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Otchet Coca-Cola D 0110 New7
Otchet Coca-Cola D 0110 New7
IN RUSSIA
SUSTAINABILITY
REPORT 2018
0 0 2
Report Summary
01. About the Report 05. Business Ethics and Partnerships:
About the Report 002
how We are Changing the Market
Scope and Boundaries 003 Business Ethics: Principles 081
Disclamer 004 Anti-Corruption 082
How We Work with Suppliers of Ingredients and Materials 088
09. Workplace Health and Safety: how We Eliminate Risks 14. How We use Coca-Cola Brand Power to Tackle
for our Associates and Partners Socially Significant Issues
Occupational Safety at Bottling Plants 150 Empowering the Youth 222
Traffic Safety 157 Building an Inclusive Society 226
Fire Safety 160 Disaster Relief 231
Safety for our Suppliers and Contractors 161
12. How We Protect the Environment: Reducing Greenhouse 17. Contacts 271
Gas Emissions and Advancing Water Stewardship
How We Reduce Greenhouse Gas Emissions 182
How We Preserve Water 190
The 2018 Sustainability Report of Coca-Cola in Russia all the topics that fall within the matrix. Each
(hereinafter — the Report) contains a summary of efforts topic outlines our management approach and
to promote sustainable development made by three key sustainability performance indicators in
companies — Coca-Cola Soft Drink Consulting LLC, accordance with sustainability commitments of
Coca-Cola HBC Eurasia LLC (also Coca-Cola HBC Russia) Coca-Cola in Russia, GRI Standards and the Food
and JSC Multon. The report covers sustainability performance Processing Sector Supplement.
of these three companies, collectively known as the
Coca-Cola in Russia, from January 1 to December 31, 2018, and When preparing the report, we have collected
outlines their plans for the near future. The report provides information through a series of interviews with
stakeholders with accurate and complete information on the senior executives, heads of relevant departments
Coca-Cola system’s sustainability priorities in Russia. and functions, and sustainability project leaders
of the Coca-Cola companies in Russia. We have
The report has been prepared in accordance with the also carefully considered our stakeholders’
Global Reporting Initiative (GRI) Standards, using the CORE concerns and perceptions, as well as the results
disclosure option. It complies with GRI reporting principles, of public opinion studies, analysis of internal
including balance, comparability, accuracy, timeliness, clarity documents and media publications.
and reliability. You can find a list of GRI Standards indicators
in the GRI Content Index Table. This is the second sustainability report to cover
the activities of all three Coca-Cola companies
To define the content of the report, we conducted a special collectively known as Coca-Cola in Russia.
stakeholder survey, in which representatives of various The first such report covering 2015–2016
stakeholder groups were asked to rank our material topics was published in 2016. The companies within
in by order of significance. The survey results are presented the system practice annual sustainability
in the Material Topics Evaluation Matrix. The report covers reporting. The previous, 2017 Sustainability
01. About the Report 0 0 4
Report, was 11th in non-financial reporting series of the This report is the first part of the 2018 Integrated
Coca-Cola companies in Russia and described relevant Report of Coca-Cola in Russia. The second
activities of Coca-Cola HBC Russia and JSC Multon. part, describing the contribution of system’s
companies to the socio-economic development
To ensure quality non-financial reporting, of the country, will be published in October 2019.
the Сoca-Cola in Russia holds annual public hearings
where representatives of various stakeholder groups
can share their opinions on the report, weighing in on
the quality and integrity of disclosed information.
A discussion of the 2018 report took place
on July 2, 2019. Based on the results of this public Disclaimer.
hearings, the final version of this report has been
prepared.
Forward-Looking
Statements
The plans of Coca-Cola in Russia, as laid out
in this report, are preliminary. Successful
implementation of these plans depends on
external factors, therefore, future results may
differ from the plans presented in the 2018
report.
Coca-Cola has gone beyond being a manufacturer of AB: It is fundamentally important that we give
classic soda. What is going on with its Russian brand consumers more choice not only by adding
portfolio? new tastes and categories. "Our Way Forward"
strategy is about drinks with less sugar and
AB: We certainly had a year of innovation. In calories, optimal packaging, and complete
addition to the efforts of our team, we must thank and clear information about the ingredients
the Russian consumers for this — most of them of our products, so that consumers can have
are interested in innovation. We are expanding our better control over their diet. Recently, in
beverage portfolio guided by "Our Way Forward" June 2019, we took the next logical step
global strategy: we are listening carefully to the to make the information on the packaging
consumers and we offer them what they would like to even more transparent and user-friendly —
we’ve introduced color coded nutrition labelling
buy, not just what we can produce and sell.
and became one of the first companies who
supported this initiative of Rospotrebnadzor
AR: Andy is right: we were moving forward by leaps
to promote the principles of healthy nutrition.
and bounds in this direction in 2018. We want to be
This is a special type of labelling that contains
a company that offers soft drinks for all occasions.
clear and straightforward information about the
We call this vision a Total Beverage Company: any content of the product, including fat, saturated
consumer can find his or her favorite non-alcoholic fatty acids, sugar, and salt. These values
drinks in the Coca-Cola offering. I don’t think that we are shown both in absolute figures and as a
have ever launched so many new products in one percentage of the recommended daily intake
year before. We have introduced truly innovative (RDI) per portion, and highlighted in red, yellow
products to the Russian market: Smartwater, AdeZ milk and green. We believe that this will help people
substitute, FUZETEA ready-to-drink teas with unusual make more informed and healthier choices
flavors, and many new versions of already popular without the guesswork, leading to a more
drinks. balanced, healthy nutrition.
02. Sustainable Growth Strategy 0 1 0
AR: I absolutely love Schweppes. All the flavors of Don’t all these bold steps pose a threat to
Schweppes are incredibly bold, trendy, and they cross the sustainability of the Coca-Cola system’s
over into the realm of spirits. We created these flavors business?
in line with consumers’ preferences, for those situations
when someone wants a drink that tastes like a cocktail, but AB: On the contrary. "Our Way Forward"
without the alcohol. strategy, aiming at expanding consumer
choice by adding more balanced nutritional
AB: As for me, now I always have Coca-Cola Zero alternatives, is actually all about sustainable
Cherry in my fridge, right next to my beloved development.
02. Sustainable Growth Strategy 0 1 1
64%
of water used to make our drinks, and to recycle as many
bottles and cans as we sell — all this requires investment
and effort. It is very important that our bottling partners
share these approaches to sustainability. growth of sales of Coca-Cola Zero
as measured by transactions in 2018
AR: I need to say that, thus far, the principles of
sustainability have been so well integrated into our
business that it has given us the opportunity to transform
ourselves with fewer risks. We are striving to create value
for the society and for our partners. Our suppliers are
also implementing sustainability principles; they would
simply not be able to work with us if they didn’t. AB: As of year-end 2018, almost half of our
beverage portfolio is non-carbonated. This is
How far ahead did you get on "Our Way Forward" in an important milestone for us. At the same
2018? time, we understand that we are still far behind
developed markets in zero-sugar and zero-
AR: Quite far. We added new sugar-free beverages calorie options, and we have our work cut
to our portfolio, and we also significantly reduced the out for us. In Russia, we are already offering a
sugar content in Fanta, Sprite and Schweppes product portfolio of low- or no calorie products: a third
lines. Coca-Cola Zero sales grew by 64% in transactions of our SSD drinks portfolio in Russia are low- or
last year. no calorie.
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02. Sustainable Growth Strategy 0 1 3
3,000,000
Sustainability is also about reducing the impact of
business on the environment. Does Coca-Cola in Russia
have specific results in this area?
people in 11 cities across Russia will be able to enjoy
themselves and play sports at new inclusive parks that
AB: Yes, we do, and we are explaining this in our report. For
have been built since 2018 as part of our partnership
example, our "Separate With Us" project has grown on a with FIFA World Cup 2018ТМ
much bigger scale both in technical terms (measured by the
number of containers for separate waste collection, and the
number of cities involved), and in its outreach. In 2018, the
project received wide public recognition, becoming a brand
itself. And just this Spring, "Separate With Us" program won
2019 Russian Effie Award for effecting positive changes for are developing an inclusive community
the society. infrastructure, raising awareness of this
problem in society and talking about the
AR: We understand that the farther away from Moscow we need to respect and to treat the others with
go, the harder it gets to find partners in waste management kindness. To be honest, sometimes it is not
whom we can trust; and the more difficult it is to convince easy. But I am sure that the results of our
local governments that separate waste collection is work will lead to positive shifts on the scale of
important. And yet, we are moving forward to achieve our the whole country.
goal to recycle the equivalent of 100% of packaging that we
put on the market. AR: After the 2018 FIFA World Cup RussiaTM,
the first inclusive playparks appeared,
You talked about creating value for regions and local in which both healthy kids and kids with
communities. How does the company invest in solving special needs can play and socialize. We
social problems? are implementing this project together with
Natalia Vodianova’s Naked Heart Foundation.
AB: The best example: we are using the power of We have built six playparks so far, and we
our brand to build an inclusive society in Russia. We intend to open five more in 2019 and 2020.
02. Sustainable Growth Strategy 0 1 4
100%
in corporate volunteer programs — they collect
waste, work with special-needs teenagers, donate
blood, assist in emergency relief efforts. It is very
inspiring! of our consumer packaging will be collected and
recycled by 2030 — one bottle and one can for each
one that we put on the market
Do you have a special place in your heart for any of
the System’s social responsibility initiatives?
AB: All our sustainability programs are important. We believe that a world without waste is
I would like to highlight our "World Without Waste" possible and we want to do our share. Hence,
strategy, which we have globally announced in we’ve announced such an ambitious goal: to
2018. The world is facing the problem of consumer collect and recycle the equivalent of every
packaging waste and our "World Without Waste" bottle and can sold by 2030. In Russia,
strategy aims to help in solving this issue. Plastic through our "Separate with Us" program, we
bottles and cans can provide benefits to society if have already collected and recycled 27% of
they are properly produced and then recycled. consumer packaging in 2018.
02. Sustainable Growth Strategy 0 1 7
Coca-Cola in Russia:
2018 at a Glance
Coca-Cola Soft Drink
Consulting LLC
is a subsidiary of The
Coca-Cola Company.
It develops a beverage
portfolio for the Russian
market and is responsible
Coca-Cola in Russia includes three separate for brand development,
consumer marketing and
companies with different ownership structures. demand creation
Combined together, they form a single value chain
that is producing, selling and marketing soft drinks
under The Coca-Cola Company’s brands. All three Coca-Cola HBC Eurasia LLC
companies work together to ensure sustainability (also Coca-Cola HBC Russia)
is a part of the Coca-Cola
of Coca-Cola in Russia. Hellenic Bottling Company
AG, one of the world's largest
bottlers of Coca-Cola products.
This is how the Coca-Cola system operates all In Russia, the company
produces beverages and
over the world: The Coca-Cola Company develops delivers them to customers
beverages and markets them; the independent
bottling companies produce and sell them.
Everyone is focused on their own tasks, and it
makes the System more efficient and sustainable.
Multon JSC
produces juice
products within
Coca-Cola in Russia
03. Coca-Cola in Russia 0 2 1
250 countries and territories 10 plants in 9 Russian regions Coca-Cola Soft Drink
Moscow and Moscow Region, Consulting LLC
Headquarters: Atlanta, USA Saint-Petersburg, Rostov-on- 19B, Yartsevskaya street,
Don, Samara, Yekaterinburg, "Kuntsevo Plaza" Business centre
Novosibirsk, Krasnoyarsk, Moscow, Russia, 121552
Coca- Cola Hellenic Bottling Vladivostok
Company AG Coca-Cola HBC Eurasia LLC
Total number of staff 6, Kievskoe Highway, bldg. 1,
28 countries, 600 million in 2018 — 7,750 "Comcity" Business Centre, A5
potential consumers Moscow, Russia, 108811
100 towns and cities.
Headquarters: Zug, Switzerland Coca-Cola in Russia has offices Multon JSC
and representatives in 100 towns 7, Plekhanova Street
and cities across the country with Moscow, Russia, 111141
a total population of
> 61 million people
03. Coca-Cola in Russia 0 2 2
Brand Portfolio
Coca-Cola in Russia produces and markets a wide range Our portfolio by category clusters
of high-quality soft drinks under well-known trademarks. and sales volume in 2018
In 2018, the Coca-Cola system portfolio in Russia
included 17 brands and 110 products.
Coca-Cola in Russia faces a number of risks that In 2018, cyber security threats became more
are common for global food producers operating distinct — therefore, we had to improve our
in this country, including: legislative regulation, risk management programs in this area.
geopolitical factors, changes in consumer demand,
etc. To find out more about the risks that the
Coca-Cola system faces regionally and
Each of the Coca-Cola companies in Russia has its globally, please see 2018 Integrated Annual
own risk management system operating at a country Report of Coca-Cola HBC AG and 2018
level. Risk management programs are managed by Business & Sustainability Report of
risk managers interacting with risk owners within The Coca-Cola Company.
their business units. Risk analysis is performed
monthly and is supervised by audit and risk
committees. The Board of Directors is responsible
for the development and efficient functioning of the
risk management and internal control systems.
Supplier Sustainability
2018 Milestones
Launch of FUZE TEA, Launch of new Inclusive clean-up Launch of AdeZ — Partnership with the The first training
a line of ice tea Fanta Pear day (“Subbotnik”) a completely new 2018 FIFA World Cup™ course of the ‘Youth
beverages with fruit in Novosibirsk beverage for the in Russia Empowered’ project
juices and natural Coca-Cola system
ingredients Launch of FIFA World Cup™ Inclusive guided tour
Sprite Watermelon- Opening of an Trophy Tour of the Novosibirsk
Cucumber inclusive playpark by Coca-Cola finale plant
in Rostov-on-Don in Moscow
Launch of new in partnership with Launch of a
Rich Magnificent the Naked Heart Opening of an inclusive of "Moya Semya"
Pomegranate juice Foundation playpark in Kaliningrad new line of juices
in partnership with
A new Coca-Cola 0.9 the Naked Heart Presentation of
litres was introduced in Foundation the 29th World
addition to traditional Universiade in
December packaging Launch of Smartwater Krasnoyarsk
— the first "smart"
The Coca-Cola Christmas water on the Russian
Caravan re-launched as market
an inclusive initiative
Opening of a new
inclusive playpark in
Kazan in partnership
with the Naked Heart
Foundation
November September
Approval of Coca-Cola
HBC Russia’s policy on Second anniversary Opening of an inclusive
volunteering during of 'Separate with Us' playpark in Nizhny
working hours program Novgorod in partnership
with the Naked Heart
Foundation
03. Coca-Cola in Russia 0 2 6
2018 Awards
"Dobriy" and "Pulpy" juices and fruit nectars won the The leadership team of Coca-Cola HBC
National Commodity of the Year — 2018 Award in Russia was highly rated in TOP-1000
four nominations Russian managers of 2018
Coca-Cola HBC Russia won an award in the Coca-Cola in Russia "Separate With
nomination for "The Best Reward System at the All- Us" and "Growing Kindness" projects
Russian Competition" The Best of Compensations won the nominations for "Environmental
and Benefits 2018 projects and initiatives and Social
marketing" at The Best Social Projects of
Changellenge> > Best Company Award 2018: Russia national competition
Coca-Cola HBC Russia won third place in "The
most attractive company for young professionals Coca-Cola in Russia "Separate With
nomination in the FMCG sector" Us" project won the nomination for
"The Best Social Project in Ecology" at the
Fifth TOP-COMM 2018 All-Russian Rating of ECO BEST AWARD 2018
Directors of Corporate Communications and
Corporate Relations Departments: Irina Arkhipova, During the 8th All-Russian Awards
Public Affairs and Communications Director for the Development of Blood Donation
at Coca-Cola HBC Russia made it to the TOP-5 list So-Uchastiye (Co-Participation)
of "The Best Directors in Corporate Communications Coca-Cola HBC Russia won second place
and Corporate Relations in Russia". The Public in the nomination "For Contributing to the
Affairs and Communications Department of Development of Corporate Donation"
Coca-Cola HBC Russia made it to the TOP-9 list of
Best Corporate Communications and Corporate
Relations Departments in Russia
03. Coca-Cola in Russia 0 2 7
Three projects of Coca-Cola in Russia made At the Effie Awards Russia, three projects
it to the TOP-3 projects in various categories of Coca-Cola in Russia became the TOP-3
at the Eventiada IPRA Golden World Awards projects in various categories
communication award
03. Coca-Cola in Russia 0 2 8
Other Initiatives
The Coca-Cola companies in Russia are current members of 22 associations and unions:
Russian Union of Industrialists and National Association of Automated American Chamber of Commerce in St.
Entrepreneurs Trading (NAAT) Petersburg
RusBrand Association of Producers U.S.-Russia Business Council Non- Rostov Chamber of Commerce
Government Association (USRBC)
Russian Union of Juice Producers Board of Directors of the Krasnoyarsk
American Chamber of Commerce in Central District
Russian Union of Soft Drinks and Russia (AmCham)
Mineral Water Producers Primorsky Territory Chamber of
Moscow International Business Commerce
Industry for the Environment Association
Association (RusPEC) Far Eastern Association of Beverage,
International Association for Business Mineral Water and Soft Drinks
Russian Association of Cooperation Manufacturers
Communication Directors and
Corporate Publishing Moscow Chamber of Commerce and Ural Food Industry Association
Industry (Uralpischeprom)
European Association of
Communication Directors (EACD) St. Petersburg International Business
Association (SPIBA)
National Union of Experts in Transport
2018
and Logistics (SEL) St. Petersburg Chamber of Commerce
and Industry
In ,
National Unioun of Experts
in Transport and Logistics
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0 3 0
Sustainability and Corporate Social Responsibility Strategy in Russia: 05. Business Ethics and Partnerships
a New Outlook 0 4 3 06. Product Quality and Safety
07. A Balanced Lifestyle
Who is in Charge of Sustainability of Coca-Cola in Russia 0 5 2
08. Caring for our Employees
09. Workplace Health and Safety
2018 Business And Sustainability Results 0 5 3
10. Developing a Culture of Volunteering
Stakeholder Engagement 0 7 1 11. Sustainable Agriculture
12. Protecting the Environment
2018 Material Topics 0 7 3
13. A Country Without Waste
14. Social Programs
15. How it Works: Four Stories of our
Initiatives Helping People in 2018
16. GRI Content Index
17. Contacts
04. Sustainability of Coca-Cola in Russia in 2018 0 3 1
Value Chain
At Coca-Cola, sustainability starts with creating
shared opportunities throughout the value chain, then
it is actioned in specific commitments, programs, and
projects.
The Coca-Cola Systems' Value Chain: Our Approach To Creating Shared Opportunities For People And Communities That We Serve
Agriculture
Agricultural ingredients, along with
Equipment
millions of local farmers, are critical to
Our coolers, fountain dispensers and
create our beverages.
vending equipment enable people to
get the drinks they want.
People and communities
From our employees to our consumers,
people are at the centre of everything
we do. We aim to create value for Manufacturing
Customers everyone connected to our business, ~ 800 facilities around the world
~ 27 million customers sell our including enabling the economic produce and bottle our products.
beverages to consumers in 200+ empowerment of woman through
countries and territories. programs like 5by20.
Beverages
We offer ~ 4,100 beverages nearly a
third of which are low- or no-sugar, and
we reducing the amount of added sugar
Bottling partners and distribution in many our beverages.
Together, we manufacture, package and
distribute our beverages.
04. Sustainability of Coca-Cola in Russia in 2018 0 3 3
Sustainable agriculture: it is critically important for us that suppliers of raw It is important for us that the customers of the
materials for our products are environmentally friendly and use land and Coca-Cola system also feel the benefits of working with
water resources responsibly us in line with sustainable development. We share new
technologies and ethical business practices and we
Efficient and safe manufacturing with the strictest system of quality control. also implement joint sustainability projects.
The Coca-Cola system includes approximately 800 manufacturing plants
worldwide, ten of them are located in Russia. Not only do they have to be We use and we also supply our partners with energy-
profitable and efficient, but they must continuously strive to reduce their efficient refrigeration equipment. This way people get
environmental impact. the drinks they want at optimal temperature for a better
taste, while minimizing environmental impact.
Beverages. We strive to be a total beverage company. Worldwide, we offer
4,000 different products; in Russia we produce 110 types of beverages under Packaging collection and recycling is a part of our "World
17 brand names. A third of them are low- or no-sugar. Without Waste" environmental strategy which all our
bottling partners comply with. Our goal is to collect
Bottling partners and distribution. The Coca-Cola Company has a bottle or can for every one we sell by 2030.
approximately 250 bottling partners around the world, including Coca-Cola
HBC Russia — a part of the Coca-Cola Hellenic Bottling Company AG. We aim to give back the amount of water used
We are working together to implement our sustainability strategy across all in our finished beverages to replenish communities
operations, so that we can create a sustainable future for all. and nature.
04. Sustainability of Coca-Cola in Russia in 2018 0 3 4
Sustainability Commitments
Sustainability Commitments World Without Waste: packaging and recycling. By 2030, we will collect and recycle the
of the Coca-Cola Company equivalent of 100% of packaging we introduced into the marketplace.
Contribution to the UN SDG 12 Responsible Consumption and Production, SDG
14 Life Below Water and SDG 15 Life on Land
As part of the "Our Way
Forward" strategy, we are Based on our 2018 results, we’re more than half-way there already (58%).
reducing sugar content in
our beverages, while Water stewardship. We safely return to communities and nature an amount of water
maintaining their excellent equivalent to what we use in our finished beverages and their production.
Contribution to UN SDG 6 Clean Water and Sanitation, SDG 12 Responsible Consumption
taste. In addition to this and Production, SDG 14 Life Below Water, SDG 15 Life on Land
strategic goal, which has
already transformed our The 2020 commitment was achieved in 2016 but we did not stop there. Based on our
business, the Coca-Cola 2018 results, we have already returned to the environment 155% of pure water from the
system globally sets 7 key total amount that we used in production. This has been achieved due to the efficient use
sustainability commitments. of water resources and a number of water stewardship projects.
We plan to achieve these Giving back. We give at least 1% of our operating profits to help solve social problems.
by 2020, and the ambitious Contribution to the UN SDG 3 Good Health and Well-being and SDG 17 Partnerships for
goal of recycling packaging the Goals, as well as the entire range of goals from SDG 1 No Poverty to SDG 16 Peace,
by 2030. Justice and Strong Institutions
Based on our 2018 results, 1.5% of operating profits were invested in social responsibility
projects.
04. Sustainability of Coca-Cola in Russia in 2018 0 3 5
Human and workplace rights. By 2020, at least 98% of our bottling partners and 95% of
our suppliers around the world will achieve compliance with the Human Rights
Protection and Equal Opportunities Policy (set out in Supplier Guiding Principles)
Contribution to the UN SDG 10 Reduced Inequalities, SDG 8 Decent Work and Economic
Growth, SDG 5 Gender Equality
2018 result: 89% of our bottling partners and direct suppliers are in compliance.
Sustainable agriculture. We strive to ensure that key ingredients for our beverages
(apples, lemons, oranges, tea, sugar beets and sugar cane, coffee and corn) are grown
sustainably.
Contribution to the UN SDG 12 Responsible Consumption and Production and SDG 15
Life on Land
Information on each of the key ingredients’ sustainability progress can be found in The
Coca-Cola Global Business and Sustainability Report 2018.
Climate protection. By 2020, we will reduce our carbon footprint (greenhouse gas
emissions) by 25%* across the supply chain.
Contribution to the UN SDG 13 Climate Action and SDG 7 Affordable and Clean Energy. For more information
on The Coca-Cola
Company sustainability
2018 result: 21% reduction commitments and
our results, please
see The Coca-Cola
Global Business and
Sustainability Report
2018.
* Compared to 2010
0 33 6
04. Sustainability of Coca-Cola in Russia in 2018 0 3 7
Sustainability Commitments of the Coca-Cola Hellenic Bottling Company AG (Including Coca-Cola HBC Russia)
The year 2018 marked major developments in Based on the principles of sustainable
establishing the priority ranking of the environmental growth, we strengthen our business practices
and social responsibilities of Coca-Cola in Russia. across the board: adhering to impeccable
business ethics, developing our suppliers
and customers, promoting principles of
sustainable agriculture, improving the well-
being of our staff, and improving the quality
of our products.
In 2016, we introduced "Our Putting the consumer first. All around the world, we are reviewing our recipes
to reduce the level of sugar — that way we will be able to offer a greater choice
Way Forward" — a new strategy
of low-sugar alternatives. We are also introducing products in smaller packages,
designed to radically transform so that our consumers are able to balance their nutrition. We comply with the
our way of thinking about WHO recommendation to use added sugar moderately, so that it does not
qualitative improvements and exceed 10% of the daily intake of calories.
to mark the transition to more
responsible manufacturing of
beverages. Innovations. The Coca-Cola portfolio has expanded beyond sparkling
beverages. Today, it includes juices, iced teas, water, plant-based drinks and
This new company strategy allowed other nutritious and functional beverages. We are becoming a total beverage
us to rethink our business priorities company: our range of products is expanding to satisfy all possible tastes.
and our preconceptions about
growth. Now, instead of increasing
the volume of output, we strive to Information transparency and accuracy. In Russia, we were the first company
to print nutritional information on the front of our product packages, enabling
offer more choice to the consumers.
our consumers to make informed choices.
We are systematically reducing the
sugar content of our beverages.
We are also actively promoting
Responsible marketing. We do not advertise our beverages to children under
products in smaller packages, 12 years old and we do not sell sparkling soft drinks in schools.
so that the consumer is able to
control servings. At the same time,
Partnerships. Together with government authorities, corporate leaders and
we are introducing innovative
healthcare professionals, we strive to support our consumers in their pursuit of a
categories of beverages with balanced healthy lifestyle.
natural plant-based ingredients,
added vitamins and minerals.
04. Sustainability of Coca-Cola in Russia in 2018 0 4 6
Since the opening of its first plant in Russia, the Packaging collection and recycling. Here,
Coca-Cola system has implemented many external our main program is called "Separate with
social and environmental initiatives. In 2018, our Us" — it is a part of Coca-Cola’s global
programs were focused on four material topics: environmental strategy "World Without
recycling consumer packaging waste, empowering
Waste". The initiative aims to introduce and
young people and tackling complex social issues,
such as building an inclusive society and disaster promote the culture and the daily practice
relief. All key projects of Coca-Cola in Russia have of separate waste collection in Russia,
been focused in one or more of these areas. and includes infrastructure (installation
of special containers for separate waste
collection and subsequent recycling)
and education (environmental lessons
and information campaigns to raise
awareness among the general public).
Our projects on decontamination of the
coastal areas of strategic water reservoirs
(the Volga, the Baikal and the Black Sea)
have also been included in this program.
"Separate With Us" also encompasses the
Coca-Cola "Green Teams" volunteer project
(focusing on separate waste collection and
recycling), as well as our support for the
Russian National Junior Water Competition.
From 2019 we will support the latter’s
nomination “Solutions to combat micro
plastics in water reservoirs”.
04. Sustainability of Coca-Cola in Russia in 2018 0 4 7
World Without Waste Design. Our goal is to switch to fully recyclable packaging by 2025; and by 2030 we
aim to introduce packaging made from 50% of recycled materials. Ten years ago, the
company invented PlantBottle — a revolutionary new technology that uses plant-based
"World Without Waste" materials to create fully recyclable packaging. This innovation allows us to increase
is Coca-Cola's new global the volume of packaging containing bioplastic in various industries, creating positive
environmental impact.
environmental strategy. By
2030, we plan to collect and In Russia, we are working on a roadmap for switching to fully recyclable packaging. At present,
the country’s infrastructure does not fully support such initiatives, so we can solve this problem
recycle the equivalent of by working together with government authorities and likeminded leaders of the industry.
100% of all the packaging
we put on the market. Major Collect. By 2030, our goal is to collect and recycle the equivalent of each bottle or can sold.
changes in the packaging In Russia, our "Separate With Us" program is dedicated to achieving this target. The program
production process have to has been in place since 2016, and last year it merged organically with the global "World
be implemented to achieve Without Waste" agenda of the Coca-Cola system. There is still a long way to go to become a
Country Without Waste, but we managed to go waste-free at large public events. For example,
this target. The entire life during the FIFA 2018™ World Cup, we supported plastic packaging collection with a massive
cycle of packaging in the communications campaign. As a result, 32 tonnes of plastic were collected — this is as much
packaging as we’ve supplied with our drinks throughout the championship. We intend to build
Coca-Cola system (from the on this success at other large events supported by Coca-Cola. We have already had similar
development and production positive experiences at the XXIX World Winter Universiade 2019 in Krasnoyarsk, at the Gaidar
of bottles and cans to their Forum and at the Olympic figure skating champion Tatiana Navka’s ice show “The Scarlet
Flower”. In addition, we intend to work with local governments in order to address the problem
recycling and reuse) complies of waste collection in Russian cities.
with our environmental
strategy. Our efforts are Partner. Here, the goal is to collaborate with large industrial companies, NGOs, local authorities
and communities to solve the global problem of plastic waste.
applied across the following
three areas of strategy In Russia, we work with the authorities regulating the implementation of the extended
manufacturing responsibility program and with the experts in separate waste collection,
implementation: recycling and environmental education — the ERA Foundation and EcoTechnologies Group.
In 2019, we also intend to develop our partnership programs, dedicated to eliminating waste in
cities and coastal areas.
0 4 8
04. Sustainability of Coca-Cola in Russia in 2018 0 4 9
Throughout 2018 we have been working on the Our activities aimed at building an inclusive
launch of our flagship project in education and youth society hold special meaning for us. In a
development "Youth Empowered". It aims to tackle number of countries where Coca-Cola
youth unemployment and to assist young people with systems operate there is a history of
their career choices. In Russia, Youth Empowered will inclusivity already in place, whereas in Russia
also become the springboard for supporting women the concept is still in its infancy. In terms of
empowerment — as part of our global 5by20 initiative infrastructure, we are working on building
designed to teach entrepreneurial skills to five million an inclusive society together with our two
women worldwide. partners: Natalia Vodyanova’s The Naked
Heart Foundation and The Elena Isinbayeva
In 2018, we have also selected twenty Russian Foundation. The Christmas Caravan, one
universities for integrated collaboration with the of the largest and most renowned social
Coca-Cola company. Our specialists will present lectures projects of the Coca-Cola system, is also
and masterclasses, provide information and business inclusive since 2018. We are continuing to
cases, and invite students to volunteer on our social and nurture our partnership with The Special
environmental projects. We plan to transform selected Olympics and we will continue to support
universities into waste-free zones. people with special needs by inviting them
to participate in the company's sports and
"Growing Kindness" is another one of our social environmental projects.
responsibility projects. Established five years ago,
the program helps teenagers (aged 13–17) without
parental care with their social needs and professional
development.
04. Sustainability of Coca-Cola in Russia in 2018 0 5 0
First and foremost, the directors of the Coca-Cola companies We have to consider our economic,
in Russia. Reporting to them, the heads of services and environmental and social impact on local
departments are responsible for certain aspects of the communities in its entirety. Thus, most of
sustainability strategy, including: the externally-facing projects in Russia
are implemented by the Coca-Cola system, as
СFO (cost efficiency) a single entity.
Head of Supply Chain, Head of Procurement, Head of Planning and
Logistics (environmental responsibility) Programs associated with industrial safety,
Head of Public Affairs and Communications, Head of HR (social product quality and the environmental impact
responsibility). of production are primarily run by the bottling
company — Coca-Cola HBC Russia.
On other levels, there are sustainability managers,
environmental managers, HR managers, as well as heads The companies in the Coca-Cola system may
of quality control and labour protection services — each have slight variations in their internal business
responsible for specific sustainability programs and projects. practices, including different corporate
structures, personnel development and supply
Ensuring sustainable practices in agriculture and plastic chain policies, as well as business ethics.
recycling is the responsibility of supply and procurement However, all companies are in compliance with
managers. our core principle: we conduct our business
the right way by setting the highest standard
Quality control managers, technical department staff and of business ethics for ourselves, our customers
marketing specialists are responsible for the recipes of and suppliers and by providing equal
beverages and the reduction of their caloric content. opportunities and benefits for all.
04. Sustainability of Coca-Cola in Russia in 2018 0 5 3
Sales volume up
4.4% *
To increase the share of locally sourced 0 was the number of accidents involving staff of the
agricultural ingredients that can Coca-Cola in Russia contractors in 2018
potentially be produced from fruits and
vegetables that can be grown in Russia The consumer hot line of Coca-Cola in Russia receives
to 35% in 2019 and to 40% by 2020 ~ 1 complaint per 7 million product units. On average, only
one out of 30 complaints is confirmed
* Excluding concentrate.
0 5 5
04. Sustainability of Coca-Cola in Russia in 2018 0 5 6
We increased the number of energy efficient refrigerators Reduced the volume of direct emissions of
to 51% greenhouse gases by 1.5% compared to 2017
(81,014 thousand tonnes of CO2 equivalent in
We reduced the energy use ratio by 5.6% compared to 2018 compared to 82.3 thousand tonnes of
2017. In 2018, the energy use ratio per litre of final product CO2 equivalent in 2017).
fell below our target of 0.52 megajoules per litre to 0.51
megajoules per litre We estimate that in the past five years
(2014–2018), we reduced our potential
We reduced the water use ratio by 3% compared to 2017*. contribution to climate change by more
The actual 2018 water use ratio fell below the year’s target of than 50% — by using more energy efficient
1.86 litre per litre of final product to 1.85 litre per litre of final refrigeration equipment
product
45%
Building an inclusive society
> 193 million RUB*
we invested in social projects in 2018
4%
Emergency relief
14%
Combatting environmental pollution
and promoting a culture of separate
waste collection and recycling
37%
Public outreach and youth * In EUR, at the Central Bank of Russia exchange
empowerment rate as of 31.12.2018.
0 6 3
04. Sustainability of Coca-Cola in Russia in 2018 0 6 4
At the End of the First Year of this After Launching "Separate With Us" in 2016, We Have:
Program, We Set the Following
Goals for 2018: Set up >5,000 containers for separate waste collection
and recycling in 50 cities across Russia (including 2,000
Set up 1,500 containers for containers in 25 Russian cities in 2018 alone)
separate waste collection and
recycling Collected and recycled ~60,000 tonnes of consumer
packaging waste (28,500 tonnes in 2018)
Collect and recycle 10,000 tonnes
of consumer packaging waste Engaged ~800,000 people via public outreach
Youth Empowerment
We launched "Youth Empowered" — a free 28,000 people will participate in the "Youth Empowered"
educational program for young people aged program; we will also hold outreach events and guided tours
18 to 30 of the company’s plants for more than 11,000 undergraduate
students
We prepared partnership agreements with
20 Russian universities and other higher
education institutions We will be the official supplier of soft drinks to the XXIX
World Winter University Student Games in Krasnoyarsk in
2019, and we plan to invest USD 1 million in preparation for
the Universiade
By 2025:
3 million people in 11 cities across Russia will be able to use We will launch six more inclusive
(for both sport and leisure) new inclusive play parks, which started playgrounds: in Sochi, Samara,
construction in 2018 Yekaterinburg, Moscow, Moscow
Region and Saint Petersburg
> 7,000 people participated in unified football matches that were
organized as part of the FIFA World Cup™ Trophy Tour With We will continue to incorporate the
Coca-Cola in Russian cities agenda on inclusivity in our social
and environmental projects and the
> 3,000 guests from more than 90 social institutions took part in public events that we support, and
Christmas Caravan celebrations to develop our inclusive Christmas
Caravan
Together with the Russian Red Cross, we replenished We will replenish emergency stocks
emergency supplies in four disaster relief storage of non-food essentials for disaster relief
facilities (in Ingushetia, Khakassia, Khabarovsk in various regions of Russia
Region, and Moscow) for 4,000 people
We will expand our partnerships for
We helped with disaster relief following floods in emergency relief (waste collection and
Gelendzhik recycling) as well as for environmental
awareness
04. Sustainability of Coca-Cola in Russia in 2018 0 6 8
Volunteering
We were among the first companies in Russia to Our goal is to encourage volunteering during
implement a corporate policy of volunteering working hours and to ensure that 10% of
during working hours: employees now get paid employees participate in our environmental
vacation days for volunteering during business and social projects during business hours
hours
— I believe that we’ve reached an — Last year’s key achievement has been the introduction of
important milestone in streamlining corporate volunteering policy during working hours. When a
our efforts across a number of company invites staff to share its socially responsible position
socially significant projects. We and then invests money in it by providing paid vacation
are focusing on genuinely complex days, — that makes brand values truly authentic. This is
topics: the problem of waste an extremely important achievement. I would also like to
collection and recycling, inclusivity, highlight our approach to reducing our carbon footprint.
youth unemployment. We believe Due to availability of low-cost fuel, there are no alternative
that, based on the strength of the energy solutions being developed in Russia. There are
Coca-Cola brand, we will be able to no financial incentives for businesses to switch to clean
raise public awareness significantly, energy and, as a result, it’s not great a situation in terms of
thus, making our country a better, sustainability. I think it is very valuable that Coca-Cola in
cleaner, and kinder place. Russia strives to reduce carbon emissions.
04. Sustainability of Coca-Cola in Russia in 2018 0 7 0
Stakeholder Engagement
Among the stakeholders of Coca-Cola in Russia we count In June 2018, we had over 35 people
those who impact our business and vice versa: our consumers, participating in stakeholder panel discussion.
customers and partners, our staff and suppliers, the wider These included representatives of NGOs,
business community, experts and the media, government experts, the media, government bodies,
authorities and non-profit organizations. Each department customers and partners. We did our best
of Coca-Cola in Russia has its own list of stakeholders mapped to take into account all their comments
out, with regular communication, meetings and events as when preparing the report on sustainable
well as protocols for collecting and analysing feedback. Each development of Coca-Cola in Russia.
environmental and social project of the company has its own
stakeholders. Stakeholder engagement also takes place
at major business and industry events, such as
Following best practice guidelines on non-financial reporting, the Russian Investment Forum in Sochi, the
every year before July, we meet with our key stakeholders to St. Petersburg International Economic Forum,
discuss our Sustainability report. Having read the draft of the the Gaidar Forum, the Russian Retail Week.
report, the representatives of all interested parties provide us In 2018, the representatives of the Coca-Cola
with valuable feedback that we consider before publishing the system spoke at more than 70 similarly high-
report. Earlier on, the representatives of all the stakeholder profile events.
groups participate in determining the material topics for the
report. Thus, it is very important for us to show that we have
taken into account their opinions and requirements related to
the disclosure of information on sustainable development.
04. Sustainability of Coca-Cola in Russia in 2018 0 7 2
At the end of last year, we identified 36 topics that are relevant universities and cultural institutions. 14 of them
to the strategy of sustainable development of Coca-Cola in were our staff members employed in various
Russia. Then we analysed and weighed each of them on the functional departments within Coca-Cola in
scale of their overall significance for disclosure in our 2018 Russia.
Sustainability Report. Based on the feedback we received from
various stakeholders and guided by our sustainability strategy According to the results of the survey,
and commitments (both at the global level and in Russia), we all 15 submitted topics were considered
prioritized 15 materials topics for further assessment (see page by the respondents to be highly significant.
075). Average rating points were distributed
in the range from 5.1 to 6.2 with the scale
We conducted an analytical survey on the significance of these from 1 to 7.
topics before collecting information for 2018 Sustainability
Report. The respondents (representatives of stakeholders of For the first time in our practice of conducting
Coca-Cola in Russia) were asked to rate each topic on a scale stakeholder surveys, the responses highlighted
from 1 to 7 in two dimensions: the general significance of that the topic Packaging, recycling & waste
the topic for the environment, the economy and the society management 7 is considered to be of most
in Russia, and, more specifically, the direct significance for importance. For us, this coincided with the
the stakeholder and the group of stakeholders that he/she scaling of our flagship project "Separate
represents. With Us". The results emphasize the aptness
and relevance of our environmental strategy
In total, there were 65 respondents. 51 of the survey participants "World Without Waste". The problem of
were external experts, including representatives of non-profit waste management and recycling in Russia
organizations, suppliers and customers of the company, is particularly acute, and our stakeholders
members of industry and business organizations, employees of confirm this.
04. Sustainability of Coca-Cola in Russia in 2018 0 7 4
1
5.6
5
10
8 15 4
5.4 9
6
3
5.2
14
12 11
5.0 5.2 5.4 5.6 5.8 6.0 6.2 Significance for the country
04. Sustainability of Coca-Cola in Russia in 2018 0 7 5
For the
№ Topic For Russia
stakeholders
Also, the external respondents suggested that we pay attention Disclosure of Material Topics
to such topics as poverty, the issues of people with disabilities
as well as the need to share advanced business technologies Since all 15 material topics were highlighted
and professional competencies with NGOs. The emergence of by our stakeholders as highly significant,
the topic of poverty indicates that, alongside government’s we decided to disclose each of them in our
policies, business in Russia is still expected to provide solutions integrated non-financial reporting set for 2018.
to social and economic problems. Our initiatives in regional
development and the support of local communities are The topic of social and economic development
precisely aimed at improving the socio-economic situation in of Russian regions is disclosed in detail in
the country. But public opinion is beginning to shift: the high the second part of our integrated report
ranking of the waste topic indicates that environmental issue prepared jointly with the National Research
are gaining momentum. University Higher School of Economics. It will
be published in October 2019.
By raising the topic of helping people with disabilities, our
stakeholders show us the relevance of social responsibility We covered all other material topics in ten
initiatives of Coca-Cola in Russia. Building an inclusive society is substantive blocks of the report, describing
a key topic for the company: in 2018 we spent more than 45% management approaches, goals and KPIs, as
of our social investments on projects in this area. well as the milestone achieved in 2018 and our
plans and commitments for 2019.
We are also inspired by the public request for the transfer of
best practices and our business experience. In fact, this is what
are doing already in a number of ways: developing our suppliers
and partners, implementing projects for youth and women
empowerment. In 2019, we intend to include NGOs in our
professional competence development programs.
04. Sustainability of Coca-Cola in Russia in 2018 0 7 7
№ Material topic The part of the report where the topic is disclosed Topic boundaries
1 Social and economic development Socio-Economic Impact of Coca-Cola in Russia in The Coca-Cola system
of the regions 2017–2018 in Russia
2 Business ethics and anti-corruption Business ethics and partnerships: how we are changing The Coca-Cola system
the market in Russia
3 Implementation of sustainable How we help to develop sustainable agriculture in Russia JSC Multon
agricultural principles and sourcing and source raw materials locally
from socially and environmentally
responsible suppliers Business ethics and partnerships: how we are changing The Coca-Cola system
the market in Russia
4 Product quality and integrity How we ensure the quality and safety of our products The Coca-Cola system
in Russia
5 Carbon and energy How we protect the environment by reducing Coca-Cola HBC Russia
greenhouse gas emissions and water stewardship (including JSC Multon)
stewardship
6 Water stewardship How we protect the environment: reducing greenhouse Coca-Cola HBC Russia
gas emissions and water stewardship (including JSC Multon)
04. Sustainability of Coca-Cola in Russia in 2018 0 7 8
7 Packaging, recycling & waste A country without waste: how we are changing The Coca-Cola system
management the culture of waste management for the future in Russia
of the planet
Industrial waste: Coca-Cola
HBC Russia (including JSC
Multon)
10 Employee well-being Caring for our employees: why do people want The Coca-Cola system
& engagement to work at Coca-Cola in Russia in Russia
11 Occupational health and safety Workplace Health and Safety: How we eliminate risks Coca-Cola HBC Russia
for our employees and partners (including JSC Multon)
12 Human rights and gender equality Caring for our employees: why do people want The Coca-Cola system
to work at Coca-Cola in Russia in Russia
13 Community development How We Use the Coca-Cola Brand Power to Tackle The Coca-Cola system
Socially Significant issues in Russia
15 Youth empowerment How We Use the Coca-Cola Brand Power to Tackle The Coca-Cola system
Socially Significant issues in Russia
0 7 9
Excellence Integrity
Learning Performing
as one
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 2
Anti-Corruption
The Coca-Cola system has a global anti-corruption “We were pioneers in the development
policy in place. Any manifestations of corruption, of business ethics”
bribery and fraud are unacceptable to us. In Russia,
our anti-corruption policy is also in full compliance — Both Coca-Cola Soft Drink Consulting
with the Russian legislation. LLC and Coca-Cola HBC Russia, including
JSC Multon, have their own business
ethics compliance systems. These are
different programs, but they are both
based on the principles that Coca-Cola
developed in the 1970s. The company was
a pioneer in establishing anti-corruption
and anti-bribery policies, protection against
discrimination, protection of information
and prevention of conflicts of interest. Of
course, since then, the code was reprinted
several times to take into account the new
business landscape and changes within the
company. But its core remains unchanged:
Olga Fominykh,
Head of Legal Services, the way we do business is based on the
Coca Soft Drink Consulting LLC: principles of honesty and integrity.
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 3
* As % of the total number of staff who were scheduled to undergo anti-corruption training in the region in the biennial cycle of 2017–2018.
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 5
100%
of employees of Coca-Cola
94%
of staff of Coca-Cola HBC
in Russia are familiar with anti- Russia, who were scheduled
corruption policies and procedures to undergo anti-corruption
and undergo relevant training training in 2017–2018, have
successfully passed it
100%
of the Coca-Cola’s business
86%
of Coca-Cola HBC Russia "risk
partners are aware of their zone" staff underwent special
obligations to comply with the anti-corruption training
company's anti-corruption policy
and relevant legislation
0 8 7
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 8
A supplier needs to receive an authorization from The preventing the use of child labor and
forced labor
Coca-Cola Company — this is an essential requirement
for all purchases of ingredients and primary ensuring safety in the workplace
packaging. Upon authorization, the supplier is audited
for the compliance of ingredients and materials guaranteeing non-discrimination
with the quality requirements set by The Coca-Cola
Company. All ingredients and materials are tested. ensuring fair wages and working
hours
The supplier is also subject to social auditing, where
the following criteria is assessed: compliance with the compliance with all government laws
requirements of corporate social responsibility (laid and regulations
down in the Supplier Guiding Principles), adherence to
the values and ethical standards of the company.
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 9
The Coca-Cola system has an integrated approach to supplier In addition to the above, Coca-Cola HBC
evaluation. In Russia, we follow the same principles. Supplier Russia has developed a number of other
approval begins at the manufacturing site. We test the requirements for its suppliers: established
supplied ingredients and primary packaging, check all the quality management system in compliance
documentation and equipment, which we then authorize. with ISO 9001, risk assessment and internal
audits of quality and food safety, established
The authorization procedures are part of KORE 2.0 standards. production and quality control system, and
For example, an applicant who intends to become our corporate social responsibility strategies.
supplier of ingredients or primary packaging must undergo an Existing suppliers are evaluated annually or
authorization procedure, which includes the following steps: more often, depending on the status assigned
to the supplier during the initial audit and the
An audit of the compliance of the production process practicalities of working experience with that
for ingredients and materials with the Coca-Cola particular supplier.
system specification in Russia and compliance with the
requirements of quality and safety
96.16 %
Our Processes for Supplier
Development
the share of ingredients purchased from local companies One of the key sustainability
in 2018* (compared to 90% in 2016)** performance indicators of the
Coca-Cola in Russia is the percentage
of ingredients and materials purchased
locally from Russian suppliers.
More information on
*Coca-Cola syrup concentrate excluded. how we manage supplier
**Coca-Cola in Russia Sustainability Report 2015-2016. quality
05. Business Ethics and Partnerships: how We are Changing the Market 0 9 1
Mikhail Popov,
Nomination Winner Specialization Procurement Director, Coca-Cola HBC Russia:
Quality
Tetra Pak
Aseptic packaging
— Why is it so important for Coca-Cola
Limited in Russia to develop its suppliers? This
is a growing trend in the industry and it
Price-value Ken-Pack LLC Aluminium can represents our investment in the future. We
leverage our influence across our supplier
base. Thus, the quality of their products is
SIBUR Holding
Customer service PET improving, which has beneficial spill-over
PJSC
effects for the whole Russian market. We
Environmental do not just demand compliance with our
Ball Beverage
responsibility and Aluminium can strict requirements: we explain why these
Packaging
work safety requirements are important and we invest
New technologies Europlast Group our resources and time in supplier training.
Preform This way, we are raising industry standards,
and innovation of Companies
contributing to its growth and development.
05. Business Ethics and Partnerships: how We are Changing the Market 0 9 2
Fruits
Apples Lemons
Oranges Mangoes
Peaches Grapes
Tomatoes
Other ingredients
Supply quality
We motivate suppliers of ingredients and
materials to improve their quality control
systems and to introduce sustainable
business practices
95.69%
DIFOTAI in 2018 (–1.94% compared
to 2017 (97.63%)
+ 39%
coverage area
06. Product Quality and Safety: the Way to Go 1 0 2
What Happens when a Consumer Complains about the Quality of the Beverage
Strengthened our cross-enterprise quality control, In 2019, we will continue to implement SPC
whereby the employees of one enterprise check Tool across our plants in Russia. We will further
the work of another, and then improvements are cultivate the quality ethos among the staff of
introduced throughout Coca-Cola in Russia, so that by the end of
2019 we become one of the leading countries
Installed modern PCR equipment (polymerase of Coca-Cola Hellenic Bottling Company AG.
chain reaction) at two plants and mastered PCR
microbiological analysis method, which is used to
detect and quantify pathogenic microorganisms
in food products. This method significantly
reduces examination time
Product Quality Indicators Controlled
by the SPC Tool
Installed SPC Tool system (at four plants) which
continuously monitors production according to СО2 saturation
several important quality criteria, helps to identify Level of beverage filling in the package
failures in the process and respond to them as Degree of corking
promptly as possible
PET bottle wall thickness
Double seam quality of the can
Microbiological parameters
Brix Ratio
1 0 6
06. Product Quality and Safety: the Way to Go 1 0 7
80%
better, we’ve launched a special new project — The
Maturity Matrix. It is used to evaluate production
and business processes, and to assess the skillset
of staff relative to the 100% benchmark level set (+4 pecentage points compared to 2017)
by the company. Based on this assessment, one of
four levels of maturity is assigned. Then, a rating is
compiled for member countries of The Coca-Cola
Hellenic Bottling Company AG.
At the end of 2018, according to The Maturity The Maturity of the Quality Management System is
Matrix, Coca-Cola HBC Russia reached 80% Evaluated in the Following Three Areas:
(+4 pecentage points compared to 2017).
Russia entered the top tier of countries of the
Coca-Cola Hellenic Bottling Company AG in terms
of "Commitment", overtaking Austria and Romania. Data on
Data on the
implementation
We have missed out on entering the highest overall key quality Competences
of preventive
indicators
measures
tier only by 1 pecentage points. Thus, we only give
ourselves a four. We strive to achieve outstanding
performance next year, when we will join the
leading countries of the group, so that we can set Achievements in each of these areas are
ourselves even higher goals for the future. summarized to calculate "The Matrix of
Maturity Index"
06. Product Quality and Safety: the Way to Go 1 0 8
Maturity Matrix
Total number of potential defects: the number of bottles with Average product storage time in the company's
potential defects decreased by 611 per 1 million bottles* warehouses decreased by 2 days
2018 2018
9,469 32.2 Juices
2017
10,080 26.2 Carbonated beverages
2017
Share of products with expired sell-by dates in retail stores 34.1 Juices
Carbonated beverages with expired sell-by dates in retail stores 21.6 Carbonated beverages
decreased by 0.2%
2017
0.17 Juices
0.39 Carbonated beverages
0.2%
reduction in the carbonated
beverages with expired sell-by
0.59 Carbonated beverages dates in retail stores
* It means that we had 10,080 bottles with potential defects per 1 million bottles in 2017, and 9,469 bottles with potential defect per 1 million bottles in 2018.
Thus, the indicator was improved in 2018 by: 611 less potential defects per 1 million bottles.
1 1 0
1 1 1
The past year has shown that calorie- The mini package (0.25 ml), which helps The portfolio of beverages with no
free and low-calorie beverages are consumers maintain a more balanced diet, added sugar is constantly growing.
definitely the future. This segment was also popular in Russia: in 2018, In 2018, we introduced new
of the market is already showing Coca-Cola in 0.25 ml cans was joined Coca-Cola Cherry and Sprite
significant growth. For example, the by Fanta, Sprite, and Coca-Cola Zero. Watermelon-Cucumber. We also
Coca-Cola Zero brand grew by 50% Sales of beverages in this package size announced the launch of the plant-
in volume and by 64% in purchases increased by 38% compared to the based beverage line, Adez, and the
compared to 2017. previous year. new premium drinking water brand,
Smartwater.
10.6%
fewer calories in our juice
9.6%
reduction in the total caloric
30%- 80%
reduction in the amount of added sugar in
products per 100 ml content of our beverages per 100 ml Fanta, Sprite, and Schweppes produced for
(compared to 2017) (compared to 2017) the Russian market in 2017–2018
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 5
— Common opinion is that that the concern about the Coca-Cola Cherry — Now Sugar-Free
amount of sugar in foods in Russia has not yet reached the
level of other countries. Nevertheless, we are consistently Our surveys show that cherry is the most
reducing the amount of added sugar in our beverages in popular taste of flavored Coca-Cola among
the Russian market, as this is a strategic choice of the Russian consumers. Coca-Cola Cherry has
Coca-Cola system. In Russia, we are actively promoting been available in Russia for several years,
no- and low-sugar drinks, launching innovative products and in 2018 it returned to the market in
and reducing package sizes. The 2018 results show that the sugar-free version. The novelty was a
our consumers approve of these initiatives. Thanks to the success — its sales are growing month on
efforts of our R&D team, today we can give our consumers month.
both less sugar and the excellent taste of their favorite
drinks. We are all for providing a balanced alternative
without compromising the taste.
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 6
Responsible Marketing
We do not sponsor sports and leisure We also do not supply carbonated beverages
activities that are especially popular among to educational institutions and we control
children the fulfillment of all obligations undertaken
through regular audits. In 2019, we will
We do not hold sample tastings for children, continue to follow these policies with the
and we do not organize any promotional utmost care and attention.
activities in schools.
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 8
At Coca-Cola, we believe that our employees are the key The Sustainable Engagement Index, as measured
partners when it comes to maintaining a sustainable business. by Coca-Cola HBC Russia, for several years has
The Coca-Cola system is one of the biggest employers in Russia. been above 90%, and the company has made
We create all the necessary conditions for professional growth significant efforts to maintain it. For example, in
and development of our people. All of the above makes it 2018, we took every opportunity in partnering
possible to constantly increase productivity and engagement of with the FIFA World Cup 2018TM so that our
each and every employee. employees could feel that they are a part of a
global event and learn new skills.
Even considering all our accomplishments, we still continue
to improve the system of staff motivation and development,
creating more opportunities for a healthy work-life balance.
The companies in Coca-Cola in Russia conduct regular
Workplace Rights audits. These allow to confirm legal
compliance and the upholding of our own business ethics
7,750
when it comes to competitive wages and equal opportunities for
employees in development and career growth. 34% Women
66% Men
In 2018, Coca-Cola in Russia successfully completed the employees
Succession Planning system for key positions. Now the
succession rate of key employees, ranging from supervisors
to senior managers, does not fall below 80%. That is up by 8%
compared to 2017.
1 2 2
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 2 3
99.3% of personnel are full-time employees, 0.7% are Number of employees: 6,959 people
employed part-time. Both of these groups are listed
as staff members. At the end of 2018, the collective
agreement covered 13% of employees.
In 2018, the company hired 1054 new employees; new 13.8% — staff turnover rate
31% Women
(1.9 ppt lower than in 2017)
recruits mostly fall within the under 30 age group 69% Men
(622 people).
2017 2018
2017 2018
Out of all the staff members, four people are Number of employees: 107 people
employed on temporary contracts and one person
is working on a partial occupation basis. Three
employees (all women) are working part-time. All LLC
Coca-Cola Soft Drink Consulting staff members are 81% Women
11.9% — staff turnover rate
based in Moscow Region. (12.4 ppt lower compared
19% Men
to 2017)
In 2018, the company hired 18 people.
Coca-Cola Soft Drink Consulting LLC. Personnel Composition by Gender and Age, %:
Multon JSC
100% of the employees are staff members, 7% are Number of employees: 684 people
employed on temporary contracts: they are interns
and employees covering for those on maternity
leave. Everyone is working full-time and are based in
Moscow region. 49% Women 12.7% — staff turnover rate
In 2018, the company hired 94 people, most of them 51% Men
are under 30 years of age.
Coca-Cola in Russia provides employees with a Employees of Multon JSC are offered
comprehensive system of benefits, competitive insurance and compensation for voluntary
wages and insurance packages for family members. health insurance, their close relatives receive
For instance, every employee of Coca-Cola Soft discounts of up to 50% for the cost of
Drink Consulting LLC has the right to take part in the insurance programme. Starting from
the corporate pension programme: each month the the very first day of work, employees are
company transfers 3% of the employee’s salary to covered by the company’s work-related
the Pension Fund of the Russian Federation. The accident insurance.
employee can also make a contribution on his own,
which is then doubled by the company. During
pregnancy and maternity leave, women receive
an allowance equivalent to 100% of their salary.
Also, voluntary health insurance can be provided 288.5 million rubles overall / 37.2 thousand
to the employees of the company and their family rubles per person on average is the cost of
members. Coca-Cola Soft Drink Consulting LLC employee benefits package within the
Coca-Cola in Russia in 2018
compensates its employees for food expenses
and sporting activities, and also provides funds for
life insurance. In 2018, the average monthly salary within
Coca-Cola in Russia was 62,774,4 rubles.
Coca-Cola HBC Russia employees have access to a This is 45% more than the average monthly
wide range of benefits, among which are voluntary salary in Russia in 2018, according to Rosstat
(Russian Statistics Agency).
health insurance, life insurance and partial
reimbursement of expenses on food and children's
leisure activities.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 2
Ekaterina Kuzmicheva,
Director of Human Resources,
Coca-Cola Soft Drink Consulting LLC:
97%
For several years now Coca-Cola HBC Russia has
successfully implemented the Rise Management Trainee
Programme, which was designed to attract students
and talented university graduates and train them to of Fast Forward program graduates were
promoted in 2018
become managers in the future. However, the main
focus is on developing talents inside the company. At
least 80% of Coca-Cola HBC Russia vacancies should be Development Programme — and a new
filled by internal candidates. To follow through on this approach to forming effective teams — the
commitment, the company has accelerated development Team Development Workshops. The Project
programmes for each level of management. The first level Accelerator programme is now focused on
(Fast Forward) starts with self-management to managing customers and on developing innovative
others. The next level (Leap) — from managing others thinking in future leaders. The company has
to managing other managers. And lastly, the Leadership come up with new formats for accelerated
Development Programme is aimed at expanding the development programmes Fast Forward —
professional capacity of individuals to perform in Business Marathon and Fast Forward
leadership roles and educating those leaders to acquire Learning Club. The use of digital capabilities
strategic thinking and understanding of the company's allows us to apply new formats when training
business objectives. In 2018, 235 company employees participants across the country.
began training at Fast Forward programmes at various
levels. At the same time, 97% of last year’s graduates were The development of mentoring is also one
appointed to new positions. This is up 6.8 percentage of the company’s prime focuses. Thanks to
points compared to 2017. Leaders Develop concept we were able to
train more than 200 internal mentors. Each of
In 2018, the development and employee training them has his/her own digital page displayed
system of Coca-Cola HBC Russia underwent significant on the intranet. Also, a new senior managers’
changes and updates. Namely, the company's training training programme was introduced as part
programmes’ portfolio has been supplemented with a of the Talent Champions project: it is aimed
new concept of talent development — the Leadership at training senior managers so that they
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 7
92%
engagement. In 2018, a motivational contest was organized for
them and the procurement department team was chosen as the
best performing team.
Sustainable Engagement Index
2018 FIFA World Cup™ has been an emotionally enjoyable of Coca-Cola HBC in 2018
experience for the whole team. In 2018, we organized the FIFA
World Cup™ Trophy Tour by Coca-Cola. There were 170 flag And of course, we gave out 2 500 tickets to
bearers and 12 kids who carried coins that were tossed before the both the FIFA Confederations Cup 2017 and
start of the football matches at the 2018 FIFA World Cup™ — all the 2018 FIFA World Cup™ football matches to
children of the employees of Coca-Cola in Russia. our staff members.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 4 0
44.8%
We consistently advocate equal opportunities and we
pay special attention to supporting women. 81% of
employees at Coca-Cola Soft Drink Consulting LLC are
women. JSC Multon has a gender balanced workforce, of women overall hold senior
and top-management positions
where 49% of staff are women and 51% men.
in Coca-Cola in Russia
At Coca-Cola HBC Russia, where there are many
manufacturing jobs, men make up the majority — 69% of
all employees. But it’s important to note that in 2018 the
number of women in managerial positions at Coca-Cola
HBC Russia has increased by 3 percentage points.
— We have an equal opportunity — We see that our female employees
policy in place. Our priorities are are successful in their careers and
focused on maximizing people’s this makes us really proud. One of the
potential and professional skills. At company's key goals is to create a
the same time, the company offers culture that will help people balance
certain flexibility to women in terms their career and personal priorities. In
of personal errands. For example, my opinion, women are great at this.
I can go see my child’s morning
performance at the kindergarten.
Being a working mom myself, this is
extremely important.
1 4 4
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 4 5
Ambassadorship Program
Elena Kovaleva,
Sustainability Manager,
Coca-Cola Soft Drink Consulting LLC:
The overall number of plant accidents and serious Safety Culture Metrics in 2016 — 2018
injuries has been declining consistently for the past
three years. It is our goal to cut the number of
lost-time accidents by half by 2025.
2018
7,779
6,032
Accidents in 2016 — 2018 16,507
2017
2018
6,764
3 4,971
16 14,774
2017
2016
3
5,799
9
4,741
20
31,178
2016
4
24
15,992
In full compliance with the Russian law, every
Coca-Cola HBC Russia employee receives full
occupational safety training, which includes
several different kinds of briefings and job-specific occupational safety briefings were
provided in 2018
occupational safety training sessions, the scope and
frequency of which depend on each employee’s job
description.
1,054
We have an industrial safety management system
in place to prevent accidents and incidents at
high-risk production facilities. Our key principles
and approaches to employee safety are set out in people received job-specific
the Occupational and Industrial Safety Policy and occupational safety training
Procedures. We are getting certified on a regular
basis for compliance with the requirements of
the Russian law by successfully undergoing audit
checks by the Russian government regulators and
The Coca-Cola Company.
Coca-Cola in Russia is striving to make its production The second area of our efforts to enhance
facilities safer. Thus, our work here is leveraged across occupational safety is reactive. We
two main areas. promptly identify the causes of accidents
and incidents, then we develop corrective
The first area covers our proactive efforts designed to actions to prevent similar incidents from
prevent incidents. happening in the future. As a rule, we also
make sure that we broadcast information
Coca-Cola HBC Russia launched a project in 2018 to about the incidents to employees who may
implement Behavioral Based Safety (BBS) across all be susceptible to similar risks.
bottling plants. Bottling plant employees are the key
people in this project: they observe their colleagues
at work, and then discuss with them safe their work
process is. Now, instead of a supervisor telling
employees that some aspects of their behavior might
have been unsafe, colleagues and peers point out
possible risks and potentially hazardous situations
to each other. In 2018, the project was launched at
bottling plants, and in 2019, it will be expanded across
the supply chain and to sales representatives.
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 5
20%
the warehouse rack monitoring process and the course
of action when a discrepancy is found, as well as the
criteria for screening and rejecting racks. Now we are
using color-coded magnetic stickers to clearly mark the reduction in workplace injuries in 2018
racks according to their condition. (compared to 2017): the total number of
accidents across the Coca-Cola system
in Russia was 16 in 2018. We are planning
Many practices brought improvements to protection to reduce this number by an additional
of personnel health. For example, one of the bottling 6% in 2019
plants replaced earplugs with active headphones,
which made it possible to communicate in a noisy
environment without having to lift the soundproof
earcup or take the headphones off.
Bottling plant equipment also saw some safety These practices were found to be the best of
improvements. To make label feeding process safer, we their kind and were implemented at all the
have switched to two-button manual controls to start bottling plants within Coca-Cola in Russia.
label tape feeding and engage the rotating vacuum This way, eliminating the causes of potentially
drum, thus eliminating the risk of operator hand injury. hazardous events and increasing the number
of employees actively involved in safety-
promoting efforts enables us to consistently
improve safety at the company’s plants and
other facilities.
1 5 6
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 7
Road Safety
2018
386
290
96
2017
362
273
89
2016
461
349
112
2015
709
540
169
Fire Safety
2,655
Coca-Cola in Russia has extensive experience in
occupational and industrial workplace safety, which
we are happy to share with our suppliers and other
business partners. For example, we incentivize contractor compliance audits were
performed by Coca-Cola in Russia
contractors to perform assessment of their
in 2018
employees’ risks — this is a mandatory requirement,
and we will not work with any contractors unless
they comply. A safety management system
0
for contractors, developed in line with the
best international and Russian practices, enables
us to carry out risk-oriented management at every
stage of a contract’s lifecycle: from setting the was the number of accidents
scope for terms of reference to contract expiration involving employees of the
and evaluation of a business relationship with a contractors of Coca-Cola in Russia
in 2018
contractor.
44%
of employees have
99
employees volunteered for Water
volunteered at least once Stewardship projects
1,256
employees participated in the
"Green Teams" project
10. Developing a Culture of Volunteering in Coca-Cola in Russia 1 6 5
Every year since 2000, around New Year’s More than 3,000 teens (3,054, to be exact)
Eve, red Coca-Cola trucks set out on a journey attended holiday events. As many as
around Russia. This is the Coca-Cola Christmas 227 employees joined 151 other volunteers
Caravan — the largest and most important social from partner organizations to help with
project by Coca-Cola in Russia that brings the running the events. The Association
spirit of the holiday to underprivileged children and of Volunteer Centers, the Special Olympics,
teenagers. Volunteers working correctional boarding schools and NGOs
on the project visited orphanages and hospitals, working with adolescents with special
organized New Year’s holiday shows for kids and needs, regional government agencies, our
taught master classes. In 2018, the Coca-Cola key customers and partner universities have
Christmas Caravan changed its concept. become our partners on this project.
It became inclusive as it has become a part of
a large-scale campaign, which the Coca-Cola system We worked to prepare all volunteers for the
launched in Russia to support people with special Coca-Cola Christmas Caravan — everyone
needs. Now the Coca-Cola Christmas Caravan will received special training, which was provided
be helping such kids improve their social skills and by an NGO specializing in working with
find new friends and hobbies. people with special developmental needs.
The volunteers learned how to behave in
The project included events for teenagers with different situations, and they learnt how to
disabilities and special needs in 12 Russian cities. deal with potential difficulties.
10. Developing a Culture of Volunteering in Coca-Cola in Russia 1 6 6
15
We Donated Blood
1,256
We Collected Waste Together
Keeping it Local 1 7 7
03. Coca-Cola in Russia
04. Sustainability of Coca-Cola
in Russia in 2018
05. Business Ethics and Partnerships
06. Product Quality and Safety
07. A Balanced Lifestyle
08. Caring for our Employees
09. Workplace Health and Safety
10. Developing a Culture of Volunteering
11. Sustainable Agriculture
12. Protecting the Environment
13. A Country Without Waste
14. Social Programs
15. How it Works: Four Stories of our
Initiatives Helping People in 2018
16. GRI Content Index
17. Contacts
11. How We Help to Develop Sustainable Agriculture in Russia and Strive to Source Raw Materials Locally 1 7 1
94.13%
Coca-Cola in Russia produces its beverages with
the ingredients and materials procured mostly from
agricultural producers — that includes everything
from packaging to raw materials for our juices. of sugar supplied in 2018 complied with
We want everyone in our supply chain to produce the Sustainable Agriculture Guiding Principles
raw materials in compliance with sustainability
principles, because it is important for the health,
well-being and food safety of the society. To achieve its targets, the Coca-Cola
system has formulated a number of guiding
The Coca-Cola system's global plan is to increase principles for sustainable agricultural
the share of raw materials produced in compliance development. These define the requirements
with sustainability principles to 100% by 2025. for partners within a sustainable supply
This is an extremely ambitious goal and it relates chain, including 15 principles and 69 criteria,
to the most important ingredients, such as sugar which are divided into three categories:
and certain categories of fruit. This means that
our raw material suppliers must comply with compliance with human rights and
the Sustainable Agricultural Guiding Principles, workplace safety legislation
which include requirements relating to human rights
and workplace safety, environmental conservation ensuring reasonable use of natural
and responsible agricultural management resources and maintaining productivity of
(15 principles in total). agricultural areas
30
farmers, we are giving them opportunities for
growth. This means that we are creating additional
jobs and indirectly influencing the development of
related industries — agricultural engineering, fertilizer suppliers have been evaluated
production and others. for compliance with Sustainable
Agriculture Principles
1 7 4
11. How We Help to Develop Sustainable Agriculture in Russia and Strive to Source Raw Materials Locally 1 7 5
JSC Multon has two departments that are working directly The company uses the Sustainable
with suppliers of agricultural products: Agriculture Initiative (SAI) online platform
to select pre-approved suppliers. To
The Strategic Procurement Department is responsible complete the required certification
for finding and developing suppliers process, each supplier must register on the
platform. This is achievable via an external
The JSC Multon Research Center develops requirements audit, which verifies that the products of
for our raw materials the supplier comply with the requirements
of sustainable agriculture. Based on this
Producers of raw materials are regularly audited for external audit, each supplier receives
compliance with the company’s requirements. Suppliers an independent appraisal, which is then
are also audited for complying with the principles of published on SAI. Next, the supplier must
sustainable development. If any of them are not up to conduct a self-assessment in terms of
some of the standards, JSC Multon provides them with the compliance with the requirements of JSC
necessary assistance to help them improve in the areas that Multon's Guide to Sustainable Agriculture.
need extra effort, for example, to organize production in The results of this self-assessment are then
compliance with the principles of sustainable development. compared with the independent appraisal
published on SAI. Thus, JSC Multon selects
The company does not carry out independent certification only those suppliers, that have undergone
of all suppliers, but we regularly check whether they comply an independent external audit and at the
with the requirements of Russian law (for example, the same time comply with the requirements
technical regulatory requirements for juice) and European of the company’s internal guidelines for
standards (such as the HACCP or ISO quality systems). sustainable agriculture.
1 7 6
11. How We Help to Develop Sustainable Agriculture in Russia and Strive to Source Raw Materials Locally 1 7 7
Keeping it Local
Since 2016, JSC Multon has been methodically increasing the share Tomato Paste
of fruit ingredients purchased from Russian farmers. In 2018, the
share of ingredients that could be used for the manufacturing of JSC Multon used to purchase tomato
beverages and sourced from locally grown fruits and vegetables was paste from China, Portugal and Chile,
56%: some of the ingredients cannot be procured from domestic until our partner in the Astrakhan Region
producers because they come from fruits that are not grown in the started supplying this ingredient in
Russian climate. In 2017, the company localized 20% of the volume 2017. JSC Multon has been advising the
of ingredients deemed potentially suitable for localization. The target supplier for several years on quality
for 2018 was set at 30%, but the company was able to exceed it — control of raw materials, equipment
localizing 34.5% of the volume of ingredients deemed potentially selection, and on preparation for the
suitable for localization. Of these local ingredients, concentrated sustainability audit. These joint efforts
apple juice accounted for 50%, 23% was pureed apples, tomato have enabled us to improve the quality
paste represented 25%, and berries made up the remaining 2%. of this ingredient so much that we are
confident that now only the best tomato
> 34.5%
paste is used by JSC Multon.
Of These:
2% — berries
25% — tomato paste 23% — apples puree 50% — concentrated apple juice
Corners of Russia
How Do We Do It?
First of all, for three years now we’ve been using Thirdly, we are developing innovative technical
biogas, which is formed in the process of anaerobic solutions to further reduce our consumption of
treatment of industrial wastewater to heat process electricity.
water at the Istra plant. Thus, in 2017 we managed
to reduce the use of natural gas by 105,000 cubic
meters, and in 2018 — by almost 300,000 cubic
meters. We are set on leveraging this strategy across
other plants.
Secondly, we are consistently reducing our In 2018, at the Istra plant, we implemented
energy consumption. In 2018, the specific energy a complex technical solution that involved
consumption per litre of finished product went below using the natural chill of artesian water for the
the estimated 0.52 MJ/litre, reaching 0.51 MJ/litre. refrigeration equipment. Before water makes
Compared to 2017, it fell by 5.6%. its way onto the production line, it passes
from the well through the refrigeration units,
which means that we can save electricity that
In 2018, as the company’s production increased, total was previously used for cooling.
non-renewable energy consumption at our enterprises
fell by 0.6%.
> 2,149
from the consumption of purchased energy
amounted to 58.5 tonnes of СO2‑eq for the reporting
period. The volume of specific greenhouse gas
emissions per litre of production in 2018 amounted GJ of energy from renewable
to 60.3 СO2‑eq which is 4.28% lower compared sources (biogas and other energy
with 2017. sources) was used in 2018
4.28%
reduction in the volume of
carbon emissions per litre of
finished product in 2018
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 5
Reduction of Absolute Energy Reduction of Specific Energy Amount of Energy Saved at the Coca-Cola
Consumption at the Coca-Cola System Consumption at the Coca-Cola System System Enterprises in Russia as a Result of
Enterprises in Russia, GJ Enterprises in Russia Per 1 Litre Carrying Out Energy Saving and Efficiency
of Product, MJ / Litre Measures, MJ
2015 2016
1,368,190 0.59
2015
0.6
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 6
Clean Transport
Reducing the negative impact of vehicles is another The Coca-Cola car fleet in Russia includes
priority in our strategy for a cleaner and greener 3,550 vehicles. Each year, we replace
environment. Each year we monitor the indicators old cars and trucks with new, more
of greenhouse gas emissions of our fleet, as well as environmentally friendly ones. In 2018, we
fuel consumption, and we ensure proper operation decommissioned 315 trucks (45%) and 546
of all European emission standard systems. During cars (15%) and put into operation 53 trucks
2015–2017, fuel consumption fell by 30.8% due (Euro 5 emission class) and 480 new cars.
to GPS-controlled routes of vehicles transporting
finished products around the country and awareness One of the ways to help reduce
training activities aimed at informing the company’s greenhouse gas emissions is the GPS
drivers on the main causes of excessive fuel tracking system that has been installed
consumption. on Coca-Cola cars in Russia. It allows
the dispatch center to optimize the
transport route, thereby reducing its
impact on the environment. Remote routes
and destinations are then handled by
contractors or distributors.
~ 3.5−4
years average age of cars and trucks
in the fleet of Coca-Cola in Russia
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 7
> 51%
than 200,000 units.
> 2,600
On average, 90% of Coca-Cola system’s products are made
from water. So, the preservation of the planet’s water systems
is one of the conditions for the sustainable development of
our business. Our goal to replenish 100% of water used for the cubic meters of water were
production of beverages and to return its equivalent back to saved by the Coca-Cola system
enterprises in Russia in 2018
the environment by 2020 was achieved prematurely in 2016.
We are constantly looking for new opportunities to optimize
water consumption. Thanks to the innovations that were
adopted in 2018, the Coca-Cola system enterprises in Russia
saved more than 2600 cubic meters of water.
2019
2015 2016 2017 2018
(estimate)
Third-party water (Municipal water suppliers) 2,731 2,434 2,400 2,495 2,569
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 9 1
3%
Reduction of Specific Water Consumption Per 1 Litre of Finished
Product at the Coca-Cola System Enterprises in Russia, MJ
1.85
2017
1.91
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 9 2
388
Water Reuse
> 30
cleaning. The water that we use for this will also be
reused once it’s purified and checked for quality.
In 2018, the volume of reused water in production projects aimed at introducing innovations and
modernizing the equipment, in order to reduce both
increased from 8.91% to 9.07% of total water
water and energy consumption, were implemented
consumption compared to 2017. across the plants in Coca-Cola in Russia in 2018. In
total, this resulted in estimated annual energy savings
of 15,000 MWh. Total water consumption has been
reduced by 94,000 m3 per annum
Volume of Reused Water
466
2016
381
2017
381
2018
388
> 50
operational initiatives to optimize the consumption
cubic meters: of both water and energy in various technological
processes were implemented in 2018. In total, this
Proportion of reused water as % of the
8.60 8.81 8.91 9.07 resulted in energy savings of 689 MWh per annum, and
total amount of water used:
water savings of 55,000 m3 per annum, accordingly
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 9 3
In 2017, the Coca-Cola system recycled the equivalent In the early 2000s, when South Africa was
of 59% of all packaging that it has produced. In 2018, in choking with plastic waste, Coca-Cola
Brazil 68% of recycling cooperatives (out of 160 that our successfully launched a self-regulated
company works with) achieved a higher classification postconsumer PET recycling programme. In
standard. This means that the company cares about the 2018, the country’s recycling rate rose to 67%.
environment and increases the level of responsibility Besides that, South Africa is on the verge of
among its partners. Apart from that, the Coca-Cola becoming a closed loop — producing and
system in Brazil invested about $25 million to launch a recycling 100% of its PET plastic.
"universal bottle" — a reusable unit of packaging that can
be refilled with any beverage. In 2018, Mexico became the leader
in waste management — its packaging
In January 2018, the Coca-Cola system launched recovery rate now stands at more than 74%.
the "World Without Waste" initiative at the World The secret to the Coca-Cola system’s success
Economic Forum in Davos, Switzerland. Also that month lies in building efficient partnerships.
we introduced Ciel — a Mexican bottled water brand in Coca-Cola created a non-profit environmental
100% recyclable plastic bottle. association in Mexico made up of 24 beverage
and food companies, representing more than
In May 2018, the Coca-Cola system joined the UN 80 brands. And in June 2018, dozens of people
Environmental Program to curb plastic waste in Southeast from across the Coca-Cola system travelled to
Asia. Moreover, we launched Mares Circulares campaign in learn best practices from PetStar, the largest
Spain, which has since collected more than 250 tonnes of food-grade PET bottle-to-bottle recycling
waste from the shores of Spanish waterways. plant in the world.
1 9 8
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 1 9 9
Even before the launch of "World Without Waste", Key Results of "Separate With Us"
Coca-Cola in Russia started its own initiative "Separate within the last Two Years:
With Us" that promotes separate waste collection
> 60,000
and recycling. Later on, it became a part of the global
"World Without Waste" initiative. In partnership with
EcoTechnologies Group, ERA Foundation and the
EKA movement we have been developing recycling tonnes of packaging collected and recycled
infrastructure and promoting the culture as well as the
practice of separate waste collection in Russia.
> 5,000
containers for separate waste collection
installed in 50 cities across the country
> 800,000
people participated in the environmental awareness
and education "Separate With Us" program
Infrastructure
27%
The "Separate With Us" project was launched in 2016
and the first thing we did was to install 600 separate
waste collection containers in 8 Russian cities. In
2017, 25 localities joined the project, by that time the of consumer packaging supplied to the market
by Coca-Cola in Russia has been collected and
number of containers increased to 2 500.
recycled in the framework of the "Separate With
Us" project in 2018
In 2018, we collected about 28 500 tonnes of waste
in 50 Russian cities and installed 2 000 additional
containers across the country. Along with the
standard grid containers we installed “eco-houses”.
They are able to fit in more bulk waste and make it
easier to collect different fractions of litter in one
location. Project Results
37
schools and universities joined
the separate waste collection
Lyubov Melanevskaya, program in 2018
Regulatory Affairs Manager,
Coca-Cola HBC Russia, curator of the
infrastructural part of "Separate With Us"
project:
Also, in 2018, 147 universities and institutes In December 2018, employees of the
held environmental quests for 21,000 Coca-Cola Soft Drink Consulting LLC
students, aimed at organizing separate office in Moscow joined the separate waste
collection initiative. By the end of February
waste collection on their premises. 50 of 2019, they collected 5,000 aluminium cans,
those institutions introduced separate waste plastic and glass bottles.
collection on a full-time basis and joined the
Association of "Green Universities" of Russia.
One of the goals of the campaign was to
promote positive attitude towards separate
waste collection, so that students could
become ambassadors of the "Separate With
Us" project.
32
Separate Waste Collection at Major Public Events
November 2016 December 2016 April 2017 December 2017 February 2018 May 2018
Project launch ~180 universities Eco-yard celebrations 2,500 containers have The project is among The project wins an
with 600 separate and 4,000 schools are organized in 9 cities been installed in 25 cities the TOP‑3 of the award as “Best Social
waste collection join the initiative. across the country across the country. country's most Project of Russia” in the
containers installed in 250,000 schoolchildren bringing together 30,000 tonnes of waste famous environmental “Environmental
8 cities across the attended eco-lessons and 3,000 people have been collected since CSR initiatives according projects and initiatives”
country 20,000 students took the project launch to the Ministry of category
part in environmental Natural Resources and
quests First-degree diploma Environment of the
at the “Separate the Russian Federation rating
right way” social and
environmental project
competition for the best
project contributing
March 2019 January 2019 December 2018 to the creation of
separate waste collection
The project provides Separate waste More than system in Russia is
assistance in organizing collection is organized at 5,000 containers awarded to the project’s
separate waste collection the Gaidar Forum have been installed in founders
at the XXIX World Winter 50 Russian cities.
Universiade 2019 in Since the launch of
Krasnoyarsk the project, more than
July 2018 June 2018
1.2 million people have
participated in its
educational initiatives The project receives The project provides
and approximately an independent public assistance in organizing
60,000 tonnes of ecology, energy and separate waste collection
packaging waste have resource saving award at the 2018 FIFA World
been collected and ECO BEST AWARD and Cup™ in Russia
recycled "The best social ecology
project" award
Separate waste
collection is organized
at Tatiana Navka’s show
“The Scarlet Flower”
2 0 8
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 9
As part of the "World Without Waste" "For the Clean Future of Baikal Lake"
strategy, Coca-Cola in Russia has
been developing three large-scale The "For the Clean Future of Baikal Lake" project was initiated
environmental clean-up projects: by Coca-Cola in Russia together with the Ministry of Ecology and
"Black Sea Day", "Living Volga" Nature Management of the Republic of Buryatia, the Ministry of Sport
and "For the Clean Future of and Youth Policy of the Republic of Buryatia and the Ministry of
Baikal Lake". Initially, they were Education of the Republic of Buryatia back in 2009. The project aims
devoted to conservation and water to educate people and to encourage responsible attitudes when it
stewardship, but over time it became comes to managing water resources as well as to clean up the coastal
clear that cleaning up the shores areas of this unique lake and organize separate waste collection.
and riverbanks of these unique The project’s geography is extensive and it covers the Irkutsk
reservoirs is equally important. Region, Slyudyanka, Olkhon Island, Severobaikalsk, Nizhneangarsk,
Recently, these initiatives have Slyudyansk Lakes, Kabansky and Pribaikalsky Districts of Buryatia.
primarily focused on clean-ups.
In 2018, two large-scale events were held as part of this project. In
July, an eco-yard festival took place in the village of Enkhaluk of the
Kabansky District of the Republic of Buryatia, and in September,
Baikal Day was celebrated in Irkutsk.
In 2018, "For the Clean Future of Baikal Lake" program was focused
on educational and environmental-awareness initiatives. Together
with the ERA Foundation, Coca-Cola in Russia came up with an
eco-lesson with a set of teaching materials called "Wise Baikal".
It’s an extension of the "Baikal Day" eco-lesson initially launched in
2017. The lessons are available at a specially designed website
www.байкалурок.рф.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 0
"Living Volga"
1,336
volunteers collected waste at the Volga
dedicated to extended producer responsibility;
and in Volgograd discussions touched upon
the role of volunteer movements in conserving
riverbanks as part of the "Living Volga" and restoring water resources of the Volga
project in 2018 River basin.
2 1 1
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 2
> 74,000
Krasnodar Krai — Krasnodar, Anapa, Gelendzhik,
Novorossiysk and Sochi. The main goal of these
events was to promote the culture and practice of
separate waste collection. Also, the clean-up of the people tuned in to the “Gift to the Black Sea”
Black Sea coast was organized. eco-lesson
73.2
tonnes of waste were collected at the “Black Sea Day”,
“For the Clean Future of Baikal Lake”, “Living Volga”
and “Green Teams” projects
~ 14%
of total amount of social investments were spent
by Coca-Cola in Russia to support initiatives in
environmental protection, waste recycling and
building a culture of separate waste collection in
2018
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 3
"Green Teams"
Coca-Cola in Russia is consistently working on improving its In order to improve the efficiency of its
resource efficiency and reducing any negative impact on the production, the company is constantly working
environment. We are working on three main issues: reducing on rational weight reduction of product
the total volume of production waste, increasing the share packaging. In 2017, we reduced the use of PET
of recyclable waste and reducing the amount of waste raw materials by 63 tonnes, and in 2018 we
disposed to landfills. managed to reduce it by 130 tonnes. We made
this happen because all of our plants reduced
Due to the increased volume of production, the total the weight of the preform by an average of 10%.
waste in 2018 amounted to 13,497.8 tonnes as compared Therefore, the amount of fresh raw materials
to 12,979.5 tonnes in 2017. This being said, the indicator of purchased in 2018 was 43,126 tonnes —
specific amount of waste generated per 1 litre of finished compared to 43,256 tonnes in 2017.
product decreased and amounted to 5.85 g/litre as
compared to 2016/2017 indicators — 5.93 g/litre. The share of We are constantly working to reduce packaging
waste disposed for recycling in 2018 was 86.1% compared to weight. At our plants in Moscow and
85.9% in 2017. The indicator of the amount of waste disposed St. Petersburg, the weight of a 0.5 litre BonAqua
to landfills also decreased and amounted to 0.81 g/litre in bottle was reduced by 1.5 g, the volume of
2018 as compared to 0.83 g/litre in 2017. a BonAqua litre bottle in St. Petersburg and
Krasnoyarsk was reduced by 2.7 g. A 1.5‑litre
bottle of sparkling beverages produced in
St. Petersburg has become 3.5 g lighter, and in
130
Yekaterinburg and Samara the two-litre bottle
now weighs 2 g lighter. In 2019, the company is
planning to reduce the weight of its various
tonnes reduction in the use of PET in 2018 packaging by 2–4 g.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 7
135,23 Steel
4,718,31 Aluminum
(Alum Can)
44,296,35 PET
13,486,22 Glass
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 8
Volume of Processed Materials Used for the Production of Preforms Share of Recyclable Materials
and other Packaging Materials (tonnes)
2%
reduction in the weight of an
0.2%
reduction in the weight of an
16%
reduction in the weight
aluminium can in 2017 aluminium can in 2018 of a bottle cap in 2018
(St. Petersburg)
2 1 9
2 2 0
Coca-Cola in Russia uses the power of its brand Creating new opportunities for
to implement large-scale social programs in young people in Russia
cooperation with our trustworthy partners. We tackle
really complicated issues, and we strongly believe Building an inclusive
that we can make a difference. society
Disaster relief
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 2
~ 37%
According to Career.ru*, in March 2018, the rate of
unemployment among young people aged 20–24 in Russia
reached 13.5%. Many of them have a higher education
degree, they have career goals and ambitions to work hard, the Coca-Cola system's investments
in education and empowering young
but they may lack confidence and self-presentation skills. people in Russia as % of its total social
Developing the potential of young people has become investments in 2018
one of sustainability commitments for the Coca-Cola
system. Within this initiative, we are implementing several
programs at once: a program of collaboration with leading
universities in the country, a "Management Trainee Program"
for future leaders, а "Youth Empowered" educational cases, job fairs, and vocational tours at our
program and a "Growing Kindness" program for adolescents plants are just a few of the opportunities for
deprived of parental care. students that we offer in partnerships with
TOP‑20 Russian universities and institutes.
In 2018, Coca-Cola HBC Russia established ongoing Higher education institutions are also among
collaborations with 20 leading Russian universities — the first to be notified of the availability
selected on the basis of their alumni’s ability to join the of positions for entry-level specialists,
company as potential employees in the future. As part of and graduates can apply for internship
our partnership agreements, special educational events programs in the Coca-Cola system’s
on how to build a career within Coca-Cola in Russia will companies. In addition, they can participate in
be held on campuses of selected universities. Lectures the company's environmental and volunteer
and master-classes with the company’s experts, business projects.
The Youth Empowered Digital Hub will also host What We will do for Young People in 2019:
another important program by the Coca-Cola system
in Russia — to support female entrepreneurship. 28,000 people will participate in the "Youth
5by20 is a global Coca-Cola Company initiative to Empowered" program
provide 5 million women around the world with
entrepreneurial skills by 2020. We will give tours and hold educational activities
at our plants for more than 11,000 students
Coca-Cola in Russia also works with schoolchildren. In
2014, we launched the "Growing Kindness" program. We will support the RANEPA International
This initiative of Coca-Cola in Russia helps orphaned Summer Campus, which will host 300 young
teenagers aged leaders from different countries
13–17 to adapt socially and to make better career
choices. 37 orphanages in 9 regions of Russia are We will support the WorldSkills International
currently supported the company. Championship (Kazan, 2019)
> 1,000,000
young people in the 28 countries where, Coca-Cola Hellenic
Bottling Company AG operate, will learn the skills necessary
for successful employment by participating in the "Youth
Empowered" project by 2025
2 2 5
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 6
With our social projects and initiatives, we strive games since 1968. Since 2015, our major
to contribute to the process of creating a world joint projects in Russia have included
where every single person is accepted, respected the participation of athletes with special
and welcomed. We are committed to creating needs in the 2017 Confederation Cup, and
inclusive infrastructure in our country: we are the FIFA World Cup 2018™ matches, as
building inclusive playparks in 11 FIFA World Cup well as the support for futsal and unified
2018™ host cities together with the Naked Heart football tournaments within the All-Russian
Foundation, we also support Special Olympics, Spartakiade of the Special Olympics.
and organize unified matches. Since 2018, we’ve
been dedicating the Coca-Cola Christmas Caravan The Сoca-Cola system in Russia has
project to fostering inclusion. leveraged its partnership with the FIFA
World Cup 2018 in Russia™ to educate
Coca-Cola is the founding partner of the as wide an audience as possible about
Special Olympics, a global movement creating the issues that people with special needs
a world of inclusion for athletes with special might be facing. It all started with a
needs. In 2018, for the 50th anniversary of the large-scale information campaign #ready
organization, the Coca-Cola Foundation gave #toopenhearts. Its activities and projects
out a grant for the development of the Special were aimed at raising awareness of the
Olympics in Russia and, in particular, for the social exclusion of people with disabilities.
preparation of the Russian Special Olympics Together with Natalia Vodianova's Naked
team for the games in Abu Dhabi. This is a Heart Foundation, we also started the
logical next step in the history of cooperation construction of large inclusive playparks
of the Special Olympics and Coca-Cola — in 11 cities that hosted the world
the company is the founding partner of the championship.
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 7
3,000,000
people will be able to enjoy themselves and play
sports at 11 new inclusive parks in different cities
of Russia
Daria Mezurnishvili,
Corporate Social Responsibility Manager,
Coca-Cola HBC Russia:
$250,000
the size of the grant the Coca-Cola Foundation
gave to the Special Olympics Russia in 2018
> 7,000
— 12‑year-old Angelina Makarova won the hearts and minds
of millions of viewers and participants at the opening match
of the world championship. She is the winner and medalist
of the All-Russian and city swimming tournaments for kids people participated in unified football matches
with Down syndrome, and also a Special Olympics short that were organized as part of the FIFA World
course medalist. The Coca-Cola system chose Angelina Cup™ Trophy Tour With Coca-Cola in Russian
cities
to accompany the judge. She came onto the field of the
Luzhniki stadium with the referee before the game and
> 3,000
helped toss the coin to determine first possession in the
opening match of the championship. It was the first time in
history that a teenager with Down syndrome has become
part of the opening match of the FIFA World Cup™, which guests from more than 90 social institutions
shows that our society is open to everyone regardless of attended the Coca-Cola Christmas Caravan
their abilities. events
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 9
Disaster
How "Separate with Us" Project Helps the Locals to Improve the 01. About the Report
Environmental Situation in their Regions 2 3 5 02. Sustainable Growth Strategy
How the 2018 FIFA World Cup™ in Russia Supported Career Growth 03. Coca-Cola in Russia
of the Coca-Cola Employees 2 4 0 04. Sustainability of Coca-Cola
How the Coca-Cola Christmas Caravan Changed in 2018 and Why? 2 4 6
in Russia in 2018
05. Business Ethics and Partnerships
Volunteering Makes People Happy and Companies Rich.
06. Product Quality and Safety
How does it Work? 2 5 0
07. A Balanced Lifestyle
08. Caring for our Employees
09. Workplace Health and Safety
10. Developing a Culture of Volunteering
11. Sustainable Agriculture
12. Protecting the Environment
13. A Country Without Waste
14. Social Programs
15. How it Works: Four Stories of our
Initiatives Helping People in 2018
16. GRI Content Index
17. Contacts
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 3 5
In 2018, Irina Matveeva, a chemistry teacher from of waste can be harmful to the environment,
Yekaterinburg, decided to install containers for this is a big step forward.
separate waste collection in her school to introduce
students to the culture of responsible waste In theory, residents of almost all Russian
management. She found information about "Separate regions should have a way to drop
With Us" — a program by Coca-Cola in Russia. Soon, off sorted waste for recycling, at least
the Yekaterinburg School No. 107 became the first according to RecycleMap. Moreover, waste
one in the city to install containers for separate waste recycling initiatives are now getting support
collection. However, this initiative was not easy from the federal government.
to implement — much more energy and patience
are needed to promote the culture and practice
of sustainable consumption and environmental
responsibility in our country.
As regional waste management operators open for "I confess that I was ready to quit at one
business across Russia, many of them are happy to point", says Irina Matveyeva, "but I’m
support community initiatives, providing containers not someone who gives up easily, so I
and trucks to collect sorted waste for recycling, turned to our students’ parents. They
instead of taking it to the landfill. And the President got actively involved: they provided the
of Russia has promised to have at least 200 waste concrete blocks, built the platform out of
disposal plants with modern equipment for recycling them, and helped to set up the containers
up and running by 2024. However, in practice, those properly. So, our school became the first
who want to create an eco-friendly space in a certain educational institution in the city to sort our
area — in the neighborhood, at school, or at the waste. However, now these containers are
office — have to be ready to make a considerable never filled to capacity. Our students have
effort to make it happen. become even more conscious about waste
disposal and now they are creating beautiful
A year ago, Yekaterinburg School No. 107 joined artworks from plastic. We call this initiative
the "Separate With Us" project. Coca-Cola in Russia "A bunch of different things out of trash",
and its project partners helped the enthusiasts and we gift these art projects to orphanages.
at this school with teaching materials for eco- We don’t throw away paper either: we sell
lessons. Containers for separate waste collection waste paper for recycling and transfer the
were provided by EcoTechnologies — a group of proceeds to the local Humane Foundation
companies that has been successfully developing to Help Stray Pets”.
separate waste collection projects in Russia since
2005. Despite this assistance with resources, the People who care are the driving force of
school ran into a problem with installation of these environmental initiatives in Russia. Irina
containers. Russian sanitary rules and standards Matveyeva was born in a small town built
require recycling containers to be placed on a around two factories, but environmental
dedicated concrete platform, and the school could problems did not seem like a big deal to her
not afford to invest in building such a platform. and her peers when she was growing up.
2 3 7
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 3 8
Irina Batyunina,
Strategy Manager,
Coca-Cola HBC Russia
On this project, I managed a team responsible for Seeing how efficient our cross-functional
the development of marketing activities such as the team worked together, I realized that I
Coca-Cola stands at the FIFA fan stadiums and at wanted to become a part of the operational
festivals, as well as the Coca-Cola special screening business of the Coca-Cola system. So I began
zones in MEGA shopping centers with live broadcasts of researching opportunities to join the
football matches. For the fans at the stadiums, we came Coca-Cola HBC Russia team. At the end
up with the idea of printing
their photos from the match of the project, Coca-Cola HBC Russia
onto 500ml plastic cups. Fans shared their photos with announced a new position in the company —
these cups on social networks, which helped us increase a strategy manager. I decided to give it a try.
coverage tenfold, despite the fact that the number of Now in this role I can fully apply my previous
guests at the matches is limited to the capacity of the experience, but I’m also developing new
stadiums. competencies.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 3
We organize inclusive holiday parties in which teens Of course, the format of the holiday party itself
with alternative abilities can participate. has also been transformed. All the games and
activities are now carefully designed to make it
Instead of simply visiting kids at orphanages and easy for everyone to participate, including
social institutions, we are trying to take them to see teenagers with any level of sensory, mental
new places. We strongly believe that they need to get and motor abilities.
out of their usual surroundings and see the beauty
and endless opportunities that the world around The event premises which hosted inclusive
them has to offer. We received support for this idea holiday celebrations in December 2018 were
from city administrations and partner organizations, divided into several zones. In the creative
which helped us find central urban venues for free. workshop zone, kids made postcards for their
For example, in 2018, the Coca-Cola Christmas friends and families. In the music zone, a set
Caravan events in Moscow were held at the Metropol of instruments was waiting for the participants,
Hotel, and in Yekaterinburg — at the Yeltsin Center. and music teachers helped them learn simple
For many of the participants, celebrating a holiday in chords and rhythms. In the play area, guests
such places is a new inspirational experience. played a fun game of merry basketball. There
was also a zone of self-knowledge, where
In 2018, we brought inclusive holiday celebrations psychologists helped participants identify
to 12 Russian cities: Moscow, Odintsovo, Kalyazin, their strengths. Notably, anyone could join
St. Petersburg, Samara, Rostov-on-Don, the classes and activities at any time, or move
Yekaterinburg, Nizhny Novgorod, Kazan, Novosibirsk, from one activity to another whenever they
Krasnoyarsk and Vladivostok. To prepare volunteers felt like it.
for these events, we joined forces with "Our Sunny
World" center that provided special training.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 8
In addition to a range of activities in various formats, Coca-Cola in Russia has been working
we also organized a holiday party space, so as to to build an inclusive society in Russia for
make everyone comfortable. With this in mind, we several years now, and the company is
implementing inclusivity in all of its social
provided for unobstructed barrier-free movement
projects. For the 2018 FIFA World Cup™ in
around the site. We had volunteers on site for Russia we held 12 unified matches across
support. We placed clear and visible signage around the country, the largest of which took place
the premises, equipped a quiet recreation area, and on the Red Square. We made it possible
avoided excessively loud noise levels and harsh bright for teenagers with special needs to join
lights. For kids with mobility issues, we provided the FIFA youth program and to participate
in organizing World Cup matches. Teen
sloping ramps and adjusted the height of stage sets. athletes with disabilities got to be flag
bearers at several of the games. Also, this
"It was our first experience of this kind, and we were year, Coca-Cola HBC Russia offered plant
quite nervous", says Daria Mezurnishvili, Corporate tours for kids with mental and physical
Social Responsibility Manager at Coca-Cola HBC disabilities and invited them to participate in
Russia, sharing her impressions "but it looks like we environmental and sports events.
did a pretty decent job. Good feedback from the kids,
as well as volunteers and representatives of partner
organizations, was incredibly inspiring for us! Over
3,000 guests from more than 90 social institutions
joined in the Coca-Cola Christmas Caravan activities,
and between 100 and 500 kids participated in each
event. This is a good result. I am sure that next year
we will make inclusive holiday celebrations even
better."
2 4 9
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 5 0
Staff participation in volunteer projects increases giving employees additional vacation days
employee engagement. This business indicator for participating in volunteer projects during
reflects how much employees enjoy working in working hours since 2018.
a company and how well they perform. Gallup
studies show that companies with higher employee Businesses have multiple reasons for
engagement enjoy labor productivity levels 21% supporting volunteer activities. Firstly,
higher and profitability 22% higher than companies volunteering allows the employees to develop
with less engaged employees. new social skills (leadership and managerial).
Secondly, it helps to establish horizontal
In Russia, companies are only beginning to catch connections within the team. Thirdly, support
on to the idea of supporting employees’ volunteer of volunteer work improves the company’s
work. Coca-Cola in Russia pays great attention to the HR brand. But most importantly, employees
development of its corporate volunteering program. involved in volunteer projects are happier and
To support this objective, Coca-Cola has been more productive.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 5 1
Why Volunteering Makes People Happier the long run. This theory is supported by
the advocates of different areas of positive
Studies show that working on charitable psychology like American psychologist
causes for just a few hours a month is enough Martin Seligman who also investigated the
to make people feel happier. A group of phenomenon of happiness. In short, helping
scientists involved in the Action for Happiness others is one of the most "meaningful types
project outlined 10 key rules for happier living. of activity”, giving us a way to feel part of
Work in charitable organizations on a voluntary “something greater than oneself”. It boosts
basis was on par in the happiness stakes with self-esteem, releases serotonin and, yes,
such activities as connecting with friends, dopamine, which is responsible for pleasant
sports, contemplation of nature, self-education, sensations.
achievement of goals, a positive outlook on life
and the ability to learn from mistakes. The psychologists’ findings are supported by
neuroeconomists from the University of
American psychologist Mihaly Csikszentmihalyi, Zurich: Philippe Tobler and Ernst Fehr, who
the author of the well-known concept of scanned the brains of two test subgroups.
"flow" (Flow: The Psychology of Optimal People in one group were seeking pleasures
Experience, 1990), argues that passive pleasures for themselves, while people in the other
and consumption lead to a situation where group wanted to take care of others.
our brain constantly requires dopamine — a Those in the latter group experienced higher
neurotransmitter responsible for the sensation levels of happiness.
of pleasure. This race can go on forever, and the
happiness we seek is just an illusion that we will Researchers at the University of Exeter in
never grasp. England reviewed 40 studies on the health
effects of volunteering in their meta-analysis
Csikszentmihalyi demonstrated through study. They found that those who work to
experiments that it was meaningful activity, and help others are less prone to depression and
not passive pleasure, that makes people happy in they generally feel better.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 5 2
"A great way to discover new skills and qualities Elena Kolmakova,
within yourself" Accountant
Employees of Coca-Cola in Russia were asked about what — Volunteering prevents me from constantly
volunteering meant to them thinking about ongoing daily problems, it
switches my focus to other things and it
gives me a huge positive charge.
Anna Evdokimova,
Demand Planner
Anna Vlasova,
Head of the Laboratory for Quality Assurance
GRI Code GRI Disclosure Title Report Section Report Subsection and Page Omissions and comments
Number
Organisational Profile
GRI 101 Fundamentals. The reporting About the report About the report
principals Scope and Boundaries
Disclamer
GRI 102 General Disclosures
102-8 Information on employees Caring for our employees: why do People of Coca-Cola in Russia There were no significant variations
and other workers people want to work for Coca-Cola in the number of employees during
in Russia the reporting period (102-8e)
Omissions and comments
The disclosed data has been
provided by the Human Resources
services of all three companies of
Coca-Cola in Russia (102-8f)
102-9 Supply Chain Business ethics and partnerships: How we work with suppliers of
how we are changing the market ingredients and materials
102-20 Executive level responsibility for Sustainability of Coca-Cola in Russia Who is in charge of Sustainability of
economic, environmental and social in 2018 Coca-Cola in Russia
topics
Stakeholder engagement
102-40 List o stakeholder groups Sustainability of Coca-Cola in Russia Stakeholder engagement
in 2018
102-41 Collective bargaining agreements Caring for our employees: why do People of Coca-Cola in Russia 13% of the Coca-Cola HBC
people want to work for Coca-Cola employees are covered by the
in Russia collective bargaining agreement
GRI Content Index Omissions and comments Coca-Cola Soft Drink Consulting,
LLC and Multon, JSC do not have
this practice due to the lack of the
employee request
102-42 Identifying and selecting Sustainability of Coca-Cola in Russia Stakeholder engagement
stakeholders in 2018
102-43 Approach to stakeholder Sustainability of Coca-Cola in Russia Stakeholder engagement
engagement in 2018
16. GRI Content Index 2 5 8
102-44 Key topics and concerns raised Sustainability of Coca-Cola in Russia Sustainability of Coca-Cola in Russia
in 2018 in 2018
Reporting practice
102-45 Entities included in the consolidated Coca-Cola in Russia Financial data The financial data for the Emerging
financial statements Markets (which includes Russia)
can be found in the 2018 Integrated
Annual Report of Coca-Cola HBC AG
For the information on the financial
performance of the Coca-Cola
system globally please see 2018
Business & Sustainability Report of
The Coca-Cola Company
102-46 Defining report content and topic Sustainability of Coca-Cola in Russia 2018 material topics
boundaries aspects in 2018
102-47 List of the material topics Sustainability of Coca-Cola in Russia 2018 material topics
in 2018
102-48 Restatements of information GRI Content Index Omissions and comments There were no restatements of
information in the reporting period
102-49 Changes in reporting GRI Content Index Omissions and comments In 2018 Sustainability Report, Coca-
Cola in Russia has presented its
sustainability commitments and
detailed sustainability strategy
102-51 Date of most recent report About The Report Scope and Boundaries
102-52 Reporting cycle About The Report Scope and Boundaries
102-53 Contact point for questions Contacts
regarding the report
102-54 Claims of reporting in accordance About The Report Scope and Boundaries
with the GRI Standards
102-55 GRI Content Index GRI Content Index GRI Content Index
102-56 External assurance About The Report Scope and Boundaries Coca-Cola in Russia doesn’t
practice the formal external
Sustainability of Coca-Cola in Russia Stakeholder engagement assurance of its sustainability
in 2018 reports. Instead, we annually host an
open public hearing, as described
GRI Content Index Omissions and comments in the Stakeholder Engagement
subsection
GRI 103 Management approach
103-1 Explanation of the material topic Sustainability of Coca-Cola in Russia 2018 material topics The disclosure principles, as well
and its boundary in 2018 as the boundaries of each material
topic are explained in the 2018
Material Topics subsection
Topic specific sections: First pages of each section The scope of each material topic
1. Business ethics and partnerships: and sub-section is outlined in the relevant topic
how we are changing the market specific section of this report
2. Product quality and safety: the
way to go
3. A balanced lifestyle
4. Caring for our employees
5. Workplace Health and Safety
6. Developing a culture of
volunteering
7. Sustainable agriculture
8. Protecting the environment
9. A country without waste
10. Social programs
16. GRI Content Index 2 6 0
103-2 Management approach and its Sustainability of Coca-Cola in Russia Sustainability and Corporate Social For the comprehensive
components in 2018 Responsibility Strategy in Russia: management approach see the
a new outlook sector on Sustainability of Coca-
Cola in Russia
*Most of the economic indicators, including direct and indirect economic impacts, are disclosed in a separate part
of the Integrated Report of Coca-Cola in Russia, which also includes the current report.
16. GRI Content Index 2 6 3
103 Management approach How we protect the environment: How we preserve water
reducing greenhouse gas emissions
and advancing water stewardship
303-1 Interaction with water as a shared How we protect the environment: How we preserve water The information is disclosed in
resource reducing greenhouse gas emissions part (303-1а, 303-1d) due to the
and advancing water stewardship availability and applicability to the
company’s activity
Sustainability of Coca-Cola in Russia Sustainability commitments
in 2018
303-3 Water withdrawal How we protect the environment: How we preserve water The information is disclosed in part
reducing greenhouse gas emissions (303-3а) due to the availability
and advancing water stewardship and applicability to the company’s
activity
303-4 Water discharge How we protect the environment: How we preserve water The information is disclosed in part
reducing greenhouse gas emissions (303-4а) due to the availability
and advancing water stewardship and applicability to the company’s
activity
303-5 Water consumption How we protect the environment: How we preserve water The information is disclosed in part
reducing greenhouse gas emissions (303-5а) due to the availability
and advancing water stewardship and applicability to the company’s
activity
GRI 304 Biodiversity
304-1 Operational sites owned, leased, GRI Content Index Omissions and comments Coca-Cola in Russia has no
managed in, or adjacent to, operational activity on protected
protected areas and areas of high areas and areas of high biodiversity
biodiversity value outside protected value outside of protected areas.
areas
GRI 305 Emissions
103 Management approach How we protect the environment: How we reduce greenhouse gas
reducing greenhouse gas emissions emissions
and advancing water stewardship
305-1 Direct (Scope 1) GHG emissions How we protect the environment: How we reduce greenhouse gas The information is disclosed in part
reducing greenhouse gas emissions emissions (305-1а) due to the availability
and advancing water stewardship and applicability to the company’s
activity
16. GRI Content Index 2 6 4
305-2 Energy indirect (Scope 2) GHG How we protect the environment: How we reduce greenhouse gas The information is disclosed in part
emissions reducing greenhouse gas emissions emissions (305-2а) due to the availability
and advancing water stewardship and applicability to the company’s
activity
305-5 Reduction of GHG emissions How we protect the environment: How we reduce greenhouse gas The information is disclosed in part
reducing greenhouse gas emissions emissions (30-5а, 5d) due to the availability
and advancing water stewardship and applicability to the company’s
activity
GRI 307 Environmental compliance
307-1 Non-compliance with environmental GRI Content Index Omissions and comments There were no significant fines and
laws and regulations non-monetary sanctions for non-
compliance with environmental laws
and regulations during the reporting
period
GRI 308 Supplier environmental assessment
308-1 New suppliers that were screened Business ethics and partnerships: How we work with suppliers of
using environmental criteria how we are changing the market ingredients and materials
308-2 Negative environmental impacts in GRI Content Index Omissions and comments There were no such incidents in the
the supply chain and actions taken reporting period
GRI 400 Social Standard Series
GRI 401 Employment
103 Management approach Caring for our employees: why do 1. Caring for our employees: why do
people want to work for Coca-Cola people want to work for Coca-Cola
in Russia in Russia
2. Well-being of our employees
3. Enhancing engagement and
satisfaction
401-1 New employee hires and employee Caring for our employees: why do People of Coca-Cola in Russia
turnover people want to work for Coca-Cola
in Russia
16. GRI Content Index 2 6 5
401-2 Benefits provided to full-time Caring for our employees: why do Well-being of our employees All the benefits are equally available
employees that are not provided to people want to work for Coca-Cola to all of our staff members
temporary or part-time employees in Russia Omissions and comments
GRI 402 Labour/management relations
402-1 Minimum notice periods regarding GRI Content Index Omissions and comments Minimum notice period regarding
operational changes operational changes is 2 months
for all of the Coca-Cola system
companies in Russia (402-1a)
403-7 Prevention and mitigation of Workplace Health and Safety: how Safety for our suppliers and
occupational health and safety we eliminate risks for our associates contractors
impacts directly linked by business and partners
relationships
403-8 Workers covered by an Workplace Health and Safety: how 1. Occupational Safety at Bottling 100% Coca-Cola НBC Russia and
occupational health and safety we eliminate risks for our associates Plants Multon employees are covered by
management system and partners 2. Traffic safety an occupational health and safety
management system
403-9 Work-related injuries Workplace Health and Safety: how 1. Occupational Safety at Bottling The rate of work-related injuries is
we eliminate risks for our associates Plants 0.21 per 100 full time work days for
and partners 2. Traffic safety the reporting period
103 Management approach A balanced lifestyle: how we 1. More no-sugar beverages in our
support conscious consumption in portfolio
Russia 2. "Our Way Forward"
3. 2018 milestones
Sustainability of Coca-Cola in Russia
in 2018
416-1 Assessment of the health and safety A balanced lifestyle: how we 1. More no-sugar beverages in our In this disclosure we’re talking about
impacts of product and service support conscious consumption in portfolio reducing sugar in our carbonated
categories Russia 2. "Our Way Forward" soft drinks and juices
3. 2018 milestones
Sustainability of Coca-Cola in Russia 4. Brand portfolio
in 2018
418-1 Substantiated complaints GRI Content Index Omissions and comments There were no such incidents in the
concerning breaches of customer reporting period
privacy and losses of customer data
GRI 419 Socio-economic compliance
419-1 Non-compliance with laws and GRI Content Index Omissions and comments There were no significant fines and
regulations in the social and non-monetary sanctions for non-
economic area compliance with social laws and
regulations
Sector Food sector series
disclosures
FP1 Percentage of purchased volume Business ethics and partnerships: 1. How we work with suppliers of
from suppliers compliant with how we are changing the market ingredients and materials
company’s sourcing policy
How we help to develop sustainable 2. Keeping it local
agriculture in Russia and strive to
source raw materials locally
FP5 Percentage of production volume Business ethics and partnerships:
manufactured on sites certified how we are changing the market
by an independent third party
according to internationally How we help to develop sustainable
recognised food safety agriculture in Russia and strive to
management system standards source raw materials locally
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17. Contacts
Email alisa.vasilyeva@cchellenic.com
Elena Kovaleva,
Sustainability Manager, Coca-Cola Soft Drink
Consulting LLC:
Email ekovaleva@coca-cola.com
17. Contacts 2 7 2
https://ru.coca-colahellenic.com/ru/
https://www.coca-colarussia.ru/
http://multon.ru/company/
Feedback Pages
https://ru.coca-colahellenic.com/ru/contact-us/
https://www.coca-colarussia.ru/contact-us
http://multon.ru/company/contacts/
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