In October 2021, we committed to achieving net zero emissions across our entire value chain by 2040. To address the 90% of emissions in Scope 3 resulting from third party actions, we have broadened our existing partnership approach with suppliers.
To this respect the Procurement Function initiated back in 2021 our work together with our key packaging partners Crown, Ball and TetraPak on our mutual 2030 science-based greenhouse gas emission reduction targets and longer-term net zero aspirations. Moreover, we launched further collaboration with additional critical suppliers, reflecting our joint commitment to reduce emissions efficiently in an accelerated manner together with the Coca-Cola System.
In Coca-Cola HBC we have developed further in 2022 the collaborative framework with our key GHG generating Suppliers across the Coca-Cola System to calculate emissions using the Supplier-Specific method (SSEF). This involves gathering suppliers’ collect operational activity data, identifying the right emissions factor(s), and converting the activities to CO2e. Engaging with suppliers directly poses a number of challenges to the reporting organisation in terms of resource and cost. This is why it is crucial to understand which sources of scope 3 emissions are material, and therefore which represent opportunities for reduction. To this respect, together with TCCC and other System bottlers we have prioritised Sugar, HFCS, PET, Aluminium, Glass. This effort is supported by a specialist consultancy, IFEU, that has developed appropriate questionnaires for each raw and packaging category in scope and a 3rd party Assurance company, E&Y.
So far, we have engaged with 20 key pilot Suppliers, representing all the categories above and have almost concluded the collection of primary data. The joint effort has offered us a lot of learnings on the challenges and opportunities, and we have already created a plan for 2023 to engage further System Suppliers to join the SSEF journey.
In addition to potentially creating more accurate data through SSEF creation, capturing supplier information directly ensures that suppliers can become educated and engaged in the emissions calculation process. It also provides TCCC and Coca-Cola HBC with a means to assist the supplier organisation in their own environmental reporting and to collaborate on ways to reduce emissions related to their commercial relationship and beyond.
Our efforts to leverage the learning curve of our suppliers in GHG management, resulted in our decision as a System to join Supplier Leadership on Climate Transition collaborative (SLoCT), an initiative dedicated to mentor and train suppliers in emissions reduction strategies.
SLoCT mobilizes collective climate action by providing suppliers with resources, tools, and knowledge to support their own climate journeys. SLoCT has three primary components:
- An educational seminar series
- Supplier maturity scoring, with four levels of recognition
- A monthly check-in to drive dialogue for brands
Transport distances play an important role and through our local sourcing strategy are optimized. As an example, for sugar in the following countries that there is local sugar production & enough capacity i.e., Austria, Bosnia, Czech, Poland, Serbia, Romania, Russia, Ukraine, Belarus, Nigeria, Switzerland, Bulgaria we source from the country. For other EU countries, where they have no sugar production, or the capacity of production is limited we source from the closest and most cost-efficient sources within the EU. Similar approach we apply for Juices production. This way we also achieve to reduce CHG emissions for the transport of Ingredients and other direct materials.
Our cans are among the lightest in the market and within the Coca-Cola System we have already gained benchmark status between Bottlers for can-weight optimisations. BALL, one of our strategic partners that supplies over 25% of our total can volume and one of our key pilot collaborators in the development of a joined roadmap for the reduction of Scope 3 emissions, has introduced the use of renewable electricity for all of their cans supplied to CCH in Europe, contributing to the reduction of Scope 3 emissions by more than 9,000 metric tons. Also with BALL support, CCH we further light-weighted 25cl aluminium cans cutting approx. 370 metric tons of CO2 emissions per year, bringing additional value to our supply chain that already works on the most sustainable can body supplied in the market.
In the field of Secondary Packaging, in Poland, we piloted a new stretch film developed by Megaplast, named Delta GP, which resulted in the reduction of stretch film usage by 40%, representing 26 tons of reduced plastic and translating into 50 tons of CO2 emissions reduction. The pilot indicated that this new technology is also offering better pallet stability, faster production times and solid compatibility with existing machinery. Coca-Cola HBC Polska won the “Golden Innovation Retail 2022” award for Stretch Fibre Film Delta GP implementation and in 2023 we shall expand the pilot further in our Poland plants but also share this with our System colleagues for more extended application.
In Greece, with the support of TetraPak, we have introduced plant-based packaging and bio tethered closures complying with the SUP Directive, for the aseptic fibre packaging of the AMITA product line, achieving 590 tons of materials and respectively 1028 tons of CO2 emissions reduction.
We are focused to continuously improve our coolers operation, so we tested successfully in 2022 and will introduce within the second half of 2023 a new cooling technology that cut energy consumption by >40% resulting in ca. 3,000 MWh energy saving per year on cooler operation for our customers once transition is completed.
In collaboration with our Logistics experts, we aim to transform our passenger vehicle choices and enhance fleet options by introducing an extensive range of fully electric and other alternative power trains such gas and (plug-in) hybrids as part of our solid plans to continue with our GreenFleet initiative across Coca-Cola HBC as part of a 5-year plan to reduce the number of ICE Fleet vehicles and replacing with EV from 80% in 2021 to 28% in 2025. In 2022 we achieved 7% reduction, resulting in 120 tons emissions less. Interesting examples of such activities are the introduction of new Mercedes Actros BEV truck in Switzerland for distribution in city centre areas; the routing and capacity optimisation of trucks in Ireland that help reduce number of trips needed, the elimination of “empty” truck routes in North Macedonia. The efforts also expand under Material Handling Equipment Vehicles (MHE) such as the example of 90% of Czech and Slovakian MHE fleet focusing on maximum utilization of LION technology from 0% to 59% of total MHE fleet resulting in 40 tons of emissions reduced in 2022 and reaching 198 tons within the 5-year use-cycle.
More examples of key joint activities with Strategic Vendors can be found under the 2022 GRI Content Index, Section 2-6 “Activities, value chain and other business relationships”.
