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Sustainability Report2011

Neelima KhetanGM, Public Affairs and Communications

E-mail: [email protected]

Coca-Cola India Pvt. Ltd.Enkay Towers, Udyog Vihar Phase 5, Gurgaon - 122016, Haryana, India

Coca-Cola India

SustainabilityReport 2011

Coca-Cola India Sustainability Report 2011

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About this Report

Our 2011 Sustainability Report is based on the GRI 3.1 framework and uses the GRI Food Processing Sector Supplement with its G3.1 Guidelines Mapping Document. It covers the period of 1st January 2011 to 31st December 2011.

To ensure that our readers get a true picture of our extensive efforts in the area of sustainability, it is necessary for us to focus on the quality of our reporting as we gradually increase GRI coverage over time. This year therefore, we have chosen to follow the GRI framework with no specific declaration of an application level. We also include towards the end a tabular summary of the GRI indicators covered throughout the report. Going forward we intend to publish our sustainability report every year using the GRI framework.

In India, the Coca-Cola System1 comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Private Limited (“CCIPL”) which manufactures and sells concentrate, beverage bases and powdered beverage mixes; a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Private Limited (“HCCBPL”); and thirteen authorized bottling partners of The Coca-Cola Company (collectively referred to as “Coca-Cola India”).

Given the structure of our Coca-Cola System we have widened the boundary of our report to include Coca-Cola India Pvt. Ltd, Hindustan Coca-Cola Beverages Private Ltd. (Company-owned Bottling Operations) and for indicators where we have reasonable influence and impact, the authorized bottling partners or Franchisee Bottling Operations. We also include the operations of the Coca-Cola India Foundation (“Foundation”) which is an indirect wholly owned subsidiary of The Coca-Cola Company.

The Coca-Cola Company has developed a global sustainability framework called ‘Me We World’ that identifies its economic, social and environmental impacts worldwide. The framework helps set the context and scope of this report in terms of materiality of issues and prioritization of topics with a view of the diverse set of stakeholders for whom this report is being published. You will find included within the contents of this report, a description of the ‘Me We World’ framework, and a mapping of reporting topics to the structure of the framework.

In India the financial year starts on 1st April and ends on 31st March. In parts of this report where we may provide financial data, the data has not been adjusted with the reporting period that is based on the calendar year. We believe that keeping this practice consistent from year to year will ensure that reasonable account of our annual performance in the area of sustainability will be available in our reports.

For more information on this report, please contact Neelima Khetan, GM, Public Affairs and Communications at:[email protected]

1 See section 3 for a description of the Coca-Cola System

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Contents

Message from the President and CEO 4 Macroeconomic scenario and risks 7

Company sustainability priorities 8

Mission, Vision, Values 11 Our Mission 11

Our Vision 11

Our Values 11

Coca-Cola India – An overview 12 Activities and Facilities 12

Awards and Recognition 13

Governance, Commitments and Engagement 14 Corporate Governance/ Sustainability Governance 14

Systems to Ensure Corporate Ethics and Proper Conduct 17

External Commitments to Sustainability Initiatives 18

Stakeholder Engagement on Sustainability 20

Our sustainability approach - “Me, We, World” 22 “Me” - Personal Well-being 22

Promote Active Healthy Living 23

Responsible Marketing 25

Champion Sensible Balanced Diets and Inspire Hydration Choices 26

Product Quality and Safety 27

“We” - Community Well-Being 28

Strengthen Community Foundations and Create Economic Growth 29

Empower Women 34

Respect Human and Workplace Rights 38

“World” - Environmental Well-Being 42

Replenish Water 43

Recycle Packaging 48

Reduce Carbon 48

Sourcing Sustainably 50

Appendix 51 GRI Indicators and Mapping 51


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Dear Friends,

The Coca-Cola Company’s endeavor for the last

126 years has been to make a positive and lasting

difference where our business touches communities.

In a world of many challenges and increased

pressure on resources, businesses need to play

a part in ensuring sustainability of resources

and livelihoods.

As the world’s largest beverage system, Coca-Cola

has a presence in thousands of communities, across

more than 200 countries. This provides us a rare

opportunity to make a real and lasting difference

to these communities. In India also, we are working

with communities and stakeholders, to make a

difference to the lives of people. We call this the

“Golden Triangle” approach – the coming together

of government, business and civil society to attend

to the larger issues of our Planet.

Message from the President and CEO

The CoCa-Cola Company’s endeavor for The lasT 126 years has been To make a posiTive and lasTing differenCe To wherever our business TouChes CommuniTies.


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One of our largest grassroots level community

programs – Support My School – is an example

of the Golden Triangle approach. The program

addresses the basic needs of water, sanitation and

hygiene for school children in rural and semi-urban

regions of India. It is an open source model with

participation from NGOs, business organizations

and support of local governments. Cricket legend

Sachin Tendulkar is the ambassador of this program

and that has helped us gather enormous support

from people all across the country. You will read

more about the program in the subsequent pages

of the report.

We are also leveraging the Golden Triangle

approach to address water sustainability issues in

India. We have been working to safely return to

nature an amount of water equivalent to what we

use in our beverages and their production. Through

a number of programs to replenish and revive water

sources, the Coca-Cola India System has achieved

that goal. Our efforts include drip irrigation

programs with farmers, revival of local water bodies

like ponds and lakes, watershed management,

rain-water harvesting and building check dams.

These programs have been conceptualized and

implemented with local and state government

bodies and several NGO partners.

Another important intervention area of the

Company is focusing on building people capability

not just within the Company, but also for people

who are involved in our value chain. In India, we

began the Parivartan retailer training program in

2008, for rural retailers, to provide them with the

skills, tools and techniques required to succeed in

India’s constantly changing retail scenario. In 2011,

we partnered with the Indian School of Business,

Hyderabad to launch the Coca-Cola Retail Academy

to enhance the skills of retail professionals. These

programs are helping both the traditional as well as

organized retail trade.

You would be pleased to know that India was one of

the four pilot countries for our 5by20 initiative – the

Company’s global women economic empowerment

program to train 5 million women by 2020. In India,

the 5by20 program is focused on driving women

empowerment through entrepreneurship for

inclusive growth. In 2011, we piloted some signature

community programs like the ‘5by20 Solar Cooler

Program’, with a focus on enabling livelihoods by

providing access to assets and business skills. The

programs shall be scaled up in the coming years.

We also support healthy active living programs

such as the Coca-Cola Cup Under -16 cricket and

Coca-Cola Under - 16 football. These programs

collectively reach out to more than 100,000

youngsters across the country.

In the years ahead, we hope to sustain these efforts

and learn from the rich knowledge and experience

of voluntary associations, government agencies

and our partners across the fields of media and

philanthropy, and our bottlers - our most valued

collaborators in business and social responsibility. I

look forward to your guidance and support to fulfill

Coca-Cola India’s commitment of making a positive

difference to the lives of people.

Atul SinghPresident - India and South West Asia Business Unit


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The Indian economy has consistently

demonstrated a strong growth rate for two

decades in a row. As the market we operate

in, India offers both an enormous opportunity

and ever new challenges. The experience that

our products provide are not exclusive to any

socioeconomic class or region, and our endeavor

is for our beverages to be enjoyed by every

Indian. With a population of over 1.2 billion, the

market in India is virtually unlimited.

Challenges to execution include developing the

distribution reach necessary to cover the market.

This is something we have identified and are

consciously addressing with our approach towards

developing retail capability and capacity across

India. We have also identified the important role

that women play in supporting small scale retail

in India and are working to help develop women

entrepreneurs through our programs.

Water remains one of the most important resources

in our operations. It is something essential to our

business, both because it forms a key ingredient

of our hydrating products as well as because the

development of people and consequently our

consumer base depends on the availability of water.

In our system we have taken several steps to better

manage water consumption in our operations.

These include a determination to constantly reduce

the amount of water consumed to produce every

litre of our product, as well as a non-negotiable

Macroeconomic Scenario and Risks

commitment to enable the recharge of as much

water as we draw out of the ground.

In addition, one of the key focus areas for

Anandana (the Coca-Cola India Foundation), is

Water Sustainability. And within that, it works

on Watershed Management, Protection and

Development; Purification of the Riverine Systems;

Creation of Integrated Water Bodies and Water

Resources Education.

Education brings increased awareness about

leading healthy lifestyles. We are increasingly

committed to meet the information needs of

our growing consumer base towards making

healthy beverage choices. To this effect Coca-Cola

India works towards providing product nutrition

information in a clear and accurate manner on

all product packages. We have also focused on

improving the nutritional impacts of our products.

Vitingo is one of our products that delivers a

nutritional benefit in the form of a refreshing

beverage. We have worked to improve both the

costs and the distribution reach of Vitingo to make

it an affordable and easy to access product that

provides a nutritional impact to rural consumers

that need it the most.

The following section introduces our “Me We World” framework, describing how it helps provide leadership and direction towards our sustainability endeavors.


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Our Global Sustainability framework “Me We World” was developed with a vision for the global company. It recognized the need for a directive focus on sustainability across the organization,

we are organising our susTainabiliTy efforTs inTo a holisTiC framework we Call “me,we,world.”

Our Aspiration

Growing our business by making a positive difference in the communities we serve

Our framework gives us flexibility to shift our focus to the most critical business issues in each market, while maintaining a consistent and shared approach to sustainablity

ME

WE

WORLD

Together we can promote well-being for the people who enjoy our brands every day.

• Inspire Hydration Choices• Promote Active Living• Champion Sustainable Balanced Diets• Market Responsibly

Together we can create a better future for local communities where our operations help raise the standard of living.

• Empower Women• Create Economic Growth• Strengthen Community Foundations• Human & Workplace Rights

Together we can create a better future for the finite natural resources that we all share.

• Replenish Water• Recycle Packaging• Reduce Carbon• Source Sustainably

WORLDME

WE

Company Sustainability Priorities

and the ability of local entities to use their knowledge of local conditions and priorities to further elaborate their sustainability objectives.

Figure 1. Overview of “Me We World”


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Personal Well-Being Personal Well-Being covers one of the most

important groups of stakeholders, consumers.

Our consumers are across diverse sets of socio-

economic classes, and we daresay ours is a product

that binds different groups of people together.

We believe that physical activity in the form of

organized sport, is an important part of a healthy

lifestyle and therefore it forms a part of our priorities

under Personal Well-Being. It is extremely important

for us to ensure that the consumption of our

products, as a part of a healthy lifestyle, provides

the experience we promise while ensuring that

the consumer is provided with all the information

needed to make healthy choices. Coca-Cola India’s

focus for Personal Well-Being includes Promote

Active Healthy Living, Market Responsibly, Inspire

Hydration Choices and Champion Sensible Diets.

Community Well-Being

Community Well-Being for us means more than

just giving back to the community. Our focus is

to help strengthen communities and improve

social conditions for people in communities. We

work with other organizations including NGOs to

reach out to communities. We cover education

(including retail training), sanitation, women’s

empowerment, human rights, primary health and

renewable energy. Community Well-Being includes

goals for Strengthening Community Foundations,

Empowering Women, and Respecting Human and

Workplace Rights.

Environmental Well-Being

Environmental Well-Being includes efforts to

Replenish Water, Recycle Packaging, Reduce

Carbon and Source Sustainably. We at Coca-Cola

India believe that water is among the most stressed

resources in our country. Moreover, being in the

business of hydration we have a direct connect with

water. Water, therefore, finds a special place in our

approach to sustainability.

While we are constantly trying to reduce the

packaging material used for reaching our products

to the ultimate consumer, we are equally committed

to supporting recycling initiatives. Pilot programs

are underway on segregation, collection and

processing packaging material in India. Within the

Coca-Cola System energy is used in concentrate

production, bottling plants, distribution systems

and cooling equipment at points of retail. We are

looking at various methods of reducing energy

consumption and as a result carbon emission at

various points within the System.

Our efforts to reduce stress on environment

resources would be incomplete if we did not include

a focus on the supply chain. ‘Source Sustainably’

guides us to examine and incorporate sustainability

initiatives in agricultural systems responsible for

producing our raw material inputs.


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For The Coca-Cola Company, a corporation with

over a century of history, our values have always

formed our core. Further, to continue to thrive as

a business over the next ten years and beyond,

we must look ahead, understand the trends and

forces that will shape the future and move swiftly

Our Mission Our Road Map starts with our

mission, which is enduring. It

declares our purpose and serves

as the standard against which we

weigh our actions and decisions.

• To refresh the world...• To inspire moments of

optimism and happiness...• To create value and make a

difference…

The world is Changing all around us. inCreasingly, soCieTy expeCTs business To be responsible in The way iT works.

Mission.Vision.Values.

Our Vision

Our vision serves as the framework for our Road Map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can bePortfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needsPartners: Nurture a winning network of customers and suppliers, together we create mutual, enduring valuePlanet: Be a responsible citizen that makes a difference by helping build and support sustainable communitiesProfit: Long-term return to share owners while being mindful of our overall responsibilitiesProductivity: Be a highly effective, lean and fast-moving organization

Our ValuesOur values serve as a compass

for our actions and describe how

we behave in the world.

Leadership: The courage to

shape a better future

Collaboration: Leverage

collective genius

Integrity: Be real

Accountability: If it is to be, it is

up to me

Passion: Committed in heart and

mind

Diversity: As inclusive as our

brands

Quality: What we do, we do well

to prepare for what’s to come. We must get ready

for tomorrow today. That’s what our 2020 Vision

is all about. It creates a long-term destination

for our business and provides us with a “Road

Map” for winning together with our bottling

partners.


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aT CoCa-Cola india we sTrive To refresh The world, inspire momenTs of opTimism and happiness, CreaTe value and make a differenCe.

Activities and FacilitiesAt the core of our business in India, as in the rest of the world is our production and distribution network, which we call the ‘Coca-Cola System’. Globally, the Coca-Cola System includes The Coca-Cola Company and more than 300 bottling partners. The Coca-Cola Company manufactures and sells concentrate and beverage bases. Our authorized bottlers combine our concentrate or beverage bases as the case may be with sweetener (depending on the product), water or carbonated water to produce finished beverages. These finished beverages are packaged in authorized containers bearing our trademarks such as cans, refillable glass bottles, non-refillable PET bottles and tetra packs and are then sold to wholesalers or retailers. In India, additionally, Coca-Cola India also sells certain powdered beverage mixes such as Vitingo and Fanta Fun Taste.

In India, the Coca-Cola System comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Private Limited which manufactures and sells concentrate and beverage bases and powdered beverage mixes; a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Private Limited; thirteen authorized bottling partners of The Coca-Cola Company, who prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers.

Our beverages reach our ultimate consumers through our customers: the grocers, small retailers, hypermarkets, restaurants, convenience stores and thousands of other businesses that are the final points of distribution in the Coca-Cola System. What truly defines the Coca-Cola System, and indeed what makes it unique among businesses, is our ability to create value for our customers and consumers.

The Coca-Cola Company re-entered India in 1993 through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.3 million retailers.

Today, our brands are the leading brands in most beverage segments. The Coca-Cola Company’s brands in India include (but are not limited to) Coca-Cola, Thums Up, Fanta Orange, Fanta Apple, Limca, Sprite, Burn, Kinley, Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and, the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients). In 2011, ‘Thums Up’ and ‘Sprite’ remained the top two soft drink brands, while Fanta and Limca featured in the most exciting youth beverage brands in India in a survey performed by ‘The Economic Times’

Coca-Cola India

An Overview

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Coca-Cola India received the coveted Golden Peacock Award for the fourth year in a row for Corporate Social Responsibility. Of the four Golden Peacock Global Awards for Corporate Social Responsibility given at Lisbon in Portugal, Coca-Cola India once again bagged a special commendation for its contribution in India towards its efforts in community development.

The award’s citation recognized Coca-Cola India’s contribution as, “Coca-Cola India has supported community programmes with a focus on education, health and water conservation. It has commissioned 400 rainwater harvesting systems, provided clean drinking water to more than 100 schools, supported school projects, and, driven reform in sustainable packaging, disaster relief and rehabilitation”.

Coca-Cola India was recently awarded the coveted Vishwakarma Award for its outstanding efforts in the field of Corporate Social Responsibility. Coca-Cola India received the award in recognition of its rain water harvesting efforts in partnership with communities across the country. These awards have been instituted by the Construction Industry Development Council (CIDC) - the apex body established by the Planning Commission of India and the Construction Industry. CIDC is dedicated towards promoting best practices in the Indian construction industry.

Coca-Cola India was also awarded the coveted Chanakya Awards 2011 by the prestigious Public Relations Council of India (PRCI) for using communication as a tool for creating awareness on water conservation. It was presented the award in recognition of the booklet “The Ripple Effect”, developed for sharing best practices in water and sanitation, arising out of a collaborative project of Coca-Cola India and UN-Habitat in India & Nepal. The award recognizes Coca-Cola India’s efforts in reaching out to the stakeholders and partners; having a far reaching impact on water conservation, water access and sanitation; and creating a ripple

effect through a partnership that blossomed into a consortium of over 20 NGOs, government departments and institutions.

The above project with UN-Habitat was also awarded the coveted prize of ‘Best Use of Public Relations for a Social Cause Award’ at the First Indian PR and Corporate Communication Awards instituted by Exchange4Media.

Coca-Cola India Private Limited’s New Year calendar based on the theme of environment sustainability has been recognized by PRCI as an innovative and unique attempt at promoting environmental awareness in the country. While giving away the Silver Prize, PRCI noted that the environment calendar reflects our global focus on ‘Sustainability”. The calendar has been shared with more than 25,000 stakeholders across the country. PRCI also recognized CCIPL’s efforts towards transparency and openness with respect to its stakeholders by awarding its corporate website the Silver award in the country’s best website category. PRCI noted that the website had been used as a tool to interact and engage with stakeholders including former employees which further enhanced engagement. Coca-Cola India Private Limited’s website is a one stop hub for information on economic, social and environmental matters on the Coca-Cola system in India.

Awards and Recognitions

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Governance, Commitments and Engagement


Each of the three Coca-Cola entities included within the boundary of this report is an indirect wholly owned subsidiary of The Coca-Cola Company.

These are: Coca-Cola India Private LimitedHindustan Coca-Cola Beverages Private LimitedCoca-Cola India Foundation

Corporate Governance/Sustainability Governance

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Coca-Cola India Private Limited (CCIPL)

CCIPL is a private limited company incorporated under the Companies’ Act in India. It is engaged in the business of manufacturing and selling concentrates, beverage bases and powdered beverage mixes to authorized bottling partners (who produce the finished beverage products). CCIPL has been building locally relevant, growth oriented and profitable business in India. CCIPL is led from the front by the India Advisory Board that consist of leading visionaries from diverse fields that include economics, manufacturing, health and social sector among others.

The Corporate Office of Coca-Cola India Private Limited is atEnkay Towers, Udyog Vihar 5, Gurgaon 122016, Haryana, India

Hindustan Coca-Cola Beverages Private Limited (HCCBPL)

HCCBPL is the largest bottling partner of The Coca-Cola Company (TCCC) in India and is responsible for the manufacture, package, sale and distribution of beverages under the trademarks of TCCC.

The bottling company HCCBPL has itsRegistered Office at 13, Abul Fazal Road, Bengali Market, New Delhi 110001

The Coca-Cola India Foundation

The Coca-Cola India Foundation, a company registered under the Companies’ Act under section 25 is committed to sustainable development and inclusive growth by focusing on issues related to water, the environment, healthy living and social advancement so that it can contribute to a strong


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and resolute India enabling the common citizen to better his or her life. The Board of Directors include top executives of CCIPL and is led by the CEO of the foundation.

The Coca-Cola India Foundation works independently of the Coca-Cola India system. This allows us to create a separation between strategic business sustainability efforts and long term strategic investments in community and environment. In order to promote the Foundation’s objectives, monetary grants and other assistance is provided to NGOs, beneficiary organizations, cooperatives, philanthropies and such others who can be suitable partners in implementing projects for social welfare across the country. The Coca-Cola India Foundation is located in the same premises as Coca-Cola India Private Limited.

We are proud to have advisory boards that consist of leading visionaries from diverse fields that include economics, manufacturing, health and social sector among others.

India Advisory Board

The India Advisory Board guides Coca-Cola India on various issues including future strategies, corporate citizenship and corporate governance. Mr. Naresh Chandra, former Ambassador of India to the United States, who also headed the Government of India committee on Corporate Governance, is the Chairman of the Board. The Advisory Board meets three to four times a year and reviews the performance of Coca-Cola India. It also guides the management on various operational and environment-related matters to help us formulate short and long term strategies.

Advisory Council on Environment and Sustainability

The Advisory Council on Environment and Sustainability (ACES) guides Coca-Cola India to

preserve, protect and enhance the environment and natural resources. The ACES also helps to ensure that Coca-Cola India uses its resources and capabilities to provide active leadership on environment and sustainability related matters relevant to our business. The Council is chaired by General V.P. Malik (Retd), Former Chief of Indian Army, who has also been a member of the National Security Advisory Board and Honorary Advisor to the Center for Policy Research, New Delhi.

Health and Wellness Advisory Council

We believe that our industry has a role to play in helping Indian consumers lead healthier lives. Coca-Cola India is committed to developing and launching a portfolio of products that enable the Indian consumer to lead healthier lives. The Health and Wellness Advisory Council (HWAC) shares this belief and guides and assists Coca-Cola India to (a) identify and highlight the evolving nutritional needs of Indian Consumers, (b) suggest viable health & wellness solutions for beverage applications and (c) support consumer education programs that promote a healthy and active lifestyle.

Coca-Cola India Foundation Advisory Board

Coca-Cola India Foundation has constituted an Advisory Board to advise it on its overall working, its mission objectives, functioning priorities and long term strategies best designed to achieve maximum public benefit. The Board constituted under the Chairmanship of Justice J.S. Verma, former Chief Justice of India, comprises eminent personalities who have provided distinguished service to the public, and who have expertise in the field covered by the objectives of the Foundation. These include Dr. Mithu Alur, Dr. Shayama Chona, Diya Mirza, Bunker Roy, Roshan Seth and Dr. Naresh Trehan.


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The Coca-Cola India Foundation

Recognizes that water sustainability is a key issue affecting development goals and that proper water resources management is necessary to mitigate water stress. The foundation seeks to preserve, protect and enhance freshwater sources through locally relevant initiatives such as watershed management and protection, purification of the riverine systems, creation of integrated water bodies and ground water recharge.

Subscribes to global climate limitation through policies of energy efficiency and low carbon emissions and the need to constantly replenish natural products through inclusive sustainable development. The foundation seeks to extend forest cover, promote non-conventional energy sources, protect biodiversity, and the initiation of effective measures for waste management in ecologically fragile areas.

Abides by the belief that healthy living is essential for a robust society. The foundation commits itself to initiatives that promote fitness and active lifestyles, address the problem of malnutrition, promote the use of indigenous system of healthcare, and devote special attention to the needs of the physically and mentally challenged.

Believes that inclusive social development is an essential aspect of equitable economic transformation. The foundation endeavors to promote literacy programs for backward areas, institute awards for excellence in areas identified by the foundation and preserve the national heritage in all instances.


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The Coca-Cola Company prides itself on having equal standards of operations around the globe. The Code of Business Conduct outlines expectations for employees to comply with the law and act ethically in all matters. The Code remains applicable to all employees of The Coca-Cola Company and its majority-owned subsidiaries. Coca-Cola India’s operations are fully integrated into the governance structure of The Coca-Cola Company.

Acting with integrity is about more than The Coca-Cola Company’s image and reputation, or avoiding legal issues. It’s about sustaining a place where we are all proud to work. Ultimately, it’s about each of us knowing that we have done the right thing. This means acting honestly and treating each other and our customers, partners, suppliers and consumers fairly, and with dignity.

The Code of Business Conduct sets the expectation for all employees and managers and provides directions for action when faced with conflicts of interest, or while dealing with governments, customers, suppliers, consumers and competitors. The Code also sets out guidelines for dealing with information and other assets. It identifies the responsibilities, and sets out the process of administration including investigation of violations and disciplinary action.

The Coca-Cola Company and its subsidiaries are committed to doing business with integrity. The Coca-Cola Company has also incorporated a prohibition against bribery into its Code of Business Conduct. We will abide by all applicable anti-bribery laws, including the U.S. Foreign Corrupt Practices Act, and local laws in every country in which we do business. Additionally as a signatory to the United Nations Global Compact, we are committed towards avoiding all forms of corruption. We believe in doing business with integrity and abiding by the anti-bribery laws of the countries where we operate. Furthermore, The Coca-Cola Company has formulated a ‘global anti – bribery policy’, which all employees are expected to comply with as a part of their daily work. The policy has a two pronged purpose of preventing improper payments and

Systems to Ensure Corporate Ethics and Proper Conduct

ensuring accurate reporting of the permissible payments. This policy provides the foundation of conducting our business in a fair, ethical and legal manner. All employees of The Coca-Cola Company and its subsidiaries need to undergo training on this policy and it is conducted once a year. As and when any act of unethical action involving employees is identified, CCIPL being a wholly owned subsidiary of The Coca-Cola Company takes firm action based on The Coca-Cola Company’s code of business conduct and its anti–bribery policy. These policies apply to all employees of The Coca-Cola Company and its majority-owned subsidiaries, including officers, and directors, independent of whether they are U.S. citizens.

The uniqueness of the Coca-Cola System as a business model means that we face an additional set of unique business and reputation risks during our operations. It is extremely important for us to ensure that all the other businesses we associate with, also believe in the same standards of ethical and fair behavior. We therefore have a Code of Business Conduct for Suppliers that seeks to extend and clarify similar ethical expectations to our suppliers. Suppliers additionally are encouraged to report potential improper conduct by Coca-Cola employees who interact with them.

Our Ethics Line reporting service provides an avenue through which individuals can confidentially ask questions or report concerns to an independent administering party on any aspect of the Code of Business Conduct. CCIPL has a Local Ethics Officer who is a part of the legal team to oversee the administration of the Code of Business Conduct and investigate potential cases of non-compliance.

At the Coca-Cola India Foundation we believe in ensuring that our efforts result in the maximum possible benefit to the intended recipients. We have a very detailed and comprehensive set of guidelines towards selecting projects, implementing partners and measuring the effectiveness of the outcomes. Each possible project undergoes a set of reviews by a Project Steering Committee that includes members of the board.


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At the global level, corporate responsibility is managed through the Public Policy and Corporate Reputation Council, a cross-functional group of senior managers from The Coca-Cola Company and its bottling partners. The Council identifies risks and opportunities faced by our business and communities and recommends strategies to address these challenges.

Global change requires global effort. That is why we measure our progress towards sustainability in part against the principles outlined in the United Nations Millennium Development Goals, the UN Global Compact and the CEO Water mandate.

External Commitments to Sustainability Initiatives

Eradicate extreme poverty and hunger

Achieve universal primary education

Promote gender equality and empower women

Reduce child mortality

Improve maternal health

Combat HIV/AIDS, malaria and other diseases

Ensure Environmental sustainability

Develop a global partnership for development

Millennium Development Goals

The eight Millennium Development Goals (MDGs)

were born from the actions and targets contained in

the Millennium Declaration adopted by 189 nations

and signed by 147 heads of state and governments

during the UN Millennium Summit in September

2000. The MDGs set a target date of 2015, by which

all countries and leading development institutions

agree to fight a range of the world’s main

development challenges, such as poverty, hunger

and HIV/AIDS. These goals serve as a blueprint for

making the world a better place. Working towards

them offers faith and hope, and even more reasons

to believe in a better world. We are proud to

contribute to the realization of the MDGs through

our efforts.


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The United Nations Human Settlements Programme

(UN-Habitat) is the United Nations agency for

Human Settlements mandated by the UN General

Assembly to promote socially and environmentally

sustainable communities, towns and cities with

the goal of providing adequate shelter for all.

UN-Habitat is responsible for promoting and

consolidating collaboration with all partners,

including local authorities, non-governmental

organizations and the private sector in the

implementation of the Habitat Agenda and the

Millennium Development Goals. The Coca-Cola

Company has dedicated itself to environmental

protection as a business priority and as its

corporate social responsibility. Coca-Cola being

a hydration company has a special interest in the

quantity and quality of water, particularly in water-

stressed areas. Water management, therefore,

receives the highest priority in the environment

policy and corporate social responsibility action

plans of Coca-Cola India. Under the aegis of

the partnership and with support from other

organizations, projects for rainwater harvesting,

provision of safe drinking water and sanitation, have

been developed for schools and for communities in

water stressed areas.

Launched in July 2007, the CEO Water Mandate is

a unique public-private initiative designed to assist

companies in the development, implementation

and disclosure of water sustainability policies and

practices. Companies that endorse the mandate are

required to report progress annually against a set of

standard principles.

UN Global Compact

The Coca-Cola Company is a participant at the

Advanced Level of the UN Global Compact.

We communicate our plans and progress on

24 advanced criteria in the areas of ‘strategy,

governance and engagement’, ‘UN goals and issues’,

‘implementation of Global Compact principles’,

‘value chain implementation, verification and

disclosure’. As a signatory to the Global Compact

we embrace, support and enact, within our sphere

of influence, a set of core values in the areas of

‘human rights’, ‘labour standards’, ‘the environment’

and ‘anti-corruption’. The ten principles within

these four areas are covered within our global

polices that we are required to adhere to in our

Indian operations.


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The Coca-Cola India system involves several stakeholders. In the table 1 we identify each of our stakeholders and describe our engagement with them on matters relating to sustainability.

Stakeholder Group

Approaches to Engagement

Key topics and concerns Response

Consumer Our approaches to engage consumers include surveys conducted by our marketing team, consumer participation and interactions in our sporting events and through a dedicated Coca-Cola India helpline to address consumer queries.

The key topics and concerns include information on the nutritional impact of our products, our approach towards resource sustainability and information on our programmes promoting sports and music.

We continue to work towards greater interaction with consumers through our various programmes. We’ve also worked on providing clear and accurate nutritional information on our products and follow a responsible marketing practice. We also conduct a plant tour program to appraise consumers about our production practices and quality measures. Information on the topics is included in our sustainability report.

Customer Our customers are the thousands of retailers throughout the country who stock our products and resell them to the end consumers. Our efforts have consistently been to understand their requirements in terms of the challenges they face.

Training in retail practices, and availability of energy efficient equipment for cooling our products have been the topics that have remained on the forefront for our customers.

We have made a focused approach towards developing retail capacity in the country. Through directed programs such as the Parivartan program developed by the Coca-Cola University, we reach out to existing and prospective retailers. We also have programs that are currently providing solar power coolers to women entrepreneurs along with retail training and support in related areas. Information on our retail capacity building programmes and our energy efficient equipment is included in our sustainability report.

Bottler Bottlers, both company owned and authorized bottling partners are key partners in the Coca-Cola India System. Several interactions throughout the year, highlighted by the All India Bottler Conference for Franchise Bottlers provide for a wide platform for engagement.

The topics discussed with bottlers include the adoption of new technology, energy efficiency in operations, water management and a specific focus on overall sustainability.

We provide training and expertise in areas of technology, quality, safety and sustainability across our bottler fraternity. This year our conference theme was Execute, Accelerate, Grow, where we acknowledged the success of each bottling unit for aggressively investing in market execution and capability building practices and delivering consistent results. In this report we provide specific details on work done with our bottling partners in the area of sustainability.

Stakeholder Engagement on Sustainability

Table 1. Stakeholder Engagement Matrix


21

Stakeholder Group

Approaches to Engagement

Key topics and concerns Response

Employees ‘Insight’, the employee survey is the most important tool in our approach to engage our employees better. It is an annual survey that collects feedback from employees on a wide range of topics.

Our employees’ survey topics include diversity, health, work-life balance, and professional growth opportunities.

We have developed several programmes to address the various topics of interest to our employees. Details of these are provided in this report.

Suppliers With our goals of integrating sustainability across our procurement function, our key instrument to engage our suppliers is the application of our supplier guiding principles. These cover various aspects of sustainability with a major focus on human rights, environment conservation and business integrity. We also commission confidential interviews with employees and on-site non-employee workers as a part of independent party reviews.

Relevant topics of discussions with our suppliers include, how we can help them meet the supplier guiding principles and how adhering to these will help them run their business in a sustainable manner.

Through our supplier guiding principles we communicate our expectation to our suppliers that they must hold themselves to high levels of commitment on key matters of sustainability.

Civil society organizations

Coca-Cola India Foundation directly works with several leading NGOs and civil society organizations through its mandate to address issues related to water sustainability, climate and environment, healthy living and inclusive social development.

Recognizing the need for a locally relevant partner to better align efforts towards environmental and social causes, other partners in the Coca-Cola India system including company owned bottling operations and franchisee bottlers, actively engage with local NGOs for assistance in program execution.

We are approached directly by several organizations for grants for activities in the areas our foundation focuses on. Each of these merits a special assessment and keeping in mind the ones that offer the best benefit to the community we proceed with execution of projects.

We have developed eligibility guidelines and grant application formats that provide greater transparency in terms of the projects we support. We also follow a procedure of social audits to ensure the implementation of the projects leads to the desired outcomes. Details about the mandate of the Coca-Cola India Foundation and its activities are provided in this sustainability report. Additionally, we have also included the details of the NGOs or similar agencies that have helped us with executing social and environmental programs across the Coca-Cola India system.


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Our Sustainability Approach - “Me, We, World”

“Me” Personal Well-Being


23

Coca-Cola Under-16 Cricket

The Coca-Cola Cup is one of the largest Inter-School Cricket championships in India. The Inter-school grass root level cricket initiative aims to discover budding cricketing talent in the country. The program is open to all young cricketers in the age group of 12-15 years. Through the tournament, 20 talented players selected from the Coca-Cola Inter-State Challenge get a chance to attend a week long ‘Coaching Clinic’ under the guidance of prominent former cricketers of the country. Post the week long coaching, the final Coca-Cola XI team is selected and given an opportunity to prove their mettle by participating in a competitive tournament against an invited International U-16 team from other cricket playing nations.

Seeing the vast potential and growing popularity of this game, Coca-Cola India Private Limited has a vision of facilitating the quest to nurture and tap cricketing talent. It believes that the future of Indian cricket lies in these young talented budding cricketers. Through this initiative, Coca-Cola India Private Limited intends to provide a perfect opportunity and platform to all the youngsters across the country to showcase their talent, skill and equally important, pride and loyalty to their school. It gives the Board of Control for Cricket in India (BCCI) and their affiliated state units a brilliant arena to scout for potential match winners.

The tournament began in 2011 and was played across 10 states in over 65 districts involving more than 11,000 young players from 700 schools.

Sprite Gully Cricket

Cricket is a passion amongst Indians, be they children, the youth or the elderly. Sprite Gully Cricket Championship tournament was introduced with the aim to unearth cricket talent amongst youth between the ages of 15 to 35 and to encourage them to take up sports as a profession and as a part of a healthy lifestyle. It offers an opportunity for the youth to connect with and celebrate the spirit of cricket by participating in the championship involving thousands of players across India. The national level event


Promote Active Healthy Living


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Under-16 Football

Coca-Cola India Private Limited and the All India Football Federation (AIFF) launched the national grassroots football tournament in 2009. This initiative is a part of Coca-Cola India’s commitment to create a sporting culture in the country by promoting a healthy and active lifestyle. The initiative takes forward The Coca-Cola Company’s commitment to nurture potential football stars by providing them with a platform and an opportunity to develop their inherent talent into a real-life profession. As a company which has a worldwide focus on football and believes in promoting a healthy, active lifestyle, CCIPL believes that Indian football has huge potential. By supporting AIFF for this tournament, we are tapping young football talent to train them according to international football standards. In 2011, the program involved participation from 40,000 young footballers from 2,500 schools across 76 cities. This year the youngsters from Mizoram beat their opponents from Jharkhand in an evenly fought contest at the famous Mohun Bagan Stadium in Kolkata. The winners were thrilled to receive the coveted Mir Iqbal Hussain Trophy from the hands of the iconic captain of the national football team, Mr. Baichung Bhutia.

engaged youngsters through roadshows in 81 cities and towns, Integrated Voice Response System (IVRS) based registration with 8 languages and an illuminated ‘balloon activation’ at selected venues. Over 50 thousand “Gully Cricket” balls were given away to encourage participation in the event. With an objective to reach out and engage with larger numbers of youngsters, Gully Cricket was extended to a PC based game as well apart from a mobile flash based “Gully Cricket” game. Social Media, SMS Blast and other activities fired the imagination of youngsters who came out in huge numbers. The response for Sprite Gully Cricket Champs 2011 exceeded all expectations with over 100,000 entries from all over India. All the Zonal Winning Teams took home a prize of Rs 5 Lakhs, which we believe will go a long way in providing the resources needed by the players to further develop their proficiency in the sport.


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Marketing Responsibly(Management Approach)

The Coca-Cola Company is dedicated to offering safe, quality beverages, marketing those beverages responsibly and providing information consumers can trust.

The Coca-Cola Company has always taken seriously its commitment to market responsibly, across the globe, across all advertising media, and across all of its beverages.

Our approach is to meet, if not exceed, all Indian standards for responsible marketing. We extend our global Responsible Marketing Policy to our operations in India. We also work with the business community to encourage better representation of products and targeting customers of the right age.

India Pledge

We have a global Responsible Marketing Policy that

covers all our beverages, and we do not market any

products directly to children under 12. This means

we will not buy advertising directly targeted at

audiences that are more than 35% children under

12. Our policy applies to all of our beverages and

the media outlets we use, including television, radio

and print and, where data is available, internet and

mobile phones. We are proud to be a signatory to

the India Pledge which is a commitment to change

food and beverage advertising on TV, print, radio

and internet to children under the age of 12 years

in India. Signatories to the pledge develop their

policies for responsible marketing and provide

information for transparent review.

Responsible Marketing

The Coca-Cola Company is committed to

monitoring and measuring our adherence to this

policy across all the markets we serve, and has

established a Children’s Review Process to help

guide our policy.

Labeling, calorie declarations

In India we are the pioneers of front of pack labeling

on our products. We have done this to make calorie

information even more visible and help consumers

maintain a balanced, sensible diet while continuing

to enjoy the beverages they love. The front of pack

labeling shows calories, kilocalories or kilojoules

per serving on all sparkling beverages. This is yet

another step to educate consumers, by making

information about the calories in our products even

easier to notice.

Respecting consumer privacy and information security

We collect and maintain consumer information

for marketing purposes. We do not contact any

consumer using their contact information without

prior consent from them to be contacted for such

purposes. Our database of consumer information is

secure and there have been no incidents of breaches

of consumer privacy or loss of data.

Our progressive approach to providing information

to our consumer has helped us meet all regulatory

requirements related to product information and

labeling. In addition we have been fully compliant

with both regulatory and voluntary codes related to

advertising, promotion and sponsorship of events

and programmes.


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Champion Sensible Balanced Diets and Inspire Hydration Choices

We believe that we have a responsibility to

inform our consumers with fact-based ingredient

and nutrition information for our products so

they can make beverage choices that are in

line with a sensible, balanced diet and active

lifestyle. We also have a responsibility to respect

and support our consumers and communities

with advertising and marketing that is tasteful,

truthful and responsible. We now provide basic

nutrition information on all our product packages

and labels. In fact, all the returnable glass bottles

(RGBs) that we have purchased after March 19,

2009 have nutritional labeling on the bottle itself

while for bottles that have been purchased prior

to this date, we provide this information on the

bottle closures (crowns).

In addition, we met our commitment to provide

front-of-packaging (FOP) energy information

(per serving) on nearly all of our packaging by

the end of 2011. This is based on consumer insight

that tells us that consumers want more nutrition

information in an easy-to-read, at-a-glance

format.

We are constantly improving our products to

meet the needs of the local population and

in 2011 embarked on several initiatives that

include reduction of sugar content in Minute

Maid, the use of Stevia as a stable and approved

sweetening alternative and the introduction of

a non-sweet, spicy, sparkling beverage for the

Indian market. Our products do not contain

saturated fats or trans-fats. The sodium content

of our Kinley and Bonaqua Packaged Drinking

Water is in fractional milligrams, and this

information is provided on the package labels.

In 2009 we developed Vitingo, a beverage that

offers a unique blend of health and great taste.

This was developed as a 5 micronutrient product

and improved to 7 vital micronutrients based

on recommendations by the National Institute

of Nutrition. Clinical trials have validated the

efficacy of Vitingo in reducing Iron Deficiency,

Iron Deficiency Anaemia and Vitamin-C

deficiency.

On similar lines Fanta Fun Taste Powder has been

enhanced with vitamins B3, B6, B9 and B12 and

is targeted at consumers at the bottom of the

socio-economic pyramid. This innovative new

offering is currently being piloted in Mumbai and

few towns in Gujarat.


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Product Quality and Safety

Risk Assessment and Mitigation: to implement food

safety programs

in manufacturing,

warehousing and

distribution facilities.

Supplier Management: to ensure safety of raw

materials, ingredients

and packaging.

Regulatory Compliance: to guarantee consistent

execution of our policies

from our suppliers,

our co-packers, our

customers and our

bottling and distribution

partners

Continual Improvement across our global system to provide proactive

identification and

effective management

of food safety risks

associated with

products, processes, and

technologies.

The global nature of our business requires

that the Coca-Cola System uphold the highest

standards and processes for ensuring consistent

product safety and quality – from our concentrate

production to our bottling and product delivery. We

measure key product and package quality attributes

to ensure our beverage products in the marketplace

meet The Coca-Cola Company’s requirements and

consumer expectations. Consistency and reliability

are critical to our product quality and to meeting

Our food safety commitment includes the following focus areas:

global regulatory requirements and The Coca-Cola

Company’s standards.

All our products are manufactured in sites

independently certified according to internationally

recognized food safety management standards.

Coca-Cola India has complied with all laws and

regulations concerning the provision and use of

our products and we take measures to ensure that

compliance continues in the future too.


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“We” Community Well-Being


29

Strengthen Community Foundations and Create Economic Growth

Support My School

Children are the future of the nation, and investments in their upbringing are investments in the nation’s future. However, almost 50% of children in rural India drop out of school before they enter 8th grade. One of the reasons for this is that many schools lack basic facilities such as safe drinking water and clean, operational toilets. It is often the girls who suffer the most. As they enter adolescence, they are often forced to stay at home because there are no separate toilets for girls in rural schools.

In January 2011, to help tackle this problem, Coca-Cola India Private Limited launched the ‘Support My School’ (SMS) public service campaign in association with NDTV network,

Society (Management Approach)

As a global company with local roots, we recognize the impact that we have on the communities in which we operate. As we conduct our business, we are committed to listen, learn and take into account the views of these communities. As a part of our dedicated approach to create economic opportunity in the communities in which we operate, we undertake initiatives that are locally relevant.

Our programs in the community extend to partners, suppliers and retailer and also reach out to the underprivileged and resource deprived communities. We place specific emphasis on the empowerment of women, as we believe them to be what binds community together and we realize that economic development can only be carried forward with the inclusion of women across the economic spectrum. We realize that our employees are our first contact within the local community and we design our employee programs keeping this in mind.


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UN-Habitat, Charities Aid Foundation (CAF), Sulabh International, Pearson Foundation and TATA Teleservices. ‘Support My School’ is a public-private partnership to empower underprivileged sections of society by providing the necessary water and sanitation facilities along with the basic infrastructure required in any school. ‘Support My School’ has been instrumental in focusing public attention on the state of affairs in rural schools in India. The campaign has raised over INR 50 million through a media-led fund raising campaign, and this money is being used to transform over 100 schools across India into model schools with clean and separate toilets for boys and girls. Other basic amenities such as playgrounds, sports facilities, and, above all, clean and sustainable sources of drinking water, have also been provided. In addition, with the help of our partners, UN-Habitat, NDTV, Pearson Foundation, Tata Teleservices and Sulabh International, these schools will also be equipped with libraries, computer centers, internet connections and inverters. Some of the newly renovated schools were inaugurated live on national TV where children interacted with Indian celebrities,

including the legendary cricketer, Sachin Tendulkar. Apart from the material benefits, the campaign has created an unprecedented interest in highlighting the urgent need for more initiatives that improve schools and help children lead better lives. We have committed ourselves to expanding the scope of the program to cover 1000 schools by 2015-16.


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Water and Sanitation work in schools and communities

Studies indicate that improved sanitation is a key element of socio economic development. Improved sanitary conditions are more effective and economically viable than any other preventive health measure to combat water-borne and excreta related diseases. It is well evidenced by various reports that there is a huge gap between the needs and facilities in our country. Our total sanitation project in Nemam village in Tamil Nadu strives to bridge this gap. Using PRA (Participatory Rural Appraisal), an intensive social mapping exercise was undertaken involving all sections of the community. Based on the outcome of the exercise, in 2009, we, in partnership with Environment & Sanitation Resource Center, a Chennai based NGO and District Rural Development Agency, Government of Tamil Nadu, and the local community, devised an intervention plan to reach out to every household of 8 villages of Nemam Panchayat. As part of the outreach plan, extensive community mobilization and awareness camps were held across these villages. Today a Rural Sanitary Mart with a specially trained mason workforce has been established at Nemam village to cater to the requirements of the local community. Around 300 households/beneficiaries have been identified in 4 villages and low cost individual sanitary units have been constructed.

The project Life Plus which began in 2008 to provide improved education facilities and learning material to children affected by floods in Bihar, concluded in June 2011 with the dedication of 23 re-built schools. Post the disastrous Bihar floods, CCIPL had partnered with World Vision and Plan India to undertake the rehabilitation project to aid people reeling under the impact of floods. As a part of the rehabilitation project, 18 schools were rebuilt in districts of Supaul and Mahdepura in addition to 5 schools in Araria which were successfully constructed in August 2010. The project Life Plus also provided the schools with education kits, education materials, and school uniforms for children and separate toilet facilities for boys and girls.

Parivartan

Recognizing the need to build the capacity of Kirana retail owners in the country, The Coca-Cola University (CCU) developed the ‘Parivartan’ program (the Hindi word ‘parivartan’ translates as change towards the better). The program aims to spread knowledge of best practices and equip traditional retailers with the right skills, tools and techniques necessary for them to grow their businesses sustainably. The program aims to build business skills in 4 key areas of retail:

• Shopmanagement• Stockmanagement• Customermanagementand• Financialmanagement

The methodology adopted to impart training is a unique audio-visual program specially designed to enhance current capabilities in retailers, without entailing any significant changes in their existing investments in resources.


32

Drip Irrigation

Rajasthan’s economy is mainly agriculture-based, with about 80% of its population dependent on farming. Cereal crops such as Bajra, Jowar, Wheat and Barley account for most of cultivated area. Chomu and Govindgarh Blocks of Rajasthan are better known as the “vegetable basket”. Kaladera village lies within this area. Vegetable cultivation puts increased pressure on ground water due to the high water requirements and use of traditional flood irrigation techniques.

We initiated a Public-Private-Community Partnership involving Local Farmers, Department of Horticulture, Government of Rajasthan (by way of financial subsidy) and Krishi Vigyan Kendra, Takerda (Knowledge Partner) to promote drip-irrigation for water efficient agriculture in Kaladera. We play the role of bringing all stakeholders on a common platform and also partly fund the initiative. The journey started in 2008 with 27 farmers covering 13.5 hectares of agricultural land, and, today we have a total of 513 drip irrigation systems installed, covering 256.5 hectares of agricultural land, leading to significant water saving.

Drip irrigation leads to average saving of 1200 kL/hectare of water for a cropping cycle of 110 days/ hectare. In most of the cases, farmers grow at least two crops (mostly vegetables) using drip irrigation, therefore the estimated saving of ground water is substantial. Also, the estimated average savings on account of electricity, fertilizers and pesticides is approximately Rs 2000/hectare/year. Drip irrigation has also led to a shift in the cropping pattern from mono-cropping to inter-cropping, thereby improving quality and quantity of yield. Results may range from a 20-50% increase in a participating farmer’s earning potential.

Coca-Cola ISB Retail Academy

In 2011 CCIPL signed a Memorandum of Understanding (MoU) with the Indian School of Business (ISB) to establish the Coca-Cola ISB Retail Academy. This initiative is unique to India and the region and encompasses a very specialized academic program aimed at training mid-level professionals in the retail industry. This program adds another dimension to the The Coca-Cola


33

community in March 2011. The clinic is operational for 4 days a week, and all visiting patients are issued “Aarogya Health Card” and free basic medicines. The clinic has greatly benefited the local community. On an average, 200 patients visit the clinic every month.

Career Development Center

A joint initiative of HCCBPL, NIIT Foundation and Gram Niyojan Kendra, Career Development Centre (CDC) is aimed at bringing job oriented vocational training program within the easy reach of the educated, unemployed and undertrained youth of the area. The course curriculum is designed to impart skills to enhance their employability potential. On successful completion of the training, these youth are provided with four interview opportunities for entry level jobs in the service industry or they can choose to start their own entrepreneurial ventures. The centre is equipped with modern training facilities where NIIT certified trainers impart training. The center became operational in January 2011 and offers job oriented training courses in Basic IT, Service Industry and soft skills. The training program involves both class room training as well as practical experience through industry visits, group activities and counseling.

In the first year alone, over 158 students were successfully placed in suitable jobs, after completing the training at CDC. Some of the prominent employers seeking our well trained students are – EasyDay, Big Bazaar, McDonalds and KFC.

Company’s commitment to strengthen the dynamic

retail sector in India. The ISB launched a detailed

diagnostic study to understand managerial

capabilities and requirements at various levels of

the retailing business, revealing several skill gaps. In

collaboration with industry leaders, and corporate

houses engaged in the sector and other important

stakeholders, the Academy designed the program

to establish it as the “gold standard” in retail training

in India. This initiative lays the foundation for a

well-rounded retail management training program,

thereby contributing to the quality of future retail

managers. This will be an important driving force

for the sector and the Indian economy, and CCIPL

is proud to partner with a premier institute like ISB

on this important initiative. 2011 saw 2 associates of

CCIPL graduating from this program.

Primary Healthcare

A Need Assessment survey of 3 villages (Nonghthymmai, Bourbin and Rangsokana) surrounding HCCBPL’s Brynihat plant) indicated that the inhabitants of these villages lacked access to quality primary health care and the local primary healthcare centre (PHC) had been unable to provide adequate services primarily because of lack of resources. In order to ensure better access to basic health needs, for the communities around its bottling operation, HCCBPL, Brynihat joined hands with Rashtriya Gramin Vikas Nidhi (a Guwahati-based NGO) and established an “Aarogya” Health Clinic near the plant.

The ‘Aarogya’ Health Clinic acts as a primary health care center. The clinic was dedicated to the local

A success story….

Akansha‘s dreams of being in the government services were cut short due to her family’s financial constraints. She worked as a teacher in a private school with a meager salary. Akansha joined CDC to prepare for a professional service job. After completing her training, she got a job at EasyDay, Ghaziabad. She now encourages educated girls of her village to come forward to join job oriented courses. In future Akansha plans to pursue an MBA. This is just one of the wonderful success stories from the center.


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We provide a level field by considering the

qualifications, skills, experience and performance

as the basis for the recruitment, hiring, placement,

training, compensation and advancement within

the organization. Our recruiting and rewards

policies apply commonly for both the genders

and are based on the principle of fairness and

equity. While our statutory boards do not have

women representation, women provide significant

leadership inputs on our advisory boards.

Table 2. Distribution of male and female employees by age group3

Age Group Male Female Male Female

20-30 Years 64% 36% 27 15

31-40 years 77% 23% 96 28

41-50 Years 79% 21% 38 10

51 & Above 85% 15% 11 2

Total 172 55

3 Data for the employees of Coca-Cola India Private Limited (India Business Unit only)

We also examined other indicators of gender

diversity within our organization and found that we

have a lot of work to do to bring about a balance

among men and women. Women form roughly 24

percent of our employee workforce; the general

distribution of our work-force has been presented in

Table 2.

Almost our entire workforce consists of full

time employees, by design, since we believe in

Empower Women


35

Figure 2. Employee Gender Distribution (by function)4

CEO & Division President

Customer & Commercial leadership

Finance

Marketing

Strategy

Technical

Public Affairs & Communication

Emerging Market

Human Resources

Franchise Operations

Commercial Beverages

Juice Business

DP & CEO’s Office

Region Operations

Services

Coca-Cola Foundation

Coca-Cola University

0% 20% 40% 60% 80% 100%

Female


developing long term relationships. In addition to

the general work-force distribution, a similar break-

up by gender according to function has been shown

in Figure 2.

We found positions such as those of the top

executive offices, customer and commercial

leadership and emerging markets to have

relatively lower numbers of women employees.

All these findings led us to critically examine our

practices of gender diversity and inclusiveness in

the organization. We initiated programs under a

newly set up Diversity Council to assist our women

employees overcome some of the constraints

placed by society and culture in the region

that currently restrict their ability to build their

careers with us. These programs include Diversity

Sensitivity Training for the Leadership Council,

Crèche Support Policy and a Flexi-time Policy.

Focused training such as the Women Leadership

Program, Gender Smart Workshop and Inspirational

Leadership Industry Interactions, are intended to

act as catalysts towards improvement of our gender

diversity ratios. We will be closely monitoring these

initiatives to determine their impact on gender

diversity within our organization.

Male


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In September 2010, The Coca-Cola Company

launched a 10-year global initiative- 5by20,

an ambitious initiative to enable economic

empowerment of 5 million women entrepreneurs

across our value chain by 2020. Through 5by20,

we are developing and implementing programs

that enable women entrepreneurs to break down

the barriers that can prevent them from growing

their businesses. We anticipate that our efforts will

enable these women to reinvest in themselves, their

families and their communities. Our success rests

on the shoulders of millions of women who run

small businesses selling and distributing Coca-Cola

products every day.

“Enhancing economic opportunities for women in

the Coca-Cola value chain will result in increased

incomes, enhanced skills in business, increased

stature within the community, and improved

potential for communities,” said Mr Muhtar Kent,

chairman and chief executive officer of The

Coca-Cola Company at a plenary session

(September 2010) on empowering women at the

Clinton Global Initiative.

We focus on providing three critical enablers of

economic empowerment:

5by20 - Women Economic Empowerment Initiative

The Story of Hope

“The most important moment in my life was when I started my own shop.” remarks Preeti - mother, wife, and rural shopkeeper. Preeti Gupta lives in rural India, 15 km outside the city of Agra in a village called Nagla Sabla. Over the years, she and her family have been without power for days at a time with no warning, as electricity in the area is very limited

and undependable. Like many women in her village, Preeti was expected to remain at home and care for her family after having children. But, Preeti was determined to give her children a chance at a better life. She needed to generate additional income to support these dreams, so she and her husband took out loans to open a small shop in their living room where she sells grains, snacks and beverages as well as many other household goods. Living and working with only intermittent electricity proved challenging, but the recent addition of an eKOcool unit has changed Preeti and her family’s lives. Now, Preeti can offer her customers cold beverages – a bit of a novelty to a community “off the grid” – and she can keep her shop open after the sun sets and the other shops have closed. Perhaps the most important benefit is that her children can study at night as they pursue an education and better life. In Preeti’s case, something as simple as a beverage cooler is making dreams a reality. Income and quality of life for Preeti and her family have increased since getting the cooler, with Coca-Cola beverage sales providing approximately 15-20 percent of their earnings depending on season. This income means Preeti can invest in needs many others consider basic: healthcare for her family and an education for her children. They now have an opportunity to get ahead.

Business Skills Training

Financial Services and Assets

Peer Networks and Mentoring


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Working together

Partnerships are critical to 5by20’s

success. Bringing together business,

government and civil society can give birth

to innovative solutions to the world’s most

challenging problems. Women’s economic

empowerment is no exception. Some of

our valued partners globally, include Bill &

Melinda Gates foundation and UN Women.

Since the announcement of the 5by20 initiative in

September 2010, the program focused on four pilot

countries in 2010-2011: Brazil, India, South Africa

and the Philippines.

In India, the 5by20 program is focused on driving

women empowerment through entrepreneurship

for inclusive growth. In 2011, we piloted several

initiatives that shall be scaled up in the coming

years, to enable and enhance the livelihoods

of women:

a) eKOcool Solar Powered Cooler

The 5by20 Solar Cooler program is currently

transforming the lives of women retailers in

rural India. Coca-Cola India under this program

is distributing solar powered refrigeration units

(solar coolers) free of cost to women retailers in

rural areas that are plagued by no or intermittent

power supply. An environment friendly innovation

developed by Coca-Cola India, the solar cooler

is powered exclusively by solar energy, allowing

retailers to sell chilled beverages without ice or

electricity. The solar coolers also have a provision

for charging mobile phones and solar lanterns. The

solar lantern allows the owner to keep her store

open even after the sun sets. The mobile charging

port helps the women retailer stay connected for

her business and personal needs and provides an

additional source of revenue in rural areas as she

charges the consumers for the charging service.

The 5by20 Solar Cooler program is Cola-Cola

India’s environment friendly way to boost beverage

sales while economically empowering women

at the Bottom of the Pyramid through increased

opportunity to generate income.

b) Parivartan training program

The Business Skills Capability Program led by the

Coca-Cola University for small retailers in rural

India was extended to women retailers in 2011.

The training sessions take place in classrooms and

customized buses (CCU on Wheels) and are led by

Coca-Cola certified trainers.

c) Project UNNATI

This project enables mango farmers to adopt

Ultra High Density farming Practices (UHDP),

allowing mango farmers to plant more trees in less

space. Combined with a drip irrigation system, the

program helps farmers significantly enhance their

crop yield and also their income. Over the next few

years, Project Unnati aims to reach out to 50,000

farmers, 15% - 20% of whom will be women (please

refer the section on sustainable sourcing for further

details on project Unnati).


38

5Business World Most Respected Companies Survey 2011

Respect Human and Workplace Rights

Labor Practices and Decent Work (Management Approach)

Ranked amongst the top five most respected FMCG companies in India5, we are not only the leaders in the market place but also strive to be leaders in the work place. We recognize that the success of our business depends on our employees and we strive to be a company that employees feel proud calling their own. As a part of the Workplace Rights Policy framework, employees are provided advancement opportunities where possible, by offering them opportunities to develop their skills and capabilities. Also, the employees are provided competitive compensation relative to the local market.

The Coca-Cola Company believes that the employees worldwide are one of the most formidable assets on our journey to realize our vision of achieving sustainable and quality growth. The Coca-Cola Company is devoted to the maintenance of a workplace that is safe, healthy and productive by minimizing the risk of accidents, injury and exposure to health risks.

Our enduring goal is to achieve zero work-related injuries and illnesses for our employees, contractors and others. The Occupational Safety and Health (OSH) policy of the The Coca-Cola Company provides the guidelines related to elements like management systems, legal compliance, risk assessment and management, incident management and crisis resolution, among others. The Coca-Cola Company encourages all the organizational levels within the system to adhere to the objectives that are set in relation to

these elements. 86% of our plants have ISO14000 compliant systems in place and 79% of our plants have OHSAS 18000 compliant systems in place.

Among a total number of 59 lost time incidents this year, we had zero employee fatalities. Sadly however, there were 3 contractor fatalities. The total lost days for these incidents was 593. Our Lost Time Incident Rate (LTIR) for the period was 0.3. This number has been arrived at on the basis of a total number of productive hours of approximately 41 million for the year.

The intolerance of discrimination and provision of equal opportunity is an inviolable commitment of the The Coca-Cola Company. We are committed towards providing our employees with a work environment that is free from all harassment or discrimination. The Coca-Cola Company has set up policies on harassment and discrimination and also on the prevention of sexual harassment; any acts of discrimination reported are looked into, thoroughly reviewed and suitable action taken.

The Coca-Cola Company has a mechanism in place for redressing grievances of its associates. A grievance policy has been created so that the associates can voice their concerns on the processes, policies or practices of the company without fear.

At The Coca-Cola Company, we are driven towards a workplace that is both safe and inclusive. We are thus respectful of the right of our employees to join or not to join a labor union without any fear of reprisal, intimidation and harassment.


39

Our commitment towards occupational safety & health is founded on six basic principles

• Safety and health can and will be managed. Management is ultimately accountable for improved OSH performance and must be supported with the necessary resources.

• Occupational injuries and illnesses are preventable. It requires a systematic process of building awareness, assigning accountabilities, training, setting goals, measuring performance and continually improving.

• Nothing we do is worth being injured for. Concern and care for the health and safety of people is as important as other business objectives.

• Safe behavior is a fundamental job requirement. We promote a culture that values safe behavior in all of our actions, and we commit to comply with applicable legal and The Coca-Cola Company Occupational Safety & Health requirements.

• Everyone is responsible for safety and health. We recognize that maintaining a safe and healthy work environment is dependent on a culture of safety, where everyone is involved and accountable.

• Our safety performance is important for our business. It is integral to operational excellence and the integrity of our brand.


40


Age Group Male Female

20-30 Years 2 4

31-40 years 10 2

41-50 Years 8 0

51 & Above 1 0

TOTAL 21 6

coverage, the statutory benefit plan as described above, health checkups, and auto/utility loans.

Research shows that higher levels of employee engagement improve both productivity and morale of the men and women of the organization. Some of our channels of engagement include; library facilities, organizing sports day with families, movie tickets, gymnasium facilities, a recreation room and cafeteria in the office.

Our ‘health works’ policy is designed to encourage our associates to build an active lifestyle for themselves and their families. Employees have up to INR 35,000 a year to partly sponsor their sports related expenses, including gymnasium memberships and purchase of sports equipment.

We believe in supporting our associates during their major life events, such as the birth of a child. Women associates are provided 120 days of maternity leave to comfortably adjust to their parenting responsibilities. Our policy of providing 14 days of paternity leave to fathers is intended to help them bond with their newborn and support their spouse during the important initial post-natal period.

Almost our entire workforce consists of full time employees, by design, since we believe in developing long term relationships. Our average attrition rates are 11% for women and 12% for men, which are healthy numbers by industry and region standards. The turnover numbers by age group and gender are provided in the Table 3.

Table 3. Attrition by age group and gender6

The Coca-Cola Company has formulated policies like the Human Rights Statement, Workplace Rights Policy and Supplier Guiding Principles that are driven towards the eradication of child labor. In line with ILO core conventions hiring of individuals who are younger than 18 years is prohibited for hazardous positions. The policy fabric is consistent with the standards of the International Labor Organization. We have always placed a high value on good citizenship and are committed to adhere to the minimum age provisions of the applicable laws and regulations. Our focus is also on ensuring that the direct suppliers conduct their business in an ethical manner.

The Coca-Cola Company upholds the basic proposition of the prohibition of the use of all forms of forced labor and also expects the suppliers to follow the same. CCIPL constantly strives to ensure our operations and those of our business partners are free from child labor and any form of forced labor. Instances of forced/child labor identified are dealt with suitably. We are committed to keep the workplace free from harassment, intimidation and other unsafe or disruptive conditions.

The Workplace Rights Policy and the Human Rights Statement of The Coca-Cola Company endorses the idea that we are a part of the community fabric. These also provide the guidance to uphold the rights of the indigenous people and respect the relevant matters.

With more than just a focus to meet regulations for provident fund and gratuity, our defined benefit plan obligations include the following to help develop and retain talent within the organization:

• Provident Fund (12% of basic salary), • Gratuity (15 days of basic salary for every

completed year of service after completion of 4 years and 8 months of continuous service)

Some of the additional benefits that full time employees enjoy are medical/accident/life insurance

Human and Workplace Rights (Management Approach)


41

We aim to establish long term relationships with our employees. One of the needs identified by our employees was for opportunities for professional development. With this in mind we have developed special programs.

First Few Sips: The purpose of this training is to provide CCIPL new hires with a sense of Vision, Purpose, Direction, Belonging, Pride and Passion. This is the induction program to train hires on company policies and provide them function overview. It is a 5 day workshop that includes a plant tour and a sales visit.

Pegasus Program: The Pegasus program seeks to develop all-round top talent to fuel a pipeline of future roles within CCIPL.

Mantra: Mantra is our university relations program; we have consistently been a preferred recruiter in leading B-school campuses. Through the Mantra program, students get an opportunity to work on 2-month summer internship projects with Coca-Cola India. The program is designed for maximum learning and consists of a robust mix of project work, coaching and assignments.

Management Trainee Program: The best performing summer interns (from the Mantra program) are recruited as Management Trainees. The Management Trainee program is of 18 months duration and offers comprehensive, cross-functional experience in different business verticals and the group’s CSR activities.

Women in Leadership program: Globally, The Coca-Cola Company has been striving to increase the number of women in our talent pool through recruitment and internal development strategies. EAG Women in Leadership program was kick-started in India in 2010. The program aims at

grooming women talent in the middle management level to take up higher responsibilities.

Catalyst: Catalyst is a training program for selected managerial staff, relatively high in the organizational hierarchy, grooming them for taking up senior management positions.

Within the organization, we recognize the need for performance and development reviews. Our approach to these reviews is three pronged.

• Onthejob-Learninggainedthroughcurrentwork assignments and special projects

• Coachingandmentoring-Knowledgebuiltthrough interaction with others

• Formaltraining–Coursewaredesignedtodevelop knowledge and skills

In 2011 we launched 7 Integrated Career, Development & Performance Planning Workshops, covering 147 associates who are people managers. Across the organization we were able to have performance plans for 100% of the employees, career plans for 94%, development plans for 93% and mid-year reviews for 100% of the employees.

Development Programs for Employees


42

“World” Environmental Well-Being


43

As a responsible multinational company, we realize our responsibility towards the stewardship of natural resources and ensuring a healthy and a sustainable environment. Protection and preservation of the environment is one of the basic pillars of our endeavor to be good citizens of the planet.

The key areas that drive our company’s environmental efforts include water stewardship, climate protection and sustainable packaging.

We are driven to go beyond what is expected by catering to issues that are not only critical to our company but also to the environment. Our Sustainability Framework of ‘Me We World’ is aimed at achieving just that. The key issues that we focus on include emissions effluents and waste, water replenishment, reduction of water consumption, package recycling, reduction of carbon among others. On our journey towards becoming a leader in environmental stewardship we promote the highest environmental standards.

To guide The Coca-Cola Company towards the preservation, protection and enhancement of the environment and natural resources, the Advisory Council on Environment and Sustainability described earlier has been constituted.

The Coca-Cola Company has formulated the Environment Policy on the premise that our long term success depends on a healthy environment. The policy entails that the objectives be followed by each organizational level within the Coca-Cola System – the sites, bottlers, business units and also the corporate entity.

Environment (Management Approach)

Figure 3. Water consumption (in kilolitres)

Municipality Water Well Water Surface Water Collected Rain Water

Other Water

945,835 5,011,775 1,662,273 119 8,843

Municipality WaterWell WaterSurface WaterCollected Rain WaterOther Water

Figure 4. Water Source Mix (kiloliters)

66%

22%

12%

0.001%0.1%

World Environment Day was celebrated with enthusiasm across the Coca-Cola System in India. There were over 50 events and activities which spread the message of conserving the environment to internal and external stakeholders.

Replenish WaterWithin the Coca-Cola India System, both company and franchisee owned bottlers have contributed to projects related to water sustainability. We begin with a view of our total water consumption in 2011 which was 7.6 million kilolitres. With most of this being groundwater drawn from wells, the overall distribution by source is also demonstrated by the pie chart in Figure 4.

Operations at our bottling plants have met success in the area of water replenishment. We have been tracking water replenishment for over 5 years and have seen a regular improvement year on year. The graph shown in Figure 5 charts our journey towards water replenishment by source from 2007 to 2011. Over the years, our efforts have been greatly


44

Table 4. Summary of wastewater discharge and reuse (in cubic meters)

Wastewater Discharged to Natural Body of Water 121,925

Wastewater Discharged to On-Site treatment plants 3,385,876

Wastewater Discharged to Local treatment plants 15,050

Total Wastewater Discharged (a) 3,522,852

Wastewater Reused or Recycled (b) 1,539,859

Total Wastewater Discharged and Reused (a+b) 5,062,711

Water Use Ratio (L per L)

3.663.32

2.8

2007 2008 2009 2010 2011

2.5 2.27

Figure 6. Water use ratio (in liters per liter)

focused on replenishment of ground water. In Figure 5, results of our efforts targeted at ground water replenishment are shown in red, while efforts across all other sources of water are shown in grey.

One of the important measures of water consumption in the beverage industry is the water use ratio; in litres of water consumed per litre of beverage produced. We are pleased to report that this ratio has been consistently falling over the past few years and is currently at 2.27. The graph presented in Figure 6 is a testimony to the efforts

Water Replenished (Total Water – Others)Water Replenished (Ground Water)

53%

84%

Y-2007 Y-2008 Y-2009 Y-2010 Y-2011

51%

78%65%

93% 90%

131%151%

99%

Figure 5. Percentage of water replenished

made by the bottling operations towards using water more efficiently and reducing wastage.

When we discharge waste water, we ensure that it is pre-treated to global standards defined at the level of The Coca-Cola Company. Waste water discharged to natural bodies of water additionally meets the local regulations and such discharge is done with the prior consent of the concerned state pollution control boards. A summary of waste water discharged is provided in the table 4.


45

Project SANTUSHTI A Drinking Water Project in Sambhar Lake, Rajasthan

Located South West of Jaipur, the Sambhar salt

lake has a catchment area of 5700 sq km spread

across the districts of Nagaur, Jaipur and Ajmer in

Rajasthan. It is said to be India’s largest saltwater

lake. As is only natural, the ground water for miles

around is saline and unfit for drinking.

The lake has a history of salt production that

goes back 1500 years. There are 100 villages

bordering the Sambhar Lake. Salt is the source

of livelihood for all these people and several

thousand others in the area. It is also one of

the main causes of ill-health. There is an urgent

need for the ground water to be treated prior to

human consumption.

The goal of the project is to provide the 5500

strong population of five villages with a localized

supply of clean, safe and healthy drinking water.

The Foundation for Rural Recovery & Development,

(FORRAD) in collaboration with MANTHAN, has

undertaken a ‘Drinking Water Project through

Solar Powered Reverse Osmosis Technology’ in the

villages of Sinodiya, Jhag, and Der ki Dani in District

Ajmer and Mordikala and Solawata in District Jaipur,

Rajasthan. The fabrication of the RO units has been

undertaken by the Central Salt & Marine Chemicals

Research Institute.

Each RO Unit is driven by 6 KW of solar power

generated through 72 panels and a system

comprising of batteries, panels and an inverter.

Each unit has an average production capacity of

700 litres of water per hour and is run for ten hours

a day. This yields a daily output of 7000 litres of

drinking water.

Water is more important to us than just a factor in our operations, accordingly Water Sustainability remains a focus area of the Coca-Cola India Foundation. The key projects undertaken by the Foundation in 2011 include:


46

A Water Sustainability Project in Mahoba, Bundelkhand

The Bundelkhand region, occupying 70,000 square kilometers of the central plains of India (bridging northern Madhya Pradesh and southern Uttar Pradesh states) has been declared as “drought affected” by the Government of India. Severe water shortages are threatening the survival of some villages in the region.

According to the latest estimates, 46% of Mahoba (a district in Bundelkhand) population lives below the poverty line. The problems have been compounded by the recent minimal and erratic rainfall, coupled with severe deforestation, which have resulted in a significant lowering of the water

table in the area. An area that was once covered with thick deciduous forests with abundant biodiversity is now barren.

With a view to augment and replenish ground water in this severely water stressed and otherwise backward area, the Foundation in partnership with HARITIKA has constructed four check dams in four villages: Narwara, Pathari, Saithwara and Saiguniya. The capacity to conserve water through these four check dams is 250 million litres of water, which would help irrigate 3000 acres of land besides providing for the water needs of over 5,000 villagers.


47

Project NeerJalA Water Sustainability Project in Rajasthan

Rajasthan is a drought prone state with irregular monsoons. The average rainfall of Ajmer district is 55cm. The ground water table has receded drastically up to depths of 100 to 150 meters due to over exploitation. People are struggling hard to access drinking water and are migrating to towns for livelihood.

Tilonia Shodh Evam Vikas Sansthan (TSVS), an NGO that works in this region, approached us with a proposal to develop traditional local water sources at villages that could be easily managed and controlled by the community.

Under this project, TSVS identified the hills of Mandavaria and Paluna villages in Kishangarh and Jawaja blocks respectively, to construct dams to harvest rainwater and recharge groundwater.

This would also help facilitate surface storage, and result in the revitalization of 300 hand pumps / 200 open wells of 20 villages, as also greening of entire hill area. While the check dam in Mandavaria has a storage capacity of approximately 1.9 billion litres, the Paluna check dam has a capacity of about 3 billion litres.

Project NeerJaal was executed in village Mandavaria, Kishangarh Tehsils and village Paluna, Beawar tehsil of district Ajmer, Rajasthan. The project is expected to benefit as many as 40,000 villagers and about 70,000 heads of cattle spread across 20 villages.

This project also provides a major source of livelihood to the tribes that live in this region.


48

To increase the amount of renewable material in our packaging, The Coca-Cola Company created PlantBottle™ packaging, the first-ever fully recyclable PET bottle made partially from plants. PlantBottle™ packaging is an environmental breakthrough that consumers can hold in their hands.

Since introducing PlantBottle™ packaging in 2009, The Coca-Cola Company has distributed more than 10 billion PlantBottle™ packages to markets

Coca-Cola India’s latest innovation, eKOCool solar powered cooler was launched in 2011. It opens up new possibilities for retailers in rural India. Using the sun’s energy to chill Coca-Cola beverages in areas that suffer from major power shortages throughout

Recycle Packaging

Reduce Carbon

in 24 countries. With a few exceptions, we are now producing PlantBottle™ packages locally in most major markets. Globally, we intend to use PlantBottle™ packaging for all of our PET plastic bottles by 2020.

India is one of the countries where the use of PlantBottle™ resin for the manufacture of packaging has been initiated. As of now we do not have a significant percentage of our packaging manufactured from this resin but we have plans in place to increase PlantBottle™ resin usage.

the year, this device will help extend the distribution reach to areas which are virtually off grid or with no electricity supply. The cooler has a lantern accessory that can be used to keep business open beyond daylight hours or for the family’s uses such as cooking or studying. This eco-friendly renewable energy device reduces dependency on fossil fuels and reduces emissions across the system.

Coca-Cola India Foundation’s project JYOTI is a Solar Energy Project in Dungarpur, Rajasthan. An essential aspect of economic growth is a rapidly burgeoning demand for energy to feed agriculture, industry, business and domestic usage. Yet, in spite of massive escalation in supply, at present only 44% of the rural households in India have access to electricity and so a vast majority of villagers can only be active during the hours of daylight. The main objective of Project JYOTI is to provide and promote the use of sustainable energy.

In the year 2011 our total direct energy consumption was 1,920 million megajoules (MJ). While we are heavily dependent on fuel oil as the major heating fuel, we have initiated efforts towards the use of biofuels. Table 5 and figure 7 shows the mix of the various fuel types that made up our total direct energy consumption.


49

Table 5. Direct Energy Consumption (in megajoules)

Heavy Fuel Oil

Light Fuel Oil

Kerosene Propane Natural Gas

B100 Other Bio Fuel

Bio Mass

685225453 575973737 244826 86476300 20567814 470400 37339867 513978946

Energy Use Ratio (MJ per L)

0.81

0.91

0.84

2007 2008 2009 2010 2011

0.86

0.80

Figure 8. Energy Use Ratio (in megajoules or MJ per liter)

Table 6. Atmospheric Emissions (in tonnes)

Emission Type Quantity

Carbon Dioxide 29,406

Methane 0.5

Nitrous Oxide 1,983

HFCs (ozone depleting

substances)

16

Pilot projects on using bio-mass as energy source

in our bottling operations has had considerable

success; bio-mass accounted for 19% of our total

energy consumption (considering both primary

energy sources and electricity purchased from the

grid). These initial positive results will be further

evaluated, on the basis of which, we can hope to

prepare a plan to increase use of bio-mass in

the future.

For this report we have identified only electricity as

the indirect source of energy. Our consumption in

2011 of electricity was 785 million megajoules (MJ).

To better understand the impact of our energy

conservation efforts we use a ratio called the

Energy Utilization Ration or EUR. This is the ratio

of energy consumed in MJ to litres of beverage

produced. A quick look at our performance over the

last 5 years shows various ups and downs (please

see figure 8). However, we are pleased to report

that for the year 2011 we are much closer and are in

fact lower than the baseline levels of 2007.

While energy may be a surrogate to identify GHG

emissions, our approach to measure atmospheric

impact includes recording of ozone depleting

substances too. Table 6 provides the details of our

atmospheric emissions for the year 2011.

Heavy Fuel OilLight Fuel OilKerosenePropane

Natural GasB100Other Bio FuelBio Mass

Figure 7. Energy Source Mix

36%

30%

4%

27%

Others 3%

Another measure taken by us towards improving

fuel efficiency and reducing emissions is the

replacement of all 85 diesel fuel delivery trucks

in New Delhi with ones powered by compressed

natural gas. We hope to expect positive results

from this initiative and look forward to rolling out

similar measures in other parts of India in the years

to come.


50

Mango is an important item in our list of

agricultural procurements. Top quality mangoes

are used in the manufacture of our juice drink

Maaza. We realized early that we would need to

invest in supply chain sustainability to help our

agricultural suppliers to grow with us at a fast

pace. Project Unnati helps farmers learn new

techniques to double their crop yield and at the

same time reduce stress on water sources

for irrigation.

Project Unnati

In 2011, we launched project Unnati in the state of Andhra Pradesh, along with our partner, Jain Irrigation. Unnati is a supply chain program aimed at adoption of the Ultra High Density farming Practice (UDHP) by leveraging drip irrigation to increase the productivity of mangoes required for our juice drinks. The project will encourage sustainable agricultural methods that can help

Sourcing Sustainablydouble yields. In the initial phase, we are covering 200 demonstration farms of size 1 to 3 acres. This will increase the income of farmers by improving yield/acre and simultaneously decreasing the quantity of water consumed per kilo of mango produced. A unique capability building system has been developed to train farmers through Jain Irrigation and Coca-Cola University

The variety of orange that is used in the

manufacture of packaged orange juices is not

cultivated in India. However, we are at the initial

stages of working with some of our partners to

develop a test farm in India to cultivate the variety

economically. Initial findings indicate the possibility

of being able to cultivate the variety at a scale that

is economically beneficial to the local farmer. We

are hopeful that this will work as it helps reduce our

exposure to global import constraints, and at the

same time offers a promise of better revenues to

the local farmers.


51

Indicator Description and

Response

Extent of

Reporting

Strategy and Analysis

1.1 Strategy and analysis 1. Message from

the President and

CEO

2. Macroeconomic

scenario and risks

3. Company

sustainability

priorities

F

1.2 Description of key impacts, risks and opportunities 1. Macroeconomic

scenario and risks

2. Company

sustainability

priorities

F

Organizational Profile

2.1 Name of the organization Coca-Cola India

– An overview

Activities and

facilities)

F

2.2 Primary brands, products or services F

2.3 Operational structure of the organization F

2.4 Location of organization’s headquarters F

2.5 Number of countries where organization operates F

2.6 Nature of ownership and legal form F

2.7 Markets served (geographic/types of customers) F

2.8 Scale of the reporting organization F

2.9 Significant changes during the reporting period None F

2.10 Awards received in the reporting period Awards and

recognitions

F

Report Parameters

3.1 Reporting period About this report F

3.2 Date of most recent report This is our first

report

F

Appendix

GRI Indicators and Mapping

6

6 F – Fully, P – Partly


52


Response

Extent of

Reporting

3.3 Reporting cycle About this report F

3.4 Contact point for questions regarding the report About this report F

3.5 Process for defining report content About this report F

3.6 Boundary of the report About this report F

3.7 Scope limitations About this report F

3.8 Reporting of activities not under operational control About this report F

3.9 Data measurement techniques and the basis of calculations,

including assumptions and techniques underlying estimations

applied to the compilation of the Indicators and other

information in the report

Explained under

the various sections

where data has

been provided

F

3.10 Explanation of the effect of any re-statements of information

provided in earlier reports, and the reasons for such

re-statement (e.g., mergers/acquisitions, change of base years/

periods, nature of business, measurement methods)

This is our first GRI

report.

F

3.11 Significant changes from previous reporting periods in the

scope, boundary or measurement methods applied in

the report

This is our first GRI

report

F

3.12 Table identifying the location of the Standard Disclosures This table F

3.13 Assurance approach No external

assurance has been

obtained for this

report

F

Governance, Commitments and Engagement

4.1 Governance structure of the organization Corporate

governance/

sustainability

governance

F

4.2 Indicate whether the Chair of the highest governance body is

also an executive officer

F

4.3 Independent board members F

4.4 Mechanisms for shareholders and employees to provide

recommendations

Systems to ensure

corporate ethics

and proper conduct

F

4.6 Processes in place to avoid conflicts of interest F

4.7 Process for determining board qualifications Corporate

governance/

sustainability

governance

F

4.8 Mission, values, codes of conduct and principles Mission Vision

Values

F


53


Response

Extent of

Reporting

4.9 Procedures for board overseeing management of economic,

environmental and social performance

Corporate

governance/

sustainability

governance

F

4.12 Endorsement of charters, principles or other initiatives External

commitments

to sustainability

initiatives

F

4.13 Memberships in associations (such as industry associations)

and/or national/international advocacy in relevant organizations

F

4.14 List of stakeholder groups engaged by the organization Stakeholder

engagement on

sustainability

F

4.15 Basis for identification and selection of stakeholders with whom

to engage

F

4.16 Approaches to stakeholder engagement, including frequency of

engagement by type and by stakeholder group

F

4.17 Key topics and concerns that have been raised through

stakeholder engagement, and how the organization has

responded to those key topics and concerns, including through

its reporting

F

Economic

EC3 Coverage of the organization’s defined benefit plan obligations. Respect human &

workplace rights

F

EC4 Significant financial assistance received from government. Not significant for

the period

F

EC8 Development and impact of infrastructure investments

and services provided primarily for public benefit through

commercial, in-kind, or pro bono engagement.

1. Strengthen

community

foundations and

create economic

growth

2. Empower Women

F

Environmental

EN3 Direct energy consumption by primary energy source. Reduce Carbon F

EN4 Indirect energy consumption by primary source. F

EN5 Energy saved due to conservation and efficiency

improvements.

P

EN6 Initiatives to provide energy-efficient or renewable energy based

products and services, and reductions in energy requirements as

a result of these initiatives

P

EN7 Initiatives to reduce indirect energy consumption and reductions

achieved.

P


54


Response

Extent of

Reporting

EN8 Total water withdrawal by source. Replenish water F

EN9 Water sources significantly affected by withdrawal of water. F

EN10 Percentage and total volume of water recycled and reused. F

EN16 Total direct and indirect greenhouse gas emissions

by weight.

Reduce Carbon P

EN17 Other relevant indirect greenhouse gas emissions

by weight.

P

EN18 Initiatives to reduce greenhouse gas emissions and reductions

achieved.

P

EN19 Emissions of ozone-depleting substances by weight. P

EN20 NO, SO, and other significant air emissions by type

and weight.

P

EN21 Total water discharge by quality and destination. Replenish water F

Labor Practices and Decent Work

LA1 Total workforce by employment type, employment contract,

and region.

Respect human &

workplace rights

P

LA2 Total number and rate of employee turnover by age group,

gender, and region.

P

LA3 Benefits provided to full-time employees that are not

provided to temporary or part-time employees, by major

operations.

F

LA7 Rates of injury, occupational diseases, lost days, and

absenteeism, and number of work related fatalities

by region.

P

LA11 Programs for skills management and lifelong learning that

support the continued employability of employees and assist

them in managing career endings.

F

LA12 Percentage of employees receiving regular performance and

career development reviews.

F

LA13 Composition of governance bodies and breakdown of

employees per category according to gender, age group,

minority group members.

Empower women P


55


Response

Extent of

Reporting

Human Rights

HR4 Total number of incidents of discrimination and actions

taken.

Respect human &

workplace rights

P

HR6 Operations identified as having significant risk for incidents of

child labor, and measures taken to contribute to the elimination

of child labor

P

HR7 Operations identified as having significant risk for incidents of

forced or compulsory labor, and measures to contribute to the

elimination of forced or compulsory labor.

P

Society

FP4 Nature, scope and effectiveness of any programs and practices

(in-kind contributions, volunteer initiatives, knowledge transfer,

partnerships and product development) that promote healthy

lifestyles; the prevention of chronic disease; access to healthy,

nutritious and affordable food; and improved welfare for

communities in need.

1. Promote active

healthy

2. Living

3. Champion

sensible balanced

diets and inspire

hydration choices

4. Strengthen

community

foundations and

create economic

growth

5. Empower women

6. Replenish water

7. Reduce Carbon

8. Sourcing

sustainably

F

SO3 Percentage of employees trained in organization’s anti-

corruption policies and procedures.

Systems to ensure

corporate ethics

and proper conduct

F

SO4 Actions taken in response to incidents of corruption. P

SO6 Total value of financial and in-kind contributions to political

parties, politicians, and related institutions by country.

No aid given for

political purposes

F

Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products

and services are assessed for improvement, and percentage

of significant products and services categories subject to such

procedures.

Champion sensible

balanced diets and

inspire hydration

choices

P


Response

Extent of

Reporting

PR2 Total number of incidents of non-compliance with regulations

and voluntary codes concerning health and safety impacts

of products and services during their life cycle, by type of

outcomes.

Responsible

marketing

F

FP5 Percentage of production volume manufactured in sites certified

by an independent third party according to internationally

recognized food safety management system standards.

Product quality and

safety

F

FP6 Percentage of total sales volume of consumer products, by

product category, that are lowered in saturated fat, trans fats,

sodium and sugars.

Champion sensible

balanced diets and

inspire hydration

choices

P

PR3 Type of product and service information required by procedures,

and percentage of significant products and services subject to

such information requirements.

Responsible

marketing

P

FP8 Policies and practices on communication to consumers

about ingredients and nutritional information beyond legal

requirements.

F


and voluntary codes concerning product and service information

and labeling, by type of outcomes.

F

PR5 Practices related to customer satisfaction, including results of

surveys measuring customer satisfaction.

P

PR6 Programs for adherence to laws, standards, and voluntary codes

related to marketing communications, including advertising,

promotion, and sponsorship.

F


and voluntary codes concerning marketing communications,

including advertising, promotion, and sponsorship by type of

outcomes.

F

PR8 Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data.

F

PR9 Monetary value of significant fines for noncompliance with laws

and regulations concerning the provision and use of products

and services.

F

Sustainability Report2011

Neelima KhetanGM, Public Affairs and Communications

E-mail: [email protected]

Coca-Cola India Pvt. Ltd.Enkay Towers, Udyog Vihar Phase 5, Gurgaon - 122016, Haryana, India

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