Happiness Coca-Cola India Sustainability Report 2013 Our Mission Our roadmap starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard

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Coca-Cola India Sustainability Report 2013

Destination Happiness

Sustainability Report

2013

Aligned to GRI G 3.1 (Application level ‘B+’)

the journey so far

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Coca-Cola India Private Limited (hereinafter referred to as CCIPL) is proud to present its annual Sustainability Report to all its stakeholders.

As a responsible corporate citizen, we have been making voluntary disclosures on our ‘triple bottom-line performance’ since 2011.

As was the case in the previous years, this Sustainability Report presents our performance under aspects covered in our ‘Me-We-World’ Sustainability Framework, and highlights key issues, relevant targets, and our performance in the reporting period (1st January 2013 to 31st December 2013). We have made an earnest attempt to present our performance viz-a-viz the 2020 Commitments of our parent, The Coca-Cola Company (TCCC), for its Global operations.

This report has been prepared based on the Global Reporting Initiative (GRI) G3.1 guidelines, including the Food Processing Sector Supplement (FPSS) for an application level ‘B’. We have taken into account all the reporting principles defined by the GRI to present a balanced and transparent communication.

For the first time the company has also sought External Assurance for the Sustainability Report. M/s DNV Business Assurance India Private Limited has been engaged to provide Independent Assurance to this Sustainability Report based on the GRI principles, Assurance Standard - AA1000 AS (Type - 2 moderate) and ‘DNV GL Verisustain’ methodology (Moderate level). The report has been assured to be of GRI Application Level ‘B+’.

About the Report

Neelima Khetan, Director, Public Affairs and Communications will be happy to take your comments and inputs. She can be reached at [email protected]

Report Boundary

CCIPL is involved in the business of manufacturing and selling beverage concentrates and marketing products in India, under trademarks of The Coca-Cola Company (TCCC). Hindustan Coca-Cola Beverages Private Limited (HCCBPL), a wholly owned subsidiary of TCCC (part of the Bottling Investments Group – BIG), is our largest bottling partner in India. There are other third party bottlers (franchisees authorized by TCCC), who manufacture and distribute our products in their respective geographies in India. CCIPL, HCCBPL, franchisee bottlers and Anandana (Coca-Cola India Foundation) constitute the Coca-Cola System in India.

The influence that CCIPL has on other entities of the Coca-Cola System in India is limited to certain facets of their operations. During the preparation of this report, the ‘Reporting Boundary’ we have considered is based on the level of our influence on each entity and the availability of necessary information (for GRI disclosures). The boundary considered for various sustainability aspects is presented in the appendix.

All entities that are part of the Coca-Cola System in India exercise due care to ensure that our operations are socially and environmentally responsible. Our bottling locations are certified under ISO 14001 and OHSAS 18001 and also abide by high standards that have been defined by TCCC (internally referred to as KORE).

This report has been compiled for the benefit of all our stakeholders, which include our consumers, customers, regulators, civil society members, suppliers, employees and the society at large. We welcome any comments, clarifications or inputs for improving the quality of our communication.

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Destination Happiness

the journey so far

Aligned to GRI G 3.1 (Application level ‘B+’)

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Message from the President | 6

Strategy and Vision | 8

Me - Enhancing Personal Well-being | 20

We - Building Stronger Communities | 26

World - Protecting the Environment | 54

Corporate Governance | 66

Appendix - 1 Reporting Process | 71

Independent Assurance Statement | 77

Appendix - 2 GRI Index | 80

Contents

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Message from the President

Year 2013 was special to us as it marked the completion of 20 years since our re-entry into the Indian market in 1993. Our journey over these two decades has been extremely fulfilling and we are proud that India has emerged as the 6th largest market for The Coca-Cola Company (TCCC).

Our brands have become among the most loved in the country. They include home-grown brands with their unique taste and heritage –like Maaza, Limca and Thums-Up – as well as our world famous global brands like Coca-Cola, Sprite and Fanta. We are indeed grateful to the millions of Indians who have made us part of their everyday lives.

As the Coca-Cola system in India, that includes our bottling partners, we directly employ over 25,000 people, while also creating indirect employment for more than 150,000 Indians in related industries through our procurement, supply and distribution systems. We also provide a source of income to more than 7,000 distributors, 200,000 farmers and 2.2 million retailers.

To facilitate the next phase of growth in this dynamic market, the Coca-Cola system in India has committed to investing USD 5 billion between 2012 and 2020. We firmly believe that our growth aspirations can only be met in a socially inclusive and environmentally responsible manner.

The concept of sustainable development is at the heart of our business. We have continuously been striving to create lasting positive impacts on the communities we proudly serve, actively leveraging partnerships with communities and government agencies – an approach we call ‘the Golden-Triangle’. Our global ‘Me-We-World’ sustainability framework helps us prioritize

sustainability initiatives focused on our key stakeholder groups (including consumers, customers, communities and our employees among others) and the ecosystem on which we all depend. Key highlights from some of our initiatives are presented below.

Society: Women play a crucial role in our value chain; we believe that unleashing the entrepreneurial potential of women is one of the surest ways to make our business sustainable and also create lasting impact on families and communities. Through our ‘5by20’ program, we have economically empowered over 26,000 women (in India alone), helping them realize their entrepreneurship dream. Through our ‘Parivartan’ and ‘Pragati’ programs, we have been training mom-and-pop kirana retailers to keep pace with changing customer preferences. We have reached out to over 200,000 retailers through these retail business management trainings.

Even as India continues to grow economically, there is much cause for concern when one looks at the education and nutrition status of its children. Studies have indicated that the lack of amenities is one of the leading causes of high drop-out rates witnessed in rural Indian schools. Our ‘Support My School (SMS)’ program has been helping provide basic amenities like toilets, access to water and sports infrastructure in rural Indian schools. Over 350 schools across the country have been revitalized through this program, in which we have forged effective partnerships with like-minded corporates and civil societies.

Well-being: We believe that all foods and beverages have a place in a sensible, balanced diet that is combined with regular physical activity. Obesity is a serious and complex problem caused by many factors, including too

Dear Friend,

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little exercise, consuming too many calories, lifestyle, genetics, environmental, and other factors. At Coca-Cola, we are committed to enabling our consumers make informed choice, as well as promoting the importance of leading an active, healthy lifestyle. Our national level U-15 Football and U-16 Cricket tournaments have turned-out to be breeding grounds for talent; in 2013, these programs saw an overwhelming participation of over 53,000 enthusiastic players. Furthermore, focused trainings offered to a few exceptionally talented youngsters have assisted several participants from these programs break into the national league. The India’s National Under-16 Soccer team is drawn from the talent pool of this U-15 football tournament.

Environment: We realize that water is among the most valued natural resources in our country. Moreover, being in the business of hydration we have a direct connect with water. Water, therefore, finds a special place in our approach to sustainability. Over the past 5 years, our water use ratio has come down by over 40% and as of exit-2013; we are using only 1.98 litres of water to produce 1 litre of our beverage. Anandana (the Coca-Cola India Foundation), and our bottling partners have been undertaking water replenishment projects in different parts of the country – thereby adding to water availability in different parts of India. The Coca-Cola system in India safely returned to nature and communities 129% of all water used in our operations (without counting for the water replenishment work done by Anandana).

Project Unnati, a sustainable agriculture project, has been helping Mango farmers in Andhra Pradesh adopt modern farming techniques like drip irrigation and Ultra-High Density Plantation (UHDP). The program aims to help double crop yield and consequently boost agricultural income, while optimizing on the two scarcest resources of water & land. The program aims to reach out to 50,000 farmers over the next few years.

Coca-Cola India will continue to play its part in providing safe, convenient, refreshing hydration options, in the country. We will continue to bring innovative, great tasting beverages across segments including low/no calorie options. We are proud to state that the manufacturing processes involved across our system, ingredients used and the beverage products we put in the market are of the highest standards in the world.

It has been a privilege playing a small part in the growth and development of the country and our communities and I thank each one of you who have supported us in our journey over the last twenty years. We are counting on your continued support and feedback to take the Coca-Cola India system through the next phase of growth.

Warm regards,

Venkatesh KiniPresidentCoca-Cola India and South West Asia

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Strategy and Vision

Vision, Mission & Values Vision 2020 creates a long-term destination for our business and provides us a ‘Road map’ for winning together with our bottling partners.

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Our MissionOur roadmap starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard against which we weigh our actions and decisions.

• Torefreshtheworld• Toinspiremomentsofoptimism and happiness• Tocreatevalue and make a difference

Our ValuesOur values serve as a compass for our actions and describe how we behave in the world.

Our VisionOur vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

LeadershipThecouragetoshapeabetterfuture

Collaboration Leveragecollectivegenius

Integrity Bereal

Accountability Ifitistobe,it’suptomePassion CommittedinheartandmindDiversity AsinclusiveasourbrandsQuality Whatwedo,wedowell

People Be a great place to work where people are inspired to be the best they can be

Planet Be a responsible citizen that makes a difference by helping build and support sustainable communities

Portfolio Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs

Profit Maximize long-term return to share owners while being mindful of our overall responsibilities

Partners Nurture a winning network of customers and suppliers, together we create mutual, enduring value

Productivity Be a highly effective, lean and fast-moving organization

1 http://www.coca-colaindia.com/ourcompany/missionvalues.html

Further information on our Vision 2020 is available on the company’s website1.

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Organizational overviewIntroduction to the Coca-Cola System in India

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The Coca-Cola Company (TCCC) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still beverage brands. Globally, TCCC is the No. 1 provider of sparkling beverages, ready-to-drink coffees, juices and juice drinks. While we are simply viewed as ‘Coca-Cola’, globally, the Coca-Cola System operates through multiple local channels; the ‘Coca-Cola System’ is not a single entity from a legal or managerial perspective.

TCCC re-entered the Indian markets post the economic liberalization of 1991 and established Coca-Cola India Private Limited (CCIPL) as its wholly-owned subsidiary in 1992.

Entities comprising the Coca-Cola System in India and brief descriptions of their operations are presented below.

The Coca-Cola Company (TCCC), Atlanta, USA

Coca-Cola India Private Limited

AnandanaTheCoca-ColaIndiaFoundation

Franchisee bottlers (operatinginIndiaunderlicensefromTCCC)

The Coca-Cola System in India

Coca-Cola India Private Limited (CCIPL)CCIPL manufactures and sells concentrates, beverage bases and syrups to the Authorized bottlers of TCCC in India and is responsible for consumer brand marketing initiatives.

The registered & corporate offices of CCIPL are located at:

Registered Office: Plot No’s 1109-1110, Village – Pirangut, Taluka – Mulshi, District Pune, Maharashtra – 412108

Corporate Office: Enkay Towers, Udyog Vihar Phase 5, Gurgaon, Haryana – 122016, India

Hindustan Coca-Cola Beverages Private Limited (underBottling

InvestmentsGroup)

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Anandana – Coca-Cola India Foundation, a Company registered under Section 25 of the Companies’ Act, is a wholly owned not for profit charitable subsidiary of CCIPL.

Anandana provides monetary grants and other assistance to civil society organizations, cooperatives, philanthropic organizations and such others who can be suitable partners in implementing projects for social welfare.

Anandana focuses on supporting social projects in the domains of water sustainability and the spread of new and

Anandana – Coca-Cola India Foundationrenewable energy sources. Geographically, Anandana focuses on some of the most backward regions of the country.

Anandana constantly aspires to ensure project execution, maintenance and sustainability through active involvement and direct participation of the beneficiary community at the grass-root level.

Anandana is housed in the same premises as CCIPL (at the Corporate Office in Gurgaon). Please refer to Anandana’s website (http://www.anandana.org/) for further details on its working.

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Franchisee Bottling Partners

The Coca-Cola System in India includes Franchisee Bottlers (FBO – licensed by TCCC) who prepare, package, distribute and sell our beverage brands. Following is a list of such FBOs who are located across the country:

• Amrit Bottlers Private Limited• Brindavan Agro Industries Private Limited• Brindavan Beverages Private Limited• Brindavan Bottlers Private Limited• Bengal Beverages Private Limited• Diamond Beverages Private Limited• Enrich Agro Food Products Private Limited• Kandhari Beverages Limited• Ludhiana Beverages Private Limited• Moon Beverages Limited• Narmada Soft Drinks Private Limited• Sri Sarvaraya Sugars Limited• Superior Drinks Private Limited• Udaipur Beverages Private Limited• Wave Beverages Private Limited

2 The BIG is one of the three major operating groups of The Coca-Cola Company and one of the largest and most geographically diverse bottlers in the Coca-Cola system. It was established to improve accountability and drive performance of Company Owned & Managed Bottlers (CBOs).

Hindustan Coca- Cola Beverages Private Limited (HCCBPL)

Hindustan Coca-Cola Beverages Private Limited (HCCBPL) is a wholly-owned subsidiary of TCCC, and the largest bottler in India. It is a part of The Coca-Cola Company’s Bottling Investments Group (BIG2). HCCBPL has 24 bottling plants at strategic locations spread across the country and covers about two-thirds of the bottling franchise (by population) in India. HCCBPL works actively with approximately 3800 distributors across the country to place beverage products in 1.4 Million retail outlets to provide refreshment to 25 Million consumers every day.

The registered & corporate offices of HCCBPL are located at:

Registered Office: B-91, Mayapuri Industrial Area, Phase – I, New Delhi – 110 064, India

Corporate Office: 3rd Floor, Orchid Centre, DLF Golf Course Road, Sector 53, Gurgaon – 122 001, Haryana, India

Bottling PartnersThe authorised bottlers of The Coca-Cola Company prepare, package, distribute and sell beverages to our customers and vending partners, who in turn sell our products to consumers.

The Coca-Cola System in India has extensive reach and inspires moments of happiness across the country; a small volume of our beverages are also exported to neighboring markets like Nepal, Bhutan, Bangladesh and Maldives (demand driven). In the year 2013, three new bottling plant sites became operational at:

• Chhata(BrindavanAgroIndustriesLimited)

• Unnao(BrindavanBottlersLimited)• Bidadi(HCCBPL)

Co-PackersofHCCBPL

HCCBPLBottlingPlants

FranchiseBottlers

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Sustainability Priorities, Risks and Opportunities

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OurSustainabilityFramework–whichwecall“Me, We, World”–isoursharedvisionforhowwecanworktogethertocreatesocialvalueandmakeapositivedifferencefortheconsumersandcommunitiesweserve.

Me Enhancing personal well-beingOur longstanding commitment to consumers’ well-being begins with ensuring that each and every beverage we deliver is safe, delicious and refreshing. Further, we work to inspire consumers to pursue happier, healthier lives—and provide opportunities to do so—through the wide variety of products we offer, our transparent labeling practices, our responsible marketing practices and the many physical activity programs we support around the world.

We Building stronger communitiesCommunity well-being for us means more than just giving back to the community - we firmly believe that our businesses are only as strong as the communities which we serve. Women play a crucial role in our value chain; we believe that unleashing the entrepreneurial potential of women is one of the surest ways to make our business sustainable and also create lasting impact on families and communities. Through suitable training programs, we are assisting retailers keep pace with changing customer preferences. We are also contributing to the development of local communities, through need-based programs – such programs are focused on education, enhancement of employability and well-being. Respecting human and workplace rights is yet another key constituent of the ‘We’ pillar.

World Protecting the environmentWater is a top sustainability and business priority for Coca-Cola. It is critical to the communities we serve and the ecosystems on which we all depend, and hence, finds a special place in our approach to sustainability. The Coca-Cola system in India has been working with a variety of partners to reduce and recycle packaging material. Project Unnati, a sustainable agriculture project, has been helping Mango farmers in Andhra Pradesh adopt modern farming techniques like drip irrigation and Ultra-High Density Plantation. The project substantially increases mango yield and enhances farmer income. Our bottling locations are also focused on energy efficiency and adoption of renewable energy, thereby reducing our carbon footprint.

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Me Enhancing personal well-being

Well-being Responsible Marketing

Offer low or no-calorie beverage options in every market

Provide transparent nutrition information, featuring calories on the front of all our packages

Help get people moving by supporting physical activity programs in every country where we do business

Market responsibly, including no advertising to children under 12 anywhere in the world

We Building stronger communities

Women Human and Workplace Rights

Charitable Contributions

Enabling the empowerment of 5 million women entrepreneurs across our value chain by 2020

Comply with Human and Workplace Rights standards

Creating sustainable communities

World Protecting the environment

Water Packaging Climate Protection

Sustainable Agriculture

Replenish 100% of the water used in our finished products

Improve water efficiency by 25% (compared to 2010 baselines)

Recover & recycle 50% of the bottles and cans introduced in the market

Reduce the carbon footprint of the drink in your hand by 25% (through our full end-to-end value chain) by 2020

Sustainably source key agricultural ingredients

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How we identify and prioritize key sustainability initiatives/projects

TCCC has an internally developed tool referred to as the ‘Value Creation Model (VCM)’ to help assess the relative value that our sustainability initiatives provide to business and society. The model supports annual business planning activities by providing a well-defined framework to quantify the business and social impacts of sustainability initiatives, thus enabling transparency and cross-functional dialogue to prioritize investments, allocate resources and assess the benefits from implementing sustainability programs. The VCM tool helps CCIPL leadership identify key impacts across our sustainability programs and identify opportunities to build momentum in areas of strength. It is a component of our web-based Sustainability Management and Reporting System.

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S. No Key risks Commentary Coca-Cola System response1 Resource

availabilityWater is the most precious resource for any community and one which is increasingly coming under stress. The multiple uses for this precious resource, at times lead to communities and industries competing with each other for this resource.

We are intimately connected to the water cause in India not only because it is a key ingredient in our products, but also in the wider context of our commitment to community development and wellbeing. Over 70% of our total groundwater consumption comes from safe zones, and with an annual groundwater withdrawal of about 5.1 mcm and we use only 0.0021% of the total groundwater drawn in the country. Further, according to the Central Ground Water Authority (2011 data), only 9.25% of the total groundwater drawn in India is for industrial and domestic purposes.

There is an increasing demand for key agricultural raw material, while productivity in the country is not keeping pace.

At 6 tons per hectare, India’s mango productivity is substantially lesser than its peers like Brazil, China and Indonesia. Taking cognizance of the huge gap between demand growth and supply growth and the need to make our own supply chain sustainable, CCIPL launched Unnati – a backward integration project. Project Unnati helps mango farmers in Chittoor district upgrade to Ultra High Density Plantation (a modern farming technique) and better water management practices (through drip irrigation) to improve productivity. While securing our supply chain the project also contributes to augmenting farmers’ income.

Risks and opportunities – why sustainability is good for us!

Our industry as a whole and the Indian market is very dynamic in nature and is susceptible to change. The ability to anticipate and be prepared for such change is the hallmark of a successful corporate. With a legacy of 127 years, the global Coca-Cola system exemplifies this value.

In the Indian context, the changing demographics and consumer preferences, regulatory landscape and myriad of social issues are the prime forces at play. Accordingly, the following are some key risks we have taken cognizance of. The table also summarizes how we are geared to face any potential challenges and some of our leading initiatives in response to the same.

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2 Regulatory changes

In the recent times, policy guidelines w.r.t ground water withdrawal and use of PET in packaging have been subjects of regulatory changes.

With respect to groundwater, the Coca-Cola system in India has already been committed to water replenish efforts, and has till date created a recharge potential that is 129% of the total volume of water (ground and surface) that we use in our operations.

PET is among the safest food packaging material used world-wide and helps preserve the quality and integrity of our products, at the same time offering unmatched convenience to the consumer. Over the past few years, acceptability of PET as a package has increased in the Food & Beverage, Consumer Goods, Pharma and other sectors.

Most of the post-consumer PET gets recovered. The Coca-Cola System in India is focusing on improving post-consumer recovery of PET bottles and is forming alliances with stakeholders to explore interventions that could help in the same.

3 Consumer awareness

Sedentary lifestyles and obesity are a serious challenge to our business. There is an increasing push from regulators across the world for reduction in calorie/sugar content of beverages.

Our beverages, consumed as a part of a healthy diet, supplemented with an active lifestyle do not lead to obesity. We provide accurate and transparent information on our product contents and calories to facilitate our consumers make informed dietary choices. From the added benefits of vitamins and minerals to new ingredients tastes and innovations in package sizes, we are constantly challenging ourselves to identify high-quality additions to improve nutritional content and provide functional benefits.

S. No Key risks Commentary Coca-Cola System response

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MeEnhancing Personal Well-Being

2Well-BeingWorking to inspire happier healthier lives

Product & Ingredient SafetyPursuing the highest standards in product safety and product quality

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Approach

Our commitment to well-being begins with our focus on product and ingredient safety and quality. We want to ensure that consumers have the utmost confidence that our products are made to the highest standards for ensuring consistent product safety and quality.

As a global corporation with operations in markets large and small, we make it a priority to help improve the well-being of our consumers, our employees and the communities we proudly serve. We recognize the rising incidence of obesity and sedentary lifestyles as serious and complex global health challenges. Through partnerships and collaborations across the “Golden Triangle” of governments, industry and civil society, we are working to promote well-being and to help address these issues in a number of ways.

CCIPL has embraced innovation to grow and evolve with our consumers’ needs and preferences. One way we do this is by offering a broad portfolio of beverage choices that provide great taste and refreshment—with or without calories.

We are also working to help inspire, empower and engage people worldwide regarding the importance of an active, healthy lifestyle that includes a balanced diet and regular physical activity.

Throughout our system, we are mobilizing our collective assets and engaging in community outreach to raise awareness and spur action.

Well-BeingWorking to Inspire Happier Healthier Lives

Our Global Well-Being goals are –

• Offer low- or no-calorie beverage options in every market.

• Provide transparent nutrition information, featuring calories on the front of all of our packages.

• Help get people moving by supporting physical activity programs in every country where we do business.

• Market responsibly, including no advertising to children under the age of 12 anywhere in the world.

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all our products, so that consumers may make choices that fit their lifestyles. As a leader in the area of front-of-pack nutrition labeling, Coca-Cola was the first beverage company to place calorie information on the front of nearly all of our packaging worldwide. We also make available complete nutritional information of our products on the packs. Information on nutritional content of our products is also available in the company’s website. All products manufactured & packaged contain FOP Calorie declarations with exception of those bottled in Returnable Glass Bottles.

Global Goal: Help get people moving by supporting physical activity programs in every country where we do business.

India Progress: On-track

At Coca-Cola, we are committed to inspire consumers to adopt an active lifestyle and make physical activity and exercise a part of everyday life. CCIPL has actively forged partnerships with different partners to drive programs which promote active healthy living.

Global Goal: Market responsibly, including no advertising to children under the age of 12 anywhere in the world.


We at Coca-Cola believe that good marketing is responsible marketing. We have always taken seriously our commitment to market our products responsibly. When it comes to choosing what products children consume, we believe that parents and caregivers should be the decision-makers. As a result, we do not buy advertising directly targeted at audiences that are more than 35% children under 12.

Global Goal: Offer low-or no- calorie beverage options in every market

India Progress: Ongoing

We recognize the uniqueness of our consumers’ lifestyles and dietary choices and offer a variety of products to meet their refreshment, enjoyment, nutrition and hydration needs. The Coca-Cola system is the global leader in Non-Alcoholic Ready to Drink (NARTD) beverage market, offering options for every life-style and occasion. We offer a broad portfolio of beverages and package sizes to meet consumers’ needs for refreshment, enjoyment, nutrition and hydration.

Our portfolio in India includes Coca-Cola, Diet Coke, Sprite, Fanta, Minute Maid (these are some of our global billion dollar brands available in India), Thums Up, Maaza, Burn (energy drink), Kinley Water, Kinley Soda, Schweppes, Georgia Gold (coffee) Vitingo (powder) and Fanta Fun Taste (powder). Sprite and Thums Up, respectively, are the largest and second largest selling beverage brands in the country. ‘Glocojal’, a Glucose-based water was launched in 2013.

In the Indian markets, our low/no calorie offerings are Kinley water, Kinley Soda, Schweppes Soda and Diet Coke. Yet another no-calorie beverage option – Coke Zero is planned to be introduced in 2014. We will continue to further explore potential for other low/no calorie options.

Global Goal: Provide transparent nutrition information, featuring calories on the front of all of our packages.


We are committed to providing transparent nutrition information about

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Under-15 Football - The Coca-Cola Cup:

As part of the long standing commitment to promote a sporting culture and a healthy living, Coca-Cola has been supporting grass root development of football in India. Coca-Cola India Private Limited and the All India Football Federation (AIFF) launched the national grassroots football tournament in 2009. The tournament nurtures potential football stars by providing them with a platform and an opportunity to develop their inherent talent into a real-life profession. As a company which has a worldwide focus on football we firmly believe that Indian football has huge potential. By supporting AIFF in this tournament, we are tapping young football talent to train them on par with international football standards. In 2013, the program saw active participation of 41,760 young footballers from 2,610 schools across 86 cities.

The National U-16 Soccer team of India is drawn up from the talent pool of this tournament. Furthermore, this is a chance for some exceptionally talented players, who will be absorbed by AIFF-FIFA academy, to train at world class academies and become a part of the talent pipeline for the future. It’s not just a quest of Trophy or the Cup that these young talented footballers look forward to, but also a chance to receive world class training and exposure. Undoubtedly, this is India’s biggest and most inspiring Grassroots Sports program and a step towards providing these soccer heroes “An experience that money can’t buy”.

Coca-Cola Under-16 Cricket:

Coca-Cola Under-16 Cricket Cup is India’s only National Inter-school tournament. The interschool grass root level cricket initiative aims to discover budding cricketing talent in the country. The program is open to all young cricketers in the age group of 12-16 years. The event is played in each center under the aegis of the respective State Cricket Association affiliated to the Board for Cricket Control in India (BCCI). The intra-state matches give the enthusiastic participants a first-hand experience of playing at international match venues (PCA, Mohali and the Eden Gardens at Kolkata). In the inter-state round, the best teams from the country (winners from each state) play against each other in a ‘knock-out’ round to finally win the U-16 challenge.

Seeing the vast potential and growing popularity of this game, CCIPL has a vision of facilitating the quest to nurture and tap cricketing talent. It believes that the future of Indian cricket lies in these young talented budding cricketers. Through this initiative, CCIPL intends to provide a perfect opportunity and platform to all the youngsters across the country to showcase their talent, skill and equally important, pride and loyalty to their school. It gives the State Cricket Associations and their affiliated scouts a great arena to identify potential match winners.

The tournament began in 2011 and so far has completed 3 seasons successfully. In season 3 (2013-14), this tournament was played across 10 states in over 66 districts and involved more than 12,000 young players from 756 schools.

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Approach

We work to ensure consistent safety and quality through strong governance and through compliance with applicable regulations and standards. We stay current with new regulations, industry best practices and marketplace conditions, and we engage with standard-setting and industry organizations. Additionally, we manufacture and distribute our products according to strict policies, requirements and specifications set forth in an integrated quality management program that continually measures all operations system-wide against the same stringent standards. Our quality management system also identifies and mitigates risks and drives improvement. At every step of production and with samples from the marketplace, we stringently test our beverages in modern laboratories, where we measure quality attributes of ingredients. We consistently reassess the relevance of our requirements and standards and continually work to improve and refine them across our entire supply chain

Health and Safety impacts of all our products are considered right from the stage of Research & Development. Furthermore, all our bottling locations are compliant with the requirements of the Food Safety and Standards Authority of India (FSSAI). Our Quality Systems require all our suppliers to comply with safety, environmental and quality standards. These may include (as applicable):

• FSSAIStandard• GlobalFoodSafetyInitiative(GFSI)&

FSSC 22000 (Food safety standard) for all suppliers of primary ingredients and packaging material

• ISO9001(quality)• ISO14001(environmental

management)• OHSAS18001

(Occupational Health & Safety)Stringent checks are undertaken to ensure the quality and safety of all material procured. For some of our key ingredients like sugar, batch-wise tests are undertakenNone of our products contain saturated fats or trans-fats; the Sodium content in our packaged drinking water brands – Kinley and Bonaqua- is less than 0.5 milli-grams per 100 ml.

In addition to offering great taste, some of our products contain added vitamins and minerals. Such products are listed below:

• Vitingoconcentrate(solid)forwater-based flavored drink with Iron, Vitamin C, Vitamin A, Vitamin B2, Vitamin B12, Folic acid and Zinc. which has undergone Product Efficacy Trial to demonstrate that consumption of Vitingo helps reduce iron deficiency anemia in children

• KinleyGlucoJal(inOrange&LemonFlavours) – with Vitamin B3, Vitamin B6, Vitamin B12, Folic Acid, Zinc

• MinuteMaidJuicy(MixedFruit)–withVitamin A, Vitamin B3, Vitamin B6, Vitamin B12, Folic Acid, Zinc

CCIPL also forayed into the space of social beverages with the launch of Vitingo in 2011. Vitingo is a low cost, clinically proven, tasty micro-nutrient fortified beverage. Clinical trials have validated the efficacy of Vitingo in reducing Iron Deficiency, Iron Deficiency Anaemia and Vitamin-C deficiency. Priced at INR 3/-

Product & Ingredient SafetyPursuing the highest standards in product safety and product quality

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For further details on our global product safety and quality standards, please visit the following web-link: http://www.coca-colacompany.com/stories/quality

per sachet of 18 grams, Vitingo aims to address the nutritional challenges of the people (primarily women and children) at the bottom of the pyramid. As on end-2013, Vitingo was being distributed in 51 districts across the states of Uttar Pradesh, Rajasthan, Bihar and Maharashtra.

Customer satisfaction

We provide our consumers with several windows for communicating with the company; in India, we were among the early adopters of the toll free number system. The toll-free number (1800-208-2653) and the consumer helpline email ID ([email protected]) are displayed on all product packages.

We endeavour to respond to every query received in a manner satisfactory to our consumers. To this end, the company

As the largest bottling partner of The Coca-Cola Company in India, we at Hindustan Coca-Cola Beverages, continuously strive to bring some of the world’s most loved and great tasting beverage brands to all our consumers within arm-length at an affordable price. We are building a culture of operational excellence coupled with continuous productivity enhancements. We are relentless in our pursuit to create value for all stakeholders – be it consumers, employees, customers, suppliers, communities and other stakeholders. Ever cognizant of our environmental footprint, we have been investing in best-in-class technologies that have made us progressively resource efficient. I speak for all of HCCB when I say we firmly believe that our business can only be as strong and vibrant as the communities we serve. As a result, we invest in locally relevant initiatives to support communities, economically empower women in local communities and facilitate trainings of our retailers.

T. KrishnakumarCEO, Hindustan Coca-Cola Beverages Pvt. Ltd.

has instituted a streamlined Consumer Satisfaction (C-Sat) Survey.

Every month, we reach out to 5% (picked randomly) of the customers/consumers who have posed queries to us regarding quality or non-quality concerns through our toll-free number. These consumers are requested to answer five questions sequentially in order to collect their feedback on how the query has been responded to. This feedback is subsequently collated for further action and improvement wherever possible. The C-Sat score at the end of 2013 was 97.6%.

Adequate security measures are undertaken to safeguard privacy of our consumers. In the reporting period, there have been no incidents of consumer data loss/theft/ breach of consumer privacy.

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WeBuilding Stronger Communities

3Women’s Economic EmpowermentSupporting women’s entrepreneurship potential through our ‘5by20’ program

Human and Workplace rightsOur commitments to respecting human rights, creating safe and inclusive workplaces, engaging employees and stakeholders to strengthen our business

Creating Sustainable CommunitiesApplying our scale and building partnerships to address community needs

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Approach

Women’s Economic Empowerment

Women are pillars of the communities as they invest a sizable portion of the money they earn on the health and education of their children and in their local economies, creating a tremendous economic impact. As such, women are critical to local and global business success and are an essential cornerstone of our progress towards our 2020 Vision. Studies show that women do 66 percent of the world’s work, yet earn 10 percent of the world’s income—90 percent of which goes back to their families and communities. To help address this disparity, we launched 5by20™ in 2010, which is our global commitment to enable the economic empowerment of 5 million women entrepreneurs across all six segments of the Company’s value chain by 2020.

Drawing on local expertise, capabilities and resources, 5by20 aims to help women

entrepreneurs overcome the common social and economic barriers they face due to the lack of business skills training, financial services, assets, peer networks and mentoring.

Global Goal: Enable the economic empowerment of 5 million women across our global value chain by 2020.


India was one of the four markets, where 5by20 was piloted in 2010 (other pilot markets being Brazil, South Africa & Philippines). Since then the program has grown and become an integral part of our sustainability initiatives.

We are scaling up initiatives with high potential to create economic impact on women entrepreneurs and our business.

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Programs under ‘5by20’1. eKOcool Solar Cooler program:

‘eKOcool’ is an innovative solar cooler that has been pioneered by us and provides income generating opportunity for women retailers in electricity deficit areas of rural India. The solar coolers also help reduce the cost of running retail business since no cost is incurred on account of electricity or ice procurement, used to chill beverages. The cooler has in-built charging ports for mobile phones and a solar lantern (which facilitates the retailer to keep her store open even after the sunset). Over 1,000 eKOcool units have been installed across 5 states in India in women run outlets by the end of 2013

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In October 2013, the Deutsche Gesellschaft for Internationale Zusammenarbeit (GIZ) GmbH, supported by the Indian Institute of Corporate Affairs (IICA) released a report titled ‘Responsible Corporate Engagement in Rural India: A Compendium of Good Practices’. The report seeks to enable and facilitate scaling up of responsible business practices by corporates in rural India.The eKOcool initiative and its contribution to empowering women retailers in rural India was showcased in this report under the segment . The complete report is available in the following web-link:

http://responsiblebusinessindia.com/downloads/responsible-corporate-engagement-in-rural-india-a-compendium-of-good-practices/Image above adopted from the said report

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2. Parivartan:

This program is focused on building the retailing capabilities of women entrepreneurs especially in the areas of cash and, stock management; shop management and customer interactions. The program is conducted by the Coca-Cola University, in mobile buses that have been converted into classrooms. The buses travel across remote parts of rural India. In 2013, the program got a major impetus when we celebrated International Women’s Day by organizing retail training programs for more than 1,400 women retailers in a single day across India and Nepal.

The program was scaled-up substantially in 2013 and close to 10,000 women retailers were trained during the year.

3. Pragati:

Pragati program is also focused on building the retailing capabilities of women entrepreneurs by providing training, product knowledge and business start-up support to women retailers. The program is conducted by HCCBPL, mostly in bottling plants in remote parts of rural India. Over 13,000 women have been supported under this program by the end of 2013.

4. Unnati:

In addition to the retailer segment of the value chain, CCIPL is also supporting producers through Project Unnati, a supply chain initiative that would enable 10,000 women mango farmers to adopt modern farming techniques and good agricultural practices (please refer the section on Sustainable Sourcing for further details of the program). Around 1,000 women have been covered under this initiative till end 2013.

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Overall performance

Since 5by20 began, we have enabled more than 26,000 women across our value chain through business skill enhancement, access to assets and networking and mentoring. Currently, our retailers constitute the biggest chunk of the beneficiaries under the 5by20 initiative (the rest being producers).

The Program received the World CSR award and was featured as a best practice by the Ministry of Corporate Affairs for empowering women retailers in the distribution value chain in an environment friendly way.

Improved Stakeholder Relationships and Reputation

POTENTIAL DEVELOPMENTAL IMPACTS

BUSINESS IMPACTS

Business and societal impacts of 5by20

Increased Incomes

Supply Security & Continuity

Increased Sales

Lower CostsReduced environmental

impact

Job Creation

Increased Gender Equality

Re-investment in Children, families and communities

RetailersProducers

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4http://www.coca-colacompany.com/our-company/workplace-rights-policy#TCCC

Human and Workplace RightsApproach

At The Coca-Cola Company, our respect for human and workplace rights is engrained in our culture and guides our interactions with suppliers, customers, consumers, employees and the communities we serve. Our commitment to respecting human rights guides the way we conduct business and governs all aspects of our work, from the suppliers we work with, to how we engage each other in the workplace, to our interaction with customers, consumers and the communities we serve.

In 2011, TCCC formally endorsed the UN Guiding Principles on Business and Human Rights, adopted by UN Human Rights Council in 2011. We have implemented all three of the components that must be put in place under the Principles for companies implementing respect for human rights in a corporate context:

• Apolicycommitmenttomeettheresponsibility to respect human rights

• Aduediligenceprocesstoidentify,prevent, mitigate and be accountable for human rights abuses; and

• Processestoenabletheremediationof any adverse human rights impacts the company causes or to which it contributes.

We also work with our bottling partners and suppliers to help them implement the Principles.

Global Goal: By 2015, achieve and maintain going forward a 98 percent compliance level for Company-owned and Company-managed facilities upholding the standards set in our Workplace Rights Policy.

India Progress: On-track (end 2013 – 98% compliance)

Global Goal: By 2015, achieve 90 percent compliance with our Supplier Guiding Principles among independent franchise bottling partners and suppliers. By 2020, achieve 95 percent compliance with our Supplier Guiding Principles among our suppliers.

India Progress: On-going (end 2013 – 82% compliance)

The foundation of our approach lies in four key documents: our Human Rights Statement, Workplace Rights Policy4, Supplier Guiding Principles, and Global Mutual Respect Policy.

With our system operating in more than 200 markets, a key challenge is to proactively identify and address human rights issues in our global value chain. To this end, our dedicated Global Workplace Rights group is specifically charged with identifying human-rights risks throughout our value chain and developing easy-to-use due-diligence tools to help the business identify human rights risks and avoid unintended missteps, and to mitigate human rights harm when it occurs.

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We have been working for the past several years to ensure that our entire business system and supply chain align with our policies, including those on human and workplace rights. We make our expectations clear and continually analyze potential and actual human rights impacts across our value chain, from raw materials to end use. As we identify human rights risks, we also identify and promote among our bottlers and suppliers policies and actions for mitigating them. Our Human Rights Statement, our Workplace Rights Policy and our Global Mutual Respect Policy apply to all entities in which TCCC owns a majority interest, while our Supplier Guiding Principles (SGPs) apply to franchisee bottlers and significant suppliers.

In addition, we collaborate with increasing numbers of stakeholders, such as labor unions, socially responsible investors, human rights NGOs, activists, students, customers and consumers, to better understand and address human rights issues. Our collaborations are informed by the recognition that compliance with the law is a given and that the scope of our responsibility to respect human rights extends beyond the workplace to include the community and the supply chain below first-tier suppliers.

Within the Coca-Cola system in India, any supplier providing key and trademarked promotional material worth US $ 60,000 is referred to as in-scope supplier and subjected to SGP audits. By end-2013, 98% of in-scope suppliers were audited (viz-a-viz requirements of our SGP) and 82% were found to be compliant while action plans have been put in place by the rest to achieve compliance.

We require all associates to know our human rights and workplace rights standards and to apply them in their work. Managers, in particular, receive intensive training. We also rely on our associates to speak up immediately if they believe our policies have been violated. Through numerous channels, including EthicsLine (a global Internet and telephone information and reporting service for employees), associates, as well as customers, suppliers and consumers, can report— confidentially and without fear of retaliation—perceived violations of our Code of Business Conduct, our Workplace Rights Policy, our Global Mutual Respect Policy, our Human Rights Statement or applicable laws and regulations. We treat all inquiries confidentially and investigate all concerns. In cases where claims are substantiated, we take corrective action. Depending on the violation, corrective action may include monetary penalties, reassignment of duties and in severe cases, separation from the company.

Human rights in procurement

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Workplace safetyApproach

Our commitment to workplace safety begins with our systemwide safety vision: We will make and deliver our products and provide services with a goal of zero work-related injuries and illnesses for our employees, contractors and the communities in which we interact. We promote a culture of caring and safe behavior, reaching beyond compliance to ensure continual improvement through identification of hazards and implementation of controls to minimize risk.

Webelievethatasafeandhealthyworkplaceisafundamentalrightofeverypersonandalsoabusinessimperative.Our Workplace Rights Policy requires that we take responsibility for maintaining a productive workplace in every area of our operation by minimizing the risk of accidents, injury and exposure to health hazards for all of our associates and contractors. In addition, we’re working to help our bottling partners minimize health and safety risks for their employees and contract workers.

The Coca-Cola Operating Requirements (KORE) defines the policies, standards and requirements for managing safety, environment and quality throughout

our operations. KORE also requires that our manufacturing facilities implement BS OSHAS 18001 (British Standard Occupational Health and Safety Assessment Series 18001, a framework for an effective occupational health and safety management system) or an equivalent internationally recognized safety management system.

To guide us in achieving a safe work environment for our associates, KORE defines a rigorous set of operational controls to manage known risks. The controls generally align with top global requirements and consensus standards. In addition, we engage recognized external audit firms to assess the compliance of each of our manufacturing operations with applicable laws and regulations and our internal occupational safety and health requirements.

We provide substantial safety training to our associates and employees of bottling partners using the training requirements defined in KORE as a global baseline. Training covers new-hire induction and periodic refresher training for all associates and other contract employees.

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LTIR

Performance

Our unrelenting focus on safety resulted in substantial improvements across our system. There were a total of 36 reported Lost time Incidents resulting in 368 ‘Lost days’. Lost Time Incident Rate (LTIR) came down by over 40% in 2013.

Sadly, four fatalities were reported in the year 2013 in our bottling operations (2 employees of bottling companies & 2 contracted laborers). These fatal accidents were thoroughly analyzed and our systems were further strengthened.

Note: 1. The LTIR indicated here is

defined based on KORE standard and is calculated based on 200,000 man-hours worked.

2. A total of 46,999,220 man-hours of work were recorded across the bottling operations (considering both employees of bottling companies and contract employees).

Lost Time Incidents Lost Days

2013

368

2012

416

593

20112013

36

2012

40

2011

59

2013

0.15

2012

0.26

0.3

2011

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Contractor Management Centre (CMC)

Contract workers form a substantial part of plant level workforce across the system. It was observed that a significant part of all reported injuries at HCCBPL facilities involved such contract workers. The underlying cause was identified to be the lack of awareness and experience in the assigned work/safety procedures. To overcome this problem, HCCBPL initiated Contract Management Centres at all plant locations.

What does CMC do?

• Daily morning meetings to deliver Tool Box Talk (TBT) to the contract supervisors (training the trainer)

• Daily TBTs for temporary workers • Recording and addressing all violations

through proper counselling and retaining

• Ensuring all incidents and accidents are properly handled by respective contractual agency

• Recognizing safety performance – rolling trophy presented to top contractual agency by safety performance, rigorous training and counselling to the ones at the bottom

With the commencement of CMC, there has been a marked improvement in plant safety performance.

Safety initiatives by HCCBPLDriver Management Centre (DMC)

As a part of regular business, bottling plants engage a large number of hired trucks in distribution operations. Accordingly, for minimizing and eliminating the number of road accidents in the process of distribution, HCCBPL has piloted Driver Management Centres. DMC undertakes the following activities:

• Key safety checks of trucks and rejecting trucks that don’t meet system’s basic safety requirements

• Counselling and training of drivers: toolbox talks, pre-trip and post-trip trainings, tracking violations in trucks using GPS systems

• Surprise checks and inspections and consequence management

• Recognition and rewarding – weekly and monthly reward system and transporter rating

DMC has trained over 2000 drivers which has resulted in bringing down preventable accidents substantially. Following the success witnessed in pilot locations, HCCBPL is creating DMCs at other plant locations.

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Human Capital

Approach

Globally, Coca-Cola has been an employer of choice since many years; we attract the best of talent and strive to retain all employees. The wages and benefits we offer are competitive and consistent with the market. Our employees at all levels receive appropriate functional and behavioral trainings. We are an equal opportunity employer and do not discriminate on the basis of gender, religion, ethnicity, race etc. We provide a safe, discrimination-free workplace, providing our employees the opportunity to bring out the best in them.

Employee hiring and benefits:

Coca-Cola India Private Limited is an equal opportunity employer. We do not discriminate people based on ethnicity, religion, caste, nationality etc at the time of recruitment or anytime during an employees’ tenure at CCIPL. While filling open positions, only the individual’s ‘fit’ for the positions is considered. Furthermore, as a policy, we strive to offer open positions to existing employees before sourcing talent from the market. Such internal transfers are encouraged with the view of offering employees exposure to diverse roles/business functions. In the reporting period, hiring procedure documentation at bottling locations were audited (under SGP audit) and no gender-based discrimination was found.

We pay competitive wages to our employees and constantly benchmark our compensation levels with the industry. For our entry level workers (concentrate plant), the wages we pay are substantially higher than those stipulated by Indian law. Furthermore, wages paid (compliance to local minimum wage requirements and non-discrimination by gender) by our bottlers to their employees and the contract workforce are also audited as a part of the SGP audit.

At any level, employee compensations are based on the position held/responsibility handled, experience, tenure in the organization and qualification.

Our pay structures include retirement benefits as per applicable rules and regulations. These include:

• Provident Fund (PF) – 12% of the monthly basic pay of the employee contributed to a dedicated PF Account; an equivalent contribution is also made by the CCIPL (for which the company has a dedicated fund). This is applicable to all employees of CCIPL (corporate and plant) and Coca-Cola India Foundation.

• Gratuity – company contributes 15 days’ basic pay for each year of employment completed, starting from the 5th year of continuous employment. This benefit is applicable for all employees of CCIPL and the Coca-Cola India Foundation

Other benefits offered to our employees include

• Medical/accident/lifeinsurance• Freehealthcheck-upsforemployees

and 50% expense coverage for their families

• Loansforpurchaseofvehiclesandutility loans

• Parentalleave–120daysforwomen,14days for men at the time of child birth

• Partialsponsorship(uptoINR35,000)for promoting active lifestyle of employees under our ‘Health Works’ policy (includes purchase of sporting equipment, payments made for membership in gymnasiums, etc.)

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Training and feedback

CCIPL offers a host of training programs to foster all-round development of its employees. These programs cater to the training needs of employees across functions and hierarchical levels. Some of these programs, their purpose and participation details are presented below.

Program Purpose & program details Number of participants (2013)

First Few Sips This is the induction program for CCIPL’s new hires; the intent of the program is to introduce the new talent to the company - its vision, mission, policies (including those relating to Human Rights and internally developed codes) and goals. The 5-day program provides a functional overview and also includes a plant tour.

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Pegasus The program seeks to develop the organization’s top talent for future roles within the company.

13

Mantra Mantra is our B-School relations program; students from top B-Schools in the country are offered 2-month internship stints at CCIPL. The program is designed for maximum learning and consists of project work, coaching and assignments.

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Management Trainee Program

The outstanding performers from the Mantra (summer internship program) are recruited for full-time roles in the company. Such ‘Management Trainees’ undergo this comprehensive, cross-functional program of 18-month duration. Management trainee program also includes a short stint in the company’s CSR activities.

2

Women in Leadership Program*

We consider the number of women employees in our organization as an important indicator of diversity in our workforce; this program is intended to groom our women employees in the middle management for higher responsibilities.

2

Catalyst* The program is for selected managerial staff who are at a relatively high position in the hierarchy – intended to groom them for senior management positions.

1

Chrysalis • To provide development platforms for Job Grade 9 - Job Grade10 associates

• Create pipeline of talent for future mid-management level roles and people management roles

• Recognize the hi-pot talent in JG9-JG10 in the Company which will fill in the Next Generation of leadership

• Create a ‘Ready Now’ talent pool for local as well as global positions

• To continually challenge the collective energies of this select group with innovative business efficiency for JG 9 – JG 10

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Catalyst and Women in Leadership are Global programmes offered by TCCC; suitable employees are nominated from each geography for these programs.

Both male and female employees of CCIPL at the corporate office received about 15 man-hours of training (average) in 2013. Likewise, the concentrate plant also conducts need-based technical and behavioural trainings and in 2013 male and female employees received close to 8 person days of training on an average.

At the end of each assessment year, all employees across hierarchies and role functions receive performance feedbacks which help them identify areas of strength and development.

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Employee turnover:

1. Number of employees:

Following are the total number of employees on the payrolls of the company as on 31st December 2013.

Corporate Office Concentrate plant

Gender Total Count Operators Staff Total

Male 165 28 39 67

Female 57 0 16 16

Total 222 83

Women employees constitute about 26% and 19% of our workforce at the corporate office and concentrate plant respectively.

2. New joinees and employees leaving the organization (by age group)

Following are the number of people who joined the company’s payrolls and those who left the organization in the reporting period.

New Hires Employees leaving the organization

Gender Age groups Corporate Office Concentrate plant

Corporate Office Concentrate plant

Male

20-29 years 3 0 0 0

30-39 years 13 0 10 1

40-49 years 3 0 5 0

50-59 years 2 0 3 0

Total 21 0 18 1

Female

20-29 years 1 0 1 0

30-39 years 4 0 3 1

40-49 years 2 0 0 0

50-59 years 0 0 0 0

Total 7 0 4 1

As can be seen from the table above, our attrition rate is quite low and we believe it is in-line with the industry standards.

3. Number of people availing parental leave:

Following are the number of people who availed parental leave in the year 2012

Gender Corporate Office Concentrate plant

Male 8 5

Female 3 1

Total 11 6

Note: Of the people who availed parental leave in the previous reporting period (8 male and 3 female employees from Corporate Office and 1 male employee at Concentrate plant), only one male employee from the Corporate Office left the organization within 12 months (of returning from parental leave).

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Creating Sustainable Communities

Anandana continues to work towards the socio-economic upliftment of some of the most under-developed parts of the country.

Anandana engages with communities across India through training, participation and active involvement of beneficiary communities. The entire system is based on the precept that “people’s participation is the only means to ensuring long term sustainability”. The feedback we have been receiving from thecommunities is heartening and inspires us to do more!

Yogesh ChandraCEOAnandana

Approach

Strong communities are the backbone of civil society. Since our beginnings, CCIPL has been involved in efforts to help strengthen the communities we proudly serve. Today, we maintain this commitment through the parallel efforts of our Company and our Foundation, which undertakes development work in backward regions of the country.

CCIPL and the Coca-Cola System in India are driving several large-scale programs for community development, focused on water, education, vocational trainings and creation of community infrastructure.

Global Aspiration: Creating Sustainable Communities

India Progress: Ongoing

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Water conservation and recharge of ground water in Chaksu Block, Jaipur district, Rajasthan

The desert state of Rajasthan suffers from acute shortage of water. The low rainfall of the area results in severe scarcity of water thus affecting agricultural yield, limited availability of fodder and drinking water. These factors force a large section of the population to migrate to neighboring cities and states for livelihood.

AADHAR a local NGO, in consultation with the community and the Panchayats decided to develop traditional village ponds in all 5 villages of the block, to benefit 15000 people. Rain water would be stored in ponds which would recharge ground water. By December 2013, two existing dried up ponds in village Radoli & Kolya were desilted. Together, these structures have a storage capacity of 170,240 cubic meters of water.

Deepening & desilting of existing ponds in Phagi block, Jaipur district, Rajasthan

Phagi block is located at a distance of about 65 km from Jaipur. The area is largely inhabited by the bagaria tribal community. The region is characterized by scarcity of water, high Fluoride contamination and salinity in water and rainwater runoff. Ground water is the only source of water and its availability depends on precipitation and recharge potential. Anandana is supporting Advit Foundation in the construction/ deepening & desilting of five water conservation structures in Phagi block. Water user groups, who are responsible for long term maintenance of the structure, have been created under this project which is expected to benefit some 5,000 people.

Anandana – water replenishment initiatives

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Project Jalagrahan A watershed development project in Banswara, Rajasthan

District Banswara is backward in terms of agricultural productivity, irrigation potential, education, health and other indicators of development. The district has only 9.20% of total area under irrigation (20.56 % total arable land). The Banswara district has lowest (40.78 %) rural literacy rate in the state. Close to 73.0% of total rural households of Banswara district live below poverty line (BPL).

Anandana is supporting N.M.Sadguru Foundation (Dahod) in implementing an integrated watershed management project. The project is undeway in all 20 villages of Kushalgarh taluka of Banswara district. In all, watershed activities would be undertaken on 3073 ha covering 1961 households.

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Project Santushti – II A watershed project in Sambhar Lake, Rajasthan

The project area is a semi-arid zone in Rajasthan, with a yearly average of 460 mm of rain, and experiences repeated droughts. Salinity and excess Fluoride in drinking water is a problem widely seen across Rajasthan, the Sambhar Lake area being no exception. People are left with the option of either drinking the contaminated water or buying water from privately-owned tankers.

This project is being implemented by Foundation for Rural Recovery & Development (FORRAD), to develop a long-term watershed development program that will eventually cover the entire catchment area around the Sambhar Salt Lake. More specifically, it envisages the construction of 31 rainwater harvesting structures spread over 20 villages in Ajmer, Jaipur and Nagaur districts. The total planned water storage capacity of these structures will be approximately 170,000 cubic meters. In all, around 110,000 people and almost twice that number of cattle, will directly benefit from this work.

Tıll end of December 2013, 16 water harvesting structures have been completed (7 in 2012and 9 in 2013).

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Project Jaldhara A watershed project in five villages of Nagina block (Mewat district), Haryana. Mewat is a largely agricultural district in the semi-arid region of Haryana. Mewat suffers from lack of good quality water, as it is underlain with mostly saline groundwater aquifers and surface water resources are sparse.

S.M.Sehgal Foundation is implementing a project in Nagina block covering 5 villages - Dhadola Khurd, Dhadoli Kalan, Raniyala Patakpur, Dungra shahzadpur and Bazidpur which will help increase the availability of surface and fresh groundwater resources for household and agricultural use. The proper disposal of wastewater will help improve overall sanitation and hygiene conditions in the villages, leading to better health. The interventions aimed at minimizing the leakage in the public water supply system will improve the access, coverage and equitable distribution of household water. Use of bio sand-filters will ensure removal of any bacteriological contaminants.

Watershed project in Dungarpur, Rajasthan

The Planning Commission of India has identified Dungarpur as one of the most backward districts in terms of development. The rural population completely consists of tribals and their livelihood and agricultural practices are totally dependent on natural resources like water, forest and livestock.

Anandana, in partnership with the Jan Shiksha Evam Vikas Sansthan (PEDO), has identified 10 villages of Simalwara block of Dungarpur district for an integrated watershed development project.

PEDO has so far constructed nine check dams and five farm ponds. Further, four old ponds are being renovated that together could help in creating a storage capacity of 87,340 m3 of water. A total of 2850 hectares have been chosen for the watershed development activities. This project is intended to benefit over 9,000 people from 1500 households spread over 11 villages of the district.

Watershed project in Jhansi district, Uttar Pradesh

This project is being implemented by the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), supported by Anandana. The project location comprises three villages from Babina block, with distinct transitional agro-climatic conditions in the central plateau region of Bundelkhand.

ICRISAT, in collaboration with the watershed committees and the villagers, was able undertake the following activities:

• A number of locations for harvesting surface runoff have been identified.

• Nearly 40,000 m3 of storage capacity is being developed in the watershed areas by constructing 8 water harvesting structures.

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Children’s education is among the most basic of human rights and human capabilities issues in any society. Even as India continues to grow economically, there is much cause for concern when one looks at the education and nutrition status of its children. According to the Annual Survey of Education Report (ASER) 2012, more than half of all children in Standard V were at least three grade levels behind where they should be.

The very first step to learning is having children turn up at school every day. However, school dropout rate in India continues to be high. While there are many factors that contribute to this situation, several studies suggest that lack of basic amenities like toilets and access to water contribute to the creation of an unwelcoming and non-conducive environment at schools. This leads to children not turning up at school and increased absenteeism, which finally results in children dropping out of school completely.

With a desire to change this situation, Coca-Cola, along with NDTV, UN-Habitat and Charities Aid Foundation, launched the Support My School (SMS) campaign in 2011. The campaign has twin objectives of improving school infrastructure (for sanitation, drinking water, playgrounds, campus greening and rain water harvesting) as also drawing public attention to the status of schools.

With Sachin Tendulkar as the campaign ambassador and a multimedia campaign spread across many months, SMS has

Support My School (SMS)generated tremendous interest and reached out to millions of people. NDTV led the way through impactful stories on the cause and concluded it by hosting a live 12 hour telethon for fundraising in February 2013 (this was the second such fund raising event under SMS). At the telethon, pledges worth over INR 120 million were received from several organizations and hundreds of individual donors. The funds collected were then utilized to revitalize schools across India, through the following interventions:

• Improving access to water for school children

• Improving access to sanitation (especially for girls) in schools

• Creating rain water harvesting facilities at school level

• Improving access to sports amenities and facilities in the schools

• Landscaping the school premises

The campaign has succeeded in igniting a spirit of partnership in resolving this issue. Leading corporates such as Tetrapak have joined hands with us. World Vision, Plan India, Charities Aid Foundation, SRF Foundation as also several dozen local NGOs are partnering with us. In addition to these, numerous youth organizations such as AIESEC and students of leading universities have come forward and contributed to the campaign.

In 2013, 101 schools from SMS Season – 1 were completed, while work commenced in 269 other schools of Season -2, touching the lives of over 128,000 children in 18 states over the two Seasons.

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Parivartan – Retailer training programParivartan program was started in 2007 with the aim of training traditional Kirana store owners to adapt to the changing socio-economic ethos of the country to remain competitive. Our mission through the Parivartan program is to equip traditional retailers with the skills, tools and techniques to meet consumer expectations, which are changing dynamically.

Kirana retail essentially revolves around four pillars – Customer, Stock, Shop and Financial Management. The Coca-Cola University (CCU) has developed a tailor made capacity building program around these four pillars. The two hour program is conducted in multiple vernacular languages. For impactful communication, the training is supported by a 20 minutes video depicting the life of a Kirana shop owner who learns to cope with the changing retail scenario to emerge as a better businessman. Apart from classroom training which is typically conducted in cities, the training module is also delivered

through our customized learning bus ‘CCU on wheels’ in the rural and semi – urban areas. The learning bus has enables us to reach retailers in far flung areas where classroom facilities may not be available. Currently, the Coca-Cola system has four such mobile buses.

Based on feedback received from participants, we added the 5th pillar to the Parivartan program in 2012. A practical example of Coca-Cola is used to make the participants understand the implications of the other four pillars. It helps drive home the actionables from each of the four pillars and results in improved business performance and margins for the retailers.

The response to the program has been tremendous. We trained over 58,000 retailers in 2013; this includes about 13,000 women retailers, representing a substantial increase from 2012. Since inception, we have touched the lives of close to 200,000 retailers across 3,000 cities & semi-urban areas.

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Community CollegeIn the realm of vocational training, HCCBPL has collaborated with Mumbai University and launched a first of its kind ‘Community College’ program. The program seeks to impart vocational skills to students and prepare them for a career in the FMCG sector. Successful completion of this program increases the employability of the students in the FMCG sector (including companies like HCCBPL, franchisee bottlers of the Coca-Cola System in India, retail industry, etc).

The two-year program, focuses on skill development in the areas of sales, management, retailing and merchandizing. It also includes market work for six months each year and prepares students for a career as Market Development Executives. The course is currently offered in four colleges in Mumbai. As a pre-requisite, students need to have completed senior secondary schooling. 40% of the seats are offered to girl students and those from economically weaker sections of the society.

HCCBPL has also offered experiential learning to 140 students through live market projects. The response to this program has been overwhelming.

Career Development Centre (CDC)Career Development Centre (CDC) is a part of HCCBPL’s inclusive growth agenda. The endeavor is to tap into the potential of the educated, unemployed and underserved youth of the nation by providing them with vocational training to enhance their employability. The journey started in 2011 near Dasna bottling plant (Uttar Pradesh) in partnership with NIIT Foundation and Gram Niyojan Kendra.

Since its inception and till December 2013, over 1000 youth completed their training at CDC and over 362 have been offered employment with organizations like Big Bazaar, KFC, McDonald’s, Easy Day and HCCBPL to name a few.

The initiative also aspires to be a model that can be replicated and scaled up. In 2013, ‘Being Human- The Salman Khan Foundation’ joined hands with HCCBPL to set up Career Development Centers across the country. HCCBPL plans to establish four new CDC’s in Pune (Maharashtra), Khurdha (Odisha), Ameenpur - Hyderabad (Andhra Pradesh) and Bidadi (Karnataka) in partnership with NIIT Foundation and Being Human.

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Since inception in 1990, the Limca Book of Records has aimed to seek out, encourage and applaud efforts of Indians all across the country, bringing to light achievements which might have otherwise gone unrecognized. It has been an integral part of people’s lives providing them a platform to catapult from “the usual” to “the special”.

Limca Book of Records 2013 Cinema Special Edition

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The year 2013 is special for several reasons. This year not only marks the 100 year journey of Indian cinema but also commemorated 20 years of Coca-Cola in India since its re-entry in 1993. It also began the countdown to the Silver Jubilee of the Limca Book of Records in 2014. The company commemorated 24 glorious years of the Record book by launching the Limca Book of Records 2013 - ‘Cinema Special’ edition in April, 2013. The all-new edition celebrated 100 glorious years of Indian cinema and catalogued a special Cinema section acknowledging the extraordinary achievements of 20 Indian cinematic icons as ‘People of the Year’.

With 20 refreshing and informative chapters, the 2013 edition of the record book celebrates over 10,000 remarkable achievements out of which 6,000 are new records, all showcasing extraordinary feats of Indians across the globe.

The 2013 edition salutes the remarkable contributions of the country’s unsung heroes and as well as the outstanding personalities of Indian cinema over the years who have had the spirit and the persistence to excel and follow their goal with single-minded passion - once again truly showcasing ‘India at her best’.

The 2013 edition salutes the remarkable contributions of the country’s unsung heroes and as well as the outstanding personalities of Indian cinema

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WorldProtecting the Environment

4Water StewardshipWorking to protect watersheds, reduce risks to water supplies and moving towards balancing our water use. Sustainable PackagingOur efforts to reduce our materials use, source recycled and renewable materials and build a restorative packaging system.

Climate ProtectionWorking to reduce our impacts and partnering to take action against climate change.

Sustainable AgricultureHelping to ensure a sustainable supply of ingredients, while supporting farmers and agricultural communities.

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Approach

While we may be a global company, the way we work is quite local: In most cases, we sell our products in the markets where we make them. This ‘non-export’ operational approach creates a business imperative, which complements our ethical drive, to work to ensure the sustainability of local water sources everywhere we operate. We make significant investments in the construction and operation of our production facilities. This investment must be planned and maintained in the context of a holistic understanding and engagement with the surrounding community, government, and other users of water in a given area.

Water stress is felt in many forms around the world. The risks to any particular location are a function of a number of factors including physical availability, water quality, infrastructure existence and pressure, pricing, competing use, increasing demand, climate change impacts, public sector management capacity, regulatory limits and social acceptance. As a Company reaching nearly every country, and as a consumer of water, we take seriously our commitment to be a collaborative partner and a responsible steward of this precious, shared resource.

Percentage Water Replenished

65%

2009

90%

2010

99%

2011

118%

2012

129%

2013

Water Stewardship

Global Goal: By 2020, safely return to communities and nature an amount of water equivalent to what we use in our finished beverages and their production.


Water replenishment measures the potential created for water recharge and replenish, as a percentage of all water used at our facilities.

Our bottling partners identify and implement locally relevant projects that revitalize watersheds in water deficit areas. Such projects may include – development of water harvesting structures, check dams, restoration of ponds and natural water bodies as well as supporting agricultural water use efficiency. Through regular monitoring and evaluation, we also ensure that the projects continue to deliver the intended benefits to nature and/or the local communities.

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Nalliguda tank is an artificial tank located about 24 km from Bangalore on the Bangalore-Mysore state highway. The tank has Nalliguda village to its east bank and Shettygowdana Doddi to its west bank. The tank was constructed primarily for irrigation of Bidadi Hobli. When built, it had a water spread area of about 8.9596 MCM which had been reduced to 6.3378 MCM due to siltation and sedimentation over a period of time. The western bank of the tank was polluted by drainage water from nearby settlements. The possible inflow of chemicals and pesticides into the tank from adjacent agricultural lands during monsoon aggravated the situation, since they are upstream of the tank. As a part of its water replenishment agenda, HCCBPL undertook rejuvenation of this community water body in partnership with the Department of Minor Irrigation, Government of Karnataka and the local Panchayat. It is the largest water replenishment project executed by HCCBPL in the state and is expected to create a recharge potential of 0.228 MCM annually. The tank is used for irrigation purposes by six villages covering 364.5 ha and is expected to benefit more than 2000 families in Bidadi, Bannikuppe and Kenchankuppe villages. Furthermore, afforestation activities undertaken by HCCBPL in the vicinity would also prevent soil erosion.

HCCBPL undertook the tank rejuvenation process, the main components of which are:

• De-silting of the tank• Prevention of polluted/

sewage water entering the tank by appropriate structural measures

• Improvement of catchment area• Afforestation of the area adjoining

the tank

Water conservation projects undertaken by HCCBPL

• Enhancing community awareness on the importance of tanks and water bodies and their upkeep

The rejuvenation process was aimed at increasing the tank’s water storage capacity as well as ground water recharge. As part of de-silting, over 168,000 cubic meters of soil was excavated on the western side of the tank and three artificial recharge structures were constructed on the eastern side so as to augment the ground water table. The project also involved planting of 1000 trees on the eastern side of the tank. Technical guidance for the project was provided by Central Ground Water Board and Bangalore University.

HCCBPL rejuvenated and handed over the Nalliguda Tank (popularly known as Bidadi Lake) in Bidadi, Karnataka, to the Minor Irrigation Department of Karnataka and the community on July 16, 2013. In this project, HCCBPL was assisted by Bhoruka Charitable Trust and HKV Projects.

Rejuvenation of Nalliguda Tank - Bidadi, Karnataka

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Nemam Lake, located in Poonamallee Taluk, Thiruvallur District, Tamil Nadu, had been degenerating over several decades as a result of siltation, waste-water inflow and encroachments from nearby settlement areas, adversely affecting agriculture in the area. The lake has a tank-bed area of more than 1000 acres and bund length of around 4 km, offering immense water supply potential to the community.HCCBPL undertook the rejuvenation of this vital lake. The project has been carried out in partnership with District Rural Development Agency (DRDA), Thiruvallur, Government of Tamil Nadu and ‘Siruthuli’ (NGO partner).

HCCBPL undertook the tank rejuvenation process, the main components of which are:

• De-silting of the tank bed• De-silting of supply channel• Cleaning of tank bunds

Rejuvenation of Nemam Lake - Nemam, Tamil Nadu

• Prevention of polluted/sewage water entering the tank by appropriate structural measures

• Improvement of catchment areaThe restoration of the water body is expected to create a recharge potential of 0.0881 MCM annually and benefit villagers of Nemam Panchayat, who are largely dependent on agriculture for their livelihood. The project is an example of public-private partnership and would ensure better water availability for domestic and agricultural purposes in the area.

The culmination of the project highlighted the earlier under-utilization of Nemam Lake as a water source, which now would help address the community’s irrigation requirements, maintain the ecosystem and prevent soil erosion, in addition to replenishing the ground water table in the area.

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Treated wastewater by destination

The system recycles and reuses close to 31% of the total water used.

S. No

Destina-tion

Quantity (KL)

2013 2012 2011

1 Treated and discharged at site

28,02,843 30,82, 348 33,85,876

2 Wastewater discharged to local waste water treat-ment plants

332,009 278316.00 15,050

3 Treated wastewater discharged to natural bodies

47,625 164007.00 121,925

4 Reused or recycled

14,24,108 18,20,510 15,39,859

Global Goal: Assess the vulnerabilities of the quality and quantity of water sources for each of our system’s bottling plants and develop and implement a locally relevant source water protection plan (SWPP).


All our bottling plants have undertaken Source Vulnerability Assessments (SVA) for all water sources used by them. Source Water Protection Plans (SWPP) have also been developed and systematically implemented by our bottlers in a time-bound manner to successfully mitigate any potential impacts on water sources. The total water consumption of our bottling system in India in 2013 is summarized by source, as below:

Withdrawal source

Quantity (KL) Percentage of total

Well water 5,100,900.3 63%

Surface water 2,000,334.2 24.68%

Municipal water 910,979.1 11.24%

Others 92269.8 1.14%

Total 8,104,483.4 100%

The quantity of total water used by our bottling system decreased marginally in 2013 in comparison to 2012.

Global Goal: By 2020, improve water efficiency in manufacturing operations by 25 percent compared with a 2010 baseline


Water use ratio (WUR): This parameter refers to the ratio of litres of water consumed per liter of product produced (litres per litre of beverage). Every year we invest significant sums in achieving higher efficiency in our water use. This key indicator quantifies the efficiency of water use in our operations. As on end 2013, WUR of the Indian bottling system stood at 1.98, representing an improvement of over 7% year-on-year.

Water discharge:

Global Goal: Return to the environment—at a level that supports aquatic life—the equivalent of the amount of water we use in our system operations through comprehensive wastewater treatment

Progress: On-track

Our bottling plants recycle and reuse water to the extent possible. Rest of the water is treated to stringent standards, used in secondary applications (examples gardening and toilet flushing) and the balance returned to nature at a level that supports aquatic life. The following table represents our total water discharged by our system, by destination.

Water Use Ratio2.8

2009

2.5

2010

2.27

2011

2.12

2012

1.98

2013

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Approach

It is important to us to deliver the quality beverages our consumers expect from us as sustainably as possible. We make progress toward this objective through packaging innovation, resource minimization, recyclability, and engaging consumers to join us on the journey.

Our long-term vision is to leverage our significant scale and resources to contribute meaningfully to the “circular economy,” in which materials are used and reused to constantly rebuild natural and social capital. In this system, all resources— material, energy, and human—are seen as valuable.

Sustainable Packaging

Global Goal: In partnership with consumers, industry and governments, we aim to work together to recover and recycle 50 percent of the equivalent bottles and cans we introduce globally each year by 2015


The Coca-Cola System in India offers its beverages in Returnable Glass Bottles (RGB’s), Aluminium cans, PET bottles and tetra packs. In excess of 50% of our beverage sale takes place in RGB packaging, which is completely recovered from the market (except for breakages).

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The ‘Doh-Bin’ InitiativeLaunched in late December 2013, the “Doh-Bin” initiative is a joint project of Tetra Pak and CCIPL with Indian Pollution Control Association (IPCA) as the implementing partner. Numerous studies have shown that source segregation of waste into recyclables and others is the foundation on which all good solid waste management systems are built. Hence, this pilot was launched with the idea of engaging citizens/residents of DLF Phase 4, Gurgaon (Haryana) through awareness activities for promoting source segregation of waste at households. It is expected that the pilot will also provide valuable insights on the challenges and possibilities for bringing about this behavioral change.

Global Goal: Source 25 percent of our PET plastic from recycled or renewable material by 2015.

Progress: Off-track

TCCC came out with a revolutionary new packaging material in 2009 – the PlantBottleTM. This material is made from sugarcane-based ethanol, designated as an “Advanced Renewable Fuel” by the United States Environmental Protection Agency—so its manufacture has a lower environmental impact and does not consume agricultural resources that could otherwise be used for food production.

In comparison to normal PET resin which is produced locally in India, the PlantBottle resin is not produced in India due to poor demand. Through 2013 the price differential between local PET and imported PlantBottle resin was in the range of 14-16% which made it difficult for our bottlers to absorb it in their prevailing value chain.

With bio-based MEG and finished PET resin production both located in India, we are now exploring a tie-up for local PlantBottle resin production so that the premium differential with respect to normal PET can be narrowed to 0-3% levels.

Global Goal: Improve the packaging material efficiency per liter of product sold by 7 percent by 2015.

India Progress: On Track

Packaging plays an essential role for our business in meeting consumer needs and preventing waste by protecting our products during delivery. We continuously try to make packaging more environmentally and economically sustainable. In 2008, we set a global goal of improving the packaging use efficiency by 7% by 2015. Through our sustained efforts over this period, we have leveraged technological advancement to reduce the bottle weights upto 15% on sparkling PET packages, upto 12% on Juice PET packages upto 30% on packaged water PET packs. We are rolling out these new packages in a phased manner for different pack sizes, in different markets. Likewise, over the last decade or so, we have also light weighted our Returnable Glass bottles by almost 33% in some packs.

These initiatives make good business sense but more importantly, benefit the environment and our natural resources.

Further, in some of the water SKUs (specifically the 500 ml SKU), the weight of PET used has been brought down from 15.6 grams to 10.4 grams representing a material saving of about 33%. For this, HCCBPL has focused on bottle design, type of plastic used and reduction of size of bottle necks and closures. The squeezable and collapsible features of the bottle allow folding of the water bottle, to simplify recycling.

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Waste generated in our plant operations:

The bottling system in India generated waste to the tune of 52,324 tons (including 2,951.8 tons of hazardous waste). In accordance with Indian law, hazardous waste generated has been disposed

through third party vendors authorized by the State Pollution Control Boards. 42,236 tons of non-hazardous waste generated has been sent to suitable third party recyclers. The rest of the non-hazardous waste has been disposed through suitable means (e.g., disposal at landfills etc).

Total waste generated in plants (tons)

Waste sent for recycling/recovery (tons)

Percentage waste sent for recycling/recovery

52,324.26 42,236 80.7%

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Climate Protection

In 2013, the primary energy consumption of the System decreased by about 11.1% as compared to 2012.

The following table indicates the quantity and proportion of energy used from different (primary) sources across our Indian system.

S. No Fuel Energy (MJ)

Non-renewable fuel

1 Light Fuel oil 504,909,560.7

2 Heavy fuel oil 647,848,890.2

3 Natural gas 30,581,672.99

4 Propane 81,839,121.1

Renewable fuel

5 Biomass 621,691,646.5

6 Other biofuels 61,130,202.9

Total 1,948,001,094

Energy Use Ratio (MJ/Litre)

0.84

2009

0.86

2010

0.8

2011

0.79

2012

0.72

2013

The Coca-Cola System in India has an unrelenting focus on energy efficiency enhancement across our plant operations. Our efforts have yielded significant results over the years. Energy Use Ratio, defined as the amount of energy used for producing a litre of beverage came down by about 9% in 2013 (0.72 MJ/Litre).

As a global organization concerned with the well-being of people and the planet, we believe the consensus on climate science is increasingly unequivocal – global climate change is happening and man-made greenhouse gas emissions are a crucial factor. With impacts already beginning to be felt in agriculture, human health, ecosystems, water supplies and economies themselves, we are committed to help responsibly manage our climate impacts.

Approximately 10 percent of the emissions from the Coca-Cola system’s value chain stem from manufacturing, which is the “segment” of the chain most directly in our control. While we strive to minimize the effects of manufacturing on the climate, we also want to make an impact on the other 90 percent. So we are driving collaboration with our suppliers to reduce emissions associated with our packaging, the growing of our ingredients, and the distribution and refrigeration of our products. Announced in July 2013, our goal to reduce the carbon footprint of “the drink in your hand” by 25 percent by the year 2020 demonstrates our willingness to work across our value chain to create innovative solutions for reducing climate impacts.

Global Goal: Reduce the carbon footprint of “the drink in your hand” by 25 percent by 2020.

India Progress: Metrics currently being established

To achieve this ambitious goal, we are collaborating with our partners on energy efficiency and climate-protection programs involving packaging, cooling equipment, ingredients, manufacturing and distribution.

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5Emission factors considered for primary fuels (in grams CO2/MJ: Light Fuel oil - 70.4, Heavy fuel oil - 73.5, Natural gas - 50.49, Propane - 59.4

Emission factors considered for electricity used: 912.39 g/KwH

The share of biomass in our primary energy use is steadily increasing as can be seen in the table below.

Secondary energy consumption:

Our bottling operations in the country consumed 986.89 Million MJ of electrical energy. This represents a decrease of about 9.67% from 2012 (1,092.5 Million MJ).

The following table indicates estimated emissions of GHGs and other significant gases5.

In addition to the above, we estimate that the electricity consumed in our operations resulted in the indirect emissions of 234,617.77 tons of CO2.

Year Percentage biomass use in primary fuel mix

2011 27.0%

2012 28.1%

2013 31.2%

S. No Gas Quantity (tons)

1 GHG (CO2 e) 34,739.43

2 Nitrous Oxide (N2O) 2575.232

3 CFCs 0.102

4 HCFCs 0.282

FUEL USE BY PERCENTAGE

LightFueloil

HeavyFueloil

Biomass

25.91%31.91%

33.25%

4.20%3.10% 1.50%

Propane

OtherBiofuels

NaturalGas

Total primary energy use (TJ)

1,920

2011

2,192

2012

1,948

2013

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Approach

Our products—and the world’s population—depend on a sustainable supply of agricultural crops. In order to support the more than nine billion people expected to share our world by the year 2050, agriculture must become more efficient, operate within ecological limits and address the challenges of topsoil loss, fresh water depletion and greenhouse gas emissions. Holding ourselves and our suppliers to high

Sustainable Agriculture

sourcing standards allows us to support sustainable agriculture for the long-term benefit of our Coca-Cola System in India and stakeholders, especially the farmers and communities who cultivate the crops upon which we all rely.

Global Goal: By 2020, sustainably source our key agricultural ingredients

India Progress: Metrics currently being established

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Project UnnatiMaaza is the biggest fruit based juice brand in India, contributing to about 40% of India’s total volume. Totapuri and Alphonso are the two mango varieties which form the pulp input for Maaza Juice. Total demand for Totapuri Mango pulp is growing at 20% year-on-year whereas supply growth is 2%. Mango productivity in India, at 6 tons per hectare per annum (as per figures published by the National Horticulture Board), is substantially lower as compared to other leading producers (Brazil 16.8 tons/hectare, Indonesia 10.9 tons/ hectare and so on).

In Chittoor district of Seemandhra, Project Unnati has successfully piloted the use of ultra-high-density plantations (UHDP) in mango cultivation. This proven system maximizes photosynthesis and brings new plantings to maturity in three to four years

as compared to seven to nine years in traditional farming. This farming method conserves water and land resources by utilizing drip irrigation and high tree densities in combination with specialized pruning. With 600 trees per acre (viz-a-viz 40 under traditional farming), UHDP dramatically raises productivity. The program also increases incomes of small farmers as they feed directly into the INR 5,000 crore a year (~US $830 million) Indian juice drink market, two-thirds of which is constituted by mango drinks.

Under Phase I of the project, financial assistance was provided to 200 farmers (including 87 women – contributing to the 5by20 initiative) to facilitate the development of demo-farms. Also, training on UHDP technique was provided to close to 15,000 farmers by end of 2013.

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Corporate GovernanceCoca-Cola India Private Limited is a ‘Limited’ company incorporated under the Companies Act, 1956, in India. The CCIPL Board consists of the following members, who are Whole-time Directors of the company:

1. Mr. Venkatesh Kini - President – Coca-Cola India and South West Asia

2. Mr. Sanjeev Kumar – Vice President - Finance

3. Mr. Asim Parekh – Vice President – Technical & Supply Chain

4. Mr. Devdas Baliga – Vice President – Legal

Considering various topics that are of interest to the company, CCIPL has constituted committees drawing external experts to guide the organization. Such committees, their constitution and functions are detailed below:

India Advisory Board (IAB)

The India Advisory Board (IAB) is the foremost advisory body within CCIPL. The IAB is ably led by its Chairman Mr. Naresh Chandra, who is a former Cabinet Secretary –Government of India and a former Indian Ambassador to the United States. Mr. Naresh Chandra has headed several Committees constituted by the Government of India including one on Corporate Governance and Civil Aviation. He was awarded the country’s second highest civilian award – ‘Padma Vibhushan’ in 2007. He is an Independent Director on the Boards of several well -known companies in India.

The IAB guides the management on various operational and environment-related matters to help formulate short and long term strategies. The IAB meets two - three times a year and reviews the performance

Committees under the Board

5

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of the Company in India. Other members of the Board include champions of the Indian Industry like Mr. Deepak Parekh (Chairman HDFC Limited) , Mr. SK Munjal (MD – Hero Corporate Services Limited) , General VP Malik (Former Chief of the Indian Army), Ustad Amjad Ali Khan (Eminent Musician) and Ms. Kiran Mazumdar Shaw (CMD Biocon Limited).

Advisory Council on Environment and Sustainability (ACES)

The ACES advices CCIPL and its bottlers on issues pertaining to environment and sustainability. This body is headed by General V. P Malik (retired), Former Chief of the Indian Army who has also been a member of the National Security Advisory Board, Government of India and Honorary Advisor to the Centre for Policy Research. The other members of the board are listed below and are experts from the fields of water, environment and pollution control.

• Prof. Subhash Chander (former professor – IIT Delhi),

• Dr. Saleem Romani (former Chairman – Central Ground Water Board)

• Mrs. Binoo Sen (retired IAS), • Dr. B. Sengupta (retired environmental

scientist, Central Pollution Control Board),

• Mr. Vishwanath Anand (retired IAS)

Apart from the above, Mr Kisan Mehta (ex-CEO of Coca-Cola in India) is a special invitee to the ACES. The ACES visits bottling locations and meets once every quarter

Health and Wellness Advisory Council (HWAC)

CCIPL is committed to provide its consumers a variety of hydration choices that are safe and healthy. In this endeavour we are assisted by HWAC, which guides and assists CCIPL to:

• Identify and highlight the evolving nutritional needs of Indian consumers

• Suggest viable health & wellness solutions for beverage applications; and

• Support consumer education programs that promote a healthy and active lifestyle.

The members of the HWAC and the areas of their expertise are as follows:

• Dr. J S Pai – Ex-Prof & Head of Food Technology , UDCT Mumbai

• Dr. PSM Chandran- Sports Medicine expert

• Dr. Vinay Aggarwal - Medical Science expert

• Prof. R H Singh, Professor Emeritus in the Faculty of Ayurveda at BHU, Varanasi

The HWAC meets once every quarter; the members of the HWAC understand our business, give inputs on current issues while also giving us an external perspective to such issues.

Internal Complaints committee

In 2013, CCIPL constituted an Internal Complaints Committee (ICC) in line with the Sexual Harassment of Women at Workplace Act, 2013. This committee consists of senior associates from Legal, Human Resources, Workplace Rights, Coca-Cola India Foundation & an external NGO. Employees may report any incidents of the nature of sexual harassment to this committee; the committee would conduct a fair & independent probe into the reported incident and take suitable action. Members of the ICC are as follows:

• Ms. Alpana Vartak, GM, HR, CCIPL• Ms. Shubha Sekhar, Human &

Workplace Rights Director, Global Workplace Rights

• Mr. Yogesh Chandra, CEO, Coca-Cola India Foundation

• Mr. Ish Bali, Director Legal, CCIPL• Ms. Barsha Poricha, Director – National

Foundation for India (external member)

Coca-Cola India Foundation

Coca-Cola India Foundation is registered under Section 25 of the Companies Act, 1956. The operations of the Foundation are guided by the Board of Directors, which includes:

Mr. Venkatesh KiniMr. Sanjeev KumarMr. Devdas BaligaMr. Yogesh Chandra (retired IAS)

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Coca-Cola India Foundation Advisory Board

This body was constituted under the Chairmanship of Justice (Late) Shri. J.S. Verma, former Chief Justice of India and comprises of eminent personalities who have provided distinguished service to the public, and who have expertise in fields covered by the objectives of the Foundation. The members of this Board include Dr. Mithu Alur, Dr. Shyama Chona, Ms. Diya Mirza, Mr. Bunker Roy, Mr. Roshan Seth and Dr. Naresh Trehan.

Systems to ensure and monitor ethical conduct

Integrity is fundamental to The Coca-Cola Company. Along with the other values of leadership, passion, accountability, collaboration, diversity and quality, it is a pillar of our 2020 Vision. The Coca-Cola group is one of the most admired businesses in the world - a reputation that has been enhanced and safeguarded over the years by a rich culture of integrity and ethical conduct. Our business is built on this trust and reputation. It influences how consumers feel about our products and how we are viewed by other stakeholders. With company guidelines, such as our Code of Conduct and Workplace Rights Policy, we have set standards to ensure that we all do the right thing, every time.

Code of Business Conduct and its applicability

TCCC’s Code of Business Conduct (the Code) guides the conduct of our business and all our associates. This is a single standard applicable to all Coca-Cola group operations across the globe. The Code addresses our responsibilities to the company, fellow colleagues, customers, suppliers, consumers and governments. The Code articulates TCCC’s expectation of accountability, honesty and integrity in all matters. All our associates are required to read and understand the Code and follow its precepts, both in the workplace and in the larger community. It is extremely important for us to ensure that all other businesses that we associate

with also believe in the same standards of ethical and fair behavior. We therefore have a Code of Business Conduct (COBC) for Suppliers that seeks to extend and clarify similar ethical expectations to our suppliers. Suppliers additionally are encouraged to report potential improper conduct by Coca-Cola employees who interact with them.

Anti-corruption and anti-bribery

The Coca-Cola Group is committed to doing business with integrity. The Coca-Cola Company has also incorporated a prohibition against bribery into its Code of Business Conduct. We abide by all applicable anti-bribery laws, including the U.S. Foreign Corrupt Practices Act, and local laws in every country in which we do business. Additionally as a signatory to the United Nations Global Compact, we are committed to avoiding all forms of corruption. All employees of CCIPL undergo annual training on our Anti-bribery policy. The policy has a two pronged purpose of preventing improper payments and ensuring accurate reporting of all permissible payments. This policy provides the foundation for conducting our business in a fair, ethical and legal manner. TCCC conducts periodic anti-bribery assessments and audits of its businesses worldwide to raise overall awareness, detect potential misconduct and monitor compliance with anti-corruption laws and policy.

Administration of the code

The administration of the Code is taken care of at the global level by TCCC’s Ethics and Compliance Committee – composed of members of TCCC’s senior leadership. To ensure an ongoing commitment to the Code, TCCC offers online training to all associates, which discusses topics related to ethics and compliance, including the Anti-Bribery Policy. All new hires of CCIPL receive the Code of Business Conduct training upon joining the organization. Employees are provided with multiple touch-points – including an online portal and global Ethics Hotline number to report any Code of Conduct violations.

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Reporting violations

Upon any incidents of Code of Conduct violations being reported by any associate, fair and independent enquiries are conducted by the global team with support from the territory Legal and Ethics Officer and the Human Capital team. At the end of the enquiry, appropriate recommendations are provided to the head of the relevant company.

Systems and procedures adopted by the Foundation

Grant requests from Non-Government Organizations are considered only if the proposal falls within the mission objectives of the Foundation and the applicant satisfies the Foundation on its commitment to the same. The applicant seeking the grant has to be transparent and forthcoming on its aims and objectives, financial status, performance and experience in the past. Grant requests are assessed based on:

•NatureoftheProject•ProjectFeasibility•ProjectImpact•GrantSeeker’sTrack-record

The disbursement of the funds is on the basis of the milestones set forth in the Grant Agreement between the NGO and Anandana. The Foundation ensures proper monitoring and audit of all funds sanctioned. The audit is conducted by independent auditors appointed for this purpose by the Board of Directors. In addition, the Foundation conducts periodic social audits of the projects through direct participation of the beneficiaries. This process, known as Jan Sunwayi or Public Hearing, is a tool for gauging public opinion on the project.

Each possible project undergoes a set of reviews by a Project Steering Committee that includes members of the board.

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S.No Category of the Award

Name of Organization

Award Month (2013) Location

1

World CSR Awards World CSR Day

Environment and Value Chain Management Award (5by20 program)

February Mumbai

2 Best Corporate Social Responsibility Practices Award (Support My School Program)

February Mumbai

3 Corporate Social Responsibility Leadership Award

February Mumbai

4 Individual Corporate Affairs leadership Award(

February Mumbai

5

Social Leadership and Collateral Awards

Public Relations Council of India

Social Leadership (effective management of corporate reputation)

February Hyderabad

6 Gold Award for Best Public Service Campaign( (Support My School Program)

February Hyderabad

7 Calendar and Handouts were recognized with multiple awards

February Hyderabad

8 Global SABRE Award

The Holmes Group

Awarded for Support My School (SMS) Program

November Miami

9 Abby Awards Advertising Agencies Association of India (AAAI) and The Advertising Club

Silver Award for Pro-bono Marketing (SMS Program)

April Goa

10 Abby Awards Bronze Award for Best use of sponsorship (Coke Studio and Coke Open Happiness)

April Goa

Awards and AccoladesFollowing are some awards and recognition received by the company in 2013.

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Reporting ProcessAppendix – 1

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Stakeholder group identified

Means of engagement

Key topics of interest

How we have responded

Consumers Consumers are one of the most important section of our stakeholders. Multiple touch points are available for our consumers to reach us; further, CCIPL also conducts annual consumer satisfaction surveys (please refer the section on ‘Consumer Satisfaction’ for details)

The expectations of our consumers include choice of beverages that are made available, nutritional impact of products, approach to resource sustainability and programs promoting music and sporting activities

CCIPL places utmost importance on responsible marketing and transparent communication of nutritional information relating to our products, even beyond regulatory requirements. CCIPL has also been promoting sporting activities with the view of creating awareness around the importance of leading an active and healthy life style. Full details of such initiatives have been covered in previous sections of the report.

Customers This category refers to retailers who procure stock and sell our beverage brands to our consumers. Our bottling partners are in direct contact with our customers, regularly taking stock of, and responding to their expectations.

The expectations of our customers are regularly taken stock of by our bottling partners. Topics that have been of interest to our customers include availability of energy efficient cooling equipment for our products and retailer training programs.

CCIPL has come up with an innovative cooler – eKOcool – that operates on solar power; close to 1,000 pieces of eKOcool have been distributed free of cost to women retailers over the past few years. We have also started distribution of other energy-efficient cooling equipment including CO2 Coolers, Eutectic Coolers etc. We have also been undertaking retailer capacity building through our Parivartan and Pragati programs.

As per the GRI, reporting organizations are expected to describe how they have engaged with stakeholders and responded to their reasonable expectations. CCIPL has identified its stakeholders based on the nature of its operations; the following compilation provides details of categories

Stakeholder engagement & materialityof our stakeholders, their expectations and how we engage with them.

This Report on our sustainability performance is expected to provide useful information to these below mentioned stakeholders and the community at large.

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Civil Society Organizations

Coca-Cola India Foundation funds projects focused on water conservation and renewable energy use. The nature of projects supported and criteria for funding etc have been described in the previous chapter.

We are approacheddirectly by severalorganizations for grantsfor activities in theareas our Foundationfocuses on.

Projects that have been undertaken by the Foundation in this reporting period have been described in previous sections. CCIPL has developed eligibility guidelines and grant application formats; these help the civil society organizations better understand eligibility criteria for our project funding. Social audits are also undertaken to ensure that projects meet their stated objectives.CCIPL is also supported by civil society organizations in some of our community programs like the Support My School (SMS).Furthermore, our bottling partners may also engage with locally relevant partner NGOs for needs assessment and project execution

Employees We believe that our employees are the face of the organization. There are several channels available to our employees to communicate with the company. One such key channel is the periodic employee engagement survey.

Topics of interest include training and professional growth, diversity, work-life balance etc.

We have several policies and practices aimed at employee well-being. There are several training programs at different hierarchical levels for employee development. Please refer the section on Human resources for complete details.

TCCC, which operates in over 200 countries, has identified facets of sustainability based on the nature of our global operations and what our stakeholders expect of us. This has resulted in the ‘Me-We-World’ Framework – covering key sustainability issues from the triple bottom-lines of ‘People, Planet & Profits’. This multi-pronged framework covers material sustainability issues that enhance personal wellbeing, build strong communities and help protect the environment. CCIPL believes that this framework adequately represents issues that are ‘material’ to us and all our stakeholders’ w.r.t to the India operations. Please refer the section on ‘Sustainability priorities’ for further details.

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Sustainability Performance Management across the India System

Coca-Cola is a Global group with local connects. We believe it is essential for us to ensure that our products and systems governing over operations are consistently better than what our stakeholders expect of us. As has been described in the previous sections, TCCC has put in place a host of policy interventions to facilitate this. This is also backed by a strong internal governance mechanism. Strong in-house teams from CCIPL (and TCCC) constantly engage with and assist bottlers in staying complaint to KORE and related policies/standards.

CCIPL has also rolled-out a ‘Sustainability Scorecard’ for bottlers in early 2013. The

scorecard lists all sustainability aspects applicable to bottling operations covered under our Me-We-World Sustainability framework and respective targets (yearly targets for each bottler that would in-turn help achieve the 2020 Global Commitments). The performance in relation to the scorecard targets are regularly updated by the bottlers (quarterly -on a Year-to-Date basis) and the same is shared with CCIPL. This helps the bottlers stay focused on the goals, while also helping us keep a track of our performance and provide assistance where necessary.

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Reporting boundary considered for sustainability aspectsGRI Aspect/ Category


Hindustan Coca-Cola Beverage Private Limited

Franchisee Bottlers

Anandana – The Coca-Cola India Foundation

Reason for exclusion (if any)

SOurCiNG

Sourcing Anandana does not directly procure any material or services

ECONOMiC

Economic performance

NA

Market presence

N.A

Indirect economic impacts

N.A

ENVirONMENT

Energy CCIPL’s Corporate Office (in Gurgaon) and Concentrate Plant (Pune) have been excluded since they have negligible impact. Anandana only coordinates the development of social projects and does not have any energy use attributable to itself.

Water CCIPL’s Corporate Office (in Gurgaon) and Concentrate Plant (Pune) have been excluded since they have limited water consumption. Anandana only coordinates the development of social projects and does not have any water use attributable to itself.

Emissions, effluents, waste

CCIPL and Anandana have negligible impact.

Products and services


SOCiAL - LABOr

Employment CCIPL does not track/ have control over Employment at other entities of the India System. Coverage is limited to certain facets of employment only. Anandana has very few people on its payroll and employment practices are as per TCCC’s policies.

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GRI Aspect/ Category


Hindustan Coca-Cola Beverage Private Limited

Franchisee Bottlers

Anandana – The Coca-Cola India Foundation

Reason for exclusion (if any)

Occupational Health & Safety


Training and education

CCIPL does not track training activities undertaken by other entities.

Diversity and equal opportunity

N.A.

SOCiAL – HuMAN riGHTS

Investment and procurement practices

Anandana does not make significant investments or procurements

Non-discrimination

N.A.

Freedom of association & collective bargaining

Anandana has very few people on its payroll and employment practices are as per TCCC’s policies.

Child labor Anandana has very few people on its payroll and employment practices are as per TCCC’s policies.

Forced and compulsory labor

Anandana has very few people on its payroll and employment practices are as per TCCC’s policies.

SOCiAL - SOCiETY

Community N.A.

Healthy & affordable food

Not applicable for Anandana as Anandana only undertakes community projects

Corruption N.A.

Public policy

PrODuCT rESPONSiBiLiTY

Customer health & safety


Product and service labelling


Marketing com-munication

Marketing and consumer/customer communication is done only by CCIPL.

Customer privacy

Marketing and consumer/customer communication is done only by CCIPL.

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Independent Assurance StatementIntroduction DNV GL represented by DNV Business Assurance India Private Limited (‘DNV GL’) has been commissioned by the management of Coca-Cola India Private Limited (‘CCIPL’ or the ‘Company’), to carry out an independent assurance engagement on the Company’s Sustainability Report 2013 (‘the Report’) in its printed format. The Report is prepared by the Company based on the principles of Accountability Principles Standard (AA1000APS (2008)), and the Global Reporting Initiative Sustainability Reporting Guidelines Version 3.1 (GRI G3.1) including its Food Processing Sector Supplement (FPSS).

The intended users of this assurance statement are the management of the Company. The management of the Company is responsible for all information provided in the Report as well as the processes for collecting, analyzing and reporting the information presented in the printed Report. Our responsibility in performing this work is regarding the verification of the Report only, in accordance with the agreed scope of work. The assurance engagement is based on the assumption that the data and information provided to us is complete, sufficient and authentic. DNV GL expressly disclaims any liability or co-responsibility for any decision a person or entity would make based on this Assurance Statement. Our assurance engagement was planned and carried out during September 2014 to December 2014.

Scope, Boundary and Limitations of Assurance The scope of the assurance as agreed upon with Company included the verification of the content of the Report,

prepared based on GRI G3.1 for Application Level B. In particular the assurance engagement included:• Verification of the application of Report

Content Principles set out in GRI G3.1 and quality of information presented in the Report over the reporting period 1st January 2013 to 31st December 2013;

• Review of the disclosures with respect to policies, initiatives, practices and performance described in the Report;

• Review of the Report against the requirements of Type 2, moderate level assurance engagement based on AccountAbility’s AA1000 Assurance Standard 2008 (AA1000AS (2008)),, and VeriSustain with moderate level of assurance;

• Verification of the reliability of selected GRI G3.1 performance indicators and performance information specifically related to the requirements for Application Level B.

The reporting boundary is as set out in the Report, covering sustainability performance of CCIPL, Hindustan Coca-Cola Beverages Private Limited (HCCBPL), Anandana – the Coca -Cola India Foundation and Franchise Bottling Operations (FBO) in India.

Our engagement did not include assessment of the financial disclosures, adequacy or effectiveness of Company’s strategy or management of sustainability related issues. During the assurance process, we did not come across limitations to the scope of the agreed assurance engagement. No external stakeholders were interviewed as part of this assurance engagement.

78


Verification MethodologyThis assurance engagement was planned and carried out in accordance with AA1000AS (2008) i.e. Type 2, Moderate and using DNV GL Protocol for Verification of Sustainability Reporting (‘VeriSustain’ - www.dnv.com/moreondnv/cr/; available on request); the protocol includes principles of GRI3.1 and AA1000 APS. As part of the verification, we have challenged the sustainability related statements/claims made in the Report and assessed the underlying systems and processes for adherence against the three AccountAbility Principles set out in the Accountability Principles Standard AA1000 APS (2008) as referred under the ‘Scope of Assurance and Limitations’ of this Statement.

The report has been evaluated against the following criteria: • Adherence to the principles

of Inclusivity, Materiality and Responsiveness, as well as Reliability of specified sustainability performance information, as set out in AA1000AS (2008);

• Adherence to additional principles of Completeness and Neutrality, as set out in VeriSustain;

• The principles and requirements of GRI G3.1 for an Application Level B+.

• During the assurance engagement, we have taken a risk-based approach; that is, we have concentrated our verification efforts on the issues of high material relevance to Company’s business and its stakeholders. In doing so, we have:

• Reviewed the Company’s approach to stakeholder engagement and its materiality determination process;

• Verified the sustainability-related statements and claims made in the Report and assessed the robustness of the data management system, information flow and controls;

• Examined and reviewed documents, data and other information made available by the Company;

• As part of our verification, we visited CCIPL’s Corporate Office at Gurgaon, HCCBPL (Ahmedabad, Bidadi and Pune), FBO (Gurgaon, Rajahmundry Chata and Dankuni) and Anandana project sites in Rajasthan India.

• Conducted interviews with key representatives including data owners and decision-makers from different functions of the Company;

• Performed sample-based reviews of the mechanisms for implementing the company’s sustainability related policies, as described in the Report;

• Performed sample-based checks of the processes for generating, gathering and managing the quantitative data and qualitative information included in the Report.

ConclusionsIn our opinion, based on the scope of this assurance engagement, the Report provides a fair representation of the Company’s sustainability related disclosures i.e. strategies, management system and performance. The Report, along with the referenced information meets the general content and quality requirements of the Company’s self-declared Application Level B+, as per GRI G3.1.

We have evaluated the Report’s adherence to the following principles on a scale of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’:

AA1000AS (2008) PrinciplesInclusivity: The Company engages in direct and indirect dialogue with key stakeholders to identify emerging issues through different channels. The material issues emerging from the stakeholder engagement were collected and prioritized, and the results are fairly reflected in the Report. In our view, the level at which the Report adheres to this principle is “Good”.

Materiality: The Company has reported its material issues of significance to CCIPL, HCCBPL and FBO under ‘Me-We-World’ covering the personal well-being, community and environmental aspects. The identified material issues are adequately covered in the Report. In our view, the level at which the Report adheres to this principles is ‘Acceptable’.

Responsiveness: We consider that the Company’s response to key stakeholder concerns, through its policies and management systems including

79


governance are fairly reflected in the Report. In our view, the level at which the Report adheres to this principle is ‘Acceptable’.

Reliability: The majority of data and information verified at Corporate Office and at site were found to be accurate. Some of the data inaccuracies identified during the verification process were found to be attributable to transcription, interpretation and aggregation errors and the errors have been corrected. Hence in accordance with the Type 2, moderate level assurance engagement, we conclude that the specified sustainability data and information presented in the Report are generally reliable. In our view, the level at which the Report adheres to this principle is ‘Acceptable’.

Specific evaluation of the information on sustainability performancesWe consider the methodology and processes for gathering information developed by the Company for its sustainability performance reporting to be appropriate and the qualitative and quantitative data included in the Report, was found to be identifiable and traceable; the personnel responsible was able to demonstrate the origin and interpretation of the data and its reliability. We observed that the Report presents a faithful description of the Company’s sustainability activities.

Additional principles as per VeriSustainCompleteness: The Report has fairly attempted to report or respond the sustainability strategy, management approach and sustainability performances against the GRI G3.1and FPSS for Application Level B+. The omissions and commitments to future reporting of partially reported aspects and performance indicators that are material within the Company’s reporting boundary are adequately explained. In our view, the level at which the Report adheres to this principle is ‘Good’.

Neutrality: The Company has reported its sustainability issues and performance in a neutral tone, in terms of content and presentation. In our view, the level at which the Report adheres to the principle of Neutrality is ‘Good’.

Opportunities for ImprovementThe following is an excerpt from the observations and further opportunities for improvement reported to the management of Company and are not considered for drawing our conclusion on the Report; however, they are generally consistent with the Management’s objectives:• The future reports may bring out the

impacts of material issues on short, medium and long term for the entities in its sphere of control and influence.

• To further strengthen the quality and reliability of sustainability-related environmental performance data, a routine system of data verification (an internal audit process) may be initiated across all entities of the Company;

• A system of periodic communication by individual business may be evolved, to disclose key sustainability performance disclosures in the website for the benefit of stakeholders to enable informed decisions.

DNV GL’s Competence and IndependenceDNV GL is a global provider of sustainability services, with qualified environmental and social assurance specialists working in over 100 countries. While we did conduct other second party and third party assessment work with CCIPL in 2013, in our judgement this does not compromise the independence or impartiality of our assurance engagement or associated findings, conclusions and recommendations. The DNV GL assurance team was not involved in the preparation of any statements or data included in the Report except for this assurance statement. We maintain complete impartiality towards any people interviewed as part of this assurance.

For DNV GL

Nandkumar Vadakepatth Project Manager,

Head – Sustainability and Climate Change Services,DNV Business Assurance India Private Limited, India

Prasun KunduAssurance Reviewer,

Global Service Responsible - Social Accountability Services,DNV Business Assurance India Private Limited, India.

11th December’ 2014, Bangalore, India.

80


indicator Section Name Disclosure status

Page

1. Strategy and Analysis1.1 Strategy and analysis Message from the

President Full 6

1.2 Description of key impacts, risks and opportunities

Risks and opportunities1

Partial 15

2. Organizational Profile2.1 Name of the organization Organizational

overview - Introduction to the Coca-Cola System in India

Full 11

2.2 Primary brands, products or services Well-Being Full 222.3 Operational structure of the organization Organizational

overview - Introduction to the Coca-Cola System in India

Full 11

2.4 Location of organization’s headquarters Organizational overview - Introduction to the Coca-Cola System in India

Full 11-13

2.5 Number of countries where organization operates

Organizational overview - Introduction to the Coca-Cola System in India

Full 13

2.6 Nature of ownership and legal form Organizational overview - Introduction to the Coca-Cola System in India

Full 11-13

2.7 Markets served (geographic/types of customers) Organizational overview - Introduction to the Coca-Cola System in India

Full 13

2.8 Scale of the reporting organization Message from the President;

Full 6

2.9 Significant changes during the reporting period Organizational overview - Introduction to the Coca-Cola System in India

Full 13

2.10 Awards received in the reporting period Awards and accolades – Corporate Governance

Full 70

3. report parameters3.1 Reporting period About this report Full 13.2 Date of most recent report Report for the year

2012, published in 2013Full N.A

3.3 Reporting cycle About this report Full 1

1Information on sustainability targets, trends and key risks have been presented across the relevant sections of the report

GRI IndexAppendix – 2

81



Page

3.4 Contact point for questions regarding the report About this report Full 13.5 Process for defining report content Reporting process Full 13.6 Boundary of the report About this report Full 13.7 Scope limitations About this report Full 13.8 Reporting of activities not under operational

controlAbout this report Full 1

3.9 Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report

Explained under the various sections where data has been provided

Full N.A

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/ periods, nature of business, measurement methods)

References to use of ‘Stevia’ as a sweetening agent have been presented in the previous reports. CCIPL clarifies that Stevia is not used in India.

Full N.A

3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report

Organizational overview – Introduction to the Coca-Cola System in India

Full 13

3.12 Table identifying the location of the Standard Disclosures

This table Full N.A

3.13 Assurance approach About the report Full 14. Governance, Commitments, and Engagement4.1 Governance structure of the organization Corporate Governance Full 66 - 684.2 Indicate whether the Chair of the highest

governance body is also an executive officerFull 66

4.3 Independent board members Full 66 - 684.4 Mechanisms for shareholders and employees to

provide recommendationsN.A Not

applicable – CCIPL is a wholly owned

subsidiary of TCCC

N.A

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance

N.A A substantial percentage

of the ‘Variable pay’

for senior employees is linked to the performance

of the company

N.A

4.6 Processes in place to avoid conflicts of interest Corporate Governance Full 68 - 694.7 Process for determining the qualifications

and expertise of the members of the highest governance body

Corporate Governance Partial 66 - 68

4.8 Mission, values, codes of conduct and principles Strategy and Vision Full 94.9 Procedures for board overseeing management

of economic, environmental and social performance

Corporate Governance Full 66 - 68

82



Page

4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.

N.A KPI’s for the Board’s

performance and

assessment of the same is done by

TCCC.

N.A

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization

About the report Full 1

4.12 Endorsement of charters, principles or other initiatives

Please refer to the Company’s 2012 report available in the Company’s website (pages 12 – 14)

Full N.A

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy in relevant organizations

Full N.A

4.14 List of stakeholder groups engaged by the organization

Reporting process Full 72 - 73

4.15 Basis for identification and selection of stakeholders with whom to engage

Full 71

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group

Full 72 - 73

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Full 72 - 73

DMASourcing Sourcing Product & Ingredient

Safety; Human and Workplace Rights

Full 24 33

Economic Economic performance Human Capital Full 39Market presence Human Capital Full 39Indirect economic impacts Creating Sustainable

CommunitiesFull 43

Environment Energy Climate Protection Full 62Water Water Stewardship Full 55Emissions, effluents and waste Climate Protection;

Water Stewardship; Sustainable Packaging

Full 625559

Products and services Sustainable Packaging Full 59Labour Employment Human Capital Full 39

Occupational Health & Safety Workplace Safety Full 35Training and education Human Capital Full 39 - 40Diversity and equal opportunity Human Capital Full 39Equal remuneration for women and men Human Capital Full 39

Human rights

Investment and procurement practices Human and Workplace Rights

Full 33 - 34

Non-discrimination Human and Workplace Rights; Human Capital

Partial 33- 3439

Freedom of association and collective bargaining Human and Workplace Rights

Partial 33 – 34

Child labor Human and Workplace Rights

Partial 33 – 34

Prevention of forced and compulsory labor Human and Workplace Rights

Partial 33 – 34

Assessment Human and Workplace Rights

Full 33 – 34

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Page

Society Local communities Creating Sustainable Communities; Water Stewardship (SWPP)

Full 4355

Corruption Anti-corruption and anti-bribery

Full 68

Product responsibility

Customer health and safety Well-Being Product and Ingredient Safety

Full 21 – 2224 - 25

Product and service labelling Well-Being Full 21 - 22Marketing communications Well-Being Full 21 – 22Customer privacy Well-Being Full 21 - 22

Performance indicatorsSourcingFP1 Percentage of purchased volume from suppliers

compliant with company's sourcing policy.Respect human & workplace rights – Human rights in procurement practices

Partial 33

FP2 Percentage of purchased volume which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard.

Product & Ingredient Safety

Full 24

Economic performanceEC2 Financial implications and other risks and

opportunities for the organization's activities due to climate change

Climate Protection Partial 62

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

Human Capital Full 39

EC4 Significant financial assistance received from government

Nil; Coca-Cola India Private Limited does not receive any financial incentives/assistance from the government.

Full

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation


EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation

Human Capital (100%) Full 39

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.


Full 43 - 53

Environmental PerformanceEN3 Direct energy consumption by primary energy

source.Climate Protection Full 62 - 63

EN4 Indirect energy consumption by primary source. Climate Protection Full 63EN5 Energy saved due to conservation and efficiency

improvements.Climate Protection Partial 62 - 63

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives


Full (eKOcool)

28 - 29

EN8 Total water withdrawal by source. Water Stewardship Full 58EN9 Water sources significantly affected by

withdrawal of water.Water Stewardship Partial 57 - 58

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Page

EN10 Percentage and total volume of water recycled and reused.

Water Stewardship Full 58

EN16 Total direct and indirect greenhouse gas emissions by weight.

Climate Protection Full 63

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Climate Protection Partial 62 - 63

EN19 Emissions of ozone-depleting substances by weight.


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


EN21 Total water discharge by quality and destination. Water Stewardship Partial 58EN22 Total weight of waste by type and disposal

methodSustainable Packaging Full 61

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Water Stewardship; Sustainable Packaging; Climate Protection

Partial 54 - 63

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

Sustainable Packaging Full 59

LabourLA1 Total workforce by employment type,

employment contract, and region.Human Capital Partial 41

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


LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.


LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.

Workplace Safety Partial 36

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Workplace Safety Full 37

LA10 Average hours of training per year per employee by employee category

Human Capital Partial 40

LA11 Programs for skills management and lifelong learning programs


LA12 Percentage of employees receiving regular performance and career development reviews.


LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group members

Corporate Governance Partial 66 - 68

LA14 Ratio of basic salary of men to women by employee category.


LA15 Return to work and retention rates after parental leave, by gender.


Human rightsHR1 Percentage and total number of significant

investment agreements that include human rights clauses or that have undergone human rights screening

No new investments/ contracts were made in the reporting perios

N.A N.A

85



Page

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Human & workplace rights

Full 33

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Human & workplace rights

Partial 34

HR4 Total number of incidents of discrimination and actions taken.


HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

Human and Workplace Rights

Partial 33 - 34

HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor


Partial 33 - 34

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.


Partial 33 - 34

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.


Full 33

SocietySO1 Nature, scope, and effectiveness of any

programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

Water Stewardship (SVA & SWPP)Creating Sustainable Communities

Partial 5843 - 47

SO9 Operations with significant potential or actual negative impacts on local communities

Water Stewardship (SVA)

Partial 58

SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Water Stewardship (SWPP)

Full 57 - 58

SO2 Percentage and total number of business units analyzed for risks related to corruption.

Anti-Corruption and anti-Bribery

Partial 68

FP4 Nature, scope and effectiveness of any programs and practices (in-kind contributions, volunteer initiatives, knowledge transfer, partnerships and product development) that promote healthy lifestyles; the prevention of chronic disease; access to healthy, nutritious and affordable food; and improved welfare for communities in need.

Well-being Full 21 - 25

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures.

Anti-Corruption and anti-Bribery

Full 68

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

No aid given for political purposes

Full N.A

Product responsibilityPR1 Life cycle stages in which health and safety

impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Well-BeingProduct & Ingredient Safety

Partial 21 – 2224 - 25

86



Page

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Well-being (Market Responsibly)

Partial 21 – 22

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.


Full 24 - 25

FP5 Percentage of production volume manufactured in sites certified by an independent third party according to internationally recognized food safety management system standards.


Full 24

FP6 Percentage of total sales volume of consumer products, by product category, that are lowered in saturated fat, trans fats, sodium and sugars.


Partial 24

FP7 Percentage of total sales volume of consumer products, by product category sold, that contain increased fiber, vitamins, minerals, phytochemicals or functional food additives.


Partial 24

FP8 Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements.

Well-being (Market Responsibly)

Full 21 - 22

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.


Full 25

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Well-being Full 21 - 22

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.


Full 25

87


What is in a Coca-Cola?

http://www.facebook.com/cocacola

http://twitter.com/cocacola

CONSUMER HELPLINE

1800-208-2653TOLL FREE

[email protected]

Natural Flavours They contribute to the unique taste of Coca-Cola.

Caramel ColourBrown colored caramel is the 3rd most commonly used Color in processed food industry. It gives Coca-Cola its characteristic color.

Ca�eine Ca�eine is found naturally in tea leaves, co�ee beans and cocoa beans. It can also be man made. 200 ml of Coca-Cola contains about 20 mg of ca�eine, which is less than 1 cup of Tea and significantly less than 1 cup of Co�ee.

Water 89%Most people get about 80% of total fluids each day from drinking water and other beverages, with the other 20% coming from food. Coca-Cola contains > 85% water, which can help contribute to meeting of daily fluid needs.

Sugar 11% A glass bottle (200 ml) of Coca-Cola contains 22 gram of sugar. It is available in fruits, vegetables, and also in daily food.

CarbonationCarbonation puts the “fizz” in sparkling beverages. A major part of carbon dioxide escapes when the beverage container is opened before being sipped. It is also present in some mineral waters. For centuries, carbonated beverages have been thought to help ease indigestion, or stomach upset, but more studies are needed in this area.

Phosphoric acidIt is used to regulate acidity and give Coca-Cola its tangy taste. You can find phosphorus in milk, cheese, meat, bread, breakfast cereals, eggs, nuts, fish, juice drinks, soy-based beverages, soft drinks, low-calorie soft drinks and sports drinks.

Thi

s 200 ml pack contains88

kcal

88


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

Documents

Happiness Coca-Cola India Sustainability Report 2013 Our Mission Our roadmap starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard