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

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

Target: Ensure that 100% of our key agricultural ingredients are certified by utilising third party standards.

For a full compliance with our SAGP, 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.

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 ensure and maintain the best service and stop working with suppliers who fail to comply with our requirements. We assess all our Critical Suppliers on an annual basis while covering > 90% of the total procurement spend.

Proportion of spend on local suppliers at significant locations of operation

Target: Total Coca‑Cola HBC procurement spend on suppliers was more than Eur 3.2 bn in 2018. 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.

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.