Sourcing

Target: The Annual Screening of our Suppliers to cover min 95% of total Procurement Spend.

At Coca‑Cola HBC, we are committed to high standards of performance and our suppliers and partners play a critical role in ensuring that we deliver in accordance with these standards. As an important part of our value chain, the performance of our Significant Suppliers directly impacts our business and sustainability performance. Through the evaluation and comparison of T1 Supplier performance, we can achieve the best service, work with suppliers to improve in their overall performance and ensure compliance with our requirements.

We screen the performance of all our Critical Suppliers on an annual basis while covering over 90% of the total procurement spend and over 95% of total T1 suppliers.

Target: Of all Tier 1 Suppliers, we place special focus on Significant Tier 1 and T2 suppliers. As of 2022 we have introduced a new Target to assess on annual basis at least 80% of our Significant Suppliers (target revised by 30ppt vs. PY).

T1 Suppliers are directly assessed by Coca-Cola HBC, while Tier 2 suppliers are managed by the respective Tier 1 and the results are reported back to us. 

Target: Total Coca‑Cola HBC Procurement Addressable Spend on Suppliers just over Eur 5.3bn in 2023. Our practice is to source locally, provided that goods and services are available to meet our requirements and quality standards in an economically viable way. We target over 95% of our Procurement addressable spending to be on local Suppliers in our countries of operation.

Target: The sustainable sourcing of our raw materials accounts for a large portion of our economic, environmental and social impact. The behaviour of our suppliers directly impacts the sustainability performance and commitments of Coca‑Cola HBC.

We require all suppliers to adhere to the ethical standards, employment and human rights practices, and environmental and work safety requirements prescribed in our Supplier Guiding Principles (SGP).

A prerequisite to become listed as a Coca‑Cola HBC new supplier is to commit to the Coca‑Cola HBC Supplier Guiding Principles, as well as, to the extent these apply to supplier, Coca‑Cola HBC Code of Business Conduct and Anti-Bribery Policy. These Policies make clear the values and behaviour we expect and audit in our value chain.

We aim to achieve 100% of our suppliers adopting our SGP, utilising our "SGP Coverage Triangle" with three checkpoints throughout the procure-to-pay process, available on our website Coca- Cola HBC Supply Chain under “OUR SUPPLIERS” section.

Target: On Annual basis we aim to have 80% of our Significant Suppliers (including T1 and T2) to be under corrective action support and capability building programs (target revised by 30ppt vs. PY)

In 2023 we have achieved the following results:

• 88.8% of Significant suppliers (T1 & T2) assessed with substantial actual/potential negative impacts were supported in corrective action plan implementation (+21% vs PY).

• 97.0% of Significant suppliers (T1 & T2) were participating in capacity building programs (+43.3% vs PY).

We aspire our Supplier to improve their ESG performance on y-o-y basis. More information are available on our website Coca- Cola HBC Supply Chain under “ OUR SUPPLIERS“ & “CAPACITY BUILDING PROGRAMS” section.