spreading smiles sustaining happiness - Coca-Colaassets.coca-colacompany.com/a2/17/322496f84a9f821aaa2bf256e81f/... · Coca-Cola India Sustainability Report 2012 8 The Coca-Cola system

spreading smilessustaininghappiness

Sustainability Report 2012Aligned to GRI G 3.1

About this ReportCoca-Cola India Private Limited (CCIPL hereinafter) is pleased to present its second sustainability report. While we started publishing communications on our sustainability performance in India recently, the concept of sustainability is not new to us. The Coca-Cola Company (TCCC - our parent company), which operates in over 200 countries, has identified facets of sustainability that are important to us based on the nature of our global operations and what our stakeholders expect of us. This has resulted in the ‘Me-We-World’ framework for sustainability that applies to all the group companies across the world. This multi-pronged framework covers material sustainability issues that enhance personal well being, build strong communities and help protect the environment.

This sustainability report is arranged around the Me-We-World framework, and highlights key issues, relevant targets, and our performance in the reporting period (1st January 2012 to 31st December 2012).

This report has been prepared based on the Global Reporting Initiative (GRI) G3.1 guidelines, including the Food Processing Sector Supplement (FPSS). This report takes into account all the reporting principles defined by the GRI to present a balanced and transparent communication and satisfies the requirements of GRI application level ‘B’.

CCIPL is involved in the business of manufacturing and selling beverage concentrates and marketing products under the Coca-Cola trademark in India. Hindustan Coca-Cola Beverages Private Limited (HCCBPL), a wholly owned subsidiary of TCCC, is our largest bottling partner in India. There are other authorized third party (franchisee) bottlers, who manufacture and distribute our products in their respective geographical sub-divisions in India. CCIPL, HCCBPL, our franchisee bottlers and Anandana (The Coca-Cola Foundation – also directly owned by the TCCC) constitute the Coca-Cola System in India.

Our significant sustainability impacts and opportunities in the Environment, Occupational Health & Safety (EOSH) space are in our bottling operation. Our bottlers (company and franchisee owned) also support us in all our major community initiatives. Hence, the reporting boundary for performance indicators on EOSH, human rights and community includes all our bottlers within India. CCIPL has reasonable influence over the other entities that are part of the Coca-Cola system. Therefore, water replenishment (and other) projects undertaken by Anandana have also been included in the report. EOSH data reported does not cover our corporate office in Gurgaon (since it has insignificant impact).

This report has been compiled for the benefit of all our stakeholders, which include our consumers, customers, regulators, civil society members, suppliers, employees and the society at large. We welcome any comments, clarifications or inputs for improving the quality of our communication.

Neelima Khetan, General Manager, Public Affairs and Communications will be happy to take your comments and inputs. She can be reached at [email protected] .

spreading smilessustaininghappiness

Sustainability Report 2012Aligned to GRI G 3.1

Coca-Cola India Sustainability Report 2012

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Contents

1. Message 5 Deputy President India and South West Asia Business Unit

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2. About Us 7 2.1 Introduction to the Coca-Cola System

2.2 Vision, Mission and Values2.3 Awards and Recognitions2.4 External Sustainability

Commitments

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111112

3. Governance and Ethical Conduct

15 3.1 Committees under the Board3.2 Systems to ensure and monitor

Ethical Conduct

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4. Stakeholder Consultation

18 Stakeholder Consultation 18

5. Materiality & Defining Reporting Content

20 Materiality and Defining Reporting Content

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6. Me – Enhancing Personal Well-Being

21 6.1 Nutrition6.2 Product Safety and Quality6.3 Responsible Marketing6.4 Promote Active Healthy Living

22242527

7. We – Building Stronger Communities

29 7.1 Women’s Economic Empowerment – The ‘5by20’ Initiative

7.2 Strengthening Community Foundations

7.3 Respecting Human and Workplace rights

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8. World – Protecting the Environment

45 8.1 Water Replenishment8.2 Reducing Carbon8.3 Recycling of Packaging Material8.4 Sourcing Sustainably

47545758

9. Appendix 60 GRI Content Table 60

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Dear friend,

The Coca-Cola Company, with a presence in more than 200 countries, has always believed that we have a tremendous opportunity to change the lives of people around us. Be it through innovations that are a part of our value chain, through community development work or by playing a role in empowering women. This belief is at the core of how we conduct our business across the world and how sustainability is at the base of everything that we do.

As we move towards achieving our Vision 2020 goals, we have also scaled up our sustainability agenda. We have defined, for ourselves, a framework of sustainability under the pillars of ME-WE-WORLD. This framework is our roadmap to improve wellbeing at the personal level (ME), social level (WE) and environmental level (WORLD). Together with our bottling partners, we are actively leveraging our Golden Triangle philosophy of partnering with governments, communities and corporates to bring to life some of these sustainability initiatives.

In India, ever since we began our sustainability journey, we have taken small but significant steps to play a part in the growth and development of communities. Today, we replenish more groundwater than we use for our operations. We are training mom-and-pop shop owners on best practices in traditional retail, helping and educating farmers in sustainable agriculture practices, etc.

As I write this, I am reminded of the story of Preeti Gupta, a woman retailer near the city of Agra, who doubled her shop sales upon receiving a solar-powered ‘eKOCool’ cooler from Coca-Cola. The innovation, developed for retailers in rural areas, not only runs the cooler through solar energy, but is also equipped with a mobile charger and solar lantern, that help to increase daily footfalls at her shop. Preeti is part of our global 5by20 initiative that aims to empower women by providing them with economic opportunities to help them succeed in today’s dynamic consumer landscape. There are many such examples that you will find as you turn the pages of this report.

As we celebrate 20 years of operating in India, since our return in 1993, we hope that our small contributions will make a positive difference to communities across the country. Through this report, we take the opportunity to showcase some of our projects and hope to hear your feedback and suggestions.

Warm regards,

Venkatesh KiniDeputy President Coca-Cola India and South West Asia Business Unit

1. Message from Deputy President - India and South West Asia Business Unit


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The Coca-Cola Company (TCCC)

The Coca-Cola Company is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still beverage brands. Led by Coca-Cola, the world’s most valuable brand, TCCC’s portfolio features brands valued, in aggregate, at about 16 billion United States Dollars. Globally, TCCC is the No. 1 provider of sparkling beverages, ready-to-drink coffees, juices and juice drinks. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy TCCC’s beverages at a rate of more than 1.8 billion servings a day. Together with its bottling partners (over 300 bottlers worldwide), TCCC ranks among the world’s top 10 private employers with more than 700,000 system employees.

Coca-Cola India Private Limited (CCIPL)

Globally, the Coca-Cola system operates through multiple local channels. TCCC re-entered the Indian markets post the economic liberalization of 1991 and established Coca-Cola India Private Limited (CCIPL) as its wholly-owned subsidiary in 1992. CCIPL manufactures and sells concentrates, beverage bases and syrups to the licensed franchisee bottlers of TCCC in India and is responsible for consumer brand marketing initiatives.

Please refer the section on ‘Nutrition’ for a list of our products in India.

Our 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. Hindustan Coca-Cola Beverages Private Limited (HCCBPL), is a wholly-owned subsidiary of TCCC, and the largest bottler in India. There are fifteen other licensed franchisee bottlers in India.

Since commencement of operations in India, we have grown rapidly through a model that supports bottling operations, through both company owned as well as franchise owned bottlers. We are supported by over 7,000 distributors and 1.3 million retailers. India now ranks within the top-10 markets for TCCC globally, by volume and by end 2012, we have seen 27 quarters of continuous growth. In November 2012, TCCC unveiled

plans for system-wide investments of US$2 billion within India to maintain the growth momentum.

The registered & corporate offices of CCIPL are located at:

Registered Office: Plot No’s 1109-1110, Village Pirangut, Taluka – Mulshi, District Pune, Maharashtra – 412108

Corporate Office: Enkay Towers, Udyog Vihar Phase 5, Gurgaon, Haryana – 122016, India

Hindustan Coca-Cola Beverages Private Limited (HCCBPL)

HCCBPL is the largest bottling partner of The Coca-Cola Company in India. It is a part of The Coca-Cola Company’s Bottling Investments Group (BIG1) and is responsible for the preparation, packaging, distribution and sale of beverages under the trademarks of The Coca-Cola Company. HCCBPL has 24 bottling plants at strategic locations spread across various states in India and covers approximately 65% of the volume for the Coca-Cola System in India. HCCBPL has an extensive distribution system spanning more than a million outlets operating with world class execution standards. The focus of the system is to develop strong customer value while delivering preferred choice of refreshment at an arm’s length of desire to the consumer.

Over the years, HCCBPL has focused on building world class operations based on principles of safety, profitability and good governance to achieve sustained growth. HCCBPL has strengthened its organization in terms of Supply Chain, Infrastructure, Market Execution, People, Processes, Compliance, Governance and Route-to-Market. This approach has enabled HCCBPL to build its portfolio through the launch of new packs and brands, coupled with a competitive pricing strategy based on a balance of value pricing and elimination of waste.

The registered & corporate offices of HCCBPL are located at:

Registered Office: 13 Abul Fazal Road, Bengali Market, New Delhi – 110 001, India

Corporate Office: 3rd Floor, Orchid Centre, DLF Golf Course Road, Sector 53, Gurgaon–122 001, Haryana, India

2. About Us

2.1 Introduction to the Coca-Cola System

1 The BIG is one of the three major operating groups of The Coca-Cola Company and one of the largest and most geographically diverse bottlers in the Coca-Cola system. It was established to improve accountability and drive performance of Company Owned & Managed Bottlers (CBOs).


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The Coca-Cola system in India includes HCCBPL and licensed franchisee bottlers (FBO) who prepare, package, distribute and sell our beverage brands. Following is a list of such FBOs who are located across the country:

• AmritBottlersPrivateLimited• BrindavanAgroIndustriesPrivateLimited• BrindavanBeveragesPrivateLimited• BrindavanBottlersPrivateLimited• BengalBeveragesPrivateLimited• DiamondBeveragesPrivateLimited• EnrichAgroFoodProductsPrivateLimited• KandhariBeveragesLimited• LudhianaBeveragesPrivateLimited• MoonBeveragesLimited• NarmadaSoftDrinksPrivateLimited• SriSarvarayaSugarsLimited• SuperiorDrinksPrivateLimited• UdaipurBeveragesPrivateLimited• AmritsarCrownCapsPrivateLimited

Franchise Bottling Partners

Co-Packers of

HCCBPL

Franchise Bottlers

HCCBPL Bottling Plants


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Anandana – The Coca-Cola India Foundation is a wholly owned subsidiary of CCIPL.

The Coca–Cola India Foundation has adopted four Mission Objectives:• Mitigating water stress and promoting water

sustainability• Propagating the use of new and renewable

sources of energy• Promoting active and healthy lifestyles• Subscribing to general social advance through

effective intervention where needed

In order to promote the Foundation’s objectives, monetary grants and other assistance are provided to civil society members, beneficiary organizations, cooperatives, philanthropic organizations and such others who can be suitable partners in implementing projects for social welfare across the country.

Wherever possible, the Foundation seeks to ensure project execution, maintenance and sustainability through active involvement and direct participation of the beneficiary community at the grass-root level.Realizing that all mission goals cannot be achieved simultaneously, water sustainability and the spread of new and renewable sources of energy have been accorded priority.

While there are many regions affected by water scarcity, The Foundation’s activities are currently focused in (but not limited to) regions of Bundelkhand, Mewat and parts of Rajasthan.

The registered office of the Foundation is housed in the same premises as CCIPL. Please refer The Foundation’s website for further details on the working of the foundation: (http://www.anandana.org)

Anandana – The Coca-Cola India Foundation

“From project Santushti, which yields 7,000 litres of drinking water a day to project NeerJal which has revitalized a reservoir with approx. 3

Billion litres of water, the Anandana Foundation has constantly been working towards building better and healthier communities across

India. We are committed to supporting socio-economic development in rural areas on issues relating to water, the environment, healthy

living and social advance. We are glad that we have found the right local partners to work with and hope to continue to build more partnerships and collectively

make a positive impact on society.”- Mr. Yogesh Chandra,

CEO, Anandana – The Coca-Cola India Foundation“


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2.2 Vision, Mission and Values

The Coca-Cola Company has a history of over 127 years. The company’s existence and long term success is mainly attributable to being agile in an ever-changing market and focusing on long term goals. TCCC has developed its Vision 2020 based on these principles, and the vision document is available at the following web-link:

http://assets.coca-colacompany.com/22/b7/ba47681f420fbe7528bc43e3a118/2020_vision.pdf

CCIPL’s vision, mission and values are the same as our parent company and is available at the following web-link:

http://www.coca-colaindia.com/ourcompany/missionvalues.html

2.3 Awards and Recognitions

‘Support my School’ (SMS) is one of our flagship community initiatives focused on improving infrastructure in rural and semi-urban schools (details on SMS have been presented in the section on community initiatives). This program has been a tremendous success and has been recognized at the following forums:

• Public Affairs Asia - Gold Standard Award for Public Private Partnership• Harmony Foundation - Mother Teresa Award for Social Justice• Exchange for Media - Best use of Public Relations for a Social Cause Award

Activities of The Coca-Cola Company and UN- Habitat partnership on Water and Sanitation were recognized under the Community Development category by Global CSR Excellence & Leadership in the World CSR Congress. The partnership was also nominated for Earth Care Awards and entailed a jury visit to our project site.

In 2012, The Public Relations Council of India (PRCI) recognized CCIPL/our people under the following categories:

• External magazine – KO Connect (quarterly magazine)• Corporate Brochure – ‘From Ripple to a Wave’ Brochure on Coca-Cola UN-Habitat Partnership• Annual Calendar• Mr. Deepak Jolly – Vice-President, Public Affairs and Communication (PAC) was recognized as the

Best Chapter Chairman by the PRCI• Mr. Kamlesh Sharma – G.M., Corporate Communications, was recognized by PRCI as the Most

Promising PR Person of the year• The SMS program was also recognized by PRCI under the Public Service Campaign Category


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Millennium Development Goals

The eight Millennium Development Goals (MDGs) were born from the actions and targets contained in the Millennium Declaration adopted by 189 nations and signed by 147 heads of state and governments during the UN Millennium Summit in September 2000. The MDGs set a target date of 2015, by which all countries and leading development institutions agree to fight a range of the world’s main development challenges, such as poverty, hunger and HIV/AIDS. These goals serve as a blueprint for making the world a better place. Working toward them offers faith and hope, and even more reasons to believe in a better world. We are proud to contribute to the realization of the MDGs through our efforts.

Goal 1: Eradicate extreme poverty and hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equality and empower women

Goal 4: Reduce child mortality

Goal 5: Improve maternal health

Goal 6: Combat HIV/AIDS, malaria and other diseases

Goal 7: Ensure environmental sustainability

Goal 8: Develop a global partnership for development

CEO Water Mandate

The CEO Water Mandate is a unique public - private initiative designed to assist companies in the development, implementation and disclosure of water sustainability policies and practices. Companies that endorse the mandate are required to report progress annually against a set of standard principles. The Coca-Cola Company became one of the first six companies to commit to the CEO Water Mandate in 2007. Reporting requirements of the mandate focus on:

• Direct operations• Supply chain and watershed management• Collective action• Public policy• Community engagement• Transparency•

2.4 External Sustainability Commitments

UN-Habitat

The United Nations Human Settlements Programme (UN-Habitat) is the UN agency mandated by the UN General Assembly to promote socially and environmentally sustainable communities, towns and cities and providing adequate shelter for all. UN-Habitat is responsible for promoting and consolidating collaboration with all partners, including local authorities, non-governmental organizations and the private sector in the implementation of the Habitat Agenda and the Millennium Development Goals. The Coca-Cola Company has a special interest in the quantity and quality of water, particularly in water stressed areas.

The partnership of UN-Habitat and The Coca-Cola Company aims to promote water sustainability in several countries through the following activities: providing sources of continuous access to safe drinking water, improving access to basic sanitation for urban poor and slum dwellers, and mobilizing multiple stakeholders towards the idea of water and wellbeing.

UN-Habitat and the Coca-Cola India & South West Asia Business Unit (Coca-Cola INSWABU) entered into a partnership and signed an agreement on 14 April, 2007, during the launch of Business Partnership for Sustainable Urbanization (BPSU) at Nairobi, to collaborate for improving community access to water and sanitation in India and Nepal under the Water for Asian Cities (WAC) Programme. With financial commitments of US$ 150,000, UN-Habitat and Coca-Cola INSWABU implemented pilot demonstration projects in both India and Nepal from 2007 to 2009, which reached out to more than 1 million people.

Between 2007 and 2010, projects were implemented mainly in South Asia (India, Nepal, Pakistan, Bangladesh), Cambodia and Vietnam. These initiatives led to significant achievements.

The challenges involved in the projects undertaken in the first phase from 2007 to 2010 led to many lessons being imbibed. In this regard, an impact evaluation of the partnership between UN-Habitat and TCCC was undertaken to determine the significant and lasting impact of the partnership on urban poor especially on schools. The key-indicators identified as factors of change were capacity-building and awareness-raising, with the improvement of water and sanitation service delivery in schools and poor neighborhoods to reduce incidences of water-borne diseases.


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Building on this base, the collaboration spread to a total of nine countries between 2010 and 2012 (with the inclusion of Uganda, Kenya and Tanzania).

On 4th September 2012, the UN-Habitat and TCCC announced expansion of partnership on water sustainability to 10 countries at the 6th World Urban Forum. The partnership will continue to focus on Asia and Africa and will impact over a million people and will build on the work done earlier by both the partners.

A compendium titled ‘From Water to Well Being’ was released by Dr. Joan Clos, Under-Secretary General, United Nations, Executive Director, UN-Habitat and Mr. Atul Singh, Deputy President – Coca-Cola (Pacific Group). This comprehensive compendium details the journey of the collaboration between Coca-Cola and UN-Habitat in promoting water sustainability in several countries.

The theme of the compendium ‘From Water to Wellbeing’ encapsulates the overall approach of the multi-year partnership which goes beyond providing access to water and sanitation, to impact

overall wellbeing of communities through water and sanitation led projects.

Senior ministers from Jordan and Laos joined the discussion on ‘The Power of Partnerships and the Urban Future’ to address collaboration and expansion of partnership among state, social sector and corporates for sustainable urbanization and improved water and sanitation.

Dr. Joan Clos, Under-Secretary General, United Nations, and Executive Director, UN Habitat, and Atul Singh, Deputy President Coca-Coca Pacific Group (then President & CEO, Coca-Cola India and South West Asia), unveil the ‘From Water to Wellbeing’ compendium in the presence of senior ministers from Jordan, Laos and Myanmar, as well as Dr. Andre Dzikus of UN-Habitat and Deepak Jolly of Coca-Cola India.


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UN Global Compact

The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labor, environment and anti-corruption. The Coca-Cola Company committed to the principles of the UN Global Compact in March 2006. The Coca-Cola Company is a participant at the Advanced Level of the UN Global

I. Human Rights

Principle 1: Businesses should support and respect the protection of

internationally proclaimed human rights.

Principle 2: Make sure that they are not complicit in human rights abuses.

II. Labour

Principle 3: Businesses should uphold the freedom of association and the

effective recognition of the right to collective bargaining.

Principle 4: The elimination of all forms of forced and compulsory labour.

Principle 5: The effective abolition of child labour.

Principle 6: The elimination of discrimination in respect of employment and

occupation.

III. Environment

Principle 7: Businesses should support a precautionary approach to

environmental challenges.

Principle 8: Undertake initiatives to promote greater environmental responsibility.

Principle 9: Encourage the development and diffusion of environmentally

friendly technologies.

IV. Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including

extortion and bribery.

Compact. We communicate our plans and progress on 24 advanced criteria in the areas of ‘strategy, governance and engagement’, ‘UN goals and issues’, ‘implementation of Global Compact principles’, ‘value chain implementation, verification and disclosure’. The ten principles fall within 4 aspects listed below and are covered within our global polices, which we are required to adhere to in our India operations.


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Advisory Council on Environment and Sustainability (ACES)

The ACES advices CCIPL and its bottlers on issues pertaining to the environment and sustainability. This body is headed by General V. P Malik (retired), Former Chief of the Indian Army who has also been a member of the National Security Advisory Board, Government of India and Honorary Advisor to the Centre for Policy Research. The ACES visits bottling locations and meets once every quarter. The board is constituted of experts from the fields of water, environment and pollution control, among others.

Health and Wellness Advisory Council (HWAC)

CCIPL is committed to provide its consumers a variety of hydration choices that are safe and healthy. In this endeavour we are assisted by HWAC, which guides and assists CCIPL to:

(a) Identify and highlight the evolving nutritional needs of Indian consumers;

(b) Suggest viable health & wellness solutions for beverage applications; and

(c) Support consumer education programs that promote a healthy and active lifestyle.

Coca-Cola India Private Limited is a ‘Limited’ company incorporated under the Companies Act, 1956, in India. The Company is headed by the Deputy President – India & South-West Asia Business Unit, who is assisted by Advisory Boards. The boards that govern the functioning of the Coca-Cola system in India, their constitution and functions are described as below

India Advisory Board (IAB)

The IAB is the foremost advisory body within CCIPL. The India Advisory Board is ably led by its Chairman Mr. Naresh Chandra, a retired Indian Administrative Services (IAS) Officer and former Ambassador to the United States. Mr. Chandra is a leading expert in the country on Corporate Governance and has served on several committees under the Government of India. He was awarded the country’s second highest civilian award – Padma Vibhushan in 2007. The IAB guides the management on various operational and environment-related matters to help us formulate short and long term strategies. The Advisory Board meets three to four times a year and reviews the performance of the Coca-Cola System in India.

Coca-Cola India Foundation Advisory Board

The Coca-Cola India Foundation is registered under Section 25 of the Companies Act, 1956. The objectives and functioning of the Foundation have been described earlier. The operations of the Foundation are guided by an Advisory Board. This Board 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, and who have expertise in fields covered by the objectives of the Foundation. The members of this Board include Dr. Mithu Alur, Dr. Shyama Chona, Ms. Diya Mirza, Mr. Bunker Roy, Mr. Roshan Seth and Dr. Naresh Trehan.

3. Governance and Ethical Conduct

3.1 Committees under the Board


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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 who have exposure to government employees 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 anti-corruption laws and policy. CCIPL was assessed and no incidents of corruption or bribery were detected.

Administration of the code

The administration of the Code is taken care of at the global level by TCCC’s Ethics and Compliance Committee – composed of members of TCCC’s senior leadership. A similar code is applicable for non-employee directors of the Company. To ensure an ongoing commitment to, and understanding of, 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 organization. Employees are provided with multiple touch-points – including an online portal and global Ethics Hotline number to report any Code of Conduct violations.

Reporting Violations

Upon any incidents of Code of Conduct violations being reported by any associate, fair and independent enquiries are conducted by the global team with support from the local Legal and Ethics officer and the Human Capital team. At the end of the enquiry, appropriate recommendations are provided to the head of the relevant company.

Systems and procedures adopted by the Foundation

Grant requests from Non-Government Organizations are considered only if the proposal falls within the mission objectives (stated earlier) of the Foundation and the applicant satisfies the Foundation on its

Integrity is fundamental to The Coca-Cola Company. Along with the other values of leadership, passion, accountability, collaboration, diversity and quality, it is a pillar of our 2020 Vision.

The Coca-Cola group is one of the most admired businesses in the world - a reputation that 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 company guidelines, such as our Code of Conduct and Workplace Rights Policy, we have set standards to ensure that we all do the right thing, every time.

Code of Business Conduct and its applicability

The Coca-Cola Company’s Code of Business Conduct (Code) guides the conduct of our business and all our personnel. This is a single standard applicable to all our operations across the globe. The Code addresses our responsibilities towards The Coca-Cola Company, each other, and customers, suppliers, consumers and governments. The Code is applicable to all employees of The Coca-Cola Company and its majority-owned subsidiaries.

The Code articulates TCCC’s expectation of accountability, honesty and integrity in all matters. All associates of our Company and its majority-owned subsidiaries 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 behavior. We therefore have a Code of Business Conduct (COBC) for Suppliers that seeks to extend and clarify similar ethical expectations to our suppliers. Suppliers additionally are encouraged to report potential improper conduct by Coca-Cola employees who interact with them.

Anti-corruption and anti-bribery

The Coca-Cola Group is committed to doing business with integrity. The Coca-Cola Company has also incorporated a prohibition against bribery into its Code of Business Conduct. We abide by

3.2 Systems to ensure and monitor Ethical Conduct


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commitment to the same. The applicant seeking the grant has to be transparent and forthcoming on its aims and objectives, financial status, performance and experience in the past. Grant requests are assessed based on:

• NatureoftheProject• ProjectFeasibility• ProjectImpact• GrantSeeker’sTrack-record

The disbursement of the funds is on the basis of the milestones set forth in the Grant Agreement between the NGO and Anandana. The Foundation ensures

proper monitoring and audit of all funds sanctioned. The audit is conducted by independent auditors appointed for this purpose by the Board of Directors. In addition, the Foundation conducts periodic social audits of the projects through direct participation of the beneficiaries. This process, known as Jan Sunwayi or Public Hearing, is a tool for gauging public opinion on the project.

Each possible project undergoes a set of reviews by a Project Steering Committee, that includes members of the board. The Foundation does not consider any proposal that have any direct or indirect linkage to any of the Company’s plants or commercial operations.

4. Stakeholder Consultation


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Stakeholder group

identified

Means of engagement

Key topics of interest

How we have responded

Consumers Consumers are one of the most important section of our stakeholders. Multiple touch points are available for our consumers to reach us; further, CCIPL also conducts annual consumer satisfaction surveys (please refer the section on ‘Consumer Satisfaction’ for details).

The expectations of our consumers include choice of beverages that are made available, nutritional impact of products, approach to resource sustainability and programs promoting music and sporting activities.

CCIPL places utmost importance on responsible marketing and transparent communication of nutritional information relating to our products, even beyond regulatory requirements. CCIPL has also been promoting sporting activities with the view of creating awareness around the importance of leading an active and healthy life style. Full details of such initiatives are covered in the subsequent sections of the report.

Customers This category refers to retailers who procure stock and sell our beverage brands to our consumers. Our bottling partners are in direct contact with our customers, regularly taking stock of, and responding to their expectations.

The expectations of our customers are regularly taken stock of by our bottling partners. Topics that have been of interest to our customers include availability of energy efficient cooling equipment for our products and retailer training programs.

CCIPL has come up with an innovative cooler – eKOcool – that operates on solar power; 300 pieces of eKOcool have been distributed free of cost to women retailers. We have also started distribution of Hydro Fluoro Carbon (HFC2) -free coolers. We have also been undertaking retailer capacity building through our Parivartan and Pragati programs.

Civil Society Organizations

The Coca-Cola India Foundation funds projects focused on water conservation and renewable energy use. The nature of projects supported and criteria for funding etc have been described in the previous chapter.

We are approacheddirectly by severalorganizations for grantsfor activities in theareas our Foundationfocuses on.

Projects that have been undertaken by the Foundation in this reporting period have been described in the Environmental Well-Being section. CCIPL has developed eligibility guidelines and grant application formats; these help the civil society members/organizations better understand eligibility criteria for our project funding. Social audits are also undertaken to ensure that projects meet their stated objectives.CCIPL is also supported by civil society members/organizations in some of our community programs like the Support My School (SMS).Furthermore, our bottling partners may also engage with locally relevant partner NGOs for needs assessment and project execution.

Employees We believe that our employees are the face of the organization. There are several channels available to our employees to communicate with the company. One such key channel is the periodic employee engagement survey.

Topics of interest include training and professional growth, diversity, work-life balance etc.

We have several policies and practices aimed at employee well-being. There are several training programs at different hierarchical levels for employee development. Please refer the section on Human resources for complete details.

2 HFCs are a class of chemicals that are known to have a high Global Warming Potential.

Coca-Cola India Private Limited has identified its stakeholders based on the nature of its operations; the following compilation provides details of categories of our stakeholders, their expectations and how we engage with them.


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5. Materiality & Defining Reporting ContentWith respect to Coca-Cola India’s operations, the details of stakeholder groups, means of engagement with different categories of stakeholders and their topics of interest are presented in the earlier chapter.

TCCC has developed a group-level sustainability framework – referred to as the ‘Me-We-World’ framework. This framework, in addition to addressing stakeholder expectations (including those of our stakeholders in India), also covers aspects important to us, given the nature of our operations.

The ‘Me-We-World’ has been adopted as CCIPL’s materiality matrix.

Aspiration Growing our business by making a positive difference in the communities we serve

Me Together we can promote

well-being for the people who enjoy our brands every day

•Nutrition•Productqualityandsafety•Responsiblemarketing•Activehealthyliving

We Together we can create a better future for local communities where our operations help raise the

standard of living

•Women’seconomicempowerment

•Strengtheningcommunityfoundations

•Humanandworkplacerights

World Together we can create a

better future for the finite natural resources

that we all share

•Replenishwater•Recyclepackaging•ReduceCarbon•Sourcesustainably

Reporting content and quality

The Coca-Cola System in India has been focusing its efforts in sustainability based on the Me-We-World framework. We have strong internal management systems for collection of data that has been reported in this disclosure, including those data points relating to our company and franchisee owned bottler locations – which have been subjected to internal quality and consistency checks. Any assumptions used in calculation of reported data have been explained in adequate detail in the respective sections where such data is presented.

WORLDME

WE

ME. Enhancing Personal Well-Being


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6. Me – Enhancing Personal Well-Being

6.1 NutritionThe Coca-Cola group is the largest beverage manufacturing and distributing system in the world with operations in over 200 countries and offers in excess of 3500 beverage options. We offer great tasting Non-Alcoholic Ready To Drink (NARTD) beverage options for every life-style and occasion. From the added benefits of vitamins and minerals to new ingredients, sweeteners, tastes and innovations in package sizes, we are constantly challenging ourselves to identify high-quality additions to our portfolio.

Our portfolio in India includes Coca-Cola, Diet Coke, Sprite, Fanta, Minute Maid (these are some of our global billion dollar brands available in India), Thums Up, Maaza, Burn (energy drink), Kinley Water, Kinley Soda, Schweppes, Georgia Gold (coffee) Vitingo (powder) and Fanta Fun Taste (powder). Thums Up and Sprite, respectively, are the largest and second largest selling beverage brands in the country. New products unveiled in 2012 in India include Rim-Zim (Masala soda) and the Mixed Fruit variant of Minute Maid.

In addition to offering great taste, some of our products also offer functional benefits. Such products are listed below:

• Vitingo(powder)–Iron,VitaminC,VitaminA,Vitamin B 2, B12, Folic acid and Zinc

• FantaFunTaste(powder)–VitaminsB3,B6,B9and B12

• Burn(energydrink)–Inositol

In 2011, we started an initiative focused on reducing the sugar content in Minute Maid though the use of Stevia - a stable and approved sweetening alternative. In the Indian markets, our low/no calorie offering is limited to Diet Coke. Our marketing teams are currently assessing the potential for other low/no calorie options.

None of our products contain saturated fats or trans-fats; sodium content in our packaged drinking water brands – Kinley and Bonaqua- is limited to fractional milli-grams.

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Case study: Project Vitingo

Iron deficiency is widely prevalent in India with an estimated 69% children below 5 years being deficient in Iron. 72% pregnant women and nearly 70% young women are also reported to be Iron deficient. Food fortification and supplements are a solution to this problem. Coca-Cola India has developed a nutritional beverage option – Vitingo - that can address the issues of Iron Deficiency and Iron Deficiency Anaemia.

Vitingo has been launched with the following long term vision:

• Build awareness on Iron deficiency and balanced diet, make Vitingo available at an affordable cost• Do it in a way that is sustainable and creates micro-entrepreneurs in a community driven model

Vitingo was originally developed with five micro-nutrients; later, based on the recommendations of the National Institute of Nutrition, this was expanded to cover 7 essential nutrients. Clinical trials have validated the efficacy of Vitingo in reducing Iron Deficiency, Iron Deficiency Anaemia and Vitamin-C deficiency.

Priced at INR 2.5 per sachet of 18 grams, Vitingo aims to address the nutritional challenges of the people (primarily women and children) at the bottom of the pyramid.

Distribution of Vitingo was started on a pilot basis in 2011 in the states of Bihar and Maharashtra through Village Level Entrepreneurs (VLEs); there-by, also creating an opportunity for livelihood generation. Such VLEs were ideally targeted to be women, thus also contributing to women’s economic empowerment.

The Vitingo Project was scaled-up in 2012; distribution of Vitingo has been expanded to cover 21 districts across 6 states - including Uttar Pradesh, Karnataka, Rajasthan and New Delhi. Promotion of Vitingo was undertaken through mass engagement campaigns, ‘youth ambassadors’ programs in urban slums and social media. By end-2012, product awareness has been created in approximately 300,000 households (800,000 potential consumers).


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Our products are manufactured following strict policies, requirements and specifications (defined by TCCC) provided through an integrated quality management program. The program promotes the highest standards in product safety and quality, occupational safety, and health and environmental standards across the entire Coca-Cola system. The quality and safety standards for production and distribution of our beverages are common across the globe, and at minimum, comply with applicable legal requirements. Health and Safety impacts of all our products are considered right from the stage of Research & Development. Furthermore, all our bottling locations are compliant with the requirements of the Food Safety and Standards Authority of India (FSSAI). We also expect our

6.2 Product Safety and Qualitysuppliers to comply with safety, environmental and quality standards. These may include (as applicable):

• FSSAIStandard• GlobalFoodSafetyInitiative(GFSI)• ISO9001(quality)• ISO14001(environmentalmanagement)• OHSAS18001(safety)

Stringent checks are undertaken to ensure the quality and safety of all material procured. For some of our key ingredients like sugar, batch-wise tests are undertaken. For further details on our global product safety and quality standards, please visit the following web-link: http://www.coca-colacompany.com/stories/quality

“Being one of the country’s leading non-alcoholic beverage manufacturing and distribution system, we strive to provide safe,

great-tasting quality beverages to consumers each and every time. Our beverages offer hydration, refreshment, and moments of affordable

happiness for people across the country, nearly 500 times per second. We are committed to making sure that all the beverages we produce,

meet the highest standards for safety and quality. Our products are tested in modern laboratories using state-of-the-art methods and appropriate technologies,

against stringent requirements. We measure key product and package quality attributes by focusing on ingredients and materials, as well as samples collected

from the trade. In order to create and maintain safety and quality, we stay current with new regulations, industry best practices and marketplace conditions, and

engage with standard setting and industry organizations. We consistently reassess the relevance of, and continually improve and refine, our requirements and

standards throughout the entire supply chain. Ensuring the safety and quality of our products has always been at the core of our business and is directly linked to

the success of the company in India and across the globe. In addition we undertake activities in a manner which is socially and environmentally responsible.”

- T. Krishnakumar, CEO, HCCBPL

“


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6.3 Responsible MarketingManagement Approach: (Product Responsibility) The Coca-Cola group is committed to offering a range of tasty, healthy and high quality products and marketing them responsibly, to provide consumers with information they can trust.

The Coca-Cola Company has always taken seriously its commitment to market its beverages responsibly, across all advertising media. The global responsible marketing practices of TCCC are extended to CCIPL as well. Our approach is to meet, if not exceed, all Indian standards for responsible marketing. We also work with the business community to encourage better representation of products and targeting customers of the right age.

The quality attributes of our products are common across the globe and are managed across the value chain through strong management systems and effective interventions. We believe it is our responsibility to provide fact-based nutrition information about our products to facilitate consumer choice. In terms of product labeling, we comply with and go beyond applicable regulations and guidelines on nutrition. We have also undertaken voluntary initiatives focused on communication to vulnerable groups (children); it is our endeavour to make useful information available to consumers easily.

Consumer satisfaction is tracked on a regular basis through surveys. The integrity of consumer information collected during such surveys (and at other instances) is preserved at all times.

We believe that transparent communication of product nutritional information in conjunction with effective consumer education, is essential to help consumers meet their refreshment needs in a healthy manner. We have well defined management systems for any information disbursed in our marketing communications. All claims made in marketing communication are subjected to rigorous internal checks and sign-off by a competent authority.

Communication of calorie information

We believe that it is essential for our consumers to know the calorie intake through our beverages in order to maintain a ‘calorie balance’ and a healthy lifestyle. Complete nutritional information of our products is made available on the packs; in the Indian context, this is also a legal requirement. All returnable glass bottles (RGBs) that we have purchased after March 19, 2009 have nutritional labelling on the bottle itself, while for bottles that have been purchased prior to this date, we provide this information on the bottle closures (crowns). The Coca-Cola group has gone beyond legal requirements in India and provides Front of Pack (FOP) calorie labels; for larger stock keeping units (SKUs) i.e., over 500 ml, we provide the FOP calorie labels indicating calories per serving (250 ml).

Marketing to Children

We believe parents and caregivers are in the best position to make decisions about what children eat

and drink. In line with our global marketing policies, we consciously do not advertise on children centric channels (for example – cartoon channels. Even with respect to General Entertainment Channels (GEC), we do not sponsor or advertise in programmes where the viewership of children below 12 is likely to be greater than 35%.

The India Pledge

Coca-Cola India has signed the ‘India Pledge’ along with eight other Fast Moving Consumer Goods (FMCG) companies; this is a voluntary self regulation initiative by members of the Indian Food and Beverage Industry to demonstrate their commitment to a high level of social responsibility in marketing food and beverage products to children in India. As per this commitment, we do not advertise food and beverage products to children under the age of 12 on TV, print or the Internet, except for products that fulfil specific nutrition criteria based on accepted scientific evidence and/or applicable national and international dietary guidelines. We also do not engage in any commercial communications related to food and beverage products in primary schools except for where specifically requested by or agreed by the school administration for educational purposes.

Additionally, entities of the Coca-Cola system in India do not sell any of our products in schools until and unless specifically requested by or agreed by the school administration.


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Consumer engagement and satisfaction

The Coca-Cola system has been proactive in engaging with consumers. We provide our consumers with several windows for communicating with the company; in India, we were among the early adopters of the toll free number system. The toll-free number and the consumer helpline email ID ([email protected]) are displayed on all product packages.

We endeavour to respond to every query received in a manner satisfactory to our consumers. To this end, the company has instituted a streamlined Consumer

Case study

To help enhance our consumers’ understanding of the manufacturing of Coca-Cola products, we invite them to our manufacturing plants across the country. The plant tours provide visitors a first-hand experience of our processes, while also helping in dispelling misconceptions, if any. 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. In the year 2012, we were delighted to host 3,482 plant visits for 178,365 consumers. The visitor profile includes people from different stakeholder groups including consumers (including students groups), media, government officials, distributors, retailers, corporate representative & others.

The Company actively encourages plant tours for the consumers through outreach programs aimed at increasing the number of visitors.

Satisfaction (C-Sat) Survey. Every month, we reach out to 5% (picked randomly) of the consumers who have posed queries to us through our toll-free number. These consumers are requested to answer five questions sequentially in order to collect their feedback on the way the query has been responded to. This feedback is subsequently collated for further action and improvement wherever possible.

The C-Sat score at the end of 2012 was 98.6%.

Adequate information security measures are undertaken to safeguard privacy of our consumers. In the reporting period, there have been no incidents of consumer data loss/theft/ breach of consumer privacy.

Consumer helpline e-mail ID

Toll-free consumer helpline number

Brand Facebook page

Through salesteam, retailers and distributors

Consumer forums

Letters

Visit our offices & depots

Telephonic response

E-mail response

Personal meetings

Invitations to bottling plant visits

Information dissemnation through other media

How can consumers reach us? How do we respond to consumer queries?


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Globally, TCCC and our group companies inspire consumers to adopt an active lifestyle through several programs and interventions. The pursuit of an active outdoor sport of interest is an enjoyable and effective way of keeping fit. Some programs that are driven by CCIPL in India for promotion of active healthy living are presented below.

Under-15 Football - The Coca-Cola Cup

Coca-Cola India Private Limited and the All India Football Federation (AIFF) launched the national grassroots football tournament in 2009. This initiative is part of CCIPL’s commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. It takes forward The Coca-Cola Company’s commitment to nurture potential football stars by providing 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 and believes in promoting a healthy, active lifestyle, CCIPL believes that Indian football has huge potential. By supporting AIFF for this tournament, we are tapping young football talent to train them according to international

6.4 Promote Active Healthy Living


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football standards. In 2012, the program involved participation of 41,760 young footballers from 2,600+ schools across 87 cities. This year the youngsters from Meghalaya beat their opponents from Odisha in an evenly fought contest at Father Agnel Football Stadium in Vashi, Mumbai.

It’s not just a quest of Trophy or the Cup that these young talented footballers look forward to, but also a chance that couldn’t have been possible if this initiative did not exist. The National U-16 Soccer team of India is drawn up from the talent pool of this tournament; plus this is a chance for some exceptionally talented players, who will be absorbed by AIFF-FIFA academy, to train at world class academies and become a part of the talent pipeline for the future. Undoubtedly, this is India’s biggest and most inspiring Grassroots Sports program and a step towards providing these soccer heroes – An experience that money can’t buy.

Coca-Cola Under-16 Cricket

Coca-Cola Under-16 Cricket Cup is the largest Inter-School Cricket tournament in India. The interschool grass root level cricket initiative aims to discover budding cricketing talent in the country. The program is open to all young cricketers in the age group of 12-15 years. Through the tournament, 24 talented players selected from the Coca-Cola Inter- state Challenge get a chance to attend a week long ‘Coaching Clinic’ under the guidance of Cricket India Academy (affiliated to Cricket Australia) and meet prominent former cricketers of the country. Post the week long coaching, the final Coca-Cola XI team is selected and given an opportunity to prove their mettle by participating in a competitive tournament against an invited International U-16 team from other cricket playing nations. Post this, 3 of the brightest players are chosen as ‘Ratnas’ or Coca-Cola Cricket Stars – and are sent across to world class training academies for a professional excellence course of 4 weeks. One such ‘Ratna’ – Sarfaraz Khan from season 1 - has recently been selected for National U-19 Cricket side of India.

Seeing the vast potential and growing popularity of this game, CCIPL has a vision of facilitating the quest to nurture and tap cricketing talent. It believes that the future of Indian cricket lies in

these young talented budding cricketers. Through this initiative, CCIPL intends to provide a perfect opportunity and platform to all the youngsters across the country to showcase their talent, skill and equally important, pride and loyalty to their school. It gives the State Cricket Associations and their affiliated scouts a great arena to identify potential match winners.

The tournament began in 2011 and so far has completed 2 seasons successfully. In season 2 (2012-13), this tournament was played across 10 states in over 66 districts and involved more than 12,000 young players from 756 schools.

Sprite Gully Cricket Champs

Cricket is one of the most popular sports across all age groups, geographies and economic sections of the society in India. ‘Sprite Gully Cricket Champ’ (SGCC) is one of our largest programs on Active Healthy Living and taps into the enormous popularity of the sport. Started in 2011, SGCC’s popularity and footprint has increased enormously in 2012. The contest saw active participation across the country and is in sync with Sprite’s marketing theme – Stop preaching, start playing!

We scaled up the number of playing centers to 112 cities in 2012 (up from 27 in 2011); extensive pre-event publicity through a variety of media (television, radio, print, internet, road shows and others) resulted in the number of team registrations soaring to 7,935, representing an increase of over 9 fold. The Northern region led the number of registrations (2,590), closely followed by the South (2,427). Our franchisee bottlers actively contributed to SGCC in the states of West Bengal, Uttarakhand, Uttar Pradesh and parts of Andhra Pradesh. A total of 1,816 teams registered across these locations. The remainder (1,102 registrations) was from the central region.

Winners from each of the zones were rewarded handsomely with INR 5 lakhs, intended to help these budding stars develop their talent further.

Through this program we were able reach out to and impact 6.4 lakh people across the country, from different walks of life.

WE. Building Stronger Communities


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Management Approach: SocietyAs a global company with local roots, we recognize the impact that we have on the communities in which we operate. As we conduct our business, we are committed to listen, learn and take into account the views of these communities. As a part of our dedicated approach to create economic opportunity in the communities in which we operate, we undertake initiatives that are locally relevant.

Our programs in the community extend to partners, suppliers and retailer and also reach out to the underprivileged and resource deprived communities. We place specific emphasis on the empowerment of women, as we believe them to be what binds community together and we realize that economic development can only be carried forward with the inclusion of women across the economic spectrum. We realize that our employees are our first contact within the local community and we design our employee programs keeping this in mind. Our extensive reach provides a unique opportunity to maximize our positive impact. Through the innovative ‘Vitingo’ project (details of this project are covered in the earlier chapter on balanced diets), we are able to deliver a low-cost beverage, with functional benefits through a socially relevant and sustainable business model.

At minimum, all bottling plants are expected to comply with applicable regulations; we have devised strong management systems that track and monitor regulatory compliance across bottling units. Our Code of Conduct guides all employees and our business as a whole. Anti-bribery and anti-corruption related trainings are provided to all relevant employees.

7. We – Building Stronger Communities


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7.1 Women’s Economic Empowerment – The ‘5by20’ Initiative

In September 2010, The Coca-Cola Company announced a 10-year global initiative to empower 5 million women through the Coca-Cola system. This initiative aims to help women in our global business system break down the barriers that can prevent them from growing their businesses.

By providing access to business skills, financial services, assets and support networks of peers and mentors, the 5by2O initiative globally is helping women achieve their entrepreneurial dreams, while also creating thriving, sustainable communities.

Following the announcement of the 5by20 initiative in September 2010, the program began in four pilot countries - Brazil, India, South Africa and the Philippines. In 2012, the program has expanded its outreach to 12 countries.

In India, the 5by20 program is focused on driving women’s empowerment through entrepreneurship for inclusive growth. The program’s key focus is to build capability and provide women with access to resources, these being some of the key barriers that women face towards economic empowerment. The program enabled and enhanced the livelihood of around 7000 women as of end 2012 through 4 key initiatives.

1. eKOcool Solar Cooler program: India has been a front runner in piloting this initiative with regard to providing access to eco-friendly solar coolers. The innovative eKOcool solar cooler program provides income generation opportunities for low-income women retailers in rural areas, helping them gain a competitive advantage and improve family income. The cooler has the capacity to accommodate 2 cases of products and also has value added features like mobile and solar lantern charging ports. Over 300 Solar Coolers have been deployed across women run outlets in rural India in the villages around Agra, Bareilly, Faizabad, Calcutta and Rajahmundry.

Piloted in 2011, the eKOcool Solar Cooler program has been scaled up in 2012.

“Enhancing economic opportunities for women in the Coca-Cola value chain will result in increased incomes, enhanced skills in business, increased stature within

the community, and improved potential for communities” - Muhtar Kent, CEO, The Coca-Cola Company

“It helps when we can decode the consumer’s voice, not just for launching new products, but also newer packages, price points’ etc. Solar cooler is one such

example of an innovation based on local insights and ground realities.”- Atul Singh Deputy, President – Pacific Group

“Every woman empowered is equivalent to a family being empowered. Teaching new retailing techniques to women will help ensure better livelihoods for them and

solar coolers will improve transactions. I welcome this initiative of a private player contributing to community well-being.”

- Dr. I.S. Tomar – Mayor, Bareilly

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Further the program got an impetus when the lndia Advisory Council on Environment and Sustainability, under the able leadership of General Malik, visited the villages of Bareilly. General Malik presented the coolers and training certificates to select women retailers alongside Dr. I.S. Tomar - the Mayor of Bareilly and Shri S.N. Ladhani, Managing Director, Brindavan Beverages Pvt. Ltd.

2. Pragati a business skills program led by HCCBPL, is focused on training and engaging women retailers in rural India. The program was piloted in 2012 and has been rolled out nationally in 6 vernacular languages. Other than training and certification on business skills, the key elements of the program include an inspirational video, imparting product knowledge through plant visits and business start-up support communication.

3. Parivartan training program: The Business Skills Capability Program led by the Coca-Cola University for Franchise Bottling Operations, was extended to women retailers in 2011. The program saw further expansion in 2012 to reach out to more women retailers. The training sessions are primarily held in customized buses (CCU on wheels) and are led by Coca-Cola certified trainers (further details of the Parivartan program are available in the following section)

Earlier this year, Chairman and CEO Muhtar Kent visited Agra and met with several women retailers. He acknowledged the initial progress made by Coca-Cola India as a part of the global 5by20 program.

4. Project Unnati is a supply chain program to increase the productivity of mangoes required for our juice drinks while also enhancing the income of farmers (please refer the section ‘Source Sustainably’ for full details of the project). ). The program is enabling mango farmers to adopt Ultra High Density Framing (UHDP) technique, allowing them to plant more trees in less space. Combined with a drip irrigation system, the program helps farmers double their crop yield and also their income. Out of 50,000 farmers being trained and enrolled for adoption of a special technique called UHDP (Ultra High density Plantation) over the next 5 years, 10% -15%, will be women farmers. Under the 5by20 program, the objective of the project is to provide and enhance livelihood of women farmers covered under ‘Project Unnati’. Building capability of these women farmers through exposure to Good Agricultural Practices and UHDP technology is a key focus area. We are prioritizing resource allocation to women farmers and are emphasizing on enrolling as many women farmers as possible. Of the 200 demonstration farms that have been created under the project, 88 farms belong to women farmers. 250 women farmers have been trained on the UHDP technique and good agricultural practices under the program.

We are committed to raising the bar next year to enter into a dialogue with our partners and the government on how to further strengthen and leverage these initiatives through partnerships.

“I no longer need to shut shop just because it is sunset, The solar lantern enables me to keep the shop open for longer hours, helping me earn more income. The

mobile charging ports attract customers. When people line up to use the mobile charger, they stay longer and buy more food and beverages while they wait,”

Roop Devi owner of kirana store in a remote village in Bareilly, Uttar Pradesh.

“The solar cooler program, combined with Parivartan training, is a unique model benefitting the Company as well as retailers. It increases business for the Company,

improves transaction volumes, protects the environment, builds retailing capacity and, most importantly, focuses on women-inclusive growth. We need more such initiatives

to create practical advantages for the rural population.” General V. P. Malik, Head - Advisory Council on Environment and Sustainability

(ACES)“


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Parivartan program was started in 2007 with an aim of training the traditional Kirana store owners to adapt themselves to the changing and evolving socio- economic scenario of our country. The entry of the culture of modern trade has redefined customer shopping habits, expectations and experience. This has put new demands on the mom and pop - traditional Kirana - retail stores to remain competitive.

Our mission through the Parivartan program is to equip traditional retailers with the skills, tools and techniques to meet consumer expectations created by these demands.

In order to design the curriculum for this training program, an in-depth market research was conducted through which it was found that the Kirana retail essentially revolves around four pillars – Customer, Stock, Shop and Financial Management. The Coca-Cola university then developed a tailor made capacity building program around these four pillars

The two hour program is conducted in vernacular languages. For impactful communication, the training is supported by a 20 minutes video depicting the life of a Kirana shop owner who learns to cope with the changing retail scenario to emerge as a better businessman.

Apart from the classroom training which is typically conducted in the cities, the training module is also delivered through our customized learning bus ‘CCU on wheels’ in the rural and semi – urban areas. Through this, we ensure that we are able to reach the retailers in far flung areas where classroom facilities may not be available. Currently, Coca-Cola system has 4 such mobile buses.

7.2 Strengthening Community FoundationsParivartan – Retailer Training Program

Regular feedback is taken from all retailers to improve the training program and its effectiveness. After analyzing the feedback received from the retailers over the last few years, in 2012, we added the 5th pillar to the Parivartan program. In this pillar, the practical example of Coca-Cola is used to make the participants understand the implications of the four pillars. It helps drive home the actionables from each of the four pillars and results in improved business performance and margins for the retailers.

The response to the program has been overwhelming and till December 2012, we have covered almost 1, 35,000 retailers across 3000 cities & semi- urban areas. In 2012, we covered over 1000 women retailers under the Parivartan program, contributing to the 5by20 program. The response received from these women retailers is heartwarming. We plan to cover over 10,000 women retailers in 2013.

“I attended the Parivartan program and liked it very much. I implemented the learnings from the program and this has helped

increase my sales. I am glad that a company like Coca-Cola is investing in our training.”

- Ms. Uma Gupta (retailer), Kolkata

“I loved the program and I am optimistic that this training will be very beneficial for me and will make my business more profitable.”

- Mr. Kunal Jindal (retailer)“


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Support My School (SMS)

Children’s education is among the most basic of human rights and human capabilities 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. According to the Annual Survey of Education Report (ASER) 2012, more than half of all children in Standard V are at least three grade levels behind where they should be.

The very first step to learning is having children turn up at school every day. However, school drop out 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 and basic infrastructure contribute to the creation of an unwelcoming and non-conducive environment at schools. This leads to children not turning up at school and increased absenteeism, which finally results in children dropping out of school completely.

With a desire to change this situation, Coca-Cola, along with NDTV, UN-Habitat and Charities Aid Foundation, launched the Support My School (SMS) campaign in 2011. The campaign has twin objectives of improving school infrastructure (for sanitation, drinking water, playgrounds, campus greening

Locations and number of schools revitalized under Support My School program in 2012

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and rain water harvesting) as also drawing public attention to the status of schools.

With Sachin Tendulkar as the campaign ambassador and a multimedia campaign spread across many months, SMS has generated tremendous interest and reached millions of people. NDTV led the way through impactful stories on the cause and concluded it by hosting a live 12 hour telethon for fundraising in September 2011. At the telethon, commitments worth over INR 60 million were received from several organizations and hundreds of individual donors. The funds collected subsequently, were then utilized to revitalize schools across India, through the following interventions:

• Improving access to drinking water for school children• Improving access to sanitation (especially for

girls) in schools• Creating rain water harvesting facilities at school

level• Improving access to sports amenities and

facilities in the schools• Landscaping the school compound

The campaign has succeeded in igniting a spirit of partnership in resolving this pressing issue of

lack of sanitation, water and dilapidated schools. Leading corporates such as Tata, Reliance, Merck, Tetrapack, amongst others have joined hands. World Vision, Plan India, Charities Aid Foundation, as also several dozen local NGOs are the civil society partners. Other than these, numerous youth organizations such as AIESEC and students of leading universities have come forward and contributed to the campaign.

In summation, the success of Season 1 was reflected not only in revitalization of several schools, but also the unprecedented interest that was generated in highlighting the urgent need for more initiatives that improve schools to become healthy, happy and active schools. In September 2012, Season 2 of the campaign was launched in San Francisco - California, in the heart of Silicon Valley. At the launch event, The Coca-Cola Foundation, World Vision and Plan International committed funds and resources equivalent of 100 schools being revitalized. Thus Season 2 began with commitments, which paralleled the entire Season 1 achievement thus giving a new scale and scope to the campaign. The target envisioned for Season 2 was raised to 250 schools, and as at end 2012, we are confidently working towards the same.



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Career Development Centre (a HCCBPL Initiative)form of entrepreneurial ventures. The initiative also aspires to be a ‘model’ that can be replicated and scaled up.

Since its inception and till December 2012, over 360 youth completed their training at CDC and over 209 have been successfully placed with organizations like Big Bazaar, KFC, McDonald’s, Easy Day and Hindustan Coca-Cola Beverages to name a few.

Akhil’s success story

Akhil’s introverted disposition always came in the way of his plans for success. He hails from Galand village, Ghaziabad. He was very hesitant to speak and felt very comfortable being with himself. It so happened that he got to know about CDC and decided to explore it. He joined basic IT Course at CDC in August 2011. An introvert by nature and hesitant while speaking, Akhil paid attention in the class and participated in all activities. It is no surprise that he successfully overcame his hesitation and now communicates with confidence. The decision to join CDC proved to be a blessing. After successful completion of the course, he joined IOSR as a Project Assistant. Seeing the change in Akhil, his younger brother Nikhil also expressed his desire to pursue a course at CDC, Dasna to support his family. Akhil stepped forward to support and finance his younger brother’s course. Today Nikhil is pursuing a Certificate Course in Food and Beverages.

Career Development Centre (CDC) near Dasna is an initiative of Hindustan Coca-Cola Beverages Pvt. Ltd. Started in January 2011, the objective of the CDC is to tap into the potential of the educated, unemployed and underserved youth and provide the right training to enhance their employability. On completion of the training, these youth are provided with opportunities for sustainable livelihoods either through jobs in the organized industry or in the

Limca Book of Records 2012- ‘Music-Special Edition’

The Limca Book of Records (LBR), now in its 23rd edition, is a record book that celebrates the outstanding achievements of Indians across the globe, celebrating India at her Best.

The 2012 Limca Book of Records, launched in January, is a ‘Music Achievers Special’ edition, dedicated to the outstanding contribution of 10 Indian Musical maestros. The record book acknowledged their significant contribution to the world of music by felicitating them as ‘People of the Year’ for 2012. With 20 refreshing and informative chapters, the 2012 edition of the record book celebrates over 10,000 remarkable achievements out of which 6,000 are new records, all showcasing extraordinary feats of Indians across the globe.

Limca Book of Records Quiz is a national quiz competition organized annually across India for

school students of class 8 to 12. The quiz began in 2008 and has continuously been reaching out to more than 4,300 schools each year in 80 cities across India. This year saw participation from 24,000 students. The multi-city initiative has been launched in partnership with Derek O’ Brien and Associates, a company run by renowned quizmaster Derek O’ Brien. The quiz provides a platform for students to showcase their knowledge and quizzing skills in an engaging yet competitive process.

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CSR Focus Area

Activities undertaken Approximate Monetary

Spends (INR)

Approximate number of

beneficiaries

Education Development of infrastructure in educational institution 15,858,162 8,060

Access to clean drinking water

Infrastructure for Protected water supplyInstallation of hand-pumps

1,503,000 6,270

Public health and safety

Monetary contribution for healthcare Medical/ awareness camps

7,918,105 9,230

Rural development Rural infrastructure development 2,874,887 3,220

Other social activities

Assistance to self-help groups, under-privileged sections of the society etc

4,080,700 4,840

Other environmental programs

Celebration of thematic events like World Environment Day etc towards creating awareness

1,209,252 640

Total 33,444,106 33,660

Notes: 1. The activities undertaken as shown above are only a sample list of most common activities that have been undertaken by bottlers. This

is not an exhaustive list. 2. Where accurate data is not available for number of beneficiaries, a reasonable and conservative estimate has been used.

Local Community Initiatives

All our major community initiatives described above are ably supported by our bottlers in their respective regions of operation. Additionally, our bottlers also take up CSR activities in the vicinity of their plants based on the local needs. The following table provides a cumulative summary of such CSR activities that were undertaken by our bottling partners (company owned and franchisee owned).

Protected Water Supply Project, Atmakuru People from the village of Atmakuru (close to HCCBPL plant in Guntur district of Andhra Pradesh) were dependent on water from Guntur Channel for their domestic and drinking water needs. This water was highly turbid (>30NTU) in nature and not fit for drinking as well as domestic purposes. Incidence of water borne diseases was very high among the local community. The local Gram Panchayat had installed one open bed sand filtration system for water purification as a solution to the problem. But this system was getting blocked and required frequent sand replacement due to the high turbidity of the incoming water. The local community approached HCCBPL to seek assistance in upgradation of the system.

HCCBPL funded a protected water system consisting of two pressure sand filters, one dual media filter and an automatic online hypo-dosing system, making it a unique initiative in the rural water supply schemes. The unit has the capacity of 75KL/hour and reaches out to more than 2,300 households, thereby meeting the water requirements of local community members.

Mrs. Kandru Kamala, MLA of Mangalagiri, at the dedication of the protected water supply project, Atmakuru


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7.3 Respecting Human and Workplace rights

Management Approach: Human rightsWe consider human and workplace rights—as articulated in the United Nations Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work—to be inviolable. We take a proactive approach to respecting these rights in every workplace in India and throughout our global bottling system, in our supply chain and in the communities in which we operate.

The foundation of our approach is articulated in four key documents which are influenced by the United Nations (UN) and International Labour Organization (ILO) declarations. Together, they describe our high standards and expectations in addressing such subjects as child labor, forced labor, freedom of association, discrimination, health and safety, hours of work and the 30 articles contained in the Universal Declaration of Human Rights.

• Human Rights Statement: Our Human Rights statement is our overarching commitment to respecting human rights; it emphasizes a set of values that represent the highest standards of integrity, excellence, compliance with the law and respect for human rights and the unique customs and cultures of communities where we operate.

• Workplace Rights Policy: The Workplace Rights Policy (WRP) is guided by international human rights principles and provides a consistent approach to workplace and human rights worldwide. WRP applies to all of the entities that the Company owns, holds a majority interest, and has management responsibility or where a bottler has adopted the policy. The WRP articulates expectations related to Freedom of Association and Collective Bargaining; Forced Labor; Child Labor; Discrimination; Work Hours and Wages; Safe and Healthy Workplace; Workplace Security; Community and Stakeholder Engagement.

• Supplier Guiding Principles: Our Supplier Guiding Principles (SGP) communicate our values and expectations of suppliers and emphasize the importance of responsible workplace practices that respect human rights and comply, at a minimum, with applicable environmental and local labor laws and core international conventions.

• Global Mutual Respect Policy: The Global Mutual Respect policy builds on the above

policies by emphasizing expectations on how employees treat each other and those that they interact with on behalf of the Company, specifically related to valuing diversity and creating an environment free from discrimination and harassment.

We require all associates of The Coca-Cola Company to know our human rights and workplace standards and to apply them in their work. Managers, in particular, receive intensive training. We encourage our associates to speak up immediately if they believe our policies on human rights and workplace rights have been violated. Associates can report perceived violations confidentially and without fear of retaliation through numerous channels, including our EthicsLine—a global Internet and telephone information and reporting service for associates, customers, suppliers and consumers who perceive violations of our Code of Business Conduct, our Workplace Rights Policy, our Global Mutual Respect Policy, our Human Rights Statement or applicable laws and regulations. We treat all inquiries confidentially and investigate all concerns.

In cases where claims are substantiated, we take corrective action. Depending on the violation, corrective action may take the form of back pay, reassignment of duties and in severe cases, separation from the Company. Further details on these policies are available at the following web-link:

http://www.coca-colaindia.com/sustainability/workplace.html


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Respecting human rights and protecting workplace rights is fundamental to our culture and imperative for a sustainable business. According to the United Nations Guiding Principles on Business and Human Rights, implementing respect for human rights in a corporate context has three primary components:

1. A policy commitment to meet the responsibility to respect human rights

2. A due diligence process to identify, prevent, mitigate and be accountable for human rights abuses

3. Processes to enable the remediation of any adverse human rights impacts the company causes or to which it contributes

The policies outlined above are based on internationally recognized standards, including:

• United Nations Universal Declaration of Human Rights

• International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work

• United Nations Global Compact’s (UNGC) ten principles

Any major business agreements signed with suppliers, bottling partners and other business associates would include human and workplace rights clauses. New bottlers/ suppliers to the Coca-Cola system are expected to undergo workplace assessments before the commencement of business transactions.

SGP trainings are conducted regularly for in-scope suppliers of materials and services (e.g., security services) covering topics including (but not limited to) avoidance of child labor, forced labor and discrimination, and compliance with applicable regulations on minimum wage requirements and hours of work.

SGP audits are conducted on a regular basis to confirm ongoing compliance at bottling and in scope supplier sites. In India, during the year 2012, SGP audits of suppliers of strategic materials and those in areas of high risk were conducted (95% of in-scope suppliers were covered).

To help our Company, our bottling partners and our direct suppliers achieve compliance with our policies and principles, third-party auditors trained on our standards conduct regular workplace assessments. We conduct annual assessments of new suppliers and suppliers with a history of noncompliance. For suppliers with a history of compliance, we conduct assessments every three years. In cases where non-compliances are observed, action plans for meeting compliance are developed. As a policy, we do not purchase from suppliers with egregious findings and may need to resort to de-authorizing them if required.

Human rights in procurement practices

The Supplier Guiding Principles, associated trainings and audits have helped us come a long way in incorporating sustainability along the supply chain of the Coca-Cola system.

In addition to socio-economic and environmental performance (as envisaged in the SGP), the quality of supplied goods, supplier location and other operational aspects are also key factors that determine monetary spends on any particular supplier.

In the Indian context, the group defines any supplier from the same geographic region (Northern, Southern, Eastern, Western and Central) as ‘local’. Edible raw material and packaging material used by us are commonly available across the country; there are very few instances when a bottler may be required to source any material from suppliers located in other states/regions. Hence, for our bottling units in India, local procurements may account for as high as 90% of total procurement spends.

Based on the material, freight costs may account for upto 15% of the total procurement cost. Local procurement also provides cost advantage in the form of savings in freight charges and applicable interstate taxes.

Within the Coca-Cola system in India, any supplier providing key and trademarked promotional material worth US$60,000 are subjected to SGP audits; about 80% of these suppliers were found to be compliant with standards prescribed by our policies. Action plans for achieving compliance to required standards have been provided to the others and their progress in this direction would be monitored in the future.

In terms of quality, all suppliers of edible material are expected to comply with applicable standards prescribed by the Food Safety and Standards Authority of India (FSSAI). As applicable, suppliers are also expected to comply with Good Agricultural Practice standards and implement management systems including ISO 9001, ISO 14001 and OHSAS 18001.

We are a leading member of AIM-PROGRESS, a forum of 37 fast-moving consumer goods manufacturers and suppliers working together to promote responsible sourcing practices. Through AIM-PROGRESS’s joint training initiative, the group conducts in-person and virtual supplier training sessions around the world. Trainings cover the four major pillars of responsible sourcing:


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a) Human rights and labour standardsb) Health and safetyc) Environmental compliance d) Business integrity

Leaders from participating companies provide perspective on why responsible sourcing is important to customers, stakeholders and sustainable businesses. In 2012, sugar suppliers were trained in India under this initiative.

Workplace safety

Within the Coca-Cola system, we ensure that our workplace is clean, safe and healthy and provides the right work environment for our employees.

The Coca-Cola group has developed stringent internal standards for worker safety and loss prevention, collectively known as the ‘The Coca-Cola Safety Management System (TCCSMS)’. The TCCSMS is based on BSI OHSAS 18001 and applies to all group companies and bottling partners. The TCCSMS contains operational controls that help us identify, reduce or eliminate risks and hazards

in our operations. The TCCSMS also provides appropriate training modules for operators and management staff; internal and external audits are conducted at our bottling locations to ensure the standards are being implemented as expected. The TCCSMS is also covered under Coca-Cola Company requirements known as ‘KORE’ and each facility is periodically audited for ‘KORE’ compliance.

In the year 2012, a total of 40 lost time incidents were reported within our system (includes company and franchisee owned bottler locations); this is a substantial improvement year-on-year (number of such incidents in 2011 – 59). Likewise, the Lost Time Incident Rate (LTIR) also came down by about 13% to 0.26, calculated on the basis of 30.6 million man-hours of work.

Sadly, there were a total of 10 fatalities in the reporting period (1 employee and 9 contract laborers). Detailed investigations into each of these cases have been conducted and risk mitigation measures have been implemented across all locations.

85% percent of our bottling plants are

OHSAS 18001 certified.

Safety and Health can and will be managed

Management is ultimately accountable for improved OSH performance and must be supported with the necessary resources.

Occupational injuries and illnesses are preventable

It requires a systematic process of building awareness, assigning accountabilities, training, setting goals, measuring performance and continually improving.

Nothing we do is worth being injured for

Concern and care for the health and safety of people is as important as other business objectives.

Safe behaviour is fundamental job requirement

We promote a culture that values safe behavior in all of our actions, and we commit to comply with applicable legal and The Coca-Cola Company Occupational Safety & Health requirements.

Everyone is responsible for safety and health

We recognize that maintaining a safe and healthy work environment is dependent on a culture of safety, where everyone is involved and accountable.

Our safety performance is important for our business

It is integral to operational excellence and the integrity of our brand.

Fundamental safety principles of the Coca-Cola system


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Human Capital

Management approach: LabourGlobally, Coca-Cola has been an employer of choice since many years; we attract the best of talent and strive to retain all employees. The wages and benefits we offer are competitive and consistent with the market. Our employees at all levels receive appropriate functional and behavioral trainings. We are an equal opportunity employer and do not discriminate on the basis of gender, religion, ethnicity, race etc. We provide a safe, discrimination-free workplace, providing our employees the opportunity to bring out the best in them.

In the Indian context, number of women employees in our ranks is tracked as a key indicator of workplace diversity.

At CCIPL, we believe that our people are our most important assets. Our people, the face of our brands, are talented, passionate and take immense pride in being a part of the Coca-Cola System. At CCIPL they find an employer who values them, nurtures them and provides them with abundant opportunities for learning, growth and development.

Employee hiring and benefits

Coca-Cola India Private Limited is an equal opportunity employer. We do not discriminate people based on ethnicity, religion, caste, nationality etc at the time of recruitment or anytime during an employee’s tenure at CCIPL. While filling open positions, only the individual ‘fit’ for the positions 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 functions.

We pay competitive wages to our employees and constantly benchmark our compensation levels with the industry. For our entry level workers (concentrate plant), the wages we pay are substantially higher than those stipulated by Indian law. At any level, employee compensations are based on the position held/responsibility handled, experience, tenure in the organization and qualification.

Our pay structures include retirement benefits as per applicable rules and regulations. These include:

• Provident Fund (PF) – 12% of the monthly basic pay of the employee contributed to a dedicated PF Account; an equivalent contribution is also made by the CCIPL (for which the company has a dedicated fund). This is applicable to all employees of CCIPL (corporate and plant) and Coca-Cola India Foundation.

• Gratuity – company contributes 15 days’ basic pay for each year of employment completed, starting from the 5th year of continuous employment. This contribution is met through general resources of the company and the foundation respectively. This benefit is applicable for all employees of CCIPL and the Coca-Cola India Foundation.

Other benefits offered to our employees include

• Medical/accident/ life insurance • Free health check-ups for employees and 50%

expense coverage for their families• Loans for purchase of vehicles and utility loans• Parental leave – 120 days for women, 14 days for

men at the time of child birth • Partial sponsorship (up to INR 35,000) for

promoting active lifestyle of employees under our ‘Health Works’ policy (includes purchase of sporting equipment, payments made for membership in gymnasiums, etc.)


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Employee turnover

(1) Number of employees

Following are the total number of employees on the payrolls of the company as on 31st December 2012.

Corporate Office

Concentrate plant

Gender Total Count

Operators Staff Total

Male 175 29 38 67

Female 55 0 17 17

Total 230 29 55 84

Women employees constitute about 24% and 20% of our workforce at the corporate office and concentrate plant respectively.

New Hires Employees leaving the organization

Gender Age groups Corporate Office

Concentrate plant

Corporate Office Concentrate plant

Male 20-29 years 5 2 1 0

30-39 years 27 6 10 0

40-49 years 9 0 10 2

50-59 1 0 1 0

Total 42 8 22 2

Female 20-29 years 7 3 2 0

30-39 years 8 1 4 0

40-49 years 0 0 1 0

50-59 1 0 0 0

Total 16 4 7 0

(3) Number of people availing parental leave Following are the number of people who availed parental leave in the year 2012

Gender Corporate Office Concentrate plant

Male 14 1

Female 4* 0

Total 18 1

*Of the above, 2 female employees quit employment after child birth.

(2) New joinees and employees leaving the organization (by age group)

Following are the number of people who joined the company’s payrolls and those who left the organization in the reporting period. As can be seen in the table below, our attrition rate is quite low and we believe it is in-line with the industry standards.


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Discrimination free work-place

We have a zero tolerance policy to all forms of discrimination. All employees are expected to abide by the company’s ‘Code of Business Conduct’; we are committed to providing a work environment that is free from all forms of harassment or discrimination. Multiple touch points are available for employees to report any concerns in this aspect – including a ‘Global Ethics Hotline’. Upon receipt of any complaint, enquiries are conducted independently and impartially by the ‘Global Ethics’ team and findings are reported to the local human capital team and the CEO. Subsequently, the management formulates its action plan which is vetted by the Business Unit Ethics Lead.

Employee trainings and feedback

CCIPL aims to contribute to learning and professional growth of all employees. Depending on the roles and responsibilities of different employee groups, appropriate skill/behavioral training programs are offered. Details of some of these training programs are given in the table on the next page.

In addition to nominating employees for the above programs as applicable, the concentrate plant also provides appropriate Health, Safety and Environment (HSE) training to employees. In the reporting period, 61.35 hours of training per employee was undertaken in the plant (on an average). Likewise, male and female associates at our corporate office underwent 3 trainings per person on an average. This corresponds to 12-hours and 19-hours, respectively, for male and female associates.

At the end of each assessment year, all employees across hierarchies and role functions receive performance feedbacks which help them identify areas of strength and development.


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Program Purpose & program details Number of participants

(2012)

First Few Sips This is the induction program for CCIPL’s new hires; the intent of the program is to introduce the new talent to the company - its vision, mission, policies (including those relating to Human Rights and internally developed codes) and goals. The 5-day program provides a functional overview and also includes a plant tour.

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Pegasus The program seeks to develop the organization’s top talent for future roles within the company.

23

Mantra Mantra is our B-School relations program; students from top B-Schools in the country are offered 2-month internship stints at CCIPL. The program is designed for maximum learning and consists of project work, coaching and assignments.

25

Management Trainee Program

The outstanding performers from the Mantra (summer internship program) are recruited for full-time roles in the company. Such ‘Management Trainees’ undergo this comprehensive, cross-functional program of 18-month duration. Management trainee program also includes a short stint in the company’s CSR activities.

4

Women in Leadership Program*

We consider the number of women employees in our organization as an important indicator of diversity in our workforce; this program is intended to groom our women employees in the middle management for higher responsibilities.

1

Catalyst* The program is for selected managerial staff who are at a relatively high position in the hierarchy – intended to groom them for senior management positions.

1

Chrysalis • ToprovidedevelopmentplatformsforJobGrade9-JobGrade10associates

• Createpipelineoftalentforfuturemid-managementlevelrolesandpeople management roles

• Recognizethehi-pottalentinJG9-JG10intheCompanywhichwillfill in the Next Generation of leadership

• Createa‘ReadyNow’talentpoolforlocalaswellasglobalpositions• Tocontinuallychallengethecollectiveenergiesofthisselectgroup

with innovative business efficiency for JG 9 – JG 10

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*Note: Women in Leadership and Catalyst programs are driven by TCCC; these programs are offered to associates who are at relatively high positions in the organizational hierarchy. The program size is limited and participation is on a nomination basis from Business Units around the world. For the year 2012, one associate was nominated for each of these programs from the India & South-West Asia Business Unit.

Training initiatives

WORLd. Protecting the Environment


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Management approach: EnvironmentEnvironmental performance is yet another key cornerstone for our operations. As a global beverage major, environmental sustainability is important to our continued business operations. Important facets of our environmental management efforts are highlighted below:

• Water: The Coca-Cola system in India is committed to returning more water to nature and the society than what is used in our own operations. Our bottling plants work continuously to identify opportunities to reduce consumption, recycle and reuse water. Treated wastewater discharged, at minimum, comply with all the applicable the regulatory requirements.

• Material and waste: Over the years, we have successfully reduced the amount of packaging material used per litre of beverage. Recycling of PET, glass and other packaging material is carried out by our bottlers. TCCC has also introduced PlantBottle™ packaging – a fully recyclable PET variant made partially with plant material; the use of PlantBottle in our Indian operations commenced in 2010-11.

• Energy and Carbon: Ongoing effort is made at all plant locations to implement energy conservation and efficiency measures. Energy efficiency is seen as an opportunity that, in addition to contributing to our bottom-line, also helps to reduce our Carbon footprint.

• Compliance: We have in place proper systems to monitor compliance of our bottling locations to all regulatory requirements – including those related to Environment and Occupational Health & Safety.

• Transport: Our fleets are progressively moving towards use of environment friendly fuel (CNG), even in states where this is not a legal requirement.

Water is possibly the most important resource for our industry and hence management and responsible use of this precious resource is imperative to our business. 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.

8. World – Protecting the Environment

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8.1 Water Replenishment

The total water consumption of all bottling units (in India) put together for the year 2012 was 8.299 Million Kilo-litres. Ground water, drawn through wells, has been the primary source. Quantity of water withdrawn from different sources is summarized in the following table:

We use two cardinal indicators to measure and manage our water performance. These indicators and their significance are explained as follows:

(1) Water replenishment ratio – this indicates the amount of water returned to nature and communities as a percentage of water used at our facilities.

Globally, TCCC targets to replenish as much water

as used in beverages and their production by the year 2020. The water replenishment performance in India over the past few years has been depicted in the table and graph below.

Our efforts to replenish water are focused on harvesting rainwater, constructing check dams, restoring ponds and other natural water bodies as well as supporting agricultural water use efficiency improvements – such as laser leveling and drip irrigation. NGOs and local communities help our bottlers identify priority areas, implement projects and mobilize community members to ensure local input in project planning and assessment.

Source Quantity (KL) Percentage

Well water 54,08,935 65.17%

Municipal water 11,78,956 14.20%

Surface water 16,89,693 20.35%

Others 21,732 0.26%

Total 82,99,316 100% Water Balance (w.r.t. Total Water)

Water Balance (w.r.t. Ground Water)

0%

50%

100%

150%

200%

Water balance

Year Water Balance (w.r.t. total water used)

Water Balance

(w.r.t. ground water alone)

2008 51% 78%

2009 65% 93%

2010 90% 131%

2011 99% 151%

2012 118% 195%

2008 2009 2010 2011 2012

2008 2009 2010 2011 2012

Water use ratio (Litres/litre of beverage)

3.32

2.82.5

2.272.12

(2) Water use ratio – measured as the ratio of liters of water per liter of product produced (litres per litre of beverage), this indicates the efficiency of water use in our operations.

Water Use Ratio of 2.12 in the year 2012 represents a remarkable improvement of over 36% in the last 5 years. This stands testimony to our un-tiring efforts in the direction of minimization of water use and wastage.

Water reuse and treated wastewater discharge:

With respect to water use the 3R’s – Reduce, Recycle & Reuse – summarizes our approach. All our bottling plants have adequate facilities to treat the wastewater generated, and use it for secondary applications – such as gardening and toilet flushing. Any discharge outside our premises is as per valid consent from the local pollution control authorities.


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The Coca-Cola Company’s global standard for treated wastewater quality is confirmed by sustenance of aquatic life in the treated waste water.

1,64,007Treated

wastewater discharged to natural water

bodies

Treated wastewater destination

Volume in m3 (total in 2012)

30,82,348Wastewater

treated onsite

18,20,510Treated

wastewater recycled or

re-used (secondary

applications)

2,78,316Treated

Wastewater sent to Local

Treatment Plants for

further treatment

The following table summarizes the treated wastewater discharge and reuse across all bottling locations in the country.

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The Foundation for Rural Recovery & Development, (FORRAD) in collaboration with MANTHAN, has undertaken a ‘Drinking Water Project through Solar Powered Reverse Osmosis Technology’ in the villages of Sinodiya, Jhag, and Der ki Dani in District Ajmer and Mordikala and Solawata in District Jaipur, Rajasthan. The fabrication of the RO units has been undertaken by the

Central Salt & Marine Chemicals Research Institute. Each RO Unit is driven by 6 KW solar power generated through 72 panels and comprises of batteries, panels and an inverter. Each unit has an average production capacity of 700 litres of water per hour and is being run over a period of ten hours a day. This yields a daily output of 7,000 litres of drinking water a day.

Water replenishment projects undertaken by Anandana

Project SANTUSHTI: A Drinking Water Project in Sambhar Lake, Rajasthan

“We used to share the water at Dheera talaab (Dheera lake) with cows, goats and camels. When that water dried up in the summer we had to rely on the private tankers coming in from Bhilawat. When the

tankers came in, the rich had greater storage facilities for water and the poor much less – they only had a few pots. For the poor, water was

more valuable than gold. I used to watch the people coming in from the outside with pure water in litre bottles – water that only the rich could afford.

Now, in my village, I fill a 5000 litre tank with very pure water every single day and everyone gets to drink that water – the rich and poor.

As charity, rich people set up drinking water kiosks (pyaoos) for a few days in Baisakhi (for a period that lasts 15 days in April-May). Our pyaoo that we set up just outside our unit as a service to passersby offers clean water for all 365 days of the

year. This gives me the deepest joy.” – Raja Ma, RO unit operator, Jhaag

“Ever since I got married and came to Jhag, I remember going to Dheera talaab with pots on my head to get water. If water in Dheera talaab dried up, we had to go as far as Gudda (a village about 6 kms away from Jhag). This is my only memory as a newly-wed bride in the village. But now it is much easier. I go to fetch water from

the RO unit now. At least we know that we are drinking safe water…and the unit is close to my house as well.”

– Chhoti Devi, RO water user, Jhaag

“


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Under this project, Tilonia Shodh Evam Vikas Sansthan (TSVS, an independent NGO) identified the hills of Mandavaria and Paluna villages in Kishangarh and Jawaja blocks respectively, and constructed dams to harvest rainwater for recharging groundwater.

Jan Sunwayi of Paluna Dam, Rajasthan

10Beneficiary

villages

10,000 population

20,000cattle

150hand

pumps

40ponds

160openwells

Project NEERJAL: A Water Sustainability Project in Rajasthan

Mangiji recalls “year after year, droughts have become a curse on us. Unavailability of water has left our lands barren and infertile. Earlier I used to say we were cursed

because we were born in this area. Today I take my words back. These check dams constructed by TSVS with

Anandana have changed our destiny. Of course, not all our problems are solved, but now water has given us confidence and improved our chances of survival in this

bleak place. For the first time in many years, we are smiling.”Mangiji, a forty five year old lives in Mandavaria village of Ajmer District“


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The project area falls into the semi-arid zone of Rajasthan, with a yearly average of 460 mm of rain, and it experiences recurring droughts. Added to the problem of salinity is the presence of excess fluoride in drinking water in Rajasthan in general. People are left with the option of either drinking the contaminated water or buying water from privately-owned tankers. The population is largely agrarian and in the absence of adequate income from agriculture, is dependent on casual labour for income. Agricultural productivity is suffering immensely because of poor soil quality an lack of irrigation water, and people are increasingly unable to depend on farming for their livelihoods.

This project proposal addresses a long-term watershed development program that will eventually cover the entire catchment area around the

Project SANTUSHTI – II: A Watershed Project in Sambhar Lake, Rajasthan

Village Jhag

210MM Litres

Dam Storage capacity

5,500 populationbenefitted

181 MM litres

Dam Storage capacity

5,000populationbenefitted

Village Nosal

Sambhar Salt Lake. More specifically, it envisages the construction of 31 rainwater harvesting structures spread over 20 villages in Ajmer, Jaipur and Nagaur districts in the north-western state of Rajasthan. The total planned water storage capacity of these structures will be approximately 170 million liters. In all, around 110,000 people and 210,000 animals will directly benefit from this work.

Through this project, local people will also receive employment opportunities in the construction and on-going maintenance of watershed structures. Additionally, people will receive skills training in areas like watershed planning and water testing.

Till end of December 2012, we have completed 7 water harvesting structures in village Jhag, Nosal, Kotri, Bawli, Ringi & Habaspur.

Village Jhag Village Nosal


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Bundelkhand, known for its rich past, has now been identified as one of the most backward districts of India. The region experiences low agricultural yield, lack of other sustainable source of livelihood, depletion of natural resources and recurring natural calamity in the form of draught.

The Coca-Cola India Foundation, after successful execution of its first water sustainability project in Bundelkhand in 2010, replicated the model to reach out to more water-stressed villages in the

Project UNNATI – II: A Watershed Development Extension Project in Mahoba, Bundelkhand

region. HARITIKA, the local partner responsible for the implementation of the project, constructed ten additional water harvesting structures and facilitated provision of household water through piped water supply thereby benefitting 8670 people directly. These 10 dams together created a storage capacity of 149,676 m3 of water.

The Foundation, on completion of the second phase of the project, conducted social audit ensuring transparency of the whole initiative.


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The project area, district Banswara, is backward in terms of agricultural productivity, irrigation potential, education, health etc. The district is extremely poor and it has only 9.20 % of total area (20.56 % total arable land) under irrigation, which is very low as compared to other districts of the state. The Banswara district has lowest (40.78 %) rural literacy rate in the state. Also nearly 73.0 % of total rural households of Banswara District live Below Poverty Line (BPL). The district ranks 26th in Human Development Index (HDI) and 24th in Gender Development Index (GDI) out of 32 districts of the state.

Watershed area development is an approach for sustainability in which natural resources based and other allied activities are integrated for a common cause (development of the community). It is a holistic development of the geographical unit, which is termed as watershed, for socio-economic and ecological development using and regenerating natural resources.

The project is underway in all 20 villages of Kushalgarh taluka of Banswara district located in Rajasthan. In all, watershed activities would be

Project JALADHARA: A Watershed Development Project in Banswara, Rajasthan

undertaken on 3073 hectares of land covering 1961 households.

Activities undertaken in this project :

• SMC (Soil & Moisture conservation): SMC is the most and primary requirement of the watershed treatment. It includes CCT (Continuous Contour Trenches), SCT (Staggered Contour Trenches), WAT (Water Absorption Trench), Contour Bunds, Farm Bunding etc. These structures are constructed across the land slope and create a kind of obstruction against the runoff. This activity increases the soil moisture, reduces the soil erosion and helps to raise the ground water.

• Land Area treatment by Farm & stone bunding.

• dug-out Wells: Considering the irrigation and drinking water constraints of the farming community near our project area, efforts have been undertaken for well renovation (well deepening and lining). Significant increase in the water level and span of water availability has been observed as a result of this work.

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energy use from biomass as a percentage of total energy (primary and secondary energy combined) continued to be about 19.58% - which is similar to what was reported in the previous year.

Across all our bottling locations, we are making continuous efforts to reduce our direct and indirect energy consumption. We help bottlers in identifying and implementing on priority a certain number of projects for energy efficiency enhancement known as Top-10 Energy Conservation initiatives developed along with WWF.

At Coca-Cola we are conscious of our GHG emissions across our value chain and are moving towards integrated indicators for measuring our emissions. We define Energy Use Ratio as the amount of energy used for producing a litre of beverage. For the year 2012, the EUR was 0.79 MJ/L (as compared to 0.80 in the previous year).

The following table summarizes significant direct emissions from our operations.

30.16%Heavy Fuel Oil

35.42%Light Fuel Oil

4.22%Propane

1.10%Natural Gas

1.33%Other Bio

Fuel

27.77%Bio Mass

*Note: This quantity corresponds to refilling the refrigeration units; we have started recording this data across the system in 2012.

Gas Quantity (tons)

Carbon Dioxide (primary fuels) 34,492.28

N2O 2,635.86

Methane 0.47

CFC 98.68*

HCFCs 0.22

The consensus on climate science is increasingly unequivocal – global climate change is happening and man-made greenhouse gas emissions are a crucial factor. The implications of climate change for our planet are profound and wide-ranging, with expected impacts on biodiversity, water resources, public health, and agriculture.

Across the Coca-Cola system, we recognize that climate change may have long-term direct and indirect implications for our business and supply chain. As a responsible multinational company, we have a role to play in ensuring we use the best possible mix of energy sources, improve the energy efficiency of our manufacturing processes, and reduce the potential climate impact of the products we sell.

The direct energy consumption of the Coca-Cola system in India for the year 2012 was 2,192 Million Mega Joules; this represents an increase of about 11.8% from 1960 Million Mega Joules reported for the year 2011.

The table and graphic below represents the share of different fuels in our primary energy consumption.

We have been substituting fossil fuels with bio-mass (briquettes made of agricultural residue) as fuel. Electricity consumed constitutes indirect energy use; for the reporting period, electricity consumption stood at 1,092.52 Million MJ. This represents an increase of close to 39% from the corresponding figure for the previous year (785 Million MJ). Despite the increase in secondary energy consumption, the

Heavy Fuel Oil Light Fuel Oil Biomass Propane Natural gas Other bio-fuels

661,047,395 776,322,237 608,791,907 92,564,348 24,093,207 29,218,857

8.2 Reducing Carbon

We further estimate our indirect CO2 emissions (based on grid electricity consumption) to be about 222,862.57 tons.

We are also working on innovative measures to reduce our emissions across our value chain. We have come up with designs for HFC-free coolers; efforts will be scaled up in the future to increase the penetration of this cooler. Efforts are on to distribute HFC-free coolers to our retailers. Coca-Cola India has also pioneered ‘eKoCool’ – a cooler that runs on solar power (please refer the section on the 5by20 initiative for further details on eKoCool).

direct energy consumption (MJ)


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A pilot project, supported by the Foundation, has demonstrated as to how a community based approach to tap solar energy could enhance the quality of life in remote villages with no access to grid electricity. Under this project, the Social Action for Rural

CCIPL came up with an innovative solar powered cooler – the ‘eKOcool’ with the objective of making chilled beverages available to people in remote areas with limited or no grid power supply. This offers the retailer a winning edge in areas where no chilled beverages are available. The cooler also comes with a solar lantern port – enabling the retailers to keep their shops open after sunset, and helping increase business hours. The solar cooler also comes with a mobile charging dock which helps in increasing footfall in the shops. Therefore, the eKOcool units help increase income potential for the retailers in multiple ways. Currently, the cooler is being placed with women led retail establishments (under the 5by20 initiative).

The first model of eKOcool, which we have been distributing since May 2011, has the capacity to accommodate 2 crates of beverages (48 bottles of 200 ml each). The response to eKocool has been very

Advancement (SARA) lit 1000 households in 20 non-electrified small villages through imparting training to women in the fabrication of solar units. This project was successfully implemented in the states of Rajasthan and Bihar.

Non-conventional energy use projects undertaken by the Foundation

Project UJALA: Solar Lighting Project, Rajasthan & Bihar

eKOcool

The impact till now:

1000 households

electrified

20 women

empowered

20rural electronic

workshops established

4,645 villagers

benefitted

encouraging. Several retailers have indicated that sales at their outlets have significantly increased, since installation of eKOCool.

By end 2012, 300 eKOcool units have been installed. In addition to creating greater income potential for the women retailers, eKOcool also helps use solar energy rather than relying on traditional grid power. Going forward, CCIPL plans to develop a variant of eKOcool that has twice the capacity.


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The impact till now:

4,693 non-electrified

households provided solar

lighting

120 women

trained on fabrication and

maintenance of lanterns

5 schools

provided solar lighting

25,200 villagers

benefitted

Project JYOTI: Solar Lantern Project, Rajasthan

Anandana partnered with Mahila Sewa Trust, an initiative of Self Employed Women’s Association, to encourage production and use of solar lanterns. The project has successfully achieved its target of electrifying 2,193 households from 40 villages under Phase I and 2,500 from 59 villages under Phase II.

“With light from the solar lantern, I am able to clean grains, cook food and wash utensils without any problems. My kids now can study in the evenings. We also use

the lantern to charge our mobile phones. And with the money we saved by not buying kerosene, we recently bought a used cassette player. We are able to plug

this into our lantern and play some music for entertainment”.Lalita, a beneficiary of the Project“


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The packaging in which our beverages are served to our consumers need to help us preserve the quality of the beverage safely. There are four package forms in which our beverages reach the consumer – Recyclable Glass Bottles (RGB), PET bottles, Tetra-pack and Aluminum cans. In line with TCCC’s global aspirations, the system in India has been making a full-on effort to reduce and recycle the amount of material used in packaging. Over the years we have worked with our partners across the supply chain to identify opportunities to reduce the weight of packaging material. TCCC aims to source 25 percent of our PET from recycled or renewable materials by 2015. To help in this endeavor, TCCC came out with a revolutionary new packaging material in 2009 – the PlantBottle™. This material is made from sugarcane-based ethanol, designated as

an “Advanced Renewable Fuel” by the United States Environmental Protection Agency—so its manufacture has a lower environmental impact and does not consume agricultural resources that could otherwise be used for food production. Globally TCCC intends to use PlantBottle™ packaging for all of our PET plastic bottles by 2020. Since 2009, over 15 billion PlantBottle™ packages have been delivered to markets in 25 countries, including India. However, as of now the use of this material in India is not significant and will be scaled up in the coming years.

Our bottling partners use the services of authorized third party to recover and recycle packaging material. The following table provides a list of such packaging material and quantities recycled.

8.3 Recycling of Packaging Material

Packaging material Quantity recycled (tons)

Aluminum 64.83

Glass 23,749.72

PET 1,933.39

Caps 35.37

Others (plastic, metal and wood) 18,938.93

84% (by weight) of all the waste that was generated

within our bottling plants.

The Coca-Cola system in India recycled about


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The project shall help us manage a sustainable supply of mango fruit in the long term, enhance quality of the mango produce and improve livelihood for farmers including women farmers through training on ‘Good Agricultural Practices’ and ‘Ultra High Density Plantation (UHDP) technique’. The project scope is to impact 50,000 farmers (including 7,500 plus women farmers – please refer the section on ‘5by20’ for details) over 5 years. The plants would start yielding fruits from the 3rd year and shall be fully mature by 6th year, unlike traditional plantations where it takes 10 years for the saplings to fully mature. We plan to support the initiative for 5 years.

Project details

The program has a 2 pronged intervention for productivity improvement and to increase yield:

1. Promote adoption of UHDP technique through: a. Creating Demo Farms b. Imparting training sessions2. Impart GAP (Good Agricultural Practices)

Background

Maaza is the biggest fruit based juice brand in India, contributing to about 40% of India’s total volume. Totapuri and Alphonso are the two mango varieties which form the pulp input for Maaza Juice. Total demand for Totapuri Mango pulp is growing at 20% year-on-year whereas supply growth is 2%.

The project was set up after understanding grass root challenges and issues in mango cultivation, in close collaboration with the constituents of the Golden Triangle (Horticulture board, Farmer’s associations, Rural banks, Local government bodies and Agriculture universities), where in, Farmer Backward Integration emerged as a priority intervention to tackle low yield.

The Project

‘Project Unnati’ is our collaborative effort with our largest supplier of Mango Pulp - ‘Jain Irrigation’, who are also India’s largest and world’s second largest micro irrigation company, to facilitate a large scale farm intervention.

8.4 Sourcing Sustainably

Project Unnati

Progress in 2012

200demo farms created,

in more than 350 acres of farms in Chittoor (Andhra

Pradesh) on UHDP. We have subsidized the cost

of creating these demo farms in the farmers land.

Training Module with a live-

demo feature created and sessions being

conducted in mobile training classes under

the supervision of Coca-Cola University.

EnablingFacilities created.

Establishment of soil and water testing labs in

Chittoor.

2,000 farmers approximately

trained on ways of increasing their farm

yield.


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World Environment day

The World Environment Day was celebrated on 5th June 2012. We view W.E.D as another opportunity to reaffirm our commitment and to actively contribute towards the protection and preservation of the environment. Our bottling plants and other associates were involved in the following activities:

• Oath taking ceremonies (on preservation of environment) within plant premises

• Plantation of saplings in the vicinity of plants• Activities focused on environmental clean-up in

the vicinity of plants• Drawing/poster making/quiz competition/

debates in schools • Rallies focused on environmental themes

World Water day (22nd March 2012)

For the year 2012, UN Water and the Food and Agriculture Organization (FAO) unveiled the theme ‘Food and water security’. Following activities were undertaken at our bottling units.

• Dedication of water conservation projects for communities

• Go-live of water efficiency projects in plants• Community engagement drives and events for

awareness creation including – tree plantations, rallies, audio-visual presentations, quiz/painting competitions for students etc

Celebrating the environment

We celebrated the World Environment Day and the World Water Day with enthusiastic participation from our employees and bottler across the country. We strive to use such occasions as platforms for creating awareness in the community; such occasions provide us with an excellent opportunity to engage with stakeholders as well as to communicate our approach towards sustainable development.


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Indicator Section reference Extent of ReportingSection

NameSection Number

Strategy and Analysis

1.1 Strategy and analysis Message from the President and CEO

1 Full

1.2 Description of key impacts, risks and opportunities Message from the President and CEO

1 Full

Organizational Profile

2.1 Name of the organization Introduction to the Coca-Cola System

2.1 Full

2.2 Primary brands, products or services Full

2.3 Operational structure of the organization Full

2.4 Location of organization’s headquarters Full

2.5 Number of countries where organization operates Full

2.6 Nature of ownership and legal form Full

2.7 Markets served (geographic/types of customers) Full

2.8 Scale of the reporting organization Full

2.9 Significant changes during the reporting period None Full

2.10 Awards received in the reporting period Awards and recognitions 2.3 Full

Report Parameters

3.1 Reporting period About this report Page 1 Full

3.2 Date of most recent report Report for the year 2011, published in 2012

N.A Full

3.3 Reporting cycle About this report Page 1 Full

3.4 Contact point for questions regarding the report About this report Page 1 Full

3.5 Process for defining report content About this report Page 1 Full

3.6 Boundary of the report About this report Page 1 Full

3.7 Scope limitations About this report Page 1 Full

3.8 Reporting of activities not under operational control About this report Page 1 Full

3.9 Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report

Explained under the various sections where data has been provided

N.A Full

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/ periods, nature of business, measurement methods)

This report contains no restatements

N.A Full

3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report

Nil N.A Full

3.12 Table identifying the location of the Standard Disclosures This table (Appendix 1) N.A Full

3.13 Assurance approach No external assurance has been obtained for this report

N.A Full

9. Appendix: GRI Content Table


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NameSection Number

Governance, Commitments and Engagement

4.1 Governance structure of the organization Governance and Ethics – Committees under the board

3.1 Full

4.2 Indicate whether the Chair of the highest governance body is also an executive officer

Full

4.3 Independent board members Full

4.4 Mechanisms for shareholders and employees to provide recommendations

Governance and Ethics – Systems to ensure and monitor Ethical Conduct

3.2 Full

4.6 Processes in place to avoid conflicts of interest Governance and Ethics – Systems to ensure and monitor Ethical Conduct

3.2 Full

4.8 Mission, values, codes of conduct and principles Mission, Vision and Values,

2.2, 3.2 Full

4.9 Procedures for board overseeing management of economic, environmental and social performance


3.1 Full

4.12 Endorsement of charters, principles or other initiatives External Sustainability commitments

2.4 Full

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy in relevant organizations

Full

4.14 List of stakeholder groups engaged by the organization Stakeholder consultation 4 Full

4.15 Basis for identification and selection of stakeholders with whom to engage

Full

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Full

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Economic

FP1 Percentage of purchased volume from suppliers compliant with company's sourcing policy.

Respect human & workplace rights – Human rights in procurement practices

7.3 Full

FP2 Percentage of purchased volume which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard.


7.3 Full

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change

World – Environmental Well-being (Reducing Carbon)

8.2 Partial

EC3 Coverage of the organization’s defined benefit plan obligations.

Respect human & workplace rights – Human Capital

7.3 Full

EC4 Significant financial assistance received from government Nil N.A Full

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation


7.3 Full

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation


7.3 Full


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NameSection Number

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation


7.3 Full

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

1. Strengthening Community Foundations

1.2. Empower Women

7.2, 7.1 Full

Environmental

EN3 Direct energy consumption by primary energy source. World – Environmental Well-being (Reducing Carbon)

8.2 Full

EN4 Indirect energy consumption by primary source. Full

EN5 Energy saved due to conservation and efficiency improvements.

Partial

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

Partial

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

Partial

EN8 Total water withdrawal by source. World – Environmental Well-being (Replenish water)

8.1 Full

EN9 Water sources significantly affected by withdrawal of water. Partial

EN10 Percentage and total volume of water recycled and reused. Full

EN11 Location and size of land or waters owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Not applicable N.A

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Not applicable N.A

EN13 Habitats protected or restored. Not applicable N.A

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

Not applicable N.A

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk

Not applicable N.A

EN16 Total direct and indirect greenhouse gas emissions by weight. World – Environmental Well-being (Reducing Carbon)

8.2 Full

EN17 Other relevant indirect greenhouse gas emissions by weight. Full

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Full

EN19 Emissions of ozone-depleting substances by weight. Full

EN20 NO, SO, and other significant air emissions by type and weight. Full

EN21 Total water discharge by quality and destination. World – Environmental Well-being (Replenish Water)

8.1 Full

EN22 Total weight of waste by type and disposal method World – Environmental Well-being (Recycling packaging material)

8.3 Partial

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

World – Environmental Well-being (Replenish Water, Reducing Carbon & Recycle Packaging)

8.1, 8.2, 8.3

Full

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

World – Environmental Well-being (Recycling packaging material)

8.3 Partial


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NameSection Number

Labor Practices and decent Work

LA1 Total workforce by employment type, employment contract, and region.

Respect human & workplace rights (Human Capital)

7.3 Full

LA2 Total number and rate of employee turnover by age group, gender, and region.


Full

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.


Full

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.

Respecting Human and workplace rights

7.3 Full

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Local community initiatives

7.2 Full

LA10 Average hours of training per year per employee by employee category.


7.3 Full

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings,

Full

LA12 Percentage of employees receiving regular performance and career development reviews.

Full

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group members

Partial

LA14 Ratio of basic salary of men to women by employee category. Full

Human Rights

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

Respect human & workplace rights

7.3 Partial

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Partial

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Partial

HR4 Total number of incidents of discrimination and actions taken.


7.3 Partial

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.


7.3 Partial

HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

Partial

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.

Partial

HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations.

Full

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.

Not applicable N.A


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NameSection Number

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.


7.3 Partial

Society

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

We- Environmental Wellbeing (Replenish water – SVA)

8.1 Partial

SO2 Percentage and total number of business units analyzed for risks related to corruption.


3.2 Full

FP4 Nature, scope and effectiveness of any programs and practices (in-kind contributions, volunteer initiatives, knowledge transfer, partnerships and product development) that promote healthy lifestyles; the prevention of chronic disease; access to healthy, nutritious and affordable food; and improved welfare for communities in need.

1. Promote active healthy living

2. Nutrition3. Strengthening

Community Foundations

4. Replenish water5. Reducing Carbon

6.46.17.28.18.2

Full

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures.


3.2 Full

SO4 Actions taken in response to incidents of corruption. Partial

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

No aid given for political purposes

N.A

Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

1. Nutrition2. Product Safety and

Quality3. Responsible

Marketing

6.1 Full

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

1. Product Safety and Quality

2. Responsible marketing

6.2 6.3

Partial

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Responsible marketing 6.3 Full

FP5 Percentage of production volume manufactured in sites certified by an independent third party according to internationally recognized food safety management system standards.

Product Safety and Quality

6.2 Full

FP6 Percentage of total sales volume of consumer products, by product category, that are lowered in saturated fat, trans fats, sodium and sugars.

Nutrition 6.1 Partial

FP8 Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements.


PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Consumer Engagement and satisfaction

6.3 Full

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.


PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Consumer Engagement and satisfaction

6.3 Full

Neelima KhetanGM, Public Affairs and CommunicationsE-mail: [email protected]

Coca-Cola India Pvt. Ltd.Enkay Towers, Udyog Vihar Phase 5, Gurgaon - 122016, Haryana, India

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