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COCA-COLA

IN RUSSIA
SUSTAINABILITY
REPORT 2018
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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

02. Sustainable Growth Strategy


Top Management of Coca-Cola in Russia Explains how
06. Product Quality and Safety: the Way to Go
the Business Responded to the Challenges of 2018 and what it does to Maintain How We Ensure the Quality and Safety of our Products  098
Sustainability in 2019   007
What We did in 2018 to Improve our Quality Management System  105
Why do We Only Give Ourselves 4+ Grade for Now?  107
Key Quality Indicators in 2018  109
03. Coca-Cola in Russia
Coca-Cola in Russia: 2018 at a Glance  020
Brand Portfolio  022 07. A Balanced Lifestyle: how We Support Conscious
Sustainability Risks and how We Manage them  023 Consumption in Russia
Supplier Sustainability   024
Our Achievements in 2018  113
2018 Milestones  025
Cooperation with Partners and Government  116
2018 Awards  026
Responsible Marketing  117
Other Initiatives  028
Our Plans for 2019  118

04. Sustainability of Coca-Cola in Russia in 2018


08. Caring for our Employees: Why do People Want
Value Chain  032 to Work for Coca-Cola in Russia
Sustainability Commitments  034
People of Coca-Cola in Russia  121
What We do to Meet Sustainability Commitments in Russia  040
Well-Being of our Employees  131
Sustainability and Corporate Social Responsibility Strategy in Russia:
a New Outlook  043 Training, Education and Talent Development  134
Who is in Charge of Sustainability of Coca-Cola in Russia  052 Enhancing Engagement and Satisfaction  139
2018 Business and Sustainability Results  053 Gender Equality  142
Stakeholder Engagement  071 Ambassadorship Program  145
2018 Material Topics  073
Report Summary 0 0 3

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

15. How it Works: Four Stories of our Initiatives Helping


10. Developing a Culture of Volunteering in Coca-Cola People in 2018
in Russia How "Separate with Us" Project Helps the Locals to Improve the
How We Helped Russia in 2018  165 Environmental Situation in their Regions   235
How We will be Helping Others in 2019  168 How the 2018 FIFA World Cup™ in Russia Supported Career Growth
of the Coca-Cola Employees   240
How the Coca-Cola Christmas Caravan Changed
in 2018 and Why?   246
11. How We Help to Develop Sustainable Agriculture in Russia Volunteering Makes People Happy and Companies Rich.
and Strive to Source Raw Materials Locally How does it Work?   250
Why Local is Better  173
How We Ensure the Quality of Raw Materials  175
Keeping it Local  177 16. GRI Content Index  254

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

13. A Country Without Waste: how We are Changing the


Culture of Waste Management for the Future of the Planet
World Without Waste   196
"Separate with Us"   199
Coca-Cola in Russia for Clean Shores and Riverbanks   209
Volunteer Movements and External Projects   213
Industrial Waste Management   216
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01. About the Report

About the Report  0 0 2 01. About the Report


02. Sustainable Growth Strategy
Scope and Boundaries  0 0 3

03. Coca-Cola in Russia


Disclamer  0 0 4
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
01. About the Report 0 0 2

About the Report

In 2018, Coca-Cola in Russia has finally completed


the transformation of its sustainability strategy into
an effective set of processes that are both fully
integrated into all aspects of the company's business
and designed to address socially significant issues.

In this report, for the first time ever, we are


discussing our new sustainability commitments
and talking about the various ways, in which we
are moving towards fulfilling these commitments
in Russia. Improving waste management, building
an inclusive society and creating opportunities for
young people, reducing sugar consumption and
developing sustainable agriculture — all these and The report takes a closer look at how our
other crucial public issues that we are focusing on sustainability programs and business practices
do not have simple solutions. However, we believe are linked with the system's strategic priorities,
that the power of the Coca-Cola brand can draw our specific commitments, and the needs
attention to socially significant issues and bring of society. This is the key theme of the
people together to resolve them consistently. sustainability report that you are about to read.
01. About the Report 0 0 3

Scope and Boundaries

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.

2017 Coca-Cola HBC Russia


Sustainability Report, as well as previous
reports, are available here
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02. Sustainable Growth Strategy

Top Management of Coca-Cola in Russia Explains 01. About the Report


how the Business Responded to the Challenges of 02. Sustainable Growth Strategy
2018 and what it does to Maintain Sustainability in
03. Coca-Cola in Russia
2019  0 0 7
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
02. Sustainable Growth Strategy 0 0 7

Top Management of Coca-Cola in Russia Explains how the


Business Responded to the Challenges of 2018 and what it
does to Maintain Sustainability in 2019

"We are a Total Beverage Company


now", the Coca-Cola associates say,
implying that their business must be
able to deliver a beverage suitable for
any occasion to anyone on the planet.
At the same time, it is important for
the company to achieve its bold vision
the right way: creating value for the
Aleksandar Ruzevic, Andy Buckingham, country in which it operates, reducing
General Manager General Manager of The Coca-Cola its environmental impact throughout
of Coca-Cola HBC Russia Company in Russia the supply chain and resolving common
social problems. General Manager of
Coca-Cola HBC Russia, Aleksandar
Ruzevic, and General Manager of The
Coca-Cola Company in Russia, Andy
Buckingham, talk about how Coca-Cola
is managing to do this in Russia.
02. Sustainable Growth Strategy 0 0 8

How is Coca-Cola doing in Russia? Would you call 2018


a successful year?

AR: Yes, it was a strong year for our business in Russia.


The soft drinks market is growing again, and this is good
news. Thanks to our long-standing partnership with FIFA,
we provided almost 3 million servings of beverages to
the 2018 FIFA World Cup™ in Russia. We could clearly
see that a huge number of people choose and enjoy our
beverages and we attracted many new consumers.

This partnership has benefited society, the country and


fans from all over the world. Together with the Ministry 700,000 football fans got to see the Trophy
of Sport of the Russian Federation, we managed to with their own eyes.
engage over a million young people in the Leather Ball —
The Coca-Cola Cup youth tournament; and, together And the weather was great help to us — Russia
with our partners, we built inclusive playparks with had its best summer in 60 years!
football pitches — our contribution to creating a barrier-
free environment. We also supported the collection and Most of the problems that we have been
subsequent recycling of 100% of plastic packaging at facing for years now have been external to our
the stadiums that hosted the matches of the 2018 FIFA business. The global geopolitical context, the
World Cup™. state of the Russian economy and depreciation
of the Russian ruble — these are challenges
Coca-Cola in Russia did everything in its power to make beyond our control, but we can learn to
everyone in Russia feel part of this historic sporting live with them, because they are not going
celebration. For example, we organized the FIFA anywhere in 2019 either. We are much better
World Cup™ Trophy Tour by Coca-Cola, the longest prepared for them as a business now, and this is
and largest in the history of the event: more than another important result of the past year.
02. Sustainable Growth Strategy 0 0 9

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

How long does it take for these innovations to


resonate with consumers?

АR: I would not claim that every new product becomes


an immediate hit. We are aware that we need to
anticipate some trends. But we are ready to take risks
and to invest in launching niche products, for which the
audience here is quite small at present. Take AdeZ: in
other markets, there is a huge category that competes
with traditional dairy products; but in Russia it is a very
small niche story. But still, we have introduced a non-dairy
milk beverage. This category may not bring us big money
quickly, but we believe in it. The important thing is that
Coca-Cola Zero. Actually, this is our
we bring innovations to the Russian market, which will
big victory — to keep the traditional taste
ultimately lead to healthier, more balanced consumption. of Coca-Cola, but at the same time to give
consumers the opportunity to enjoy it without
Which of the new products do you like most of all? sugar and calories.

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.
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It is about responsible growth that creates value, not


only for consumers, but also for our business partners,
employees, countries, regions and local communities, and
for the environment. It is a matter of principle for us to do
things the right way, rather than doing it the easy way.
We want to return to nature in its purest from every litre

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

How realistic do you think is it to implement such


ideas as recycling or inclusivity in Russia?

AR: It is not easy to strike a balance between


our global goals and the current situation in this
country. For example, we have neither sufficient
infrastructure nor awareness here in Russia to
recycle all packaging waste. But if we take a look
at the 2018 results, it becomes clear that we are
moving in the right direction. We cannot do this What do Coca-Cola employees in Russia think
alone: only
​​ in cooperation with our clients, other about this? Do they feel ready to engage in
companies, government agencies and non-profit these initiatives?
organizations can we achieve our goals and fulfill
our sustainability commitments. AR: This is a good question, because without
the support of our people, no global ideas
AB: In fact, we see other FMCG companies talk and initiatives would make any sense. And
about the same topics as we do, yet they focus here the sustainability principles that we have
on different aspects relevant to their business. been implementing in recent years also make
We have done a lot for separate waste collection themselves felt. The level of engagement of the
and recycling, we are ready to lead and unite Coca-Cola employees is one of the highest in
everyone in this area, and we can join other Russia; and this gives us a huge level of support.
leaders in other matters. We are always in favor Every day we are working to create new career
of uniting the industry to address common social opportunities for our staff, to improve their
and environmental issues. working environment. We are striving to be the
best employer in the FMCG industry, and our
staff see it and appreciate it — they are ready to
support us.
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02. Sustainable Growth Strategy 0 1 6

2018 will be remembered as the year of the 2018


FIFA World Cup Russia™: our employees and their
families have received around 2,500 World Cup
tickets. Many of our colleagues were able not
only to see this huge football event firsthand, but
they became its co-creators, participating in the
organization and preparation; and, as a result, some
even received promotions and moved up the career
ladder.

AB: We can see as an indicator of support just how


actively the employees of all our companies engage

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

AR: I find it difficult to single out any one initiative,


since they are all important in the context of Russian
reality. Personally, I’m incredibly inspired by our
"Youth Empowered" program, which is designed
to combat youth unemployment and to help young
people make more informed career choices. I’m
actively participating in it myself. We will be scaling
it up in 2019 and we are confident that it will become
bigger and more interesting.

What else are you going to do to improve


sustainability in 2019?

AR: To become a Total Beverage Company, we must


focus on the development and implementation of
innovations. And of course, we will continue to reduce
the amount of sugar and calories in our products.

AB: As for corporate social responsibility, we will


focus on our key areas — separate waste collection,
youth empowerment, and building an inclusive
society. We will be scaling up our initiatives, engaging
more and more reliable partners to take steps on our
way forward.
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03. Coca-Cola in Russia

Coca-Cola in Russia: 2018 at a Glance  0 2 0 01. About the Report

Brand Portfolio  0 2 2 02. Sustainable Growth Strategy


03. Coca-Cola in Russia
Sustainability Risks and how We Manage them  0 2 3

04. Sustainability of Coca-Cola


Supplier Sustainability  0 2 4
in Russia in 2018
2018 Milestones  0 2 5 05. Business Ethics and Partnerships

2018 Awards  0 2 6 06. Product Quality and Safety


07. A Balanced Lifestyle
Other Initiatives  0 2 8
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
03. Coca-Cola in Russia 0 2 0

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

Geography and Scale

The Coca-Cola Company Coca-Cola in Russia Central Offices in Russia:

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.

2,31 billion litres of finished product were produced by


Coca-Cola in Russia in 2018
53% Sparkling drinks:
68 production lines, 29 of them produce juice Coca-Cola, Coca-Cola Zero, Fanta,
Sprite, Schweppes

The largest plant in Russia is located in Schelkovo,


Moscow Region (owned by JSC Multon, 17 production
lines total)

31% Juices, juicy drinks and plant-


In compliance with the corporate reporting practices, the based drinks: AdeZ, Dobriy, Rich,
Moya Semya, Pulpy, Innocent
Coca-Cola system’s financial results are not published
separately in each country of operation. The financial
data can be found in the 2018 Integrated Annual Report
5% Ice tea: FUZETEA
of Coca-Cola HBC AG. For more information on financial
performance of the Coca-Cola system globally, please see 9% Water: BonAqua, BonAqua Viva,
Smartwater
2018 Business & Sustainability Report of The Coca-Cola
2% Sports and energy drinks: Burn,
Company. Black Monster, Powerade
03. Coca-Cola in Russia 0 2 3

Sustainability Risks and how


We Manage them

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.

Key sustainability risks are defined at a global level.


Taking into account regionally specific aspects,
these risks are relevant for all the countries where
the company operates, including Russia. The
complete list of the Coca-Cola system sustainability
risks in Russia has been presented in last year’s
Sustainability report (pp. 30–31) and most of those
risks have remained relevant throughout the year.
03. Coca-Cola in Russia 0 2 4

Supplier Sustainability

Assessing sustainability indicators when selecting


suppliers of ingredients and materials is a standard
practice in Coca-Cola in Russia. The
Coca-Cola Company’s authorization is the main
requirement. To receive such authorization, every
potential supplier has to go through a special auditing
process, including social audit. This procedure reveals
the degree, to which a supplier meets corporate social
responsibility and sustainability requirements that are
outlined in the Supplier Guiding Principles and are based
on shared corporate values and
​​ ethical standards.

Coca-Cola HBC Russia has developed additional


requirements for the suppliers, such as a quality
management system based on the ISO 9001 standards,
risk assessment and internal food safety audit;
production and quality control system and corporate
social responsibility strategy. Current suppliers are
evaluated annually or even more frequently, depending
on the company’s experience of working with them
and on the status given to the supplier during the
initial audit. Learn more about
how we work with our
suppliers
03. Coca-Cola in Russia 0 2 5

2018 Milestones

January March April May June-July August

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

Motivational HR-program of Coca-Cola Headhunter 2018 Russian Employer Rating


in Russia "Be a Scout — Be a Champion" came awarded Coca-Cola HBC Russia the first
second in the "Team Energy" nomination at the in Fast Moving Consumer Goods sector
INTERCOMM-2018 Internal Communications and fourth place overall
Awards
Coca-Cola HBC Russia Shared Services
For excellent logistical personnel preparation Centre came in third in "The Best
Coca-Cola HBC Russia together with METRO Cash Customer Service category" at The Best
& Carry and Pyaterochka retailers were awarded Shared Services Centres of Russia and CIS
a special prize for their program "Supply Chain 2018 competition
Leaders" at the National Trucks and Roads awards
Coca-Cola HBC Russia Shared Services
Coca-Cola HBC Russia became "The Company of Centre won first place in the nomination
the Year", winning "Food Safety" award at for Efficient Document Management
The Best in Russia: Companies, Persons and Projects at the 8th annual Best Shared Services
of the Year Business Awards Centres 2019 (MSB Events)

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
0 2 9
0 3 0

04. Sustainability of Coca-Cola


in Russia in 2018

Value Chain  0 3 2 01. About the Report


02. Sustainable Growth Strategy
Sustainability Commitments  0 3 4
03. Coca-Cola in Russia
04. Sustainability of Coca-Cola
What We do to Meet Sustainability Commitments in Russia  0 4 0
in Russia in 2018

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

Many companies claim that they are


gradually integrating modern sustainability
practices into their business and corporate
culture. We are doing more than that:
sustainable development is integral to the
Coca-Cola system’s business strategy. The
activities of the companies within the system
are based on the principles of sustainability.

For us, the product itself is as important as


how it is produced. We are fully committed
to doing business the right way, not just
the easy way. We strive to create shared
opportunities for every community we serve.
As we grow, we will continue to create value
for the society and minimize our impact on
the environment.
04. Sustainability of Coca-Cola in Russia in 2018 0 3 2

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

Packaging collection and recycling Water


Our goal is to collect a bottle or can for We aim to give back the amount of
every one we sell by 2030, and we are water used in our finished beverages to
working to use more recycled materials replenish communities and nature.
in our packaging.

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

People and Communities —

are at the core of our value chain. It includes everyone


impacted by our work: the consumers, customers, our
staff and partners, suppliers, and employees of non-
profit organizations.

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

Women’s empowerment. By 2020, we will empower at least 5 million women


entrepreneurs worldwide (5by20).
Contribution to the UN SDG 5 Gender Equality, SDG 10 Reduced Inequalities, SDG 8
Decent Work and Economic Growth

2018 result: 3.2 million women

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)

To ensure sustainability of the Coca-Cola system,


it is crucial that our bottling partners share our views
on the principles of sustainable development. In 2018,
the Coca-Cola Hellenic Bottling Company AG which
operates in 28 European countries and includes
Coca-Cola HBC Russia (10 plants in 9 regions of
the country) presented 17 specific sustainability
commitments to be achieved by 2025. These
commitments take into account the strategic priorities
of The Coca-Cola Company, the UN Sustainable
Development Goals and the practical realities of the
countries in which the company operates.
04. Sustainability of Coca-Cola in Russia in 2018 0 3 8

Sustainability Commitments of the Coca-Cola Hellenic Bottling Company AG (Including Coca-Cola HBC Russia)

Emissions Reduction Nutrition Our People and Communities


Reduce by 25% the calories by Ensure safety in the workplace,
Reduce direct carbon emissions
100 ml of sparkling soft drinks target zero fatalities and reduce
ratio by 30% at all plants
(lost time) accident rate by 50%
Increase the proportion of energy- World Without Waste
saving refrigerators in customer Ensure gender equality
Reach target of 100% recyclable and increase the number of
outlets to 50% of the total consumer packaging managerial positions held by
Supply 50% of all energy used in Increase the use of plastic from women to 50%
our plants from renewable and recycled PET or PET from renewable
clean sources Involve at least 10% of
materials to 35% of the total communities in our manager
Source 100% of electricity Help collect the equivalent of 75% of training programs in our regions
from environmentally friendly our primary packaging for recycling of operation
and renewable sources (in the and reuse Train 1 million people under
European Union and Switzerland)
Sourcing our "Youth Empowered"
Water Stewardship development program
Source 100% of key agricultural
Reduce water use at plants ingredients in line with sustainable Engage in 20 Zero Waste
located in water-risk areas by 20% agricultural principles partnerships in cities and coastal
areas
Increase water availability for
communities in water-risk areas Involve 10% of staff in volunteer
that are located within the initiatives
company's operating regions

More about Coca-Cola Hellenic Bottling Company


AG sustainability commitments — 2018 Integrated
Annual Report of the Coca-Cola Hellenic Bottling
Company AG
04. Sustainability of Coca-Cola in Russia in 2018 0 3 9

UN Sustainable Development Goals Alignment SDG 4 Quality Education is integrated into


many of our programs; in particular, our
The priorities of the Coca-Cola sustainability strategy youth support project provides young people
mirror the UN Sustainable Development Goals: we with knowledge, skills, and opportunities. In
have global and local projects aligned with most Russia, the Coca-Cola system’s global "Youth
of the SDGs. Many of our projects are aligned with Empowered" program supports young people
multiple UN sustainable development goals. who don’t have access to high-quality higher
education.
We consider that our key goals are those, where
the greatest positive impact can be achieved. For SDG 17 Partnerships for the Goals is special
example, SDG 8 Decent Work and Economic Growth for us because it is associated with all
and SDG 12 Responsible Production and Consumption our initiatives. Our core working principle
are integrated into the way we operate in all markets. is based on creating and maintaining
Our efforts to reduce sugar and calories for more effective partnerships with other companies,
balanced nutrition contribute to SDG 3 Good Health governmental and non-profit organizations,
and Well-being. and with experts. This approach allows us to
work on solving complex large-scale problems,
such as separate waste collection for recycling
or building an inclusive society in Russia.
04. Sustainability of Coca-Cola in Russia in 2018 0 4 0

What we do to Meet Sustainability Commitments in Russia

Under our overarching sustainability The Economic Impact of Coca-Cola in Russia


strategy, we are working to make our
economic, environmental and social Coca-Cola in Russia is one of the largest taxpayers
impact as favorable as consistently and employers in the country. We are striving to increase
possible. added value both directly, through our own production
and indirectly by supporting our suppliers and customers.

Every two years, we conduct a detailed analysis


of the direct and indirect impact of our activities
in Russia via an independent study. We know exactly
how much added value there is in each ruble within the
Coca-Cola in Russia. We also know how many
jobs in related enterprises are created per every job
in one of our companies. The Coca-Cola system
is one of the first large international companies to
undergo such comprehensive assessment in Russia.

This part of the report will be published in October 2019.


04. Sustainability of Coca-Cola in Russia in 2018 0 4 1

The Environmental Impact of Coca-Cola


In Russia

Coca-Cola in Russia pays great attention


to reducing its environmental impact. With the
introduction of new technological solutions, the
company succeeds in systematically reducing the
volume of its industrial waste output: more than
85% of it is already recyclable. And the All-Russian
"Separate With Us" program is designed to create
the essential infrastructure and to raise awareness
about the culture of separate waste collection.

The company also systematically reduces its


carbon footprint, effecting measures to ensure that
СO2 emissions from production, transport and retail
> 85%
of industrial waste is already recyclable
refrigeration facilities are minimal. Reduced energy
consumption and the use of energy from renewable
sources also act as key indicators for assessing and
reducing our environmental impact. We are also concerned about preserving
water resources. Each of our plants has
implemented a Water Stewardship program.
We do not dump untreated water, and our
programs for decontamination of coastlines
help preserve the ecosystems of the country's
most important water reservoirs — the Volga,
the Baikal, and the Black Sea.
04. Sustainability of Coca-Cola in Russia in 2018 0 4 2

Each year, The Coca-Cola Company invests


at least 1% of its global operating income
from the previous year in a bid to combat
social problems. There are a number of
measures and activities that allow us
to create lasting change, including: the
strength of our brands, which helps raise
awareness of social issues; charitable
and social investments; creating and
maintaining partnerships to develop and
implement effective social programs;
sharing best practice and our experience,
and staff involvement in solving social
problems via our corporate volunteering
program.

We do not shy away from taking on


complex issues. By interacting with different
stakeholders and experts, we understand
how to make tangible contributions to
solving a variety of problems. And then
The Social Impact of Coca-Cola in Russia we act on them. We are actively investing
money and time in addressing the most
The health of our business is connected to the important social issues, such as the
health of the communities we serve, so we invest education and professional development
in the well-being of people and territories of our for young people, as well as building an
operational presence. inclusive society in Russia.
04. Sustainability of Coca-Cola in Russia in 2018 0 4 3

Sustainability and Corporate Social Responsibility Strategy


in Russia: a New Outlook

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.

We are consistently reducing our


environmental footprint. We focus on
minimizing our impact on the environment
by reducing carbon emissions, cutting energy
and water use as well decreasing the volume
of industrial waste.

We are taking care of our consumers with


"Our Way Forward" strategy. In 2019, we will
continue to expand our beverage portfolio
and introduce low- or no-sugar versions of
our most popular soft drinks.
0 4 4
04. Sustainability of Coca-Cola in Russia in 2018 0 4 5

Our Way Forward

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

Together with the Russian Red Cross, we


have been providing help and assistance to
victims of emergencies and natural disasters
for many years now. In 2018, Coca-Cola in
Russia and the Russian Red Cross joined forces
to introduce a new initiative — the creation
of emergency non-food stocks in high-risk
regions. From these inviolable stocks, kept
in special storage facilities, we will be able to
instantly provide people with the necessary
items.

It is important to highlight that our employees


regularly participate in a number of initiatives
that support local communities and the
environment. Corporate volunteering program
is at the core of the company's sustainability
strategy.

In 2019, we will be drawing up roadmaps


for the implementation of our long-term
sustainability commitments in Russia.
0 5 1
04. Sustainability of Coca-Cola in Russia in 2018 0 5 2

Who is in Charge of Sustainability


of Coca-Cola in Russia

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

2018 Business and Sustainability Results

Sustainability is Good for Business:

we boost efficiency by promoting sustainability


principles

Key 2018 Results and Highlights:

Sales volume up

4.4% *

Beverage output volume, litres

Read more about the For Coca-Cola Hellenic


contribution of the Bottling Company AG
2017: 2.23B litres Coca-Cola system to 2018 financial results
the social and economic click here.
development of the Russian
2018: 2.31B litres Federation in 2017–2018 here.

* Reported by Coca-Cola HBC Russia in its 2018 full-year results.


04. Sustainability of Coca-Cola in Russia in 2018 0 5 4

Sustainable Business Practices: Key 2018 Results and Highlights:

92% — employee engagement index measured


we promote high standards of business at Coca-Cola HBC Russia. The index has been above 90%
ethics by encouraging suppliers to follow for several years
our principles
Women hold 44.8% of all management and executive-level
positions in Coca-Cola in Russia

100% of staff in Coca-Cola in Russia are familiar with


Goals for 2019: the Code of Business Conduct and company’s anti-
corruption policy
To maintain high standards in terms
of business ethics, compliance Coca-Cola in Russia sources > 96%* of its ingredients and
with equal opportunities and anti- materials from local suppliers
corruption policies, employee
engagement, product quality, and The number of lost-time accidents at company’s plants has
workplace safety decreased threefold in 2017–2018

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

"Our Way Forward" in Russia

means less sugar, fewer calories, more innovation

Key 2018 Results and Highlights:

Consumer choice Innovation Responsible marketing


Sales of Coca-Cola Zero (sugar-free, zero- 110 beverages 100% compliance with our policy:
calorie) up 50% in volume and up 64% in No advertising to children under
17 brands 12, including TV and online
transactions compared to 2017
New niche products: advertising, corporate websites
We have reduced by 30–80% the amount Smartwater, AdeZ or sample-tasting activities
of added sugar in Fanta, Sprite, and
Sсhweppes* 46.6% of beverages in the We do not sell carbonated
Coca-Cola's portfolio are beverages in schools and we also
We have cut calories by 9.6%** in our non-carbonated do not conduct sample-tasting
sparkling beverages and by 10.6%** in our events there
juices in 2018
~ 1/3 of SSD drinks portfolio in Russia are
low- or no calorie
Transparent and accurate Partnerships
~ 1/2 of Coca-Cola-branded beverages are product labelling
available in small packages (0.33l or less) We support the initiatives of the
We were the first beverages Russian government to promote
Sales of beverages in the smallest size producer in Russia (back healthier and better living; we
(0.25l) rose by 38%** in 2011) to display calorie join forces with industry leaders
and sugar content on our and healthcare professionals
product packaging to support consumers in their
efforts to have a more balanced,
healthier lifestyle

* Total reduction over 2017-2018. 


** Year-on-year compared to 2017.
04. Sustainability of Coca-Cola in Russia in 2018 0 5 7

By 2020, We Pledge to:

Reduce sugar by 10% (per 100ml serving)


in 2019–2024 across our soft drinks
portfolio including juices

In 2019, we will be one of the first companies


to support the initiative of Rospotrebnadzor
to apply a "traffic light" type of labelling
on food and drink packaging — to help the
consumers balance their nutrition.

More on how we encourage and


promote balanced lifestyle in
Russia
0 5 8
04. Sustainability of Coca-Cola in Russia in 2018 0 5 9

Reduction of Environmental Footprint:

we are consistently reducing CO2 emissions at our plants and


we conserve water

Key 2018 Results and Highlights:

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

We reduced the total waste ratio by 1.3% compared to


2017. The total waste ratio (measured in grams of waste per
litre of final product) stood at 5.9 g/L in 2016 and 2017, and in
Learn more about Learn more about
2018 we were able to reduce it to 5.85 g/L our efforts to protect our efforts to reduce
the environment and waste
reduce waste
We reduced our use of PET materials by 130 tonnes
* The Coca-Cola НВС Russia 2017 Sustainability Report contains
a typo here: one should read 1,91 instead of 1,92.
04. Sustainability of Coca-Cola in Russia in 2018 0 6 0

Goals for 2019:

We will reduce the energy use ratio to 0.49


megajoules/L of final product

We will cut water use ratio to 1.84 L/L of final


product

We will increase the amount of energy


generated from renewables by 30% compared
to 2018

We will reduce the total amount of


manufacturing waste by reducing packaging
weight by 2–4 g
0 6 1
04. Sustainability of Coca-Cola in Russia in 2018 0 6 2

External Social and Environmental Programs

We have identified four material topics: promoting


a culture of separate waste collection and recycling,
youth empowerment, promoting inclusivity, and
emergency relief efforts.

Distribution of Social Investments Made by


Coca-Cola in Russia in 2018

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

Russia Without Waste: "Separate With Us"

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

Collected and recycled 27% of consumer packaging


in 2018

We have helped to collect and send for recycling


32 tonnes of plastic waste during the 2018 FIFA World
Cup™, or the equivalent of the total amount of packaging
that we have supplied with our beverages to the
championship
04. Sustainability of Coca-Cola in Russia in 2018 0 6 5

Youth Empowerment

Key 2018 Results and Highlights: Goals for 2019:

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

We are going to support the RANEPA International Campus


for 300 young leaders from around the world and the
WorldSkills vocational skills championship in Kazan

By 2025:

We will ensure that more than 1,000,000 young people from


28 countries in the operational presence of the Coca-Cola
Hellenic Bottling Company AG master the skills they need to
find suitable employment
04. Sustainability of Coca-Cola in Russia in 2018 0 6 6

Building an Inclusive Society

Key 2018 Results and Highlights: Goals for 2019–2020:

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

We will continue to develop and to


expand our "Growing Kindness"
mentorship program for teens
04. Sustainability of Coca-Cola in Russia in 2018 0 6 7

Disaster Emergency Relief

Key 2018 Results and Highlights:

We delivered 14,160 litres of drinking water for


disaster survivors. Throughout our continuing
collaboration with the Russian Red Cross, we have
delivered nearly 400 tonnes of clean drinking water Goals for 2019:
to people in affected regions.
We will continue our collaboration with the
We co-sponsored the Russian Red Cross initiative Russian Red Cross:
to create stocks of non-food essentials (essential
emergency supplies) for disaster relief efforts in We will provide prompt emergency access
high-risk regions to drinking water for disaster survivors

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

Key 2018 Results and Highlights: Goals for 2019:

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

More than 40% employees of Coca-Cola in


Russia have participated in one of our corporate
volunteer projects at least once

On average, every employee of Coca-Cola in


Russia devoted 3 hours to volunteer activities in
2018
04. Sustainability of Coca-Cola in Russia in 2018 0 6 9

Irina Arkhipova, Alisa Vasilyeva,


Public Affairs and Communications Sustainability and Community Manager,
Director, Coca-Cola HBC Russia: Coca-Cola HBC Russia:

— 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

— I would like to highlight this year’s release


of the "World Without Waste" environmental
strategy, which has organically incorporated
our local Russian project "Separate With Us".
This year, it stepped up a notch: our
"Separate With Us" campaign reached
millions of football fans during the FIFA™
World Cup. Throughout the duration of
Elena Kovaleva, the championship, we supported waste
Sustainability Manager, collection with our communication campaign.
Coca-Cola Soft Drink Consulting LLC: As a result, 32 tonnes of plastic have been
collected and recycled — this is equivalent to
the total volume of product we have supplied
for the event. We intend to build on this
experience at other large sports and youth
events that we support. For example, we
have had similar success at the XXII World
Winter Universiade 2019 in Krasnoyarsk. We
will continue to scale up the "Separate With
Us" brand so that as many people as possible
learn about it and start separating and
recycling waste.
04. Sustainability of Coca-Cola in Russia in 2018 0 7 1

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

To ensure effective communication with consumers, customers and


suppliers, we have three hot lines.

Any consumer of Coca-Cola in Russia can call


our 24/7 hotline on 8-800-200-22-22. The telephone number
is displayed on the product packaging.

Our customers and partners can call our Customer


and Partner Support Center hotline on 8-800-700-77-77 Alisa Vasilyeva,
Sustainability and Community Manager,
Our suppliers can call our Supply Center hotline Coca-Cola HBC Russia:
on 8-800-770-07-45

All our stakeholders can contact staff members at Coca-Cola HBC


Russia directly. Relevant contact information is also available on the — Stakeholder engagement helps
Coca-Cola Journey corporate media website. us localize and adapt Coca-Cola's
global sustainability commitments
The Coca-Cola Journey corporate media page, reached via the so that they are more relevant for
company's official Russian website, displays up-to-date company Russia. That’s how we learnt, for
information and news. Its average monthly media reach is example, that the key audience for
approximately 150 thousand unique visitors. This platform gives us the our "Youth Empowered" program
opportunity to engage with our audience directly and to speak about should include young people living
our agenda on sustainability, including our environmental and social in Russia’s smaller cities, as they
projects, ethical business practices and "Our Way Forward" strategy. often do not have access to best-in-
class university education.
04. Sustainability of Coca-Cola in Russia in 2018 0 7 3

2018 Material Topics

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

Assessment of Material Topics for the Sustainability of Coca-Cola in Russia

Significance for the stakeholders


6.4 Other topics ranked highly in
significance both for the stakeholder
groups and for the country as a
6.2 7 whole included: social and economic
development of regions 1  , business
ethics and anti-corruption 2 and
6.0
community development 13 . For the
internal respondents, product quality
and integrity 4 , came up as the
priority topic.
5.8 13
2

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

Material Topics and Stakeholder Survey Ratings

For the
№ Topic For Russia
stakeholders

1 Social and economic development of regions 5.9 5.6

2 Business ethics and anti-corruption 5.8 5.7

Implementation of sustainable agricultural principles and sourcing from socially and


3 5.4 5.3
environmentally responsible suppliers

4 Product quality and integrity 5.8 5.5

5 Carbon and energy 5.5 5.5

6 Water stewardship 5.3 5.4

7 Packaging, recycling & waste management 6.1 6.2

8 Nutrition 5.4 5.5

9 Responsible marketing 5.3 5.4

10 Employee well-being & engagement 5.3 5.5

11 Occupational health and safety 5.5 5.2

12 Human rights and gender equality 5.1 5.2

13 Community development 5.8 5.8

14 Corporate volunteering 5.1 5.2

15 Youth empowerment 5.5 5.5


04. Sustainability of Coca-Cola in Russia in 2018 0 7 6

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 Topics and Boundaries

№ 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

To be published in October, 2019

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)

8 Nutrition A balanced lifestyle: How we support conscious The Coca-Cola system


consumption in Russia in Russia

9 Marketing A balanced lifestyle: How we support conscious The Coca-Cola system


consumption in Russia in Russia

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

14 Corporate volunteering Developing a culture of volunteering at Coca-Cola in Coca-Cola HBC Russia


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

05. Business Ethics and Partnerships:


how We are Changing the Market
Business Ethics: Principles  0 8 1 01. About the Report

Anti-Corruption  0 8 2 02. Sustainable Growth Strategy


03. Coca-Cola in Russia
How We Work with Suppliers of Ingredients and Materials  0 8 8
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
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 0

Our Business Approach is not just


about Economic Efficiency, but also
about our Responsibility

We strive for business growth.


We produce beverages that our
consumers enjoy and brands they
love. Of course, as for any business,
profit is important for us, but we
don’t just strive for profit alone.
Our business approach is not just
about economic efficiency, but
also about our responsibility. We
care about people and the planet,
thus, we endeavour to create
shared opportunities for local
communities, our customers, staff
and shareholders.
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 1

Business Ethics: Principles

The principles of business ethics of Coca-Cola in Company Values as Outlined in


Russia are outlined in the internal document entitled the Code of Business Conduct
the Code of Business Conduct. Upon starting a job, all
new employees get acquainted with its provisions.

Winning with Nurturing our


customers people

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

Four Anti-Corruption Rules of Coca-Cola


In Russia

The company does not give bribes under any


circumstances.

The company treats all gifts given on behalf of the


company, especially gifts to government employees,
responsibly. A gift to a public official should be
appropriate and, for example, dedicated to national
holidays like 23rd February or 8th March, and the
cost of such gift cannot exceed RUB 3,000. The
giving of gifts is approved by the lawyer of the
company. All associated expenses are recorded in
the relevant accounts of the company.

The company pays special attention to the hiring of


third parties who interact with government officials
on behalf of the company.

The company monitors compliance with anti-


corruption practices on a regular basis. Staff are
introduced to relevant policies and procedures,
undergo trainings and are acquainted with
processes to detect and prevent violations.
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 4

Training and Information

Upon hiring, each employee of Coca-Cola HBC Russia


undergoes anti-corruption training. Thereafter, staff
must repeat this training every two years. In the
2017–2018 biennial cycle, anti-corruption training was
scheduled for 587 members of staff (8.4% of the total
number of staff), and 94% have successfully passed it.

Coca-Cola HBC Russia Anti-Corruption Training in 2017-2018 by Region


% of staff who passed anti-corruption training*

91% Moscow region and Central office

91% North-Western region

70% Central region

82.5% South region

90% Siberia and the Far East

100% Ural region

* 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

The Coca-Cola Soft Drinks Consulting LLC and Multon


JSC have similar procedures in place: their staff also
undergo training immediately upon being hired. Thus,
all employees of the companies in the system receive
anti-corruption information and training.

Within Coca-Cola in Russia, the so-called "risk


zone" refers to all the employees who interact with
government officials on behalf of the company. Tatyana Panyaeva,
These include procurement specialists, asset Head of Legal Affairs,
protection specialists, lawyers and top management. Coca-Cola HBC Russia:
They undergo additional anti-corruption training. All
representatives from the top management of the
companies in the Coca-Cola system must undergo
anti-corruption training programs.
— For Coca-Cola HBC Russia, it is important
All business partners of the Coca-Cola system to conduct business honestly and with respect
in Russia are also fully abreast with anti-corruption for the society. We are thoroughly compliant
policies and procedures. Thus, all contracts with with the principles of ethical business and we
suppliers of Coca-Cola HBC Russia include a clause on have well-established procedures for managing
familiarization with the governing guidelines, thereby both financial and non-financial indicators.
obliging all partners to comply with the company's This approach reinforces the reputation of the
anti-corruption policy. The company's clients have company and builds trust. In 2018, a single
their own set of guidelines, which oblige them to case of violation of anti-corruption policy
comply with all the legislative norms on the prevention was recorded. Following the investigation of
of corruption and bribery, and these obligations are the incident, we took appropriate disciplinary
also included in the contracts. measures.
05. Business Ethics and Partnerships: how We are Changing the Market 0 8 6

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

How We Work with Suppliers of Ingredients and Materials

To become a supplier of Coca-Cola in Russia, a Supplier Guiding Principles


business has to put in a lot of effort. First, all potential include:
suppliers of ingredients and materials undergo a
series of audits to demonstrate compliance with the   freedom of association and the
principles of sustainability of Coca-Cola in Russia. presence of a collective agreement

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

Testing of ingredients, primary packaging, nitrogen or


carbon dioxide in authorized laboratories for compliance
with the requirements of Coca-Cola in Russia

Social audit to determine compliance with the


requirements of corporate social responsibility and
adherence to company’s values and ethical standards

An audit of the certified food safety management system


(Global Food Safety Initiative)
05. Business Ethics and Partnerships: how We are Changing the Market 0 9 0

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.

An increasing number of suppliers


share our commitment to sustainability
and adjust their processes to comply
with international requirements. We,
in turn, are fully encouraging of these
developments. We conduct an annual
comprehensive assessment of suppliers
who want to meet high standards of
responsible business and we reward
the best.

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

The Best Suppliers


of Coca-Cola in Russia
in 2018

Mikhail Popov,
Nomination Winner Specialization Procurement Director, Coca-Cola HBC Russia:

SDS Trading "Working with suppliers, we are investing in


Best supplier Sugar
Company LLC the future of the country"

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

The Introduction of new Standards


for Agricultural Suppliers

The emphasis on sustainable agriculture has Grapestypes of Ingredients, Producers of which


been a major focus of our supplier development must be Certified by the Company
work in recent years. To develop sustainable
agriculture practices, Coca-Cola in Russia set
a target to ensure that 100% of the raw materials Sweeteners
in the supply chain meet our sustainability   Cane sugar
standards by 2025. This goal covers key raw   Beet sugar
ingredients that Coca-Cola in Russia uses   Corn/High-Fructose Starch (HFSS)
to make beverages: sweeteners, fruit juice   Stevia
concentrates and other types of ingredients.

Fruits
  Apples   Lemons
  Oranges   Mangoes
  Peaches   Grapes
  Tomatoes

Other ingredients

  Coffee   Palm oil


  Tea   Pulp and paper
  Soy
05. Business Ethics and Partnerships: how We are Changing the Market 0 9 3

Multon JSC, a company that mainly procures


agricultural products, has some way to go in
achieving our target. In 2018, Multon had
37 suppliers, all of whom were evaluated on
compliance with the GFSI international food
safety standards. In addition, the suppliers
of four main ingredient categories (orange,
apple, tomato, peach) are evaluated on
compliance with the principles of Sustainable
Agriculture Guiding Principles (SAGP). In
2018, only 6% of ingredients were supplied
from sources certified in compliance SAGP.
By 2025, this figure should reach 100%. How
do we achieve this?

Read more about the principles of


sustainable agriculture and how we
develop our Russian agricultural
suppliers.
0 9 4
0 9 5

06. Product Quality and Safety:


the Way to Go
How We Ensure the Quality and Safety of our Products  0 9 8 01. About the Report
02. Sustainable Growth Strategy
What We did in 2018 to Improve our Quality Management System  1 0 5
03. Coca-Cola in Russia
04. Sustainability of Coca-Cola
Why do We Only Give Ourselves 4+ Grade for Now?   1 0 7
in Russia in 2018

Key Quality Indicators in 2018  1 0 9


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
06. Product Quality and Safety: the Way to Go 0 9 6

Quality control in Coca-Cola in Russia


works on all levels: from the procurement of
ingredients to the delivery of products to the
customers. We have implemented a system for
managing the age of products, which tracks
the maturity of beverages at all stages of
their life cycle from production to shipment.
We are constantly working on optimizing
our production culture, improving staff
competences in all aspects of product quality
and safety.

For every 7 millions of products sold we


only get about one customer complaint.
For any quality expert, these are quite
impressive statistics. But how do we assess
them within Coca-Cola in Russia? We
give ourselves 4+. Our internal standards are
far stricter than the general industry ones, so
the goals we set ourselves are at the highest
possible level.
0 9 7
06. Product Quality and Safety: the Way to Go 0 9 8

How We Ensure the Quality and Safety


of our Products

Сoca-Cola HBC Russia is one of the first food


producers in the country to introduce a quality
management system adherent to international
100%
of the Coca-Cola plants in Russia are
standards at all its plants. certified according to international product
quality management and food safety
All plants in Coca-Cola in Russia are standards
certified in compliance with ISO 9001 and
FSSC 22000 international standards. They
undergo annual external audits, scheduled
and unscheduled inspections of regulatory
authorities, as well as internal audits for
compliance with KORE requirements — every two
years we are checked by international experts
from The Coca-Cola Company, and those checks
are not announced in advance.
On the factory level, risks are managed
The product quality and food safety management by the quality control department. On
system is based on risk assessment and risk the country level, risks are managed by
management; on staff competence and high level the country manager for quality control,
of employee involvement in ensuring compliance quality systems and ecology as well as four
with standards, as well as on the stability of functional managers. Internal risk factors are
operational processes at all levels, and a proactive completely under our control. We do not
approach to resolving potential problems and fully control the external risk factors, but we
preventing their occurrence in the future. are trying to minimize their impact.
06. Product Quality and Safety: the Way to Go 0 9 9

External Risk Factors and Measures


to Reduce their Impact

Supply quality
We motivate suppliers of ingredients and
materials to improve their quality control
systems and to introduce sustainable
business practices

Beverage storage conditions in retail stores


We motivate our customers to control
storage conditions of beverages

Personal preferences, individual consumer


characteristics and the conditions in which
beverages are consumed
We motivate consumers to be more
conscious in their choice of beverages and
conditions of consumption
06. Product Quality and Safety: the Way to Go 1 0 0

How We Control the Quality of Our Suppliers

— All our suppliers must comply with the


requirements of The Coca-Cola Company, which are
much stricter than many international standards.
Coca-Cola plants are allowed to purchase raw
materials and primary packaging only from
production sites that have been approved by the
company. The approval process is carried out in Svetlana
several stages: we arrive on the site to inspect its Konstantinovskaya,
production facilities, we test the material or Supplier Manager (ingredients,
the ingredient itself and we also evaluate the primary packaging), Coca-Cola
supplier’s ability to consistently provide supplies Soft Drink Consulting LLC:
of the required quality. We have our own special
requirements for each type of material and each
production process, including GOSTs and our internal
certification criteria. Based on the results of this audit,
we formulate a remedial action plan and we help
the supplier in bringing it to life. Then we schedule
regular production site visits. Then, depending on the
supplier’s audit grade and the practicalities of their
work with the bottler, we evaluate their performance
and investigate complaints, if any arise. Our main
goal is to satisfy the demand of Coca-Cola HBC Russia
and Multon JSC for quality ingredients and materials.
06. Product Quality and Safety: the Way to Go 1 0 1

How We Ensure the Quality of Product Delivery

We assess the quality of product delivery to the


customer with DIFOTAI (Delivered in Full on Time
10.2
million orders delivered in 2018
(9.5 million in 2017)
Accurately Invoiced) — a complex indicator that
shows the proportion of orders delivered in full, on
time and with correct documentation. A special
Customer Support Center responds promptly to
requests.

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

How We Process Consumer Yulia Yaroshenko,


Complaints Country Sustainability
Governance Manager,
Coca-Cola HBC Russia:
At Coca-Cola HBC Russia there is
a 24‑hour consumer hotline, so
that we can promptly respond to
any possible incident. In 2018 we
processed 171 669 calls. Consumer "Only one of 30 complaints is justified"
complaints about the quality of
beverages: a decrease of 0.01 points — We’ve always been aware that the majority of
per 1 million bottles — it’s 0,14 points complaints about the taste of beverages is not caused
per 1 million bottles. by product quality problems. However, we strive to
respond to consumers’ feedback in a timely manner.
After each complaint, we carry out an inspection. We
exchange the product in question for a new one; we
buy a few samples from the store where the purchase
was made, and then we compare these with our
control sample. Usually, the dissatisfaction with the
taste is associated with the individual characteristics
of the consumer or with their disregard for the
recommended temperature of beverage consumption.
But, on occasion, there could be qualitative changes
caused by poor retail storage conditions or the expiry
of sell-by dates. Then we work with the retailers and
report back to the consumer. On average, only one of
30 complaints is justified.
06. Product Quality and Safety: the Way to Go 1 0 3

What Happens when a Consumer Complains about the Quality of the Beverage

Consumer calls Complaint is Consumer Beverage is Lab tests, Consumer receives


the hotline registered receives a call replaced. Beverage comparison with the a call back with
back is transferred to the control sample the results of the
lab for examination examination
1 0 4
06. Product Quality and Safety: the Way to Go 1 0 5

What We did in 2018 to Improve our Quality


Management System

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

Why do We Only Give Ourselves 4+ Grade for Now?

At Coca-Cola HBC we already have a stable quality The Maturity Matrix


management system in place. To make it even

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

How the Coca-Cola Hellenic Bottling Company AG "The Matrix Of Maturity


Index" is Calculated

Maturity Matrix

Maturity components of the Key performance Preventive Competencies


management system indicators measures

Criteria for the assessment of maturity applicable to quality

Violations and penaltiesof Implementation of the Knowledge and


supervisory authorities equipment inspection matrix measurements
Consumer complaints Number of defects per million Human resourcesand skills
Compliance with product of product units Leadershipand production
Quality shelf life culture
Number of audits Process organisation
failed
Incidents related to product
quality

Maturity level assessment

0% 40% 60% 80% 100%


Passive approach Compliance Adherence Key values
06. Product Quality and Safety: the Way to Go 1 0 9

Key Quality Indicators in 2018

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%

Juices with expired sell-by dates in retail stores decreased by 0.08%


2018
0.09 Juices

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

07. A Balanced Lifestyle:


how We Support Conscious
Consumption in Russia
Our Achievements in 2018  1 1 3 01. About the Report

Cooperation with Partners and Government   1 1 6 02. Sustainable Growth Strategy


03. Coca-Cola in Russia
Responsible Marketing  1 1 7

04. Sustainability of Coca-Cola


Our Plans for 2019  1 1 8
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
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 2

The desire to support consumers


in their pursuit of a balanced
diet and the World Health
Organization's Daily Added
Sugar Recommendations have
encouraged the Coca-Cola
system to restructure its brand
portfolio and marketing policies.
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 3

More No-Sugar Beverages in our Portfolio

In Russia, soft drinks contribute only 1% to


the average daily calorie intake, and we aim
to help our consumers make their diet even
more balanced. We are reformulating recipes
to reduce sugar content and we are releasing
new versions of our most popular products.
We also strive to make our beverages
available in smaller packages to help people
manage their intake of added sugar. In
Russia, about a third of Coca-Cola branded
beverages are sold in small packages (330 ml
or less).
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 4

Our Achievements in 2018

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

Svetlana Milivojevic Panev,


50%
growth in volume
Marketing Director, of the Coca-Cola Zero brand
Coca-Cola Soft Drink Consulting LLC: compared to 2017

— 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

Cooperation with Partners and


Government

The problem of obesity and unhealthy eating


habits is very complex and involves many aspects.
It can only be solved in partnership, provided that
there is cooperation between all stakeholders.

Coca-Cola in Russia supports the initiatives


of the government of the Russian Federation
aimed at improving the health and quality
of life of Russian citizens. Our speakers have
participated in all major discussion on this topic Coca-Cola in Russia also cooperates
at the Gaidar Forum, the Eastern Economic with professional communities and trade
Forum, the St. Petersburg International Economic associations such as the Union of Soft
Forum and the Investment Forum in Sochi. For Drinks Producers, the Russian Union of Juice
example, in 2018, at the Gaidar Forum, the leading Producers (RSPS) and Rusbrand Association.
representatives of Coca-Cola in Russia spoke We are also cooperating with the Ministry of
at a session on investments in public health, and in Health and Rospotrebnadzor to discuss the
2019, on the economic aspects of public health. quality of our products, recipes, and labelling.
07. A Balanced Lifestyle: how We Support Conscious Consumption in Russia 1 1 7

Responsible Marketing

In 2009, the Coca-Cola system, together with


other industry leaders, committed to limit
advertising aimed at children under the
age of 12:

We do not show children without parents in


our commercials

We do not advertise in media explicitly


designed for children

We do not use images of celebrities or


characters whose primary appeal is to children

We do not organize games or contests


designed to appeal primarily to children

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

Our Plans for 2019

We will continue to work on adapting


our recipes to reduce sugar content,
as well as on reducing package sizes
and introducing innovations.

From 2019 to 2024, we plan to reduce the


caloric content of our carbonated drinks
by 10% (per 100 ml) compared to the
baseline year of 2017, through the launch of
new low-calorie and sugar-free beverages.

We are one of the first companies in Russia


to fully support the Federal Service for
Consumer Rights Protection and Human
Welfare initiative of "traffic-light" color-
coded labelling on PET-bottles. It will help
consumers balance their nutrition.
1 1 9
1 2 0

08. Caring for our Employees:


Why do People Want to Work for
Coca-Cola in Russia
People of Coca-Cola in Russia  1 2 1 01. About the Report

Well-Being of our Employees  1 3 1 02. Sustainable Growth Strategy


03. Coca-Cola in Russia
Training, Education and Talent Development  1 3 4

04. Sustainability of Coca-Cola


Enhancing Engagement and Satisfaction  1 3 9
in Russia in 2018
Gender Equality  1 4 2 05. Business Ethics and Partnerships

Ambassadorship Program  1 4 5 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
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 2 1

People of Coca-Cola in Russia

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

Coca-Cola HBC Russia

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).

Coca-Cola HBC Russia. Personnel Composition by Gender and Age, %:

7% Under 30 42% Under 30


Top 38% Women 36% Women Top
Management
Specialists
Management 88% 30–50 years Specialists 55% 30–50 years
62% Men 64% Men
5% Over 50 years 3% Over 50 years

19% Under 30 22% Under 30


34% Women 21% Women
Management Workers Management 77% 30–50 years Workers 62% 30–50 years
66% Men 79% Men
4% Over 50 years 16% Over 50 years
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 2 4

Coca-Cola HBC Russia. Total Number of Employees by Employment Contract, by Region:

2017 2018

Region Permanent Contract Temporary Contract Permanent Contract Temporary Contract


HQ 1,190 28 1,442 41
Central Region 1,143 9 937 13
Moscow Region 1,387 23 1,248 27
Siberia and the Far East 1,200 14 999 26
Southern Region 1,332 35 1,147 40
North-Western Region 513 9 483 13
Ural Region 655 7 535 7
Total 7,420 126 6,792 167

Coca-Cola HBC Russia. Total Number of Employees by Employment Type, by Gender:

2017 2018

Full-time Part-time Full-time Part-time


Men 5,370 25 4,760 29
Women 2,124 27 2,147 22
Total 7,494 52 6,908 51
1 2 5
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 2 6

Coca-Cola Soft Drink Consulting LLC

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, %:

0% Under 30 33% Under 30


Top 73% Women 95% Women Top
Management
Specialists
Management 96% 30–50 years Specialists 67% 30–50 years
27% Men 5% Men
4% Over 50 years 0% Over 50 years

100% Women 5% Under 30 100% Under 30


100% Women
Management Workers
0% Men Management 95% 30–50 years Workers 0% 30–50 years
0% Men
0% Over 50 years 0% Over 50 years
1 2 7
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 2 8

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.

Multon JSC. Personnel Composition by Gender and Age, %:

10% Under 30 24,5% Under 30


Top 58% Women 71% Women Top
Management
Specialists
Management 86,5% 30–50 years Specialists 51% 30–50 years
42% Men 29% Men
3,5% Over 50 years 24,5% Over 50 years

40% Women 8% Under 30 14% Under 30


44% Women
Management Workers
60% Men Management 69% 30–50 years Workers 59% 30–50 years
56% Men
23% Over 50 years 27% Over 50 years
1 2 9
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 0

We Strive to be the Best Employer Our Professional Awards:

Coca-Cola in Russia actively creates and maintains Intercomm 2018 Intracorporate


jobs with high wages in all regions of its presence Communications Award: Coca-Cola
and it is one of the biggest employers in the Russian Motivational Programme in Russia "Be a
Federation. Scout — Be a Champion" — second degree
diploma in the "Team Energy" nomination
Coca-Cola НВС Russia is regularly listed as one of
the best employers in the country. According to The Best of Compensations & Benefits
HeadHunter, for several years now, the company Russia 2018 Awards: Coca-Cola HBC
has been recognized as the most attractive for Russia commercial function reward
FMCG segment applicants. In 2018, the company system became the winner in the "Best
made it to the TOP-3 list of the most attractive Compensations & Benefits System"
employers of the Changellenge award for young nomination.
specialists.

Coca-Cola Soft Drink Consulting LLC, confirming


its status, was ranked number 1 among FMCG
companies at the Future Today "Best Employers of
2018" Awards.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 1

Well-Being of our Employees

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

Coca-Cola in Russia also provides


competitive entry-level salaries: they are at least
10% higher than the regional minimum wage.
For example, Coca-Cola Soft Drink Consulting
LLC that operates only in Moscow pays 20,000
rubles for an entry-level position. Starting
salaries at Coca-Cola HBC Russia and JSC Multon
range from 15,556 rubles (Southern region) to
31,872 rubles (North-West region). On average,
the entry-level salary within the companies of
the system exceeds the minimum wage in the
regions by 39–87%.

In 2018, Coca-Cola Soft Drink Consulting


LLC linked its remuneration policy to a new
employee performance assessment system called
Performance Enablement. Unlike the traditional
system, it implies more frequent communication
between employees and their managers aimed
at focusing on current priorities. Naturally, those
employees who achieve the best results during
the year and make every effort to attain excellent
business indicators receive a bigger bonus than
those who simply carry out their regular duties as
per job description.
1 3 3
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 4

Training, Education and Talent


Development

Coca-Cola in Russia is invested in personnel


development through a large number of programs,
internal and external training courses. In 2018, the
companies of the system focused on shaping the
78,615 hours
in total/~10,12 hours per person the employees
of Coca-Cola in Russia spent on training
leadership qualities and their employees potential,
and education in 2018. Most of the time was
building trajectories of rapid career growth and allocated to "specialists" and "managers"
continuity, as well as introducing new training employee categories
formats that engage and attract a large number of
participants.

In 2018, Coca-Cola Soft Drink Consulting LLC devoted


its efforts to the enhancement of leadership skills and
capabilities. All company managers received training
aimed at improving their capabilities in professional
development of their subordinates, creating a positive
working culture, providing feedback, increasing
personal efficiency and other skills for developing
people and teams. The company noted last year’s
important achievement in the succession planning
programme for key roles within the company. Based
on the results of regular potential assessment, 10% of
employees started new jobs or were promoted.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 5

Ekaterina Kuzmicheva,
Director of Human Resources,
Coca-Cola Soft Drink Consulting LLC:

— Our intent is to develop leadership skills,


talents and personal efficiency of our
employees. It is important that everyone has
a clear goal and a road map to achieve it. So,
as of 2018, 100% of the company's employees
have career development plans. When one
has a clear understanding of what he or
she wants to achieve, we make every effort
to help our employee by recommending
100%
of the company's employees have
suitable roles and to fit his/her purposes, as career development plans
well as relevant education and training. To
some of our employees we are also offering
opportunities to work abroad, so that they
get new experiences in accomplishing their
objectives.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 6

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

have the capacity to enhance cultural development of the


company's employees.

A newly proposed "Day of the New Employee"


programme is designed to educate new team members
about the company’s workplace, the most important
things about working in the company, brief them on the
organizational structure and present the key projects of
Coca-Cola in Russia. Olga Shumkova,
Senior Manager for Development and Training,
Multon JSC employees are included in the training and Coca-Cola HBC Russia:
development programmes of Coca-Cola HBC Russia.

— In 2018, we launched a unique project


that introduces a new "Growth Mindset"
culture. We conducted training courses
for the company’s senior management, set
up a special section on the intranet with
the broadest range of opportunities for
development and also implemented a number
of special projects for our employees. In 2019,
we plan to master online and remote training,
work on automation and gamification of these
processes in order to increase the number of
participants as much as possible.
1 3 8
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 3 9

Enhancing Engagement and Satisfaction

In 2018, Coca-Cola HBC Russia launched a pilot project for its


head office employees, during which they were able to work
flexible hours and to work from home. This project had excellent
results and now it’s being applied across the country. Today all
employees have flexible schedules and they can choose to work
from home a few of days each month. Coca-Cola Soft Drink
Consulting LLC has a similar program where employees can
work from home; during the summer period they can leave as
early as 1 pm on Fridays.

Coca-Cola HBC Russia continues to develop an engagement


activators programme. Activators are those employees who are
leading the effort in implementing plans to increase employee

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

Our Plans for 2019:

Flexible working hours. The pilot project


concluded at the end of April. Thereafter,
we’re planning to make this our usual
practice.

XXIX World Winter Universiade 2019 in


Krasnoyarsk. By continuing our support for
Vera Naumova, sports projects, we provide our employees
Organizational Development Manager, with opportunities to participate in this
Coca-Cola HBC Russia: large scale sporting event.

"Activators 2.0". We are restarting this


project and focusing on activators. They
— The level of employee engagement is one of the will work on improving their colleagues’
most important performance indicators of the human engagement and, at the same time, they
resources department, and we pay a lot of attention will have more opportunities for growth
to improving it throughout the year. The sustainability and self-development. The company
will design special training courses for
engagement index of the Coca-Cola HBC Russia staff is
activators, unlike any other of our existing
the highest among the other divisions of our company in development programmes.
28 countries of operational presence. It is also one of
the highest in the Russian market. In 2018, this figure fell The Growth Mindset culture. As part of
by 2 percentage points, but there is nothing dramatic our engagement workshops we plan to talk
about it. Last year the figure was 94% and I would say about this concept, explaining how to apply
that maintaining an indicator at such a high level is always it in the workplace. We will be educating
staff members about the benefits that
difficult. Nevertheless, it is very important for us to listen to Growth Mindset can bring to their personal
the opinions of our employees, to hear what they have to say and professional lives. In 2019, we are
and then to analyse the results of the survey and to make determined to engage all our employees in
necessary amendments in planning for the future. this project.
1 4 1
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 4 2

Gender Equality and Equal Opportunities

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.

The key sustainability indicator in achieving gender


equality is, however, the number of women taking on
senior and top-management positions. At Coca-Cola
Soft Drink Consulting LLC more than half of the senior
and top managers (73%) are women. The number of
female senior and top-managers at Coca-Cola HBC
Russia is 38%, and at JSC Multon it stands at 58%. We
are consistently moving towards achieving gender
balance among our top management within Coca-
Cola in Russia. At the same time, we guarantee to our
employees that, when it comes to their promotion, the
decision depends entirely on candidate’s professionalism
and efficiency.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 4 3

Irina Petrova, Ekaterina Kuzmicheva,


Director of Human Resources, Director of Human Resources,
Coca-Cola HBC Russia: Coca-Cola Soft Drink Consulting LLC:

— 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

In the Coca-Cola system, each In 2018, We Updated our Ambassadorship


employee is an ambassador. It is Programme, and now it Consists of two Main
important that everyone has confidence Parts:
in the quality of our products and has
reasons to be inspired and proud of the Education. At Ambassador training, our
company. It is also important that each employees are educated about the company’s
staff member is competent enough products and their contents, as well as what
to represent our brand, category and Coca-Cola in Russia does for the society
company, as well as our principles and and the environment. Training sessions can be
responsible approach to business. carried out either offline or online. In 2018,
50% of Coca-Cola in Russia employees
passed the new Ambassadorship training
programme. We anticipate that the rest
of our employees will enrol and pass this
programme in 2019.

Inspiration. By holding internal events and


helping our employees get involved in social
initiatives of the company, we are striving
to ensure that each and every member of our
team feels that he or she is part of a large,
friendly, active and inspiring family
of Coca-Cola in Russia and shares the
company’s values.
08. Caring for our Employees: Why do People Want to Work for Coca-Cola in Russia 1 4 6

Elena Kovaleva,
Sustainability Manager,
Coca-Cola Soft Drink Consulting LLC:

— We conduct Ambassador training


on a regular basis. The first part is
devoted to beverages: it is important
that each employee has complete and
reliable information about all the ingredients
and their properties. That way, they would
feel more confident and knowledgeable
about the quality and safety of the product,
so that, in turn, they can help others
separate the myths from reality. The second
part is devoted to sustainability programs.
It is essential that everyone understands the
Read more: How the 2018 FIFA company’s strategy, where we’re going and
World Cup™ in Russia supported what kind of benefits we are giving back to
career growth of the Coca-Cola
people society in the process.
1 4 7
1 4 8

09. Workplace Health and Safety:


how We Eliminate Risks for our
Associates and Partners
Occupational Safety at Bottling Plants  1 5 0 01. About the Report

Traffic Safety  1 5 7 02. Sustainable Growth Strategy


03. Coca-Cola in Russia
Fire Safety  1 6 0

04. Sustainability of Coca-Cola


Safety For our Suppliers and Contractors  1 6 1
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
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 4 9

We realize that sustainable business relies


on keeping employees safe, healthy, and
happy. This is why health and safety in the
workplace is one of our key sustainability
commitments.

In all our operations, we comply with


the laws of the Russian Federation,
The Coca-Cola Operating Requirements
(also known as KORE), the OHSAS 18001
international standards, and our internal
rules and guidelines. We are making
meticulous efforts to ensure that the working
environments are safe at bottling plants and in
the warehouses, in the offices and elsewhere
on the company’s premises, both outside and
around our buildings and other facilities.
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 0

Occupational Safety at Bottling Plants

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

Number of fatal accidents Number of registered events (Near Miss)


Number of serious accidents Number of safety behavioural audits (Walk the Talk)
Number of accidents, total Number of talks on safety issues
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 1

Denis Arakcheev, Natalia Kovaleva,


Occupational Safety Manager, Occupational Safety Manager,
Coca-Cola Soft Drink Consulting LLC: Coca-Cola HBC Russia:

— The Coca-Cola Company is strictly — In our operations, we comply with the


regulating its corporate requirements for provisions of the Russian laws on workplace
workplace and occupational safety. safety and with The Coca-Cola Company’s
Coca-Cola НВС Russia’s plants are subject occupational safety requirements, When in
to annual unannounced audits to make sure doubt, we always choose the most stringent
that they comply with these requirements. of the two to follow. Our strict approach to
Three Coca-Cola HBC Russia bottling safety has enabled us to reduce the number
plants underwent three such audit checks of serious workplace injuries by two-thirds
in 2018. In addition, all employees of Coca- in 2017–2018. We have found preventative
Cola in Russia must be familiar with these measures that focus on encouraging safe
requirements and must comply with them. behavior in people to be the most effective.
To achieve this, we are holding training This is why we have decided to focus on
sessions on a regular basis. employee behavioral safety in 2019.
1 5 2
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 3

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.

To make sure that we keep our employees safe,


2,692
internal workplace and plant
we also focus on performing regular inspections of worksite audit checks were
work areas and production facilities. performed in 2018
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 4

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

The company continues to implement best practices in


developing a safety culture. A really good example was
a procedure we developed to monitor the condition of
warehouse racks, so that we could minimize potential
82.5%
of all employees are satisfied with their
workplace, according to annual surveys
risks of injury before they’d cause an actual accident.
The procedure that was developed describes in detail

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

Encouraging our employees to drive safely and to


comply with road safety regulations is a priority for
the company. In 2018, we focused our efforts on
improving the safety and monitoring equipment and
technology-based solutions of our fleet: we added
telemetry equipment to our vehicles, equipped our
trucks with rear-view cameras, and installed safety-
perimeter equipment on our forklifts.

Improving our drivers’ skills was another focus area


in 2018. We launched a defensive driving training
program for van operators. We are now also using
the Axonify micro-learning system to offer road
safety training to high-risk drivers, i.e. those scoring
low on the MobileEye driving habits and accident In 2018, half of all accidents in 2018 were road
prevention system and those who have received traffic accidents. In 80% of cases these were
more than two speeding tickets. not due to the actions of our employees — the
accidents happened through the fault of third
Road safety rules are also strictly observed by parties, which means that the qualification of
our providers and contractors. Those of them our drivers is improving.
that transport our staff, undergo regular checks
for compliance with company standards and The majority of risks related to road traffic
requirements. accidents are attributed to our sales staff, who
are regularly found behind the wheel. In 2018,
we organized topical trainings and we created
special information boards on road safety.
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 5 8

Road Traffic Accidents Involving Employees of Coca-Cola HBC Russia

2018

386
290

96

2017

362
273

89

2016

461
349

112

2015

709
540
169

Number of traffic accidents, total


Number of traffic accidents, fault of third parties
Number of traffic accidents, fault of Company’s employees
1 5 9
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 6 0

Fire Safety

We pay close attention to fire safety training at


Coca-Cola HBC Russia bottling plants. In 2018, we
gave more than 5,500 fire safety briefings to over
4,800 employees.
27
fire safety systems installed and upgraded
at our bottling plants in 2018

Our choice of a fire safety system is based on criteria


that evaluates changes in the production processes.
We are constantly improving the methods and The number of fire safety audits performed
ways of protecting our employees and property — at Coca-Cola HBC Russia plants and facilities over
by installing firefighting systems, fire alarms, and the past four years
fire PA systems. For example, in Krasnoyarsk we
provided basic fire safety training to refrigerator 2018

repair staff in 2018. And in Stavropol, we installed 27


an automatic gas-based fire suppression system in a
2017
server room, repaired the PA warning system in the
office building and the fire alarm in the warehouse. 26
2016
The plants, offices and facilities receive both
17
external audits (facilitated by insurance companies)
2015
and internal audits performed by departmental and
functional managers.  13
09. Workplace Health and Safety: how We Eliminate Risks for our Associates and Partners 1 6 1

Safety for our Suppliers and Contractors

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.

At the same time, we learn and adopt on a regular


basis the best practices from other cutting-edge
companies. In 2018, we took a page out of Toyota
Motor’s book, developing Eagle Eye practical risk
assessment exercises for employees and we plan
to establish a specialized training center for risk-
assessment in production.
1 6 2
1 6 3

10. Developing a Culture


of Volunteering in Coca-Cola
In Russia
How We Helped Russia in 2018  1 6 5 01. About the Report
How We will be Helping Others in 2019  1 6 8 02. Sustainable Growth Strategy
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
10. Developing a Culture of Volunteering in Coca-Cola in Russia 1 6 4

Today, all volunteer programs at 2018 Volunteer Projects in Numbers:


Coca-Cola in Russia are clearly
tied to the strategic sustainability
commitments and have two main
areas — social and environmental.
Any employee can join. For 2018,
3
hours is the average time
227
employees participated in the
we set a specific goal: to engage each volunteer in Coca-Cola Coca-Cola Christmas Caravan
40% of the Coca-Cola employees in in Russia spent on volunteer project
Russia in at least one project. And work
we have successfully achieved it.

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

How We Helped Russia in 2018


> 3,000
we worked with special-needs teenagers
at the Coca-Cola Christmas Caravan

We worked with special-needs teenagers at the


Coca-Cola Christmas Caravan

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

As many as 430 employees of Coca-Cola in


employees Russia became blood donors in 2018. In addition,
volunteered in 250 external participants joined in the events of
Growing Kindness
program
the Blood Donor Day, including
​​ undergraduate
students from our partner universities. For
example, in St. Petersburg, students of the
St. Petersburg National Research University
of Information Technologies, Mechanics and
Optics (ITMO) came to the
Coca-Cola HBC Russia St. Petersburg plant on
the Blood Donor Day.

In Nizhny Novgorod, the company's employees


participated in the All-Russian campaign for the
replenishment of the National Register of bone
We Helped Teenagers get Ready for Adult Life marrow donors, giving blood for HLA-typing.
The procedure is a blood test which determines
Growing Kindness is a program of vocational the bone marrow type of a potential donor
orientation and social adaptation for adolescents who is then added to the database.
living in orphanages through classes that teach them
about adult life, master classes and mentoring. In
2018, the program reached 37 orphanages in nine
Russian regions with the support of 13 NGO program
partners. More than 630 teenagers participated in the
430
employees of the Coca-Cola
program, which included 864 classes over a period of system became blood donors
12 months. in 2018
10. Developing a Culture of Volunteering in Coca-Cola in Russia 1 6 7

1,256
We Collected Waste Together

The idea of ​​the "Green Teams" volunteer project to


clear waste from public spaces. Employees of Coca- employees participated
in "Green Teams" events
Cola in Russia actively participate in the program every
year. In addition, representatives of city administrations,
environmental organizations, volunteer centers and
educational institutions join them to help clear city
areas of litter.

We Cleaned Up the Shores and Banks


of Bodies of Water The Number of Employees Involved
in Environmental Projects
We participate in environmental projects "For the
Clean Future of Lake Baikal", the "Living Volga",
and "The Day of the Black Sea" by organizing 43 people —
cleanups, events for experts, educational initiatives "Day of the Black Sea"
and environmental festivals. In 2018, 99 corporate
volunteers were involved in these projects. 29 people — "For the Clean
Future of Lake Baikal"

27 people — "Living Volga"


10. Developing a Culture of Volunteering in Coca-Cola in Russia 1 6 8

How We will be Helping Others in 2019

Our goal is to make sure that 10% of our


employees participate in volunteering
activities during working hours. That is
why we organize volunteer activities on
weekdays and we allow employees to
take additional paid leave for this time.
in Russia, the practice of volunteering
during business hours, supported at a
company level, is only beginning to catch
on, and we are among the very first to
do this. This will be one of the main focal
points of our work in 2019.

Read more: Volunteering


makes people happy and
companies rich. How does
it work?
1 6 9
1 7 0

11. How We Help to Develop


Sustainable Agriculture in Russia and
Strive to Source Raw Materials Locally
Why Local is Better  1 7 3 01. About the Report
How We Ensure the Quality of Raw Materials  1 7 5 02. Sustainable Growth Strategy

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

management of the supply chain, ensuring


that all suppliers comply with relevant
legislation as well as with the requirements
for quality control processes and
employees’ safety in the workplace
11. How We Help to Develop Sustainable Agriculture in Russia and Strive to Source Raw Materials Locally 1 7 2

The use of locally sourced raw materials


is one of the key criteria in assessing the
sustainability of Coca-Cola in Russia. It is not
possible to completely switch to local raw
materials for juice production in Russia due
to the lack of domestic availability of tropical
fruits (pineapples, oranges, mangoes, etc.).
However, JSC Multon, which is responsible
for manufacturing juice products in Coca-
Cola in Russia, makes every effort to support
local producers of apples, tomatoes and
berries.
11. How We Help to Develop Sustainable Agriculture in Russia and Strive to Source Raw Materials Locally 1 7 3

Why Local is Better

We are fully supportive of a recent trend, whereby


the consumers are choosing to buy local products —
domestically grown fruit, berries and vegetables.
Using local Russian ingredients is preferable both for
our business and for consumers, as we are paying
for them in Russian Rubles, which protects our
costs from exchange rate volatility. This makes raw
materials more affordable — we do not have to rely
on the changing situation in producer countries and,
therefore, we can plan our production and meet our
needs for 5–10 years ahead.

By using local materials, we can cut delivery times


and distance travelled by trucks, thus, reducing
the amount of harmful air polluting emissions.
And finally, by purchasing raw materials from local

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

How We Ensure Quality of Raw Materials and Assess


Authorized Suppliers

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 raw materials for JSC Multon in 2018 were procured


from Russian producers (up from 20% in 2017)*

Of These:

2% — berries
25% — tomato paste 23% — apples puree 50% — concentrated apple juice

*Out of the volume, potentially suitable for localization.


11. How We Help to Develop Sustainable Agriculture in Russia and Strive to Source Raw Materials Locally 1 7 8

Corners of Russia

Apples for the production of JSC Multon juices and


nectars come from the southern regions of Russia, in
particular from the Krasnodar and Tambov regions;
berries are sourced from the North-West of Russia,
for example, from the Vologda region. Following
the consumers’ preference for products made with
domestic ingredients, we have been developing the
Dobry Corners of Russia product line since 2017, for
which we are using the ideas that we’ve received
when exploring the market for fruit, vegetables and
berries in different regions of the country. In 2018,
we added two new flavors to the lineup: Vegetable
Harvest and Berries with Honey and Sage.

Our Plans for 2019:

In 2018, we significantly exceeded our localization*


target, reaching 34.5% instead of 30% planned.
These figures mean that to achieve our 2019
localization* goal of 35%, we need to raise it only
by 0.5 percentage point.

*Out of the volume, potentially suitable for localization.


1 7 9
1 8 0

12. How We Protect the Environment:


Reducing Greenhouse Gas Emissions
and Advancing Water Stewardship
How We Reduce Greenhouse Gas Emissions  1 8 2 01. About the Report
How We Preserve Water  1 9 0 02. Sustainable Growth Strategy
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
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 1

In 2018, climate change topped


the list of global risks at the World
Economic Forum. Coca-Cola in
Russia believes that the main
aspects of sustainable development
include reducing the impact on the
environment as well as balanced
environmental management.
Year on year, we are achieving
new results on this path and we
continue to set extremely ambitious
goals for ourselves.
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 2

How We Reduce Greenhouse Gas Emissions

To fulfill its sustainability commitments,


Coca-Cola in Russia strives to ensure that
greenhouse gas emissions from production,
transportation and the use of refrigeration
units in retail outlets are minimal. This
reduces the company’s carbon footprint,
energy consumption and the reliance on
non-renewable energy resources. These are
key indicators when it comes to assessing
our environmental impact.

Coca-Cola in Russia is working to achieve


this task in two main areas: by reducing the
overall energy consumption at production
facilities, which leads to a lesser amount
of energy used and brings down the
level of greenhouse gas emissions, and
by introducing alternative energy sources.
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 3

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%.

The goal for 2019 is to reduce energy consumption to


0.49 MJ/litre and to increase the amount of energy
from renewable sources by 30% (compared to 2018).
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 4

One of the important results of energy efficiency


projects at Coca-Cola plants in Russia is the
reduction in greenhouse gas emissions. Thanks to
the joint efforts of the plants in 2018, the volume of
5.6%
reduction in specific energy
consumption per 1 litre of
direct emissions of greenhouse gases decreased by finished product in 2018
1.5%, reaching 81.014 thousand tonnes of СO2‑eq
(against 82.3 thousand tonnes of СO2‑eq in 2017).
The volume of indirect greenhouse gas emissions

> 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

2018 2019 2018 (estimate)

1,167,348 0.49 72,631,690

2017 2018 2018 (plan)

1,169,666 0.51 68,406,611

2016 2017 2017

1,226,220 0.54 42,340,501

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

Sustainable Refrigeration Equipment

Coca-Cola in Russia is consistently changing


its refrigeration equipment to ozone-friendly
and energy-efficient devices with HC-
refrigerants. HCs are hydrocarbons with zero
ozone-depleting potential. New safe iCool
refrigerators run on R600 grade Isobutane,
which is natural gas.

Over the past few years (2014–2018) we


have reduced our potential impact on the
climate of the planet by more than 50% —
thanks to the efficiency of our refrigeration
equipment. In addition to iCool, we have
other energy-saving refrigeration equipment.
In 2018, we made sure that half of all our
refrigerators were eco-friendly. That’s more

> 51%
than 200,000 units.

of refrigerators in retail outlets that store products of


Coca-Cola in Russia are environmentally friendly
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 8 8

— In 2018, we reached those goals that we have


set for ourselves as long-term strategy until 2020.
Half of our refrigerators are operating on
HC-refrigerants. We will continue to
decommission equipment operating on HFC
chlorine-free refrigerants, and we will continue
to replace it with environmentally friendly units
with HC-refrigerants and apply other innovations
aimed at preserving the environment by reducing Igor Safonov,
energy consumption. For instance, today’s new Refrigeration Equipment Manager,
models are equipped with "smart" controllers Coca-Cola HBC Russia
that take care of the cooling process inside the
refrigerator. Moreover, refrigerators now have
LED lighting. They consume 8–10 times less
electricity than the fluorescent lightbulbs that
were used before. In Russia, when we repair
equipment in retail outlets, we replace old
lightbulbs with new LEDs and dispose of the ones
containing mercury in accordance with federal
environmental safety legislation.
1 8 9
12. How We Protect the Environment: Reducing Greenhouse Gas Emissions and Advancing Water Stewardship 1 9 0

How We Preserve Water

> 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.

Water Consumption by Water Source

Source of water/year  Water consumption, cubic meters 

2019
2015 2016 2017 2018
(estimate) 

Total amount of water consumed by the company’s


5,385 4,480 4,241 4,275 4,322
enterprises, thousand cubic meters, namely:

Groundwater 2,654 2,046 1,873 1,780 1,753

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

Reduction of Specific Water Consumption

A key indicator of water-saving efficiency is specific


water consumption per 1 litre of finished product.
This indicator combines the amount of water used
directly in beverages as well as the amount of water
used for auxiliary processes (cleaning, equipment
maintenance, etc.). In 2017, 1.91 litres were used to
produce 1 litre of finished product; and in 2018 this
number was reduced by 3% to 1.85 litres. In 2019 we
plan to reduce specific water consumption to
1.84 litres.

3%
Reduction of Specific Water Consumption Per 1 Litre of Finished
Product at the Coca-Cola System Enterprises in Russia, MJ

2019 (plan) reduction in specific water


consumption per 1 litre of finished
1.84 product in 2018
2018

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

The Coca-Cola plants in Russia, have implemented


closed water systems. The water that is used at thousand cubic meters — the volume of reused water in
different stages of the technological process is 2018 (more than 9% of total water consumption)
purified and reused. For example, water that will be
used for beverage production goes through various
filters containing coal and sand, which require regular

> 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

Water reuse index Volume of reused water,


thousand cubic meters 

Total amount of reused water, thousand


2015

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

Efficient Wastewater Treatment  

The second essential area of efficient water use is the


treatment of plant discharges. Only one plant of
Coca-Cola in Russia discharges wastewater into a natural
water reservoir. The remaining plants are linked to city
drainage systems. Nevertheless, all of our wastewater
is treated in compliance with legal requirements and
our internal company standards. The quality of all Anna Lata,
wastewater is checked by an internal control system, as Country Environment Manager,
Coca-Cola HBC Russia:
well as by the official organizations such as Vodokanal
(Water and Sanitation Authority) and environmental
institutions (in those instances, where purified water is — 2018 was extremely fruitful in terms
returned to nature). of implementation of various projects
and initiatives aimed at saving water and
Information on Plant Discharges: energy across the plants of the
Coca-Cola in Russia. In most cases,
Wastewater reception facility Volume of discharges,
these initiatives have been proposed and
thousand cubic meters
developed by plant employees. Clearly,
2015 2016 2017 2018 this indicates that the company's staff
do care about our goal of reducing the
Total volume of wastewater discharges, environmental impact of production.
2,597 1,741 1,905 1,919
thousand cubic meters, namely:   Coca-Cola in Russia promotes this
responsible attitude, in terms of rational
Water body  272 275 307 240 use of natural resources, across the whole
society. As a professional environmentalist,
Municipal sewage system  2,325 1,466 1,598 1,679 I find that this is very important.
1 9 4
1 9 5

13. A Country Without Waste: how We


are Changing the Culture of Waste
Management for the Future of the Planet
World Without Waste  1 9 6 01. About the Report
Separate With Us  1 9 9 02. Sustainable Growth Strategy

Coca-Cola in Russia for Clean Shores and Riverbanks  2 0 9


03. Coca-Cola in Russia
04. Sustainability of Coca-Cola
Volunteer Movements and External Projects  2 1 3
in Russia in 2018
Industrial Waste Management  2 1 6 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
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 1 9 6

World Without Waste

Reducing the amount of waste on the planet has


become a key sustainability commitment for the
Coca-Cola system. Despite the lack of strong
recycling culture and the virtual absence of
coherent infrastructure for separate waste collection
and recycling, Coca-Cola in Russia is an example
of how a business is able to initiate important social
changes.

In 2018, the Coca-Cola system adopted a global


environmental strategy "World Without Waste",
which has three important goals. First, to collect
and to recycle a bottle or a can for each one that
the system sells — by 2030. Second, to make our
packaging 100% recyclable globally by 2025. Third,
to use at least 50% of materials sourced from
recycled plastics in our packaging by 2030.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 1 9 7

Global Results in Recycling and Waste


Management in 2018

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

"Separate With Us"

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

Read more: How "Separate With Us"


program helps people improve the
environmental situation in their regions
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 0

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

The "Separate With Us" project is a practical


example of Extended Producer Responsibility
30,000
tonnes collected waste in 2016–2017
implementation. In 2018, several members of the
RusPEC Association, including Coca-Cola in Russia,
established a new association called RusPRO. This
association brings together manufacturers and
importers of goods that independently implement
waste disposal standards.
28,500
tonnes collected waste in 2018
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 1

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:

Amount Of Waste Collected As Part Of The "Separate


— In 2018, we planned to expand the geography With Us" Initiative And Submitted For Recycling At
of the project by 5 cities. We underestimated Various Facilities In Russia In 2018 (tonnes)
ourselves and it turned out to be 25. We were
going to install 1,500 containers, and we ended 16,601 Plastic
up supplying 2,000 of them. We were planning
to have twenty schools and universities join 4,626 Cardboard and paper
the separate waste collection program, 5,011 Corrugated packaging
however, the number we reached was 37.
The other thing is that two years ago we 659 Aluminum
were only collecting plastic, but in 2017 we
18 Tin
started collecting paper, cardboard, aluminium
and glass. 1,745 Glass
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 2

Developing a Culture of Separate Waste


Collection

Eco-Lessons, Environmental Quests and Eco-Yards

It's one thing to install special containers, but it is


also important to raise awareness among people on
~ 2,000
school teachers across the country joined
the educational part of the project in 2018
why separate waste collection is is necessary. As part
of the educational framework of the "Separate With Us"
project, Coca-Cola in Russia conducts eco-lessons for
schoolchildren, environmental quests for students and
eco-yards projects for urban residents.

In 2018, approximately 2,000 school teachers


across the country joined the educational part of the
project. They conducted a series of eco-lessons for
70,000 schoolchildren. The lessons’ plans and
materials are available on the project’s official
website разделяйснами.рф. During these lessons,
schoolchildren learn the background to the
contemporary global waste problem and they study
how separate waste collection and recycling work.
They are also told about recent innovations in solving
the global waste problem.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 3

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.

In 2017, Coca-Cola in Russia joined the


"Good Caps" international environmental
charity project. In Russia this project
cooperates with the "Helping
Orphans Volunteer Fund". The company
collects plastic bottle caps and sends them
to its partner — EcoTechnologies. At the
plant, plastic is recycled and the profits are
transferred to the Fund. The money is then
used to meet the needs of the orphans.
In 2018, the company transferred almost
2 million caps to a recycling plant in Tver.
2 0 4
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 5

32
Separate Waste Collection at Major Public Events

More and more separate waste collection containers


tonnes of plastic were collected and recycled
are being used at major sporting, cultural and business thanks to the assistance of Coca-Cola in Russia
events in Russia. Coca-Cola in Russia became one of at the 2018 FIFA World Cup™. That’s the same
the first companies to adopt this policy. Major public amount of plastic packaging that Coca-Cola
events, such as international sports competitions, gather supplied during this sporting event
huge crowds. These occasions provide opportunities
for people to develop a habit of separating their waste
responsibly.

In 2018, Coca-Cola in Russia continued its


partnership with the Organizing Committee of the
2018 FIFA World Cup™ in Russia. During the 2017 FIFA
Confederations Cup and the 2018 FIFA World
Cup™ in Russia, waste disposal became one of the
major organizational issues. Coca-Cola took on the
responsibility to provide guests of the World Cup with
detailed information on separate waste collection.
Then we installed separate waste containers at Tatiana
Navka’s New Year Ice Show. Further on, we conducted
separate waste collection awareness campaigns during
the XXIX World Winter Universiade 2019 in Krasnoyarsk.
In 2019, thanks to the Coca-Cola system, the Gaidar was then transferred for recycling.
Forum also became waste-free. Separate waste Coca-Cola in Russia was the first company to
collection at this event was organized in partnership organize separate waste collection at such
with the Russian Presidential Academy of National a huge international economic event in the
Economy and Public Administration. All collected waste country.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 6

"Separate With Us" Awards

In 2018, "Separate With Us" gained public


recognition by winning the ECO BEST AWARD
and the "Best Social Ecology Project" award.
In 2017, the project was among the TOP-3
of the country's most famous environmental
CSR initiatives according to the Ministry of
Tatiana Chestina, Natural Resources and Environment of the
Director of Development at ERA Foundation, Russian Federation rating. The founders of
partner of the educational part of "Separate the "Separate With Us" project were awarded
With Us" project: a first-degree diploma in the "Separate the
right way" social and environmental project
competition for the best project contributing
— Promoting environmental awareness is one to the creation of separate waste collection
of the important conditions for building a public system in Russia.
culture of responsible waste management, part of
which is separate waste collection. Thanks to the
existing opportunity to implement the Extended
Producer Responsibility in Russia independently,
such programs as "Separate With Us" are possible.
Besides its infrastructural context, it also deals
with a large-scale environmental-awareness
building effort aimed at teenagers and adults.
We hope that, eventually, such business initiatives
will be supported on the government level.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 0 7

"Separate With Us" at a Glance:

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

Coca-Cola in Russia for Clean Shores and Riverbanks

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"

The "Living Volga" project was developed in


2006 by Coca-Cola in Russia in cooperation with
the UNESCO Bureau in Moscow and with the
support of UNDP. Initially, it consisted of two parts:
employees volunteering to clean up the river banks
and organizing round tables on the pollution problems
of the Volga River basin. However, since 2013, having
assessed the importance of interactive communication
with local population, the company focused on the
educational and awareness raising activities. A year
later, in partnership with the UNESCO Bureau in
Moscow, a special "Living Volga" eco-game was
developed for students and schoolchildren. Later on,
the company had a more global idea and it went on to In 2018, more than 13,000 schoolchildren
develop a digital eco-lesson program so that any school took part in "Living Volga" eco-lessons. Also,
teacher anywhere in Russia could talk to students about environmental celebrations called "Volga
one of the most important rivers in the country. Day" were held in four cities — Nizhny
Novgorod, Samara, Volgograd and Rybinsk.
Round-table discussions were held in
Nizhny Novgorod and Volgograd. In Nizhny
Novgorod, the round-table discussion was

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

"Black Sea Day"

The "Black Sea Day" project that coincides


with the International Black Sea Day, has
been implemented by Coca-Cola in Russia since
2,900
people participated in the eco-yard and other
2009. In 2018, eco-lessons on the Black Sea and environmental initiatives
eco-yard celebrations were held in five cities in the

> 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

Volunteer Movements and External Projects

Junior Water Prize

Coca-Cola HBC Russia has been supporting the


Russian National Junior Water Prize since 2006.
2,024
people from 81 regions participated in the
Russian National Junior Water Prize in 2018
This is a creative contest for high-school students for
the best science projects related to conservation and
water stewardship. The winner gets to represent the
country at the Stockholm Junior Water Prize.

For the Russian National Junior Water Prize,


Coca-Cola HBC Russia participates in seminars
for teachers-organizers and also provides its
manufacturing facilities and office premises for the
regional stages of the competition.

In 2018, the company established a special


competition nomination called "Solutions to combat
microplastics in water bodies", which aims to combat
plastic pollution of water resources.
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 4

"Green Teams"

In 2018, the "Green Teams" environmental educational


project celebrated its 14th anniversary. In essence, this
project focuses on volunteer clean-up days ("Subbotnik")
where employees of Coca-Cola HBC Russia, their
friends and families, as well as representatives of city
administrations, partners and customers — basically,
anyone who is supportive of the environment — engage in
eco-volunteering activities. Particular attention is paid to
separate waste collection and the subsequent transfer
of these materials for recycling. For the participants,
it is important not only to collect and remove waste, but
also to reduce its quantity by recycling it. The company's
goal is to contribute to the development of a responsible
environmental attitude and to raise awareness of
environmental issues.

In 2018, in the city of Ufa, "Green Teams" became a part of


the "Colourful Subbotnik" urban movement. All proceeds
from waste sorting and recycling went to support and In St. Petersburg, Coca-Cola HBC
rehabilitate kids with various serious health issues. Russia volunteers and orphans from local
The event was held in all of the seven city’s districts — orphanages helped clean up the Yuntolovsky
volunteers in each district dressed up in the colours of the nature reserve. In Samara, during an annual
rainbow. The "Green Teams" in Yekaterinburg chose to celebration of the Day of the Press, journalists
hold the "Subbotnik" Game and divided the volunteers into and "Green Teams" volunteers collected
teams that collected different types of recyclable waste waste for subsequent recycling at one of the
and put it into different coloured bags. playgrounds.
2 1 5
13. A Country Without Waste: how We are Changing the Culture of Waste Management for the Future of the Planet 2 1 6

Industrial Waste Management

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

The Amount of Consumer Packaging (by type of Material),


Released to the Market in 2018, by JSC Multon and Coca-Cola HBC
Russia (tonnes)

135,23 Steel

4,718,31 Aluminum
(Alum Can)

44,296,35 PET

8,046,03 All other polymer


packaging

22,233,40 Paper and


corrugated cardboard

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

Key Performance indicators

Volume of Processed Materials Used for the Production of Preforms Share of Recyclable Materials
and other Packaging Materials (tonnes)

2,083.2 — 2018 5% — 2018

1,608.6 — 2017 4% — 2017

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

14. How We use Coca-Cola Brand Power


to Tackle Socially Significant Issues

Empowering the Youth  2 2 2 01. About the Report


Building an Inclusive Society   2 2 6 02. Sustainable Growth Strategy

Disaster Relief  2 3 1 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
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 1

Being a responsible corporate citizen, the Coca-Cola


system contributes to the development of local
communities in the regions of our operations.
Our value chain is centered around people and
society: our consumers, customers, and employees.

The sustainability of our business is directly


dependent on the health of the communities, which
we serve. We strive to create shared opportunities
for everyone, so that we are successful as a
business and at the same time create added value
for the communities in which we work. Globally
The Coca-Cola Company is committed to giving
back to communities at least 1% of its previous
year’s operating income annually through social
investments. This means that the better we perform
as a business, the more we can contribute to solving In 2018, We Focused on:
significant social problems.

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

Empowering the Youth

~ 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.

“Labor Market: Young Professionals,” a study by HeadHunter Research, Moscow, 2018.


14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 3

More than five years ago, Coca-Cola HBC Russia launched


the Rise Management Trainee Program for recent graduates.
Two years internship at Coca-Cola is a great opportunity to
start a career: after finishing the program, interns can qualify
for entry-level management positions.

Throughout 2018, Coca-Cola in Russia has been working on


launching the "Youth Empowered" program for graduates.
The program has been successfully operating in many Alisa Vasilyeva,
countries all over the world and was launched in Russia in Sustainability and Community Manager,
March 2019. The main goal of the project is to give young Coca-Cola HBC Russia:
people opportunities for informed career choices, so that
they have better chances to follow their professional
ambitions. With online engagement and the combination of
online and offline training sessions, we are aiming to develop Our "Youth Empowered" program is
fundamental social and business competencies among designed not just for the residents of the
young people, which hopefully will help them find jobs that largest cities, but it also supports young
meet their expectations, as well as to establish long-term people from smaller settlements. It is no
professional and personal communications. secret that they don't have access to the
lectures and career days organized by top
companies, and their career aspirations
are often limited to their local familiar
surroundings. Using technology, we want
to help these young people fulfil their
potential by developing their basic social
and business competencies.
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 4

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

Building an Inclusive Society

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

Six of them were built in 2018, and there are already


as many as 40 of these parks in Russia. Everyone
can use the sports equipment and playgrounds
regardless of their physical, intellectual and sensory
abilities. Inclusive playparks have already opened in
Volgograd, Saransk, Rostov-On-Don, Kaliningrad,
Nizhny Novgorod, and Kazan.

During the FIFA 2018 World Cup Trophy Tour in


Russia with Coca-Cola™, unified matches were
held in the main squares of 11 Russian cities. Special
Olympics athletes, sports celebrities, regional top
officials, and business and media representatives all
took part in them.

An important part of the campaign #ready


~ 45%
the Coca-Cola system's investments in initiatives
#toopenhearts was the inclusion of teenagers with aimed at building an inclusive society as % of its total
special needs into the FIFA Youth Program. As part social investments in 2018 — by farm the largest share
of the program, young athletes participated in the of all investments
World Cup matches as flag bearers and accompanied
the judge. Employees of Coca-Cola in Russia, supervising
activities at the Coca-Cola Christmas Caravan
In December 2019, the traditional the Coca-Cola sites, underwent two-hours training sessions in
Christmas Caravan became a fully inclusive event advance of the event. At the training sessions,
for the first time. Teens (both with and without our partners from “Our Sunny World” center
disabilities) from orphanages, care homes and large explained the specifics of communicating with
families enjoyed the holidays together. people with special needs.
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 2 8

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

The Coca-Cola System's Plans for Building an


Inclusive Society in Russia in 2019:

Opening six more inclusive playparks together with


Elena Isinbayeva's, and Natalia Vodianova's (Naked
Hearts) funds in Sochi, Samara, Yekaterinburg,
St. Petersburg, the Moscow Region and Moscow

An inclusive agenda within the XXIX World Winter


Universiade 2019 in Krasnoyarsk

Inviting teenagers with special needs to participate


in our environmental, social and sports activities

Inclusive city events as part of the Coca-Cola


Christmas Caravan

Creating the nomination for information support


of organizations whose activities are aimed at
supporting and providing services to people with
disabilities within the Crystal Orange All-Russian
Contest of Student Projects in Public Relations,
Advertisement, and Media Technologies
Read more: How did the
Coca-Cola Christmas Caravan
change in 2018 and why?
2 3 0
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 3 1

Disaster

Usually the first thing people need during a natural


disaster is drinking water. Coca-Cola in Russia
has a lot to offer in this respect: we have a fully
developed network of logistics, infrastructure,
production facilities and a long-term partner —
Russian Red Cross. When a disaster occurs, we
deliver bottled drinking water to the site as quickly
as possible.

In 2018, Coca-Cola in Russia and the Russian


Red Cross announced another joint initiative —
we are creating stocks of non-food products in
case of emergencies in high-risk regions. The
emergency stocks, stored in special warehouses,
will instantly provide people with the essentials: Coca-Cola and the Red Cross filled four
first-aid kits, water containers, hygiene products, warehouses in Ingushetia, Khakassia,
pillows and blankets, and kitchen items. Speedy the Khabarovsk Krai and Moscow, each
delivery is very important, because in these designed to provide a thousand people
situations every minute counts. with essential supplies. In 2019, the plan is
to fill four more warehouses in the Vologda
and Irkutsk regions, the Kamchatka and
Krasnodar Krai.
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 3 2

How We Dealt with the Aftermath of Flooding


in the Krasnodar Krai

In October 2018, in the Tuapse district of the Krasnodar


Krai, heavy rains destroyed 2,300 homes leaving more than
300 people injured. When informed about the disaster,
Coca-Cola in Russia immediately contacted the Emergency
Situations Ministry office and sent the first shipment of
Alisa Vasilyeva, clean drinking water to the victims. Then, together with the
Sustainability and Community Manager, Red Cross, we sent another delivery of water to the Tuapse
Coca-Cola HBC Russia: district — a total of 14,160 litres of BonAqua.

Employees of the Coca-Cola HBC Russia office in Gelendzhik


provided active assistance to eliminate the consequences
of this natural disaster. They participated in a large clean-up
— Cooperation with the Russian Red event organized by the administration of the Tuapse district —
Cross is an opportunity for us to help together with local residents they removed excess water from
those who need it the most. We would basements, collected garbage and cleaned up the streets.
be happy if there was no urgent need
for drinking water: it would mean that
no disasters happened in the country.
However, we must be prepared for
anything. The company has a goal to
provide victims with water as soon as
possible. Russia is a large country, but the
~400,000
litres of BonAqua have been delivered to victims of natural disasters as
part of the Coca-Cola system’s in Russia partnership with the Russian
company can mobilize quickly and we Red Cross since 2011. 14,160 litres of BonAqua have been delivered by
deliver water even to the most remote Coca-Cola in Russia, in partnership with the Red Cross, to the victims of
places. flooding in the Tuapse region in 2018
14. How We use Coca-Cola Brand Power to Tackle Socially Significant Issues 2 3 3

How We Plan to Help the Victims of Natural


Disasters in 2019:

We will continue to cooperate with the Red


Cross by using our infrastructure to ensure
quick access to drinking water for victims
of natural disasters. We will expand our
partnerships in environmental education and
emergency response

We will replenish stocks of non-food supplies


products for emergencies. We will create
warehouses in the Vologda and Irkutsk regions,
the Kamchatka and Krasnodar Krai
2 3 4

15. How it Works: Four Stories of our


Initiatives Helping People in 2018

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

How "Separate with Us" Project Helps the Locals to Improve


the Environmental Situation in their Regions

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.

Only a few years ago, such enthusiasm was hard


to find, especially outside of Moscow. But the In 2018, a report ranking Russian cities by
situation is changing: at the end of 2018, the NAFI the availability of infrastructure for separate
Research Center published the results of a poll, waste collection has been published. The
according to which 52% of people living in Russia district of Mytishchi near Moscow was
are dissatisfied with the environmental situation in ranked at the top of the list on this metric.
Contrary to expectations, Moscow and St.
their regions, and 23% of Russians are trying
Petersburg were quite far from the top, in
to improve it by sorting and recycling waste. Public the 52nd and 91st place respectively. And
responsibility index was 10% lower in 2015. For Yekaterinburg, like most Ural cities, was
Russia, where 90% of the annual 60 million tonnes ranked 35th, well above the two capitals.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 3 6

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

"When I became a chemistry teacher, I decided:


it is essential to start educating students about the
environment. After all, plastic and aluminum packaging
takes more than 500 years to decompose", Irina
recalls. "Yekaterinburg is an industrial city with many
manufacturing companies, but I couldn’t always get
even my colleagues to understand my concern about
the environment, because most people just live in
the present. However, the high school students care
about environmental problems — we all participate in
community work days and environmental activities.
The "Separate With Us" project inspires many of our
students to get creative: they write scripts of lessons for
junior grades, teaching younger kids about the culture
of waste sorting, they also make educational videos.
The project encourages the socialization of students
with disabilities and helps to promote an inclusive
culture: we have students with special needs at our and where to take it for recycling. The Coca-
school, and they also participate in the project". Cola Company is certain that the project has
become one of the drivers for development of
The "Separate With Us" project by Coca-Cola in waste management culture in Russia.
Russia, which helped an ordinary secondary school in
Yekaterinburg get containers for separate waste School No. 107 has become famous in its
collection was recognized as the best in this field in region — the local media write about
2018. Since 2016, 25,000 teachers joined the project, the initiatives of the school’s environmental
and over 5,000 special containers have been installed in enthusiasts, people come here from all over
50 cities around Russia. As many as 800,000 Russians the Sverdlovsk Region to learn from the
found out why it is better to collect waste separately teachers.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 3 9

"We helped to launch the project


"Separate With Us" at another school in
Yekaterinburg — School No. 75", Irina says
proudly. "And in November, with support
from the Goethe Institute and researchers,
undergraduate and post-graduate students
from the Ural Federal University, we will
present our students’ new technological
solutions for plastic processing at School for
Ecology: "Think, Research, Act", the Goethe
Institute’s international contest. We know for
sure that a world without waste will definitely
become reality, and everyone can do their part
today to bring this moment closer."
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 0

How the 2018 FIFA World


Cup™ in Russia Supported
Career Growth of the
Coca-Cola Employees

In 2018, the Coca-Cola system became


the main partner of the 2018 FIFA World
Cup™ in Russia. Thousands of employees
from companies within the system found
themselves in unfamiliar settings that could
not have been imagined as part of their day-
to-day working lives before. For some, it
created opportunities to take on higher than
usual levels of responsibility; for others, it
was a chance to learn how to communicate
with departments they had never worked
with before. For many of the staff of
the companies of the Coca-Cola system
who worked during the championship in
Russia it became a unique once-in-a‑lifetime
experience that helped accelerate their
professional development. These are some of
their stories.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 1

"I was promoted from supervisor to country level Vera Naumova,


manager" Organizational Development Manager,
Coca-Cola HBC Russia
— Upon joining the company, I was very lucky to work
on the 2014 Winter Olympics project in Sochi. I was
helping the HR manager in the implementation of staff
motivation programs. The experience was quite unique,
so later I continued work on other sports projects. In
the FIFA team, I was responsible for all HR projects:
providing tickets for staff and their children, developing
a mobile application, running a motivation program for
scouts and organizing on-site events at the plants as
part of the FIFA World Cup™ Trophy Tour by Coca-Cola.
To sum up, I had a chance to work across the whole
scope of HR activities.

When I was just starting my work on these sports


projects, I did not think that it would eventually
enhance my career to this extent. But, as a result, from
my initial position as a supervisor I was promoted to a
managerial role on a country level. Now I am responsible
for organizational development, that is the HR brand
promotion, employee engagement, corporate culture
and all related projects. This is a new direction for the
company, which means that I can do a lot of interesting
things by analyzing best practices on the market
and implementing them.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 2

Irina Batyunina,
Strategy Manager,
Coca-Cola HBC Russia

"I took on a completely new position in the company"

— I joined Coca-Cola in 2006 and my career gradually


developed within the system. I worked for Coca-Cola
Soft Drink Consulting LLC and for Multon JSC. Then I
realized that I wanted to enhance my professional growth,
so I joined the project team of our partnership with the
2014 Winter Olympics in Sochi. Then I was selected to join
the team at the 2018 FIFA World Cup™ in 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

"My management skills were developing in leaps Daria Mezurnishvili,


and bounds" Corporate Social Responsibility Manager,
Coca-Cola HBC Russia
— I joined the company’s department of communications
immediately after graduating from university. I worked my
way up to become a senior specialist, and then, at the age
of 25, I got my first managerial position in the FIFA team.
My brief was to develop and implement the social heritage
of Coca-Cola as a partner of the 2018 FIFA World Cup™ in
Russia. I knew that it would be the two hardest years for me
ever, but I still wanted to accept the challenge.

So, I was responsible for some of the preparation and


supervision of the most ambitious FIFA World Cup™ Tour ever
held in the host country of the world championship. One of
the main tasks was to create efficient working groups in the
administrations of 25 cities which included the heads of the
departments of sports, security, culture, advertising as well
as law enforcement agencies. On the side of the company,
these groups included the heads of several departments and
managers of event agencies.

My management skills developed immensely. I also had


to seriously hone my diplomatic skills: all our arrangements
had to meet the strict requirements of FIFA, take into
account the requirements of local governments, and
most importantly, to strengthen Coca-Cola's position in
each of the regions.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 4

I am very proud of our results. The two


key themes of Coca-Cola’s social heritage
were building an inclusive society and
the successfully implemented system
of separate waste collection during the
matches. By the way, the government of
the Russian Federation now recommends
this waste management system, which
our team invented together with the FIFA
organizing committee, as a benchmark for all
similar sporting events in the country.

After the 2018 FIFA World Cup™ in Russia,


I was invited to join the Coca-Cola HBC
Russia team as a corporate social
responsibility manager. For me, this is an
opportunity to scale the best practices,
gained during the championship, throughout
the country and to strengthen the social
heritage of the 2018 FIFA World Cup™
in Russia. I am sure there are many more
successes to come.
2 4 5
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 6

How the Coca-Cola Christmas Caravan Changed


in 2018 and Why?

In 2018, Coca-Cola in Russia changed the


concept of one of its largest and most famous
social projects. The Coca-Cola Christmas Caravan
has been going on an annual journey across the
country each December since 2000. Red Coca-
Cola trucks have brought gifts to orphanages,
boarding schools, rehabilitation centers and
children's hospitals to share the holiday magic
with those who need care and attention more than
anyone. The Coca-Cola Christmas Caravan that set
off on its voyage last December was different: we
made it completely inclusive, so that kids with special
needs could celebrate the New Year’s together with
everyone else.

Statistics show that 8% of Russian population


are people with special needs. Due to a
largely inaccessible environment and lack of
public awareness, people with disabilities are This is why the Coca-Cola System in Russia
often excluded from public life. The country is sees the socialization of people with special
gradually improving facilities to accommodate needs as its primary goal. Since 2018, the
people with special needs, to make their lives more Coca-Cola Christmas Caravan has been
comfortable. However, the problem of their social helping teenagers with disabilities to socialize,
exclusion remains. find new friends and new inspiration.
15. How it Works: Four Stories of our Initiatives Helping People in 2018 2 4 7

How Does the New the Coca-Cola Christmas Caravan


Work?

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

Volunteering makes People Happy


and Companies Rich. How does it
Work?
As many as 70% of the leading FTSE 100 companies
support the volunteering initiatives of their
employees — morally as well as financially. They pay
for the hours their employees spend on volunteer
work. Researchers have figured out how volunteering
affects the level of staff happiness and the
profitability of companies.

What Has This Got To Do With Profits?

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

— When you give, you get much more


in return. Anyone who has worked on the
Coca-Cola Christmas Caravan once —
will never stop.

Anna Vlasova,
Head of the Laboratory for Quality Assurance

— Participation in events with different


formats allows us to try out new roles,
discovering the skills and qualities that are
hidden in each of us.
2 5 3
2 5 4

16. GRI Content Index

01. About the Report


02. Sustainable Growth Strategy
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
16. GRI Content Index 2 5 5

Type of Disclosure: Core

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

102-1 Name of the organisation Coca-Cola in Russia Coca-Cola in Russia: 2018 At A


Glance
102-2 Activities, brands, products and Coca-Cola in Russia Coca-Cola in Russia: 2018 At A
services Glance
Brand portfolio
102-3 Location of headquarters Coca-Cola in Russia Coca-Cola in Russia: 2018 At A
Glance

102-4 Location of operations Coca-Cola in Russia Coca-Cola in Russia: 2018 At A


Glance
102-5 Ownership and legal form Coca-Cola in Russia Coca-Cola in Russia: 2018 At A
Glance
102-6 Markets served Coca-Cola in Russia Coca-Cola in Russia: 2018 At A Related information:
Glance 2018 The Coca-Cola System Business
& Sustainability Report
102-7 Scale of the organisation Coca-Cola in Russia Coca-Cola in Russia: 2018 At A
Glance
16. GRI Content Index 2 5 6

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

Sustainability of Coca-Cola in Value chain


Russia
102-10 Significant changes to the GRI Content Index Omissions and comments There were no significant changes
organisation and its supply chain to the organisation and its supply
chain during the reporting period
102-11 Precautionary principle or approach GRI Content Index Omissions and comments
102-12 External initiatives A balanced lifestyle: how we More no-sugar beverages in our
support conscious consumption in portfolio
Russia
Cooperation with partners and
A country without waste: how we government
are changing the culture of waste
management for the future of the "World Without Waste"
planet
102-13 Memberships of associations Coca-Cola in Russia Other initiatives
Strategy
102-14 Statement from senior decision- Sustainable Growth Strategy Top management of Coca-Cola in
makers Russia explains how the business
responded to the challenges of
2018 and what it does to maintain
sustainability in 2019
102-15 Key impacts, risks and opportunities Sustainability of Coca-Cola in Russia Sustainability and Corporate Social
in 2018 Responsibility Strategy in Russia:
a new outlook

Coca-Cola in Russia Sustainability risks and how we


manage them
16. GRI Content Index 2 5 7

Ethics and integrity


102-16 Values, principles, standards and Business ethics and partnerships: Business ethics: principles
norms of behaviour how we are changing the market
Governance
102-18 Governance structure There were no significant changes
in the Coca-Cola system’s in Russia
governance structure during the
reporting period
102-18a Governance structure of Coca-Cola HBC Russia Sustainability pp. 25–27
organisation including committees Report 2017
of the highest governance body
Coca-Cola HBC Russia Sustainability pp. 12–13
Report 2015-2016
102-18b Committees responsible for Sustainability of Coca-Cola in Russia Who is in charge of Sustainability of
decision-making on economic, in 2018 Coca-Cola in Russia
environmental, and social topics

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

Also, this year the information


on the economic impact of the
Coca-Cola in Russia will study
covered in the standalone research
on contribution of the Socio-
Economic Impact of Coca-Cola in
Russia
in 2017-2018 (to be published in
October, 2019)

The research together with this


report make up the 2018 Integrated
Report of Coca-Cola in Russia
102-50 Reporting period About The Report Scope and Boundaries
16. GRI Content Index 2 5 9

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

Topics specific sections: For the topic specific management


1. Business ethics and partnerships: approach see the relevant topic
how we are changing the market sector
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
103-3 Evaluation of management Sustainability of Coca-Cola in Russia 2018 Business and Sustainability We’ve highlighted our approach
approach in 2018 Results to managing and evaluating our
sustainability priorities in the
Sustainability sector of this report
Topics specific sections: It covers our views on impacts,
1. Business ethics and partnerships: strategy, tactics, as well as key
how we are changing the market performance indicators
2. Product quality and safety: the
way to go The evaluation of the topic specific
3. A balanced lifestyle management approach is still work
4. Caring for our employees in progress. However, in each of the
5. Workplace Health and Safety topic specific sections in this report
6. Developing a culture of we describe how we manage the
volunteering topic, showcase the key indicators,
7. Sustainable agriculture outline the goals and future plans,
8. Protecting the environment and evaluate our progress. In every
9. A country without waste section of the report you can also
10. Social programs find the comments of our managers
with their assessment of the
approach
16. GRI Content Index 2 6 1

Topic specific disclosures


GRI 200 Economic Standard Series
GRI 202 Market presence
202-1 Ratios of standard entry level Caring for our employees: why do Well-being of our employees We have equal entry level wages for
wage by gender compared to local people want to work for Coca-Cola men and women
minimum wage in Russia Omissions and comments
GRI 204 Procurement practices
103 Management approach Business ethics and partnerships: How we work with suppliers of
how we are changing the market ingredients and materials
204-1 Proportion of spending on local Business ethics and partnerships: How we work with suppliers of For Coca-Cola in Russia the share of
suppliers how we are changing the market ingredients and materials purchases from direct local suppliers
is one of the key sustainability
How we help to develop sustainable Keeping it local indicators. The purchases in terms
agriculture in Russia and strive to of spending are accounted for in
source raw materials locally a separate part of the integrated
report On the
Socio-Economic Impact of the
Coca-Cola in Russia
in 2017–2018 study (to be published
in October, 2019)
GRI 205 Anti-corruption
103 Management approach Business ethics and partnerships: Anti-corruption
how we are changing the market
205-1 Operations assessed for risks Business ethics and partnerships: Anti-corruption
related to corruption how we are changing the market
16. GRI Content Index 2 6 2

205-2 Communication and training Business ethics and partnerships: Anti-corruption


about anti-corruption policies and how we are changing the market
procedures
205-3 Confirmed incidents of corruption Business ethics and partnerships: Anti-corruption In 2018, a single case of violation
and actions taken how we are changing the market of anti-corruption policy was
Omissions and comments discovered in one of the regions
of Coca-Cola HBC Russia. The
company employee and the
representative of the major supplier
were involved. Based on the results
of the investigation of the incident,
the involved staff member was fired
and the contract with the supplier
was terminated immediately in
all regions of our operations. The
instruments of control have been
strengthened
GRI 206 Anti-competitive behaviour
206-1 Legal actions for anti-competitive GRI Content Index Omissions and comments There were no such cases in the
behaviour, anti-trust, and monopoly reporting period
practices
GRI 300 Environmental Standard Series
GRI 301 Materials Materials
301-2 Recycled input materials used A country without waste: how we Industrial waste management
are changing the culture of waste
management for the future of the
planet
GRI 302 Energy
302-1 Energy consumption within the How we protect the environment: How we reduce greenhouse gas
organisation reducing greenhouse gas emissions emissions
and advancing water stewardship
302-4 Reduction of energy consumption How we protect the environment: How we reduce greenhouse gas
reducing greenhouse gas emissions emissions
and advancing water stewardship
GRI 303 Water and Effluents

*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)

The notice period is registered in


all types of employment contracts,
including collective bargaining
agreements (402-1b)
GRI 403 Occupational health and safety
403 Management approach Workplace Health and Safety: how Workplace Health and Safety: how
we eliminate risks for our associates we eliminate risks for our associates
and partners and partners
403-1 Occupational health and safety Workplace Health and Safety: how 1. Occupational Safety at Bottling
management systems we eliminate risks for our associates Plants
and partners 2. Traffic safety
3. Fire safety
403-4 Worker participation, consultation, Workplace Health and Safety: how 1. Occupational Safety at Bottling 806 of Coca-Cola HBС Russia
and communication on occupational we eliminate risks for our associates Plants employees are members of trade
health and safety and partners 2. Traffic safety union organizations that also take
3. Fire safety part in managing occupational
health and safety system
Omissions and comments
403-5 Worker training on occupational Workplace Health and Safety: how 1. Occupational Safety at Bottling
health and safety we eliminate risks for our associates Plants
and partners 2. Traffic safety
3. Fire safety
16. GRI Content Index 2 6 6

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

Omissions and comments


GRI 404 Training and education
103 Management approach Caring for our employees: why do Training, education and talent
people want to work for Coca-Cola development
in Russia
404-1 Average hours of training per year Caring for our employees: why do Training, education and talent
per employee people want to work for Coca-Cola development
in Russia
404-2 Programs for upgrading employee Caring for our employees: why do Training, education and talent
skills and transition assistance people want to work for Coca-Cola development
programs in Russia
404-3 Percentage of employees receiving Caring for our employees: why do Training, education and talent
regular performance and career people want to work for Coca-Cola development
development reviews in Russia
GRI 405 Diversity and equal opportunity
405-1 Diversity of governance bodies and Caring for our employees: why do 1. Gender equality
employees people want to work for Coca-Cola 2. People of the Coca-Cola system
in Russia in Russia
16. GRI Content Index 2 6 7

GRI 406 Non-discrimination


406-1 Incidents of discrimination and GRI Content Index Omissions and comments There were no incidents of
corrective actions taken discrimination discovered during the
reporting period
GRI 407 Freedom of Association and Collective Bargaining
407-1 Operations and suppliers in which GRI Content Index Omissions and comments There were no incidents of child
the right to freedom of association labour discovered during the
and collective bargaining may be reporting period
at risk
GRI 408 Child labour
408-1 Operations and suppliers at GRI Content Index Omissions and comments There were no child labour cases
significant risk for incidents of child discovered during the reporting
labour period
GRI 409 Forced or compulsory labour
409-1 Operations and suppliers at GRI Content Index Omissions and comments There were no incidents of forced
significant risk for incidents of or compulsory labour discovered
forced or compulsory labour during the reporting period
throughout the supply chain
GRI 411 Rights of indigenous people
411-1 Incidents of violations involving GRI Content Index Omissions and comments Coca-Cola in Russia has no
rights of indigenous peoples operational activity close to
ingenious people
GRI 414 Supplier social assessment
103 Management approach Business ethics and partnerships: How we work with suppliers of
how we are changing the market ingredients and materials
414-1 New suppliers that were screened Business ethics and partnerships: How we work with suppliers of
using social criteria how we are changing the market ingredients and materials
414-2 Negative social impacts in the GRI Content Index Omissions and comments There were no such incidents in the
supply chain and actions taken reporting period
GRI 416 Customer health and safety
16. GRI Content Index 2 6 8

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

Coca-Cola in Russia: 2018 At A


Glance
416-2 Incidents of non-compliance GRI Content Index Omissions and comments There were no such incidents in the
concerning the health and safety reporting period
impacts of products and services
GRI 417 Marketing and labeling
103 Management approach A balanced lifestyle: how we Responsible Marketing
support conscious consumption in
Russia
417-2 Incidents of non-compliance GRI Content Index Omissions and comments There were no such incidents in the
concerning product and service reporting period
information and labeling
417-3 Incidents of non-compliance GRI Content Index Omissions and comments There were no such incidents in the
concerning marketing reporting period
communications
GRI 418 Customer privacy
16. GRI Content Index 2 6 9

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
2 7 0
2 7 1

17. Contacts

We look forward to hearing from you! Your Sustainability Communications


feedback helps us do a better job in maintaining
sustainability and reporting on it. We will be happy
to hear your thoughts and to answer your questions.
You can contact us using the information below.
Alisa Vasilyeva,
Your feedback is much appreciated! We will take Sustainability and Community Manager,
every opinion into account while preparing our next Coca-Cola HBC Russia:
Sustainability Report.
Tel. +7 495 737 77 37

Email alisa.vasilyeva@cchellenic.com

Elena Kovaleva,
Sustainability Manager, Coca-Cola Soft Drink
Consulting LLC:

Tel. + 7 495 651 69 00

Email ekovaleva@coca-cola.com
17. Contacts 2 7 2

Our Head Offices In Russia

Coca-Cola Soft Drink Coca-Cola HBC Eurasia, LLC Multon, JSC


Consulting, LLC
6, Kievskoe Highway, bldg. 1 7, Plekhanova Street
19B, Yartsevskaya street, "Comcity" Business Centre, A5 Moscow, Russia, 111141
"Kuntsevo Plaza" Business Moscow, Russia, 108811
Centre
Moscow, Russia, 121552
17. Contacts 2 7 3

You Can Also Find Relevant Contact Info


On The Links Below

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/
2 7 4

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