackling this issue and helping farmers conserve water used for irrigation. Laser levelling is a proven technology which has significant advantages like water
savings, improved nutrient use, option for precision farming, higher crop productivity etc. In 2014, LBPL carried out levelling of 58.5 acres of land for about 19 farmers from economically weaker sections using Laser Levelling. LBPL also conducted an awareness session on benefits of Laser Levelling for 50 farmers at Village Jaspalon near Doraha.
2.12
1.98
1.97
Water Use Ratio
2012
2013
2014
2. Efficient water use
Global Goal: By 2020, improve water efficiency in manufacturing operations by 25 percent compared with a 2010 baseline.
Our progress: On-track
We make significant investments in the construction and operation of our production facilities for best-in-class performance. Water consumption in our manufacturing operations is a key indicator of our performance and we also track Water Use Ratio (water consumed per litre of beverage produced). Water efficiency is an outcome of using best-in-class technology and optimised water use in processes. Improving existing processes and adopting new technology has resulted in reducing overall water usage in bottling operations. Our performance trend highlights a continuous decline in water use ratio i.e. our processes are continuously becoming water efficient.
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3. Assessing water source risks
Global Goal: Assess the vulnerabilities of the qual-ity and quantity of water sources for each of our system’s bottling plants and develop and implement a lo-cally relevant Source Water Protection Plan (SWPP).
Our progress: On-track
All our bottling units have undertaken Source Vulnerability Assessments (SVA) for all water sources used by them; where necessary, Source Water Protection Plans (SWPP) have also been developed to help bottlers successfully mitigate any impact on any source.
The actual break up of our water withdrawal is presented in the tables given below.
2014 2013
Withdrawal Source
Quantity(KL)
% of total Quantity(KL)
% of total
Well Water 5,641,098 62.61% 5,100,900 62.94%
Surface Water
2,247,079 24.94% 2,000,334 24.68%
Municipal Water
1,064,687 11.82% 910,979 11.24%
Others 56,668 0.63% 92270 1.14%
Total 9,009,532 100% 8,104,483 100%
Destination Quantity (KL)
2014 2013 2012
Treated and discharged at site
4,075,897 2,802,843 3,082,348
Wastewater discharged to local waste water treatment plant
35,643 332,009 278,316
Treated wastewater sent to natural bodies
54,515 47,625 164,007
100% of our bottling units have undertaken Source Vulnerability Assessments (SVA) for all water sources.
4. Recycling and treating water
Global Goal: Return to the environment—at a level that supports aquatic life—the equivalent of the amount of water we use in our system operations through comprehensive wastewater treatment.
Our progress: On-track
Our bottling plants recycle and reuse water to the extent possible. Rest of the water is treated to a quality standard fit for use in secondary applications like gardening, toilet flushing and the balance is returned to nature at a level that supports aquatic life.
Table 1: Quantity of water withdrawn by source
Table 2: Quantity of water treated, reused and discharged
The following table represents our total water discharged by our system, by destination.
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The National Water Policy issued in 2012 by India’s Ministry of Water Resources highlights several key areas of resource and capability scarcity in water resource management, including lack of adequate trained personnel for scientific planning and the absence of a holistic, inter-disciplinary approach to water-related problems. This year Coca-Cola Foundation partnered with The Energy & Resources Institute (TERI) University, New Delhi to set up an academic department to build knowledge and capacity in water-related issues. The Coca-Cola Department of Regional Water Studies will examine water issues in an interdisciplinary framework and develop a globally competitive class of young water management professionals.
The Coca-Cola Foundation, Coca-Cola India and TERI University have collaborated to launch the Coca-Cola Department of Regional Water Studies for Master’s level programme on Water Science and Governance. The department at present offers different programmes (Diploma, Master’s and Doctoral) in water science and governance. In the first batch of Coca-Cola Department of Regional Water Studies about 21 students were enrolled across courses. Under the aegis of the department, a successful High Level Dialogue was organized on the theme ‘Cleaning of India’s Rivers – Design of Participatory
Coca-Cola Department of Regional Water Studies at TERI University
Approaches’. The half-day symposium brought together key stakeholders to deliberate on a collaborative approach in the area of cleaning Indian rivers.
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Sustainable PackagingMaking our packaging as sustainable as possible is of key importance to us and we work together with partners in the private sector, Government and civil society to achieve this objective.
Every one of our different beverage offerings require some form of packaging. Packaging is vital to protecting our products during delivery and use, and nearly all of our packaging material has value as recycled material. Our efforts to create more sustainable packaging are expected to contribute to our overall goal of reducing the CO2 emissions associated with the “drink in your hand”
by 2020. Sustainability in packaging requires a wide range of actions, including engaging consumers, advocating for policy changes, building supply chain partnerships, developing renewable technologies and more. Ultimately, it requires building a system in which many people, institutions and technologies work together to reduce, redesign, recover, recycle and reuse packaging.
We at CCIPL, approach sustainable packaging from two levels, the first is to reduce, recycle and re-use materials within the bottling units and second is recovery at the consumer/customer level.
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Global Goal: In partnership with consumers, industry and Governments, we aim to work together to recover and recycle 50 percent of the equivalent bottles and cans we introduce globally each year by 2015.
Our progress: On-track
The Coca-Cola System in India offers its beverages in Returnable Glass Bottles
(RGB’s), Aluminum cans, PET bottles and tetra packs. In excess of 50% of our beverage sale takes place in RGB which is completely recovered from the market except for breakages.
With the aim to initiate work in the area of recycling at the consumer level, the ‘Doh-Bin’ Initiative was launched in December 2013 for sensitising communities about segregation of waste at the household level.
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Doh-Bin was launched to improve the waste management in cities through raising awareness about segregation of household waste into wet and dry waste. The pilot project was started in DLF Phase IV – on 1st Dec 2013 at Galleria Market, Gurgaon. The main objective of this pilot was to instil practices of segregation at source among residents and provide a safe and hygienic environment to waste collectors.
A total of 1,495 families covering a total project area of 246.56 acres were reached through door to door campaigning. The households were sensitized towards the value of waste segregation at source.
Doh-Bin created awareness through various programmes such as kid’s carnival, senior citizen’s carnival, training of maids and training of waste collectors. Moreover, a dry waste collection and sorting centre was set up at Ghitorni, Delhi (in an area of 1000 sq. yards) for waste collectors.
Tetra Pak, Hindustan Times & Indian Pollution Control Association (IPCA) were our partners, and together we organised awareness programmes in Resident Welfare Associations (RWA). The initiative was also supported by Prakash Environmental Group, DLF City RWA, Ganesha Ecosphere Ltd, Deluxe India Recycling Pvt. Ltd, Global Communities India, Municipal Corporation of Gurgaon and the residents of the project area. The highlights of the project are presented in the follwing chart.
The ‘Doh-Bin’ Initiative
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TCCC came out with a revolutionary new packaging material in 2009 – the PlantBottleTM. It is made from Sugarcane based ethanol, designated as an “Advanced Renewable Fuel” by the United States Environmental Protection Agency.
PlantBottleTM resin is currently not produced in India due to weak demand as compared to normal PET resin which is more competitive when it comes to price. With bio-based MEG and finished PET resin production both located in India, we are exploring a tie-up for local PlantBottleTM resin production so that the premium differential with respect to normal PET can be narrowed to 0-3% levels from the current levels of 14-16%.
Global Goal: Improve the packaging material efficiency per litre of product sold by 7 percent by 2015.
Our progress: On-track
Sustainable packaging requires us to “reduce, reuse and recycle.” One way we reduce is by improving the design of our packages, a process known as
light-weighting. Through our sustained efforts over the years we have leveraged technological advancement to reduce the weight of sparkling PET bottles by about 15%, juice PET bottles by up to 14% and packaged drinking water PET by upwards of 30%. Our returnable glass bottles also got light-weighted by about 33% over the years. Some of the SKUs (Stock Keeping Units) were optimized for bottle weight to best-in-market levels. E.g. 600ml Juice PET underwent a reduction from 27gm to 23.7gm (12.2% reduction). Similar reduction was also undertaken for 500ml water PET bottle and the weight was reduced from 15.6gm to 10.6gm leading to overall material saving of 33%.
While these weights are optimized, it is ensured at the design stage that the optimal performance of the pack and the consumer experience remains unchanged with weight reduction. These initiatives are a win-win proposition as they benefit the business through material reduction but more importantly benefit the environment through efficient utilisation of resources.
Name of Activity
No. of Activities
No. of Participants
Domestic Helpers training
14 173
Waste Collectors and con-tractors training
11 126
Session with resi-dents
6 72
Kids Carnival
4 195
Senior Citizen Carnival
3 162
Key outcomes of the pilot project:
• 85% increase in waste collector’s income due to increase in source segregation as estimated by students working on the project
• Safe and hygienic environment for workers at Dry Waste Collection Centre
• Installation of vertical hydraulic baler reduced manpower and reduced cost on storage and transportation that resulted in more profit to the contractor
• Residents and RWAs became sensitive about waste management practices and started working on waste management policy
Global Goal: Source 25 percent of our PET plastic from recycled or renewable material by 2015.
Our progress: Off-track
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Climate change poses major challenges for the natural environment and for the communities in which we operate. It could also affect our business and supply chain in the long run. The Coca-Cola system in India aims to manage our climate impacts by using the best mix of energy sources we can while improving the energy efficiency of our manufacturing and distribution processes.
Even though we may not be among the most energy intensive sectors, we at Coca-Cola recognize that climate change may have long-term direct and indirect implications for our business.
Global Goal: Reduce the carbon footprint of “the drink in your hand” by 25 percent by 2020.
Our progress: Draft reduction target and metrics have been established
We are working to reduce greenhouse gas emissions across our entire value chain by making comprehensive changes in our manufacturing processes, packaging formats, delivery fleet, refrigeration equipment and ingredient sourcing. To reach this goal, we have developed a Carbon Scenario Planner to help standardize a forecast methodology for carbon in the system supply chain and to support target setting. In 2014, we utilized the Planner to evaluate a portfolio of carbon reduction interventions and develop initial annual reduction targets.
We track performance indicators like Energy Use Ratio (amount of energy used for producing a litre
Climate ProtectionClimate change is an issue with profound impact on the global community that requires great attention from-and collaboration among-government, business and civil society.
of beverage), direct & indirect GHG emissions, percentage of renewables used etc.
In collaboration with our bottling partners we are rolling out various energy efficiency and climate protection projects. Our investments in use of best-in-class technology and upgradation of infrastructure have paid off in significant improvement in our Energy Use Ratio (EUR). The chart below presents the trend of EUR.
Energy Use Ratio (MJ/Litre)
0.79
2012
0.72
2013
0.67
2014
Energy Use Ratio, defined as the amount of energy used for producing a litre of beverage came down by about 7% in 2014.
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Fuel Energy (in MJ)
2013 2014
Non-Renewable Fuel
Light Fuel Oil 504,909,560.7 429,795,938.2
Heavy Fuel Oil 647,848,890.2 635,833,651.8
Natural Gas 30,581,673.0 17,243,622.6
Propane 81,839,121.1 82,753,493.4
Renewable Fuel
Biomass 621,691,646.5 751,265,715.7
Other Fuels 61,130,202.9 26,818,956.6
As a result, during the reporting period, the total savings due to various energy efficiency measures across the bottling units totalled up to 2,36,223,561 MJ.
The detailed break-up of our primary energy consumption is presented in the table below.
Particulars 2012 2013 2014
Total primary energy use (in TJ)
2,192 1,948 1,944
Total second-ary energy use (in TJ)
1,092 986 1,144
Table 3: Quantity of fuel used
Table 4: Energy consumption trend
Renewable energy use is another critical component of our strategy to achieve our aforementioned goal. We are promoting use of renewables especially biofuels across our bottling units. We have made significant improvement on this front and for the reporting period biomass comprised roughly 39% of our total primary energy use.
39%1%
22%
33%
1%4%
Light Fuel Oil
Heavy Fuel Oil
Natural Gas
Propane
Biomass
Other Fuels
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Table 5: Significant emissions data for year 2014
34,492.28
222,862.57
34,739.43
234,617.79
294,368.27
36,135.64
GHG emission (in tCO2-e)
2012
2013
2014
The estimated emissions of GHGs and other significant gases is given below:
S.No. Gas Quantity (Tons)
2014 2013
1 Nitrous Oxide (N2O) 1,937.80 2,575.23
2 CFCs 0.18 0.10
3 HCFCs 0.29 0.28
Direct emissions Indirect emissions
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Sustainable AgricultureBy accelerating and embracing our investment in sustainable agriculture practices, we endeavour to create shared benefits for our business as well as for farmers and their families.
While the primary ingredient in all the beverages we produce is water, we also use many agricultural ingredients, including coffee, fruit, sugar and tea, among others. We depend on a reliable supply of these ingredients, which we purchase primarily through local suppliers and this represents half of our procurement expenditure. Therefore it is important for us to address agricultural challenges and opportunities across our entire value chain.
agriculture. The project aims to harness the higher productivity potential of mango farms, allowing owners of small-sized farms to increase crop yields and improve their livelihoods.
Phase 1 of the programme propagated the method of ultrahigh-density farming for mango plantations, which significantly conserves water and land resources by using drip irrigation and high tree densities in combination with a specialized pruning process. The method also decreases the time it takes to bring new mango plantings to maturity.
Global Goal: By 2020, sustainably source our key agricultural ingredients.
Our progress: Work-in-progress
Towards progress and prosperity: Project Unnati
In the Chittoor district of Southern India, Project Unnati hopes to create a positive impact across many of our sustainability focus areas, including women’s empowerment, community well-being, water and sustainable
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Our activities resulted in:
• Establishing approximately 200 demonstration farms.
• Providing active on-site training and support to an estimated 18,000 farmers by bus, which we call the Coca-Cola University on Wheels.
• Enabling approximately 3,000 women mango farmers through project support and training.
Considering the success of phase 1 of ‘Project Unnati’, it has moved into Phase 2, which focuses on engaging farmers at a larger scale. Facilitated by HCCBPL, the project team is reaching out to about 25,000 farmers, who collectively cultivate 50,000 acres of mango trees. Phase 2 is expected to deliver close to 300,000 tonnes of mango fruit by 2022–23.
Jointly with Jain Irrigation, our partners in this initiative, we have committed to invest about 50 crores INR over a period of 10 years. The implementation of UHDP technology will be concurrently supported by practical and mobile in-class training provided by Parivartan. This will enable farmers to learn, adopt and carry forward best-in-class learning and benefit from it.
Project Unnati is a great example of creating shared value for society. Jain Irrigation and Coca-Cola India are both involved in inclusive growth. The project supports small farmers by giving them knowledge on one hand, introducing them to technology, giving them better planting material, enabling them to plant up to 16 times more trees and allowing them to produce 3-4 times more mangoes from the same amount of land.
Anil Jain, Managing Director, Jain Irrigation Systems Ltd.
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Our governance structure
At CCIPL, the board of directors is the ultimate decision making body and it consists of the following directors:• Mr. Venkatesh Kini, (Director)• Mr. Sanjeev Kumar, (Whole
time Director, designated as Vice President – Finance)
• Mr. Asim Parekh, (Whole time Director, designated as Vice President – Technical & Supply Chain)
• Mr. Devdas Baliga, (Whole time Director, designated as Vice President – Legal)
In addition, several committees have been constituted for advising on economic, environmental and social affairs. These committees comprise of distinguished members external to CCIPL, who have diverse experience of leadership roles across Government, regulatory bodies, academia etc. Details regarding the advisory committees are provided below: India Advisory Board (IAB): The India Advisory Board (IAB) is the foremost advisory body within CCIPL. The IAB is ably led by its Chairman Mr. Naresh Chandra, who is a former Cabinet Secretary –Government of India and a former Indian Ambassador to the United States. The IAB guides the management on various operational and
environment-related matters to help formulate short and long term strategies. The IAB meets two – three times a year and reviews the performance of the Company in India. Other members of IAB include - Mr. Deepak Parekh (Chairman HDFC Limited), Mr. SK Munjal (MD – Hero Corporate Services Limited), General VP Malik (Former Chief of the Indian Army), Ustad Amjad Ali Khan (Eminent Musician) and Ms. Kiran Mazumdar Shaw (CMD, Biocon Limited). Advisory Council on Environment and Sustainability (ACES): The ACES advices CCIPL on issues pertaining to environment and sustainability. This body is headed by General V. P Malik (retired), Former Chief of the Indian Army. The other members of the board are listed below and are experts from the fields of water, environment and pollution control.
• Prof. Subhash Chander (former professor – IIT Delhi)
• Dr. Saleem Romani (former Chairman – Central Ground Water Board)
• Mrs. Binoo Sen (retired IAS)• Dr. B. Sengupta (retired
environmental scientist, Central Pollution Control Board)
• Mr. Vishwanath Anand (retired IAS)
Good corporate governance is essential to uphold the interest of our stakeholders. As a commitment to pursue the highest level of professional conduct, we have constituted several expert advisory committees to suitably guide the board members on topics of strategic interest.
Working ResponsiblyWe are committed to embedding highest standards of governance, ethics and integrity across our operations.
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Apart from the above, Mr Kisan Mehta (ex-CEO of Coca-Cola in India) is a special invitee to the ACES. The ACES meets once every quarter.
Health and Wellness Advisory Council (HWAC): CCIPL is committed to provide its consumers with a variety of hydration choices that are safe and healthy. In this endeavour we are assisted by HWAC, which guides and assists CCIPL to:
• Identify and highlight the evolving nutritional needs of Indian consumers
• Suggest viable health & wellness solutions for beverage applications
• Support consumer education programmes that promote a healthy and active lifestyle.
The members of the HWAC and their respective area of expertise are as follows:
• Dr. J S Pai – Ex-Professor & Head of Food Technology Department, UICT Mumbai
• Dr. PSM Chandran- Sports Medicine Expert
• Dr. Vinay Aggarwal - Medical Professional Expert
• Prof. R H Singh, Professor Emeritus in the Faculty of Ayurveda at BHU, Varanasi
The HWAC meets three times in a year; with the members of the CCIPL Leadership and functional team members to understand our business, give inputs on current issues while also giving us an external perspective to such issues.
Internal Complaints Committee
We have constituted an Internal Complaints Committee (ICC) in line with the Sexual Harassment of Women at Workplace Act, 2013. This committee consists of senior
associates from Legal, Human Resources, Workplace Rights background and an external NGO. Employees may report any incidents of the nature of sexual harassment to this committee; the committee will conduct a fair & independent probe into the reported incident and take suitable action.
As on 31st December 2014, the members of the ICC include the following:
• Ms. Alpana Vartak, GM – H.R., CCIPL
• Ms. Shubha Sekhar, Human and Workplace Rights Director, Global Workplace Rights
• Mr. Yogesh Chandra, CEO, Coca-Cola India Foundation
• Mr. Ish Bali, Director – Legal, CCIPL
• Ms. Barsha Poricha, Director – National Foundation for India (external member)
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Coca-Cola India FoundationAdvisory Board: This body was constituted under the Chairmanship of Justice (Late) Shri. J.S. Verma, former Chief Justice of India and comprises of eminent personalities who have provided distinguished service to the public. The members of this Board include Dr. Mithu Alur, Dr. Shyama Chona, Ms. Dia Mirza, Mr. Bunker Roy, Mr. Roshan Seth and Dr. Naresh Trehan.
Ensuring ethical conduct in our work
Today, The Coca- Cola Company and its international subsidiaries are among the most admired businesses in the world. That position has been enhanced and safeguarded over the years by a rich culture of integrity and ethical conduct. Our business is built on this trust
and reputation. It influences how consumers feel about our products and how we are viewed by other stakeholders. With internal guidelines, such as our Code of Conduct and Workplace Rights Policy (WRP), we have set standards to ensure that we all do the right thing, every time.
TCCC’s Code of Business Conduct (COBC) guides the conduct of our business and all our associates. This is a single standard applicable to all Coca-Cola entities’ operations across the globe. The Code addresses our responsibilities to the company, fellow colleagues, customers, suppliers, consumers and Governments. The Code articulates TCCC’s expectation of accountability, honesty and integrity in all matters. All our associates are required to read and understand the Code and
follow its precepts, both in the workplace and in the larger community.
It is extremely important for us to ensure that all other businesses that we associate with also believe in the same standards of ethical and fair behaviour. Therefore, COBC is applicable for our suppliers as well. Suppliers additionally are encouraged to report potential improper conduct by Coca-Cola employees who interact with them.
The COBC is administered at the global level by TCCC’s Ethics and Compliance Committee which comprises of members of TCCC’s senior leadership. To ensure an ongoing commitment to the code, TCCC offers online training to all associates, which discusses topics related to ethics and compliance, including the Anti-bribery policy.
All new hires of CCIPL receive the Code of Business Conduct training upon joining the organisation. Employees are provided with multiple touch-points – including an online portal and global ethics hotline number to report any Code of Conduct violations. Our web-based portal, www.KOethics.com is available to all (external stakeholders included) for reporting and concerns pertaining to violation of our COBC or logging in a general complaint. This portal is managed globally by a third party agency to ensure complete transparency.
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Upon any incident being reported, fair and independent enquiries are conducted by the global team with support from the territory Legal and Ethics Officer and the Human Resources team. Mr. Devdas Baliga, (Whole time Director designated as Vice-President, Legal) is the Ethics Officer for CCIPL. At the end of the enquiry, appropriate recommendations are provided to the head of the relevant company.
Anti-corruption and anti-bribery
The Coca- Cola Company has also incorporated a prohibition against bribery into its COBC. We abide by all applicable anti-bribery laws, including the U.S. Foreign Corrupt
Practices Act, and local laws in every country in which we do business. Additionally, as a signatory to the United Nations Global Compact, we are committed to avoiding all forms of corruption. All employees of CCIPL undergo annual training on our Anti-bribery policy. The policy has a two pronged purpose of preventing improper payments and ensuring accurate reporting of all permissible payments. This policy provides the foundation for conducting our business in a fair, ethical and legal manner. TCCC conducts periodic anti-bribery assessments and audits of its businesses worldwide to raise overall awareness, detect potential misconduct and monitor compliance with anticorruption laws and policy.
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We have also sought external assurance for the Sustainability Report towards which M/s DNV Business AssuranceIndia Private Limited (DNV GL) had been engaged. DNV GL carried out the independent assurance of this sustainability report based on the GRI principles, Assurance Standard - AA1000AS (Type II moderate) and ‘DNV GL Verisustain’ methodology (Moderate level). The report complies with GRI G4 guidelines in accordance ‘core’ and is aligned to our global sustainability framework – Me-We-World.
Engaging our stakeholders
The Coca-Cola system in India believes that robust stakeholder engagement is critical for our success. Our business directly touches the lives of multiple stakeholders like our consumers, customers, associates, employees, communities, civil society organisations etc. every day and we make it our priority to stay connected with them and understand their concerns. According to GRI, stakeholders are defined as entities or individuals that can reasonably be expected to be significantly affected by the organisation’s activities, products, and services; and whose actions can reasonably be expected to affect the ability of the organisation to successfully implement its strategies and achieve its objectives. As part of our business, we interact and engage with a range of stakeholders both internally and externally through a mix of formal and informal engagement methods.
We, Coca-Cola India Pvt. Ltd (CCIPL), have prepared this report in line with the Global Reporting Initiative (GRI) G4 sustainability reporting guidelines including the Food Processing Sector Supplement (FPSS). While developing the report we have given due consideration to the GRI content and quality principles in order to be able to present a fair and a balanced picture of our performance to our stakeholders. The report covers our performance for the reporting period - 1st January 2014 to 31st December 2014.
The ‘Reporting Boundary’ for this report is based on where the significant impact of an aspect lies and the extent to which we report on is based on our control or influence on the respective entity. The boundary considered for various sustainability aspects includes our operations, HCCBPL, independent franchise bottling partners and Anandana, our foundation for CSR projects. CCIPL’s control and influence on other entities of the Coca-Cola System in India is limited to certain aspects of their operations. The precise reporting boundary and entity-wise coverage for all aspects is presented in annexure II.
How we wrote the reportOur report development process recognises the need for an integrated approach for monitoring, managing and reporting our sustainability performance.
WorldWe
Me
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For some engagements we also have defined SOPs on the course of action required. A brief description of our stakeholder engagement framework is presented in the figure beside.
Our materiality assessment
In line with GRI G4 requirements, we undertook a materiality assessment exercise this year for the purpose of identifying our material sustainability issues. We started the process by conducting awareness sessions on materiality for select cross functional internal stakeholders. Subsequently, these internal
stakeholders weighed in on the initial shortlist of sustainability issues relevant for CCIPL and various stakeholder groups to be engaged for conducting the materiality assessment exercise. The inputs for the initial list of sustainability issues came from issues considered by TCCC and issues faced by our peers and industry at large. Sixteen sustainability issues6 were shortlisted by the end of this exercise. Once the list of sustainability issues and stakeholder groups to be considered for the exercise were finalised, we held multiple workshops with internal
Civil Society Organisations/
ConsumerEngaged through: Pro-
grammes with CSOs/NGOs on health, sanitation, water and employee volunteeringInterest areas: Disclosure of sustainability performance
Our response: Independently assured
sustainability report
Government/ Regulatory Authorities
Engaged through: Engagement on a need basis,
participation in ministerial level consultation groups on
relevant issues along with peer companies
Interest areas: Regular and timely submissions of compliance related
documentation.Our response: Internal
management system (KORE)
EmployeesEngaged through:
Employee engagement initiatives, annual appraisal, volunteering opportunities,
reward programmesInterest areas: Work-life bal-ance, training programmes, leadership connect sessionsOur response: HR initiatives
to counsel, motivate and reward employees
AcademiaEngaged through: Engagement
with colleges/universities/research agencies through internship
programmes, campus recruitment, partnership programmes, advisory
servicesInterest areas: Employment/internship
opportunities for studentsOur response: Thriving campus
recruitment programme, partnerships with universities like Coca-Cola Department for Regional Water
Studies at TERI
Business Partners/ Industry
Engaged through: Regular engagement along with our bottling partners, member-
ship and participation in industry associations
Interest areas: Recycling of packaging material
Our response: Sustainable packaging initiatives
ConsumersEngaged through: Toll free
consumer helpline nos./email, sat-isfaction survey, bottling partners
stay connected with retailers Interest areas: Nutritional
information, youth engagement, training and entrepreneurship
programmes for retailersOur response: Transparent nutri-tion information, active healthy
living programmes, 5by20 initiatives
6 Apart from the issues reported in this section, the shortlist also comprised of a few additional issues such as livelihood, employee safety, fair taxation, customer satisfaction, contract labour. During the process of prioritization these issues were subsumed into other issues.
Packaging
Water Stewardship
Active Healthy Living
Human RightsCommunity
Engagement
Greenhouse Gas Emissions
Responsible Sourcing
Responsible Supply Chain Management
Energy Use and Efficiency
Women’s Economic Empowerment
Product and Ingredient Safety
Occupational Health and Safety
Marketing Responsibly
Climate Change RisksManufacturing
Waste
Diversity and Equal
Opportunity
Employee Wellness, Development and Engagement
Transparent Nutrition
Information
Increasing Current or Potential Impact to the Coca-Cola System
TCCC’s materiality map
Incr
easi
ng C
onc
ern
to S
take
hold
ers
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7 Packaging, Product and Ingredient Safety and Water Stewardship appear as top issues according to both the analyses. Active healthy living and human rights appear as top issues in the global map but not on CCIPL’s materiality map. This may be attributed to the limitations of our analysis or the variance in local context.
and external stakeholders representing a wide range of stakeholder interests. External stakeholders included representatives from academia, youth organisations, civil society organisations, media, industry associations, vendors, consumer rights organisations, doctors and nutritionists.
The discussions with internal stakeholders enabled us to get an idea of the extent of the impact of these issues on CCIPL’s business in the near future. The objective of holding in-depth consultative sessions with the representatives of
Incr
easi
ng C
onc
ern
to S
take
hold
ers
CCIPL’s materiality map
Packaging
Water Stewardship
Human Rights
Energy use & efficiency
Active Healthy Living
Transparent nutrient
information
Marketing responsibly
Responsible supply chain
Manufacturing waste
Women’s Economic
Empowerment
Product and Ingredient Safety
Community Engagement
Occupational Health & Safety
(OHS)
GHG emissions
Employee Wellness
Diversity
external stakeholder groups was to get an assessment of their level of concern (societal expectation) regarding these sixteen issues. These inputs were combined to arrive at CCIPL’s materiality map which was then finalised in discussion with our Leadership Council. Issues placed at the top-right corner are expected to have the highest impact on our business as well as on our stakeholders.
These workshops represented our first formal engagement with external stakeholders on materiality and served as an excellent platform for us to
have a focused and meaningful conversation with them. Given that this was our first attempt, the scope of the exercise was limited both in terms of scale (number of participants from each group) and reach (geographical distribution). To supplement our analysis and address these limitations to the extent possible, we also considered the comprehensive global priority analysis conducted by TCCC.
The outcomes of both the exercises are presented below and these jointly represent the key sustainability issues that our internal and external stakeholders consider most important. These priority issues are7:
• Packaging• Product and Ingredient
Safety• Water Stewardship• Active Healthy Living• Human Rights
We have also mapped these priority issues to our value chain in order to help us identify and address key impacts where they occur. In India, we undertake a host of initiatives across our value chain to address these issues and these have been covered throughout this report.
Increasing Current or Potential Impact to the Coca-Cola System
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Human Rights, Packaging, Product & Ingredient
Safety
Human Rights, Packaging, Product & Ingredient
Safety, Water Stewardship
Human Rights, Packaging, Product & Ingredient
Safety, Water Stewardship
Human Rights, Packaging, Product & Ingredient
Safety
Human Rights, Packaging, Product & Ingredient
Safety, Water Stewardship
Our priority issue GRI G4 Material Aspect
Product & Ingredient Safety Customer health & safety
Packaging Products & services
Water Stewardship Water
Effluents & waste
Active Healthy Living Healthy & affordable food
Human Rights Assessment
Supplier human rights assessments
Human Rights Grievance Mechanism
A mapping of the identified priority issues to the relevant GRI G4 material aspects is given below:
Upstream Operations Downstream
Agriculture and key ingredients
Bottling Partners and distribution
Consumers, recycling and
recovery
Coca-Cola India +Anandana
Customers
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Annexure I – Employee Data
Particulars Under 30 30-50 Above 50 Total
Male Female Male Female Male Female
As on 31st Dec. 2014
Senior management
0 0 4 4 3 0 11
Middle management
0 0 7 0 1 0 8
Junior management
1 0 7 0 1 0 9
Others 0 1 2 1 0 0 4
Total 1 1 20 5 5 0 32
GenderAge-group
Male Female Total
As on 31st Dec. 2014
30 years & below 21 11 32
31-50 years 177 59 236
50 years & above 25 3 28
Total 223 73 296
i) Hiring:
ii) Turnover:
iii) Employee profile
Particulars Under 30 30-50 Above 50 Total
Male Female Male Female Male Female
As on 31st Dec. 2014
Senior management
0 0 7 1 0 0 8
Middle management
0 0 10 6 0 0 16
Junior management
6 3 6 3 0 0 18
Others 1 0 2 0 0 0 3
Total 7 3 25 10 0 0 45
Summary of employee related data for the year 2014
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Reporting boundary considered for material GRI aspects (priority issues)
GRI G4 Material Aspect
Upstream TCCC System in India
Customers Consumers Exclusions/ qualifications (if any)
CCIPL + Anandana
Bottlers(CBOs/ FBOs)
Environment
Water 3 3 Water consumption in upstream supply chain is currently not tracked and systems are being developed for reporting in future.
Effluents & waste
3 3 Upstream supply chain is currently not tracked and systems are being developed for reporting in future.
Products & services
3 3 3 3 3 Data being reported only for Bottlers. Systems are being developed to monitor and report performance across other elements of supply chain and may be reported in future.
Social – Human rights
Assessment 3 3
Supplier human rights assessment
3 3 3 Limited to significant suppliers at Tier 1 level of our bottling partners.
Human rights grievance mechanism
3 3 3 3 3
Social – Society
Healthy & affordable food
3 3 3 3 3
Social - Product Responsibility
Customer health & safety
3 3 3 3
Annexure II – Aspect Boundary
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Reporting boundary considered for other sustainability aspects
GRI Aspect/ Category
CCIPL HCCBPL FBOs Anandana Exclusions/ qualifications (if any)
Economic
Procurement / sourcing practices
3 3 3 Anandana does not directly procure any material or services.
Limited to significant suppliers at Tier 1 level excluding NGOs.
Economic performance
3 3 3 3
Market presence
3 3 3 3
Indirect economic impacts
3 3 3 3
Environment
Energy 3 3 CCIPL’s Corporate Office (Gurgaon) and Concentrate Plant (Pune) and Anandana have been excluded since they have negligible impact.
Emissions 3 3 CCIPL’s Corporate Office (Gurgaon) and Concentrate Plant (Pune) and Anandana have been excluded since they have negligible impact.
Transport 3 3 CCIPL and Anandana have negligible impact.
Social – Labour practices & decent work
Employment 3 CCIPL does not track/ have control over employment at other entities of the TCCC India system. Coverage is limited to certain facets of employment only.
Anandana has very few people on its payroll and employment practices are as per TCCC’s policies.
Occupational, Health & Safety
3 3 CCIPL and Anandana have negligible impact. We exercise limited control over bottling units i.e. within the bottling premises.
Training & education
3 CCIPL does not track/ have control over employee/contract worker’s training at other entities of the India system.
78
GRI Aspect/ Category
CCIPL HCCBPL FBOs Anandana Exclusions/ qualifications (if any)
Diversity & equal remuneration for men and women
3 3 3 3
Supplier assessment for labour rights
3 3 Not relevant for CCIPL and Anandana.
Social – Human rights
Non-discrimination
3 3 3 3
Freedom of association & collective bargaining
3 3 Not relevant for CCIPL and Anandana.
Child labour 3 3 CCIPL and Anandana have negligible impact.
Forced & compulsory labour
3 3 CCIPL and Anandana have negligible impact.
Social - Society
Local community
3 3 3 3
Anticorruption 3 3 3 3 Limited to significant suppliers at Tier 1 level.
Public policy 3 Policy issues are addressed by CCIPL within the TCCC system.
Social - Product Responsibility
Product & service labelling
3 3 3 Not applicable for Anandana.
Marketing communication
3 Marketing is under direct purview of CCIPL within the TCCC system.
Customer privacy
3 Marketing and consumer/ customer communication is done only by CCIPL.
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Introduction
DNV GL represented by DNV GL Business Assurance India Private Limited (‘DNV GL’) has been commissioned by the management of Coca-Cola India Private Limited (‘CCIPL’ or ‘the Company’) to carry out an independent assurance engagement on the Company’s Sustainability Report 2014 (‘the Report’) in its printed format. This assurance engagement (Moderate Level) has been conducted against the principles of Accountability Principles Standard (AA1000AS (2008)), and the Global Reporting Initiative Sustainability Reporting Guidelines Version 4.0 (GRI G4) including its Food Processing Sector Disclosures (FPSD) and DNV GL Verification Protocol for Sustainability Reporting –VeriSustain (‘VeriSustain’ - www.dnvgl.com ; available on request).The verification was conducted during July-November’ 2015, for the year of activities covered in the Report i.e. 1st January 2014 to 31st December 2014.
The intended users of this Assurance Statement are the management of the Company and readers of the Report. The management of the Company is responsible for all information provided in the Report as well as the processes for collecting, analysing and reporting the information presented in the printed report. Our responsibility regarding this verification is to the Company only and in accordance with the agreed scope of work. The assurance engagement is based on the assumption that the data and information provided to us is complete and true. We expressly disclaim any liability or co-responsibility for any decision a person or entity would make based on this assurance statement.
Scope, Boundary and Limitations of Assurance
The scope of work agreed upon with Company includes verification of the following:
• The verification of the qualitative and quantitative sustainability performance reported in the Report prepared by the Company based on the GRI G4 “In accordance –Core” option, covering economic, environmental and social performance for the activities undertaken by Company over the reporting period 1st January 2014 to 31st December 2014;
• Review of the policies, initiatives, practices and performance described in the Report as well as references made in the Report to the annual report;
• Review of information relating to the Company’s sustainability issues, responses, performance data, case studies and underlying systems for the management of such information and data;
• Review of information relating to the Company’s materiality assessment and stakeholder engagement processes;
• Review of the Report against the requirements of Type 2, moderate level assurance engagement based on AccountAbility’s AA1000 Assurance Standard 2008 (AA1000AS (2008)), and using internal protocol VeriSustain;
• Evaluation of the disclosed General and Specific Standard Disclosures for “In accordance-Core” reporting requirements covering the systems, and the processes which Company has in place for adherence to the Reporting Principles set out in GRI G4.
Due to confidentiality of information policies of the company, verification of Human Right Grievance mechanism was limited to checking of the process at India level, since all follow up actions were happening outside the scope of boundary of this report.
The reporting boundary is as set out in the Report, covering sustainability
performance of CCIPL, Hindustan Coca-Cola Beverages Private Limited (HCCBPL), Anandana – the Coca –Cola India Foundation and Franchise Bottling Operations (FBO) in India. Our engagement did not include assessment of the financial disclosures mentioned in the report related to Corporate Social Responsibility spend. The assessment of Ethics & Governance was limited to what was disclosed by the company to us. We have relied on reports of independent parties where available, and no detailed verification has been conducted w.r.t. product responsibility. During the assurance process, we did not come across limitations to the scope of the agreed assurance engagement. No external stakeholders were interviewed as part of this assurance engagement.
Verification Methodology
This assurance engagement was planned and carried out in accordance with AA1000AS (2008) i.e. Type 2, Moderate and using VeriSustain. The Report has been evaluated against the principles of Inclusivity, Materiality and Responsiveness as set out in AA1000AS (2008) and the Reliability of specified sustainability performance information, as required for a Type 2, moderate level assurance engagement, and adherence to the additional principles of Completeness and Neutrality as set out in VeriSustain.
During the Assurance Engagement, we adopted a risk based approach, i.e. we concentrated our verification efforts on the issues of high material relevance to CCIPL business and its key stakeholders. As part of verification, we visited CCIPL Corporate Office at Gurgaon, operational sites in India i.e. Hindustan Coca Cola Beverages Private Limited (Moula Ali & Gurgaon), Franchisee Bottlers (Rajahmundry, Ludhiana, Ghaziabad and Bilaspur) and Anandana project sites in Rajasthan and Project Unnati at Chittoor District, Andhra Pradesh.
Independent Assurance Statement
80
As part of the engagement, we have verified the statements and claims made in the Report. In doing so, we have:
• Reviewed the Company’s approach to stakeholder engagement and its materiality determination process;
• Verified the sustainability-related statements and claims made in the Report and assessed the robustness of the data management system, data accuracy, information flow and controls;
• Examined and reviewed documents, data and other information made available by the Company;
• Conducted in-person interviews with middle and senior management team and other representatives, including data owners and decision-makers from different functions of the Company during corporate and site visits;
• Performed sample-based reviews of the mechanisms for implementing the Company’s sustainability related policies, as described in the Report;
• Performed sample-based checks of the processes for generating, gathering and managing the quantitative data and qualitative information included in the Report.
Conclusions
The Sustainability Report 2014 is prepared based on GRI G4 Reporting Principles and Standard Disclosures for “In accordance”-Core option covering the general and specific standard disclosures for the identified material aspects and the reasons for omissions and partial disclosure were explained to us.
In our opinion, based on the scope of this assurance engagement, the disclosures on sustainability performance reported in the Report along with the referenced information provides a fair representation of the key material aspects, related strategies of water stewardship, disclosure on management approach and
performance indicators and meets the general content and quality requirements of GRI G4 i.e.,
• General Standard Disclosures: The reported information under this section generally meets the disclosure requirements for “In accordance” – Core option of reporting; however it is recommended to further expand disclosures with respect to supply chain in future reports. Management stated that the sustainability goals set for India were derived from Global level goals and the achievements are disclosed w.r.t. to the status of India BU only.
• Specific Standard Disclosures: The reported information under this section generally meets the disclosure requirements for “In accordance”– Core option of reporting based on GRI G4 guidelines covering generic Disclosures on Management Approach (DMAs) and Performance Indicators for identified material Aspects as below.
Economic• IndirectEconomicImpacts–
G4- EC7;• Procurement/Sourcing
Practices – G4- EC9, G4- FP1 & FP2.
Environmental• Energy–G4-EN3,5,6;• Water-G4-EN8&9;• Emissions–G4-EN15,16,20,21;• EffluentsandWaste-G4-
EN22 & 23;• ProductsandServices–G4-
EN 27 & 28
SocialLabour Practices and Decent Work• Employment – G4-LA1,2 & 3;• OccupationalHealthand
Safety – G4-LA6;• DiversityandEqual
Opportunity – G4-LA12
Human Rights• ChildLabor–G4-HR5;• ForcedandCompulsory
Labor – G4-HR6;
• Assessment–G4-HR9;• SupplierHumanRights
Assessment- G4-HR10 & 11;• HumanRightsGrievance
Mechanisms – G4-HR12
Society• LocalCommunities–G4-
SO1& SO2;• PublicPolicy–G4-SO6; Compliance – G4-SO8
Product Responsibility• CustomerHealth&Safety
– G4-PR1 & PR2;G4- FP5,FP6,FP7;
• ProductandServiceLabelling– G4-PR3,PR4,PR5;
• MarketingCommunications–G4-PR7;
• CustomerPrivacy-G4-PR8
CCIPL is in the process of establishing systems to capture the information/data for some performance indicators which are partially reported in the Report. We have evaluated the Report’s adherence to the following principles on a scale of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’
AA1000AS (2008) Principles
Inclusivity: The formal process of stakeholder identification and engagement includes with key stakeholders to identify key sustainability challenges and concerns through different channels and the process is documented. The material issues emerging from the stakeholder engagement were collected and prioritized, and the results are fairly reflected in the Report. In our opinion, the level at which the Report adheres to this principle is ‘Acceptable’.
Materiality: The materiality determination process was validated based on inputs from key stakeholders including global and peer sector report, company policies, value chain impacts of operations, business risks and Senior Management at CCIPL. The Report focusses its disclosures on key material aspects at macro level and has not missed out any known material aspects. The management
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81
of CCIPL has established internal process for monitoring and management on a continual basis for their long term organisational sustainability. In our opinion, the level at which the Report adheres to this principle is ‘Good’.
Responsiveness: We consider that the Report has fairly disclosed the strategies and management approach related to identified key sustainability aspects and challenges considering the overall sustainability context of the Food & Beverages sector. However responses wrt sustainability performance of India operations are limited. In our opinion, the level at which the Report adheres to this principle is ‘Acceptable’.
Reliability: The majority of data and information verified at the Corporate Office and three operational sites were found to be accurate. Some of the data inaccuracies identified during the verification process were found to be attributable to transcription, interpretation and aggregation errors and the errors have been communicated for correction. Hence in accordance with AA1000AS (2008) requirements for a Type 2, moderate level assurance engagement, we conclude that the specified sustainability data and information presented in the Report is generally fair. In our opinion, the level at which the Report adheres to this principle is ‘Acceptable’.
Specific Evaluation of the information on Sustainability Performances
We consider the methodology and process for gathering information developed by the Company for its sustainability performance reporting to be appropriate and the qualitative and quantitative data include in the Report was found to be identifiable and traceable; the personnel responsible were able to demonstrate the origin and interpretation of the data and its reliability. We observed that the report presents a faithful description of the Company’s sustainability activities.
Additional parameters as per DNV GL’s Protocol
Completeness: The Report has fairly reported the General and Specific Standard Disclosures including the management approach, monitoring systems and sustainability performances indicators against GRI G4 requirements corresponding to the ‘in accordance’ – Core option. The reporting boundary is limited to India Operations .The Company has confirmed that the systems for aggregating data for the disclosures are being developed and set the internal time lines for disclosure of future reports. In our opinion, the level at which the Report adheres to this principle is ‘Acceptable’.
Neutrality: The disclosures related to sustainability issues and performances are reported in a neutral tone, in terms of content and presentation. In our opinion, the level at which the Report adheres to this principle is ‘Good’.
Opportunities for Improvement
The following is an excerpt from the observations and opportunities for improvement reported to the management of the Company and are not considered for drawing our conclusions on the Report; however they are generally consistent with the management’s objectives:
• The future report may expand aspect boundary to include all activities including value chain and key supply chain partners, and disclose the sustainability performance and impact of value chain and key supply chain partners;
• Establish a system of monitoring, periodic review and validation of sustainability related data to strengthen the sustainability performance monitoring and reporting process;
• Sustainability performance may be benchmarked with peers to further strengthen the disclosure of the sustainability impacts of material aspects and strategic responses to
material issues and stakeholder expectations may be brought out.
DNV GL’s Competence and Independence
DNV GL is a global provider of sustainability services, with qualified environmental and social assurance specialists working in over 100 countries. DNV GL states its independence and impartiality with regard to this assurance engagement. We did conduct other third party audits work with CCIPL in 2014-15, and in our judgement this does not compromise the independence or impartiality of our assurance engagement or associated findings, conclusions and recommendations. We were not involved in the preparation of any statements or data included in the Report, with the exception of this Assurance Statement. We maintain complete impartiality toward any people interviewed.
For DNV GL,
Ramesh RajamaniProject ManagerDNV GL Business Assurance India Private Limited, India
Vadakepatth Nandkumar Assurance Reviewer, Regional Sustainability Manager DNV GL Business Assurance India Private Limited, India
11th Dec’ 2015, New Delhi, India
82
GRI G4 disclosures Section reference Omissions (if any)
External assurance/
page number
General standard disclosure
Indicator Description Section Name
Page number/ explanation
Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organisation (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisation and the organisation’s strategy for addressing sustainability
Leadership Speak
06-09 – –
Organisational Profile
G4-3 Name of the organisation The Coca-Cola System in India
15 – –
G4-4 Primary brands, products or services
The Coca-Cola System in India
16 – –
G4-5 Location of the organisation’s headquarters
15 – –
G4-6 Number of countries where the organisation operates
The Coca-Cola System in India
14-17 – –
G4-7 Nature of ownership and legal form
The Coca-Cola System in India
14-17 – –
Annexure III – GRI Index
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GRI G4 disclosures Section reference Omissions (if any)
External assurance/
page number
General standard disclosure
Indicator Description Section Name
Page number/ explanation
G4-8 Markets served (geographic/types of customers)
GRI Index The Coca-Cola System in India has extensive reach and inspires moments of happiness across the country; a small volume of our beverages are also exported to neighboring markets like Nepal, Bhutan, Bangladesh and Maldives (demand driven).
– –
G4-9 Scale of the reporting organisation
The Coca-Cola System in India
14-17, 75 - -
G4-10 Details on workforce broken down by gender, employment contract, employment type
Annexure - 1 75 - -
G4-11 Percentage of total employees covered by collective bargaining agreements
GRI Index Nil - -
G4-12 Description of the organisation’s supply chain
The Coca-Cola System in India
18-19 - -
G4-13 Significant changes during the reporting period regarding the organisation’s size, structure, ownership, or its supply chain
GRI Index No changes in the reporting structure.
- -
84
GRI G4 disclosures Section reference Omissions (if any)
External assurance/
page number
General standard disclosure
Indicator Description Section Name
Page number/ explanation
G4-14 How the precautionaryapproach or principle isaddressed by the organisation
GRI Index We have an Enterprise Risk Management structure that enables us to identify assess and manage existing and new risks in a planned and coordinated manner with minimum disruption and cost, to protect and preserve our human, physical and financial assets. Our internal controls and its effectiveness are further reviewed by our internal auditors.
– –
G4-15 Externally developedeconomic, environmental and social charters, principles, or other initiatives to which theorganisation subscribes or which it endorses
GRI Index Please refer to theCCIPL’s 2012Sustainability report available at the Company’s website.
– –
G4-16 Memberships of associations and national/ international advocacy organisations in which the organisation holds a position on the governance body and participates in projects or committees
- -
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GRI G4 disclosures Section reference Omissions (if any)
External assurance/
page number
General standard disclosure
Indicator Description Section Name
Page number/ explanation
Identified Aspects and boundaries
G4-17 Entities included in theorganisation’s consolidated financial statements withindication of coverage inthe report
How we wrote the report
CCIPL and Anandana; 71-74
– –
G4-18 Process for defining thereport content and theAspect Boundaries
How we wrote the report
71-74 – –
G4-19 Material Aspects identified in the process for defining report content
How we wrote the report
71-74 – –
G4-20 Description of AspectBoundary within theorganisation for eachmaterial aspect
The Coca-Cola System in India; Annexure II
14-19, 76-78 – –
G4-21 Description of AspectBoundary outside theorganisation for eachmaterial aspect
The Coca-Cola System in India; Annexure II
14-19, 76-78 – –
G4-22 Explanation of the effectof any re-statement ofinformation provided in the earlier Reports
GRI Index No re-statements
– –
G4-23 Significant changes fromprevious reporting periods in the scope and aspect boundaries
GRI Index None – –
G4-24 List of stakeholder groupsengaged by the organisation
How we wrote the report
71-74 – –
G4-25 Basis for identification and selection of stakeholders with whom to engage
How we wrote the report
71-74 – –
G4-26 Organisation’s approach to stakeholder engagement
How we wrote the report
71-74 – –
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GRI G4 disclosures Section reference Omissions (if any)
External assurance/
page number
General standard disclosure
Indicator Description Section Name
Page number/ explanation
G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns
How we wrote the report
71-74 – –
Report profile
G4-28 Reporting Period How we wrote the report
71-74 – –
G4-29 Date of most recentprevious Report
G4-30 Reporting cycle
G4-31 Contact point for questions regarding the report or its contents
GRI Index Ishteyaque Amjad (Vice President, Public Affairs & Communica-tions),Email - [email protected]
– –
G4-32 GRI Content Index This table 79-96 – –
G4-33 Organisation’s policy andcurrent practice with regard to seeking external assurance for the report; relationship with the assurance providers;the highest governancebody’s involvement inseeking assurancefor the organisation’sSustainability Report
How we wrote the report
71-74 – –
Governance
G4-34 Governance structure of the organisation; committees responsible for decision making on economic, environmental and social impacts
Working responsibly
67-70 – –
Ethics and Integrity
G4-56 Organisation’s values,principles, standards andnorms of behaviour such as codes of conduct and codes of ethics
Working responsibly
67-70 – –
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GRI G4 Material Aspects
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
Category: Economic
Aspect: Economic Performance
G4-DMA Generic disclosure on management approach
Human Capital
39-41 – –
G4-EC2 Financial implications andother risks and opportunitiesfor the organisation’sactivities due toclimate change
Climate protection
62-64 – –
G4-EC3 Coverage of the organisation’sdefined benefit planobligations
Human Capital
39-41 – –
G4-EC4 Financial assistance received from Government
GRI Index No financial assistance received from the Govt. during the reporting period.
– –
Aspect: Market Presence
G4-DMA Generic disclosure on management approach
Human Capital
39-41 – –
G4-EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
GRI Index For our entry level workers (concentrate plant at Pune), the wages we pay are substantially higher than those stipulated by local law. Furthermore, wages paid by our bottlers and compliance to minimum wages & non-discrimination on the basis of gender is also audited as a part of our SGP audit.
– –
88
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-EC6 Proportion of senior management hired from the local community at significant locations of operation
GRI Index We encourage our HR department to hire locally and only when we are not able to get the required skill set we hire outstation candidates.
– –
Aspect: Indirect economic impacts
G4-DMA Generic disclosure on management approach
Creating Sustainable Communities
42-49 – –
G4-EC7 Development and impact of infrastructure investments and services supported
Creating Sustainable Communities
42-49 – –
G4-EC8 Significant indirect economic impacts, including the extentof impacts
Creating Sustainable Communities
42-49 – –
Aspect: Procurement/sourcing practices
G4-DMA Generic specific disclosure on management approach
Product & ingredient safety; Human and workplace rights
25-27, 34-36
– –
G4-EC9 Proportion of spending on local suppliers
GRI Index Approx. 90% of goods and services procured from locally based suppliers.
– –
G4-FP1 Percentage ofpurchased volumefrom supplierscompliant withcompany’s sourcingpolicy
GRI Index Approx. 90% suppliers comply with TCCC’s sourcing policy.
– –
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Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-FP2 Percentage of purchased volume which is verified as being in accordance with credible, internationally recognised responsible production standards, broken down by standard
GRI Index Approx. 60% of the purchased volume is sourced from globally recognised standards.
– –
Category: Environmental
Aspect: Energy
G4-DMA Generic disclosure on management approach
Climate protection
62-64 – –
G4-EN3 Energy consumption within the organisation
Climate protection
62-64 – –
G4-EN4 Energy consumption outside of the organisation
Climate protection
62-64 – –
G4-EN5 Energy intensity Climate protection
62-64 – –
G4-EN6 Reduction of energyconsumption
Climate protection
62-64 – –
Aspect: Water
G4-DMA Aspect specific disclosure on management approach
Water stewardship
52-57 – –
G4-EN8 Total water withdrawal by source
Water stewardship
56 – –
G4-EN9 Water sources significantly affected by withdrawal of water
Water stewardship
52-57 – –
G4-EN10 Percentage and total volume of water recycled and reused
Water stewardship
56 – –
Aspect: Emissions
G4-DMA Aspect specific disclosure on management approach
Climate protection
62-64 – –
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)
Climate protection
64 – –
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2)
Climate protection
64 – –
90
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-EN18 Greenhouse gas (GHG) emissions intensity
Currently, we are reporting Energy Use Ratio - the amount of energy used for producing a litre of beverage. We will report on GHG emissions intensity from 2017.
–
G4-EN20 Emissions of ozone-depleting substances (ODS)
Climate protection
43 64 –
G4-EN21 NOX, SOX, and othersignificant air emissions
Climate protection
43 64 –
Aspect: Effluents & waste
G4-DMA Generic disclosure on management approach
Water stewardship
52-57 – –
G4-EN22 Total water discharge byquality and destination
Water stewardship
56 – –
G4-EN23 Total weight of waste by type and disposal method
GRI Index – The bottling system in India generatedwaste to the tune of 56,457 tons (including 3253.3 tons of hazardous waste). In accordance with Indian law, hazardous waste generated has been disposed through third party vendors authorized by the State Pollution Control Boards. 46,143 tons (81.73% of total waste) of non-hazardous waste generated has been sent to suitable third party recyclers. The rest of the non-hazardous waste has been disposed through suitable means (e.g., disposal at landfills etc).
–
Aspect: Product and services
G4-EN27 Extent of impact mitigation of environmentalimpacts of products and services
Sustainable packaging
58-60 – –
G4-EN28 Percentage of productssold and their packagingmaterials that are reclaimed by category
Sustainable packaging
58-60 – –
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Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
Aspect: Transport
G4-DMA Generic disclosure on management approach
Climate protection
62-64 – –
G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organisation’s operations,and transporting members of the workforce
Climate protection
62-64 – –
Category: Social
Sub-category: Labour practices and decent work
Aspect: Employment
G4-DMA Generic disclosure on management approach
Human capital 39-41 – –
G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region
Annexure - 1 75 – –
G4-LA2 Benefits provided to fulltime employees that are not provided to temporary or part-time employees, by significant locations of operation
Human capital 39 – –
G4-LA3 Return to work and retention rates after parental leave, by gender
Human capital 40 – –
Aspect: Occupational health and safety
G4-DMA Aspect specific disclosure on management approach
Workplace safety
37-38 – –
G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism and total number of work related fatalities
Workplace safety
38 – –
Aspect: Training and education
G4-DMA Generic disclosure on management approach
Human capital 39-41 – –
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Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-LA9 Average hours of training per year per employee by gender, and by employee category
Human capital 39-40 – –
G4-LA10 Programmes for skillsmanagement and lifelonglearning that support thecontinued employability of employees and assist them in managing career endings
Human capital 39 – –
G4-LA11 Percentage of employeesreceiving regular performance and career development reviews, by gender and by employee category
GRI Index 100% – –
Material aspect: Diversity and equal opportunity
G4-DMA Generic disclosure on management approach
Human capital 39-41 – –
G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority groupmembership, and other indicators of diversity
Working responsibly; Annexure - 1
67-70, 75 – –
Sub-category: Human rights
Aspect: Child labour
G4-DMA Generic disclosure on management approach
Human and workplace rights
34-36 – –
G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour
Human and workplace rights
34-36 – –
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Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
Aspect: Forced or compulsory labour
G4-DMA Generic disclosure on management approach
Human and workplace rights
34-36 – –
G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour
Human and workplace rights
34-36 – –
Aspect: Assessment
G4-DMA Generic disclosure on management approach
Human and workplace rights
34-36 – –
H4-HR9 Total number and percentage of operationsthat have been subject to human rightsreviews or impact assessments.
GRI Index 156 units i.e. 99% of the total
– –
Aspect: Supplier human rights assessment
G4-DMA Generic disclosure on management approach
Human and workplace rights
34-36 – –
G4-HR10 Percentage of new suppliers that were screened using human rights criteria
GRI Index 100% – –
G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken
GRI Index In 2014, 3 suppliers were non-compliant to our SGP. As per our policies the supplier has a timeline of 6 months for course correction.
– –
94
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
Aspect: Human rights grievance mechanism
G4-DMA Generic disclosure on management approach
Human and workplace rights
21 – –
G4-H12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms
GRI Index To ensure complete impartiality, the grievances pertaining to TCCC WRP guidelines are handled by our global HQ in Atlanta. Therefore no data regarding the same is available at regional BU level.
– –
Sub-category: Society
Aspect: Local communities
G4-DMA Generic disclosure on management approach
Creating sustainable communities
42-49 – –
G4-SO1 Percentage of operationswith implemented localcommunity engagement,impact assessments, anddevelopment programmes
Creating sustainable communities
42-49 – –
G4-SO2 Operations with significantactual and potential negative impacts on local communities
Creating sustainable communities
42-29 – –
Aspect: Anti-corruption
G4-DMA Generic disclosure on management approach
Working responsibly
67-70 – –
G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
GRI Index All significant operations are covered
– –
Coca-Cola India Sustainability Report 2014
95
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-SO4 Communication and training on anti-corruption policies and procedures
Working responsibly
69-70 – –
G4-SO5 Confirmed incidents ofcorruption and actions taken
GRI Index No incidents were reported in the year 2014.
– –
Aspect: Public policy
G4-DMA Generic disclosure on management approach
Water stewardship
52-57 – –
G4-SO6 Total value of politicalcontributions by country and recipient/beneficiary
GRI Index No contribution were made during the reporting period.
– –
Aspect: Healthy & affordable food
G4-DMA Nature, scope andeffectiveness of anyprogrammes andpractices that promote access to healthy lifestyles;the prevention ofchronic disease;access to healthy,nutritious andaffordable food; andimproved welfare forcommunities in need
Well-being 22-24 – –
Sub-category: Product responsibility
Aspect: Customer health and safety
G4-DMA Aspect specific disclosure on management approach
Product & ingredient safety
25-27 – –
G4-PR1 Percentage of significantproduct and servicecategories for which health and safety impacts are assessed for improvement
Product & ingredient safety
25-27 – –
96
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-PR2 Total number of incidentsof non-compliance withregulations and voluntarycodes concerning thehealth and safety impacts of products and services during their life cycle, by type of outcomes
GRI Index Nil – –
G4-FP5 Percentage of production volume manufacturedin sites certified by an independent third party according to internationally recognized food safety management system standards
Product & ingredient safety
25-27 – –
G4-FP6 Percentage of total sales volume of consumerproducts, by product category, that are loweredin saturated fat, trans fats, sodium and sugars
GRI Index None of our products contain saturatedfats or trans-fats; the Sodium content in our packaged drinking water brands – Kinley and Bonaqua- is less than 0.5 milligrams per 100 ml.
– –
Coca-Cola India Sustainability Report 2014
97
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-FP7 Percentage of total sales volume of consumerproducts, by product category sold, thatcontain increased fiber, vitamins, minerals,phytochemicals or functional food additives
GRI Index Some of our products contain added vitamins and minerals and are listed below:Kinley Glucojal (in orange & lemon flavours) – with Vitamin B3, Vitamin B6, Vitamin B12, Folic Acid, Zinc Minute Maid Juicy (Mixed Fruit) – with vitamin A, vitamin B3, vitamin B6, vitamin B12, folic acid, zinc.
– –
Aspect: Product and service labelling
G4-DMA Generic disclosure on management approach
Well-being 22-24 – –
G4-PR3 Type of product and service information required by theorganisation’s proceduresfor product and serviceinformation and labelling,and percentage of significant product and service categories subject to such information requirements
Well-being 22-24 – –
G4-PR4 Total number of incidentsof non-compliance withregulations and voluntarycodes concerning productand service information and labelling, by type of outcomes
GRI Index Nil – –
98
Specific standard disclosure – Aspects
DMA & Indicator
Description Section reference Omissions (if any)
External assurance/ page number
Section name Page number/ explanation
G4-PR5 Results of surveys measuringcustomer satisfaction
GRI Index Our C-Sat score for 2014 was 97%.
– –
Aspect: Marketing communications
G4-DMA Generic disclosure on management approach
Well-being 22-24 – –
G4-PR7 Total number of incidentsof non-compliance withregulations and voluntarycodes concerning marketing communications, includingadvertising, promotion,and sponsorship, by type of outcomes
GRI Index Nil – –
G4-DMA Generic disclosure on management approach
GRI Index We may have access to some sensitive data and personal information pertaining to our consumers or brand ambassadors towards which adequate measures are in place to safeguard their privacy.
– –
G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
GRI Index Nil – –
Coca-Cola India Sustainability Report 2014
99
100
Coca-Cola India Pvt. Ltd.Enkay Towers, Udyog Vihar Phase 5, Gurgaon - 122016, Haryana, India