Sourcing

Sourcing

 

THE SUSTAINABLE SOURCING OF OUR RAW MATERIALS ACCOUNTS FOR A LARGE PORTION OF OUR ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACT

Therefore, the behaviour of our suppliers directly impacts the sustainability performance and commitments of our business.

 

Mission 2025 sustainability commitment

  • Source 100% of key agricultural ingredients in line with sustainable agricultural principles.

 


Sustainability Key Performance Indicators (KPIs) and Targets

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Key agricultural ingredients to be compliant with our Sustainable Agricultural Guiding Principles by 2025

Target: Ensure that 100% of our key agricultural ingredients (Sugar, HFSS & Juices fruit crops) are certified by utilising third party standards.

Coca-Cola HBC does not have a direct connection to the farms for the production of agricultural ingredients. This means we are not in a position to engage directly into farm level initiatives that are promoting all aspects of sustainable agriculture. Instead, we rely to 3rd party assessment bodies to engage with our Suppliers on farm level and provide specialist support and subsequent appropriate accreditation.

Assurance mechanisms: Suppliers of agricultural-based ingredients or materials have the obligation to report annually on their supply volume alignment to the PSA and continuous improvement programs. Suppliers are responsible for ensuring that all information provided to the Coca-Cola HBC is accurate and complete. Supporting evidence, including third-party independent assessments and certifications and other documentation that reasonably supports the responses and claims are available on request.

Compliance: Adhering to the requirements of certifications and standards necessitates implementation of the respective standards principles and criteria. Compliance with these standards is assessed through an assurance system of independent verification or certification organizations.

For a full compliance with our PSA, we will require our agricultural suppliers to be assessed and certified in accordance with third-party standards, such as SAI FSA, ISCC Plus, BONSUCRO, REDcert2, Rainforest Alliance, FairTrade International, Global GAP+GRASP, Global GAP+FSA Add-On, UNILEVER SAC etc.

Important to highlight is that for Coca-Cola HBC manufactured products we only have Sugar, HFSS and Juices (Fruit crops) as agricultural ingredients falling under the PSA principles and also Paper for our secondary packaging (cartons).

Any agricultural ingredients associated with Finished Goods are assessed as part of the commercial agreements for sustainability practices amongst others, before being accepted for distribution by Coca-Cola HBC.   

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Supplier Performance Assessment for Critical Suppliers

Target: The Annual Performance Assessment of our Suppliers to cover min 90% 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 Critical Suppliers directly impacts our business and sustainability performance. Through the evaluation and comparison of Critical Supplier performance, we can achieve the best service, work with suppliers to improve in their overall performance and ensure compliance with our requirements.

We assess the performance of all our Critical Suppliers on an annual basis while covering > 90% of the total procurement spend. 

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Proportion of spend on local suppliers at significant locations of operation

Target: Total Coca‑Cola HBC procurement spend on suppliers was more than Eur 3.6 bn in 2021. 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 spending to be on local suppliers in our countries of operation.

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Suppliers to accept our Supplier Guiding Principles (SGP)

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). 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.