Materiality

Materiality

MATERIAL ISSUES

Our material issues are those that matter most to our stakeholders and broader shareholder groups, and subsequently impact the Company’s value drivers, competitive position and long-term value creation.

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ANNUAL MATERIALITY ASSESSMENT

We assess our material issues annually to fully understand how to manage the risks and opportunities they present. This ensures that we prioritise the issues that have the greatest impact on the economy, society and the environment.

Our annual materiality assessment, is carried out in four phases by our cross-functional Mission 2025 Team:

  • identify material issues;
  • assess impact on or importance to stakeholders;
  • assess impact on society and environment;
  • review and validate findings.

The steps to ensure that management of material issues is successfully embedded in our strategy and operations are carried out by three groups within the Company.

  • The Mission 2025 Team assesses the list of material issues and ensures that our sustainability approach is fully aligned with our business priorities; 
  • The Social Responsibility Committee of the Board of Directors subsequently endorses the prioritised list of issues and the resulting materiality matrix; 
  • Finally, it is the responsibility of the Executive Leadership Team (ELT) to integrate our sustainability priorities into our business strategy.

To support our annual materiality assessment, we conduct an ongoing dialogue with our stakeholders, including employees, consumers, customers, suppliers, communities, governments, non-governmental organisations, investors, trade associations and academics. In addition, we monitor external trends, other industries and peer company’s materiality analysis and how these affect our ability to grow our business sustainably over time.

Our systematic materiality assessment process helps us prioritise the issues in line with the GRI Standards. The issues are interconnected and should not be viewed as separate items.


LEARNING FROM OUR STAKEHOLDERS

Understanding the needs and interests of our stakeholders – including our partners, customers, suppliers and community members and employees – helps us to prioritise our material issues. This in turn helps us develop sustainable business strategies, enabling us to create value in the long term.

We actively seek out our stakeholders’ opinions and insights by:

  • Organising an annual stakeholder forum; 
  • Interviewing key internal decision makers and external partners;
  • Engaging with external stakeholders on an ongoing basis;
  • Surveying our senior leaders from each function, country and the Group as well as more than 600 external stakeholders nominated by our 29 markets and the Group Corporate Office;
  • Considering the material issues list of The Coca‑Cola Company and other bottlers as well as other food and beverage companies;
  • Listening to feedback from our Group Risk Forum and all Risk registers of our markets.

Managing our material issues

The outcome of our material issues survey constitutes a ranking order of material issues. By assessing the importance of these issues to our stakeholders and their decision, combined with an assessment of the impact of the issue on society and environment, we derive the relative materiality of each issue and prioritise them accordingly. Following the process of prioritising our material issues, the Executive Leadership Team (ELT) ensures their proper implementation in our overall strategic framework. This includes setting and disclosing targets and metrics to measure progress.

We have linked our material issues to the Sustainable Development Goals (SDGs), established by the UN to achieve long-term growth and development by 2030. In 2018, when introducing Mission 2025 with our sustainability commitments, we aligned our materiality topics not only with the applicable goals, but with all relevant underlying targets for each SDG.



Our material issues are linked to the Mission 2025 sustainability commitments and the UN’s Sustainable Development Goals (UN SDGs) and their targets

 

ALIGNING OUR MATERIAL ISSUES

Alignment with SDGs
  • 8.4 - Improve global resource efficiency in consumption and production
  • 9.4 - Increase resource-use efficiency and adopt clean and environmentally sounds technologies and industrial processes
  • 11.6 - Reduce the environmental impact of cities, paying attention to air quality and waste management
  • 12.1 - Implement programmes on sustainable consumption and production
  • 12.2 - Sustainable management and efficient use of natural resources
  • 12.5 - Reduce waste generation through prevention, reduction, recycling and reuse
  • 14.1 - Prevent and reduce marine pollution
  • 17.7 - Encourage and promote effective cross-sector partnerships

2025 sustainability commitments

  • 100% of consumer packaging to be recyclable
  • 35% of total PET used from recycled PET and/or PET from renewable material
  • 20 – Engage in 20 Zero Waste partnerships (city and/or coast)
  • 75% help collect the equivalent of 75% of our primary packaging

Alignment with SDGs

  • 6.1 Achieve universal and equitable access to safe and affordable drinking water
  • 6.4 Increase water use efficiency across all sectors and address water scarcity
  • 6.5. Implement integrated water resources management
  • 6.6. Protect and restore water-related ecosystems
  • 9.4. Increase resource-use efficiency and adopt clean and environmentally sound technologies and industrial processes
  • 11.6. Reduce the environmental impact of cities, paying attention to air quality and waste management

2025 sustainability commitments*

  • 20% water reduction in plants located in water-risk areas
  • 100% help secure water availability for all our communities in water-risk areas

Alignment with SDGs

  • 3.4 Promote mental health and wellbeing
  • 9.4. Increase resource-use efficiency, and adopt clean and environmentally sound technologies and industrial processes
  • 12.7. Promote sustainable, public procurement practices
  • 12.8. Ensure information and awareness for sustainable development and lifestyles in harmony with nature

2025 sustainability commitments

  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles
  • 25% reduce calories per 100ml of sparkling soft drinks (all CCH countries)

Alignment with SDGs

  • 7.2 Increase the share of renewable energy
  • 7.3 Improvement in energy efficiency
  • 9.4. Increase resource-use efficiency, and adopt clean and environmentally sound technologies and industrial processes
  • 11.6. Reduce the environmental impact of cities, paying attention to air quality and waste management
  • 12.2 Sustainable management and efficient use of natural resources
  • 13.1 Strengthen resilience and adaptive capacity to climate-related hazards

2025 sustainability commitments

  • 30% reduction in carbon ratio in direct operations
  • 50% increase in energy-efficient refrigerators to half of our coolers in the market
  • 50% of our total energy from renewable and clean sources
  • 100% total electricity used in EU&CH from renewable and clean energy

Alignment with SDGs

  • 12.1 Implement programmes on sustainable consumption and production
  • 16.5 Substantially reduce corruption and bribery
  • 17.14 Enhance policy coherence for sustainable development
  • 17.17 Encourage and promote effective cross-sector partnerships

Alignment with SDGs

  • 5.5 Ensure women’s full and effective participation and equal opportunities
  • 8.5 Achieve full and productive employment and decent work for everyone
  • 8.8 Protect labour rights and promote safe and secure working environments
  • 10.2 Empower the social, economic and political inclusion of all
  • 10.4 Adopt policies and achieve greater equality
  • 16.7 Ensure inclusive, participatory and representative decision-making

2025 sustainability commitments

  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles
  • ZER0 target zero fatalities and reduce (lost time) accident rate by 50%
  • 1 MIL train 1 million young people through #Youth Empowered
  • 50% of managers are women

Alignment with SDGs

  • 3.4 Promote mental health and wellbeing
  • 12.8. Ensure information and awareness for sustainable development and lifestyles in harmony with nature

2025 sustainability commitments

  • 25% reduce calories per 100ml of sparkling soft drinks (all CCH countries)

Alignment with SDGs

  • 4.3 Ensure equal access to affordable and quality education
  • 4.4 Increase the number of youth and adults with relevant job skills
  • 8.6 Reduce the proportion of youth not in employment, education or training
  • 11.6. Reduce the environmental impact of cities, paying attention to air quality and waste management
  • 17.16 Enhance the Global Partnership for Sustainable Development
  • 17.17 Encourage and promote effective cross-sector partnerships

2025 sustainability commitments

  • 10% community participants in first-time managers’ development programmes
  • 1 MIL train 1 million young people through #Youth Empowered
  • 20 engage in 20 Zero Waste partnerships (city and/or coast)
  • 10% of employees take part in volunteering initiatives

Alignment with SDGs

  • 1.1 Eradicate extreme poverty
  • 8.4 Improve global resource efficiency in consumption and production
  • 8.5 Achieve full and productive employment and decent work for everyone
  • 8.6 Reduce the proportion of youth not
  • 11.6. Reduce the environmental impact in employment, education or training of cities, paying attention to air quality and waste management
  • 12.2 Sustainable management and efficient use of natural resources
  • 12.7. Promote sustainable, public procurement practices
  • 17.13 Enhance global macroeconomic stability

2025 sustainability commitments

  • 100% help secure water availability for all our communities in water-risk areas
  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles
  • 10% community participants in first-time managers’ development programmes
  • 1 MIL train 1 million young people through #Youth Empowered
  • 20 engage in 20 Zero Waste partnerships (city and/or coast)

Alignment with SDGs

  • 3.4. Promote mental health and wellbeing
  • 3.6. Halve global deaths and injuries from road traffic accidents
  • 8.5 Achieve full and productive employment and decent work for everyone
  • 5.5 Ensure women’s full and effective participation and equal opportunities
  • 10.2 Empower the social, economic and political inclusion of all
  • 10.4 Adopt policies and achieve greater equality
  • 16.7 Ensure inclusive, participatory and representative decision-making

2025 sustainability commitments

  • ZER0 target zero fatalities and reduce (lost time) accident rate by 50%
  • 50% of managers are women
  • 10% community participants in first-time managers’ development programmes
  • 10% of employees take part in volunteering initiatives
  • 1 MIL train 1 million young people through #Youth Empowered

Alignment with SDGs

  • 8.3. Encourage the growth of micro-, small- and medium-sized enterprises
  • 12.1 Implement programmes on sustainable consumption and production
  • 12.2 Sustainable management and efficient use of natural resources
  • 12.4 Achieve environmentally sound management of chemicals and all wastes
  • 12.6. Encourage companies to adopt sustainable practices and to integrate sustainability information into reporting
  • 12.7. Promote sustainable, public procurement practices
  • 9.4. Increase resource-use efficiency, and adopt clean and environmentally sound technologies and industrial processes
  • 13.1 Strengthen resilience and adaptive capacity to climate-related hazards

2025 sustainability commitments

  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles

Alignment with SDGs

  • 12.6. Encourage companies to adopt sustainable practices and to integrate sustainability information into reporting
  • 12.8. Ensure information and awareness for sustainable development and lifestyles in harmony with nature

2025 sustainability commitments

  • 17.17 Encourage and promote effective cross-sector partnerships
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Natural Capital Impact Valuation study

Natural Capital is the stock of renewable and non-renewable natural resources that combine to yield a flow of benefits to people (reference: Natural Capital Coalition).

To understand our impact, we used the methodology of the Natural Capital Protocol, and evaluated our environmental impact across our entire value chain.

Our study translates Life Cycle Analysis (LCA) indicators into a monetary value.

Final impact is the cost that society bears as a result of our activities in the value chain.
 


Twelve Environmental Externalities Were Evaluated

No.

Indicator   
Units of Measure
Short Description
1
 
Aquatic ecotoxicity EUR/kg TEG The valuation factor is based on aquatic ecotoxicity's contribution to a loss of biodiversity measured in potentially disappeared fraction of species (PDF) over a certain area over a certain time (PDF.m2.yr). The IMPACT2002+ method is used to convert from TEG to PDF.
2
 
Aquatic eutrophication EUR/kg PO4 eq. The valuation factor is based on aquatic eutrophication's contribution to a loss of biodiversity measured in potentially disappeared fraction of species (PDF) over a certain area over a certain time (PDF.m2.yr). The IMPACT2002+ method is used to convert from PO4 to PDF.
3
 
Climate change/Global warming EUR/kg CO2-eq The valuation factor is based on the Social Cost of Carbon (SCC), which assess the future economic costs linked to climate change. 
4
 
Non-renewable energy EUR/MJ The valuation factor is assessing how much economic costs the society pays when non-renewable resources are depleted. The fact that they are not renewable and that they become scarcer represents a loss of value for the society. This specific estimate quantifies the marginal cost increase of oil production due to its increase scarcity at long term.
5
 
Carcinogens EUR/kg C2H3Cl-eq The emission of toxic substances affects ecosystems and humans. The base method to assess both those impact is the same and is derived from the Life Cycle Impact Assessment method called Impact2002+. This method allow to quantify this impact both on humans' health and ecosystems per pollutant, covering more than 10'000 different ones.
For human health, the impact is measured in Disability Adjusted Life Years (DALY, a common unit of human health introduced by the World Health Organisation) and then translated into monetary value using the value of life, which has been estimated using the productive value of life (i.e., this is a low estimate compared to other methods such as the statistical value of life, SVL). This DALY value is equivalent to the global GDP per capita provided by the World Bank. The valuation factors shown is for the reference pollutant that is considered for both indicators. All pollutant toxicity and impact is compared to this reference substance to be able to express each pollutant contribution to the final impact in the same unit.
6
 
Non-carcinogens EUR/kg C2H3Cl-eq
7
 
Ionizing radiation EUR/BqC-14-eq Ionizing radiation measured the health impact of the emission of radionuclides that can cause damage to the DNA. Measured in Becquerel (BqC-14-eq), it is based on the IMPACT2002+ method and translated into DALY which are valued according to the description included in the human toxicity indicator.
8
 
Ozone layer depletion  EUR/kg CFC-11-eq Ozone layer depletion measures the human health impact of increased UV-B radiation that occurs as a result of ozone layer destruction. It is based on the IMPACT2002+ method translated into DALY which are valued according to the description included in the human toxicity indicator.
9
 
Photochemical oxidation  EUR/kg C2H4-eq Photochemical oxidation measures the health impacts of smog due to the emission of Non-Methane Volatile Organic Compounds (NMVOC), based on the IMPACT2002+ method and translated it into DALY which are valued according to the description included in the human toxicity indicator.
10
 
Respiratory effects  EUR/kg PM2.5 This cost represents the health damage that emission of fine particulates creates for humans. It is based on a range of studies linking air quality to health damage costs measured in DALY. The valuation is based on the valuation of DALY as described in the human toxicity indicator description.
11
 
Land occupation  EUR/m2a Land use is associated to the following ecosystem services: biotic production (fertility), carbon storage, erosion control, water filtration and groundwater recharge potential. The changes of ecosystem services is measured using international databases and published scientific literature. The change is measured between the natural state of the land and the occupation type (agriculture, commercial forest, building, etc.). Data is available at country level and for key biomes, which allows for a partial regionalization of the valuation factors. The valuation technique uses the damage or replacement cost approach (how much does it cost to replace the ecosystem service, or how much does the loss of ecosystem service cost for society).
12
 
Water consumption  EUR/m3 The cost of water depletion is calculated using the valuation tool of the Natural Capital Finance Alliance. It is a regionalized dataset of costs which are calculating accounting for the scarcity level of each location and the related potential damage costs that this water scarcity creates. 



Coca‑Cola Hellenic Natural Capital Impact Valuation study
 

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