17
SUSTAINABILITY REPORT 2008 CONTENTS Results – 2008 2 Foreword by the Managing Director 3 About Coca-Cola Drycker Sverige AB 4 Strategy 6 Product & Market 9 Environment 14 People 20 The Coca-Cola Company 26 GRI 30

SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

  • Upload
    hanhi

  • View
    213

  • Download
    0

Embed Size (px)

Citation preview

Page 1: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

SUSTAINABILITY REPORT 2008

CONTENTS

Results – 2008 2

Foreword by the Managing Director 3

About Coca-Cola Drycker Sverige AB 4

Strategy 6

Product & Market 9

Environment 14

People 20

The Coca-Cola Company 26

GRI 30

Page 2: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

2 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 3

RESULTS – 2008

2005 2006 2007 2008 Development Goals Read more

Product & Market

Sales (Millions of litres 325,9 353,3 360,7 372,1 Page 5 beverages per year)

Customer satisfaction 0,1 -0,4 0,6 -0,5 Page 6 (Grocery chains´overall opinion of Coca Cola Drycker Sverige as a supplier)Scale of +2 to -2 where 0 is the average for the industry Consumer complaints 1,55 1,04 0,57 0,42 Goal 2009: 1,4* Page 12 (number per million filled packaging units)Quality index, product 97 96 98 94 99 Page 12

Employees

Absence due to sickness 6,8 7,8 6,5 6,2 Page 20(%of total working hours)

Industrial injuries (resulting in 2,0 1,1 1,9 1,5 0,5 Page 21sick leave, number per 100 employees)

Satisfied employees Not measured 74 Not measured 78 Page 20(commitment index, according to staff survey)

Equality 20 20 22 21 Page 22(proportion of female employees, %)

Environment

Water consumption 2,33 2,26 1,93 1,88 1,65 Page 15(litres per litre of beverage We are aiming to be produced) water neutral Carbon dioxide emissions 25187 23583 23217 16858 15554 Page 17(total, number of tonnes) We are aiming to be climate neutral

Energy use 0,46 0,43 0,43 0,40 0,32 Page 18(MJ per litre beverage)

Waste disposal 97,6 98,4 97,3 98,8 99 Page 16(proportion recycled, %)

Capacity utilisation 96 96 93 92 Improved Page 18(Long-distance transport fuel efficiencyfrom Jordbro % of tonnage) Greater proportion of renewable fuels * From the beginning of 2009 all complaints that we receive will be counted, i.e. including those that prove not to be legitimate.

Important progress 2008

Local spring in Hanveden for the production of our Bonaqua spring waterSince September 2008 we have been drawing our spring water from a local spring just two kilometres from our plant. This is reducing carbon dioxide emissions by 164 tonnes per year, compared to transporting pre-packaged water from Norway as we did in the past.

Proud and committed employeesOur staff survey shows that our employees are increasingly satisfied with their jobs. The employee satisfaction index has gone up from 74 (2006) to 78 (2008).

Award-winning improvement workIn 2008 we implemented around 2,600 improvement measures within our organisation. Coca-Cola Drycker Sverige was proud to receive the Alan G. Robinson Award 2008 as Sweden’s top company in improvement work.

Certification of work environment management according to OHSAS 18001As a result of several years of focusing on work environment issues, we have obtained certification according to the international standard for systematic work environment management, OHSAS 18001.

Reduced carbon dioxide emissionsElectricity with the Good Environmental Choice (Bra Miljöval) label, new vehicles, more “smart refrigerators” and training in eco-driving for all drivers and sales staff have reduced our carbon dioxide emissions.

More products with no added preservativesDuring the year we launched the new Coca-Cola Light and Coca-Cola Zero with no added preservatives. The goal is for all of our soft drinks to be free from preservatives.

Facts about the ReportText: Goodpoint ABDesign: Grand Plan ABPhotos: Stefan Nilsson, Fredrik Persson,Coca-Cola Drycker Sverige ABPrinting: HS GrafiskaClimate Compensation: Coca-Cola Drycker Sverige has compensated for the carbon dioxide emissions gener-ated by paper production, printing and distribution of this sustainability report by investing in quality-assured com-pensation projects of the highest standard within the UN’s CDM system which is governed by the Kyoto Protocol. This involves reducing carbon dioxide emissions by the same amount as those generated through, for example, renew-able energy production in China and India.

The role of compa-nies in the global and local commu-nity is changing. And this is hap-pening fast. The financial crisis and global environmen-tal disasters are the result of the fact that old principles for growth no longer hold up. Companies have a significantly larger and more impor-

tant role as community builders and the winners will be those with the ability and above all the desire to change and make a difference. And we have this at Coca-Cola Drycker Sverige. Our business will be sustainable in the long term. Taking our responsibility seriously is also something our stakeholders expect of us.

At Coca-Cola Drycker Sverige we know that it is pos-sible to achieve sustainable growth. In 2008 we increased our sales volume by 3.2% while at the same time step-ping up our sustainability efforts. We are going to continue to maximise our yield for our shareholders, but without compromising our all-important social responsi-bility. Today we are facing a number of challenges in the sustainability area – global warming, insufficient natural resources and disease. Our ambition to be a leader requires us to set high goals for our sustainability work in areas such as product safety, responsible supplier chains and satisfied employees. Coca-Cola Drycker Sverige has actually worked with sustainable development for a long time, without giving it a name or working in such a systematic way as we are doing today.

2008 was a good year for us. We succeeded in reducing our water and energy consumption as well as our carbon dioxide emissions. All energy in the form of electricity and heating comes from renewable sources. Since 1 January 2008 we only purchase electricity with the Good Environmental Choice (Bra Miljöval) label. In 2008 we were also the first food producer to become a member

of the Swedish climate network, BLICC, Business Leaders Initiative On Climate Change. Accordingly, we are now increasing our efforts to become both water and carbon dioxide neutral in the future, and I am convinced that we will succeed. At the same time our sustainability work has proved to be profitable; we have actually saved a lot of money by reducing our resource consumption and waste production.

In 2008 there was intense debate on the benefits of locally produced goods and local raw materials. Many believe that our products come pre-packaged from a distant land, which is not the case. Almost all of our beverages are produced in Jordbro. The most important ingredients are water from Lake Mälaren and sugar from Skåne in the south of Sweden. In 2008 we also started drawing spring water for our Bonaqua water from the local spring in Hanveden just two kilometres from the production plant.

Our most important resource is, of course, our entire staff and I am happy to say that the results of our most recent staff survey show that we have committed employees whose job satisfaction is increasing. It is also the strength of our employees and their desire to achieve constant improvement that is the foundation of all of our sustainability efforts. During the year we implemented no less than 2,600 improvement measures within the com-pany and as a result of these focused efforts we received the Alan G. Robinson Award 2008 as Sweden’s top com-pany in the area of improvement work. I think this shows that in our company anyone with an idea or a suggestion can actually be heard influence and change our company for the better.

I thought I would conclude with the most important thing, namely the importance of doing the right thing and constantly thinking along new lines to avoid getting stuck in a rut. If we succeed with this, we will achieve our ambition of becoming a leader.

Göran Holm, Managing Director Coca-Cola Drycker Sverige AB.

Sustainability –a prerequisite for growth

Page 3: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

4 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 5

AB

OU

T C

OC

A-C

OLA

DR

YC

KE

R IN

SW

ED

EN

Coca-Cola Drycker Sverige AB was estab-lished in 1997. The company’s operations consist of production, distribution, marketing and sales of products from The Coca-Cola Company. The products are sold to corporate customers such as grocery retailers, hotels, restaurants and cafés, and sales are also generated by renting and selling beverage vending machines.

The head office, production, warehouses and distribution are located in Jordbro, Haninge, just south of Stockholm.

About Coca-Cola Drycker AB in Sweden

Ownership structureCoca-Cola Drycker Sverige AB is a wholly-

owned subsidiary of The Coca-Cola Company and, together with around 20 other beverage companies, is part of BIG, Bottling Investment

Group. BIG has 60,000 employees.

Coca-Cola Drycker Sverige AB 2008Average number of employees: 830 (92% of which are full time and 95% are permanent staff).Net sales: SEK 2.8 billion.Sales volume: 370 million litres of beverages.

Executive management Coco-Cola Drycker Sverige 2008.From left, standing: Maria Fransson, Secretary to the Managing Director; Håkan Lager, Business Development Director; Anna Greisz, Production Director; Bengt Lagerman, Finance and Administrative Director; Robert Lulek, Legal Counsel and Jens Ohlsson, Commercial Director. From the left, seated: Peter Bodor, Public Affairs and Communications Director; Zorica Bodiroza, HR Director; Göran Holm, Managing Director; Karla Sahlin, Operational Marketing Director and Peter Schill, Distribution and Logistics Director.The Board of Directors and executive management consist partly of the same individuals because Coca-Cola Drycker Sverige is a wholly-owned subsidiary of The Coca-Cola Company. The Chairman of the Board is Göran Holm. Two of the Board members are employee representatives.

There are regional sales offices in Malmö, Gothenburg and Umeå and around ten distribution stations at various locations around the country. At the production plant in Jordbro, one of the most modern in Europe, products are manufactured for the Swedish market. Around 1 mil-lion litres of beverages are produced daily.

Our historyPharmacist John Pemberton invented the world’s most famous soft drink in 1886 in Atlanta, USA. While experi-menting to find a cure for headaches he instead con-cocted a formula that would become Coca-Cola. Shortly thereafter The Coca-Cola Company was founded.

Coca-Cola came to Sweden in 1953, although people here were already familiar with the beverage.

At first Coca-Cola was sold exclusively in the classic glass bottle at cafés, restaurants, kiosks and shops. In the 1960s the aluminium cans were introduced. Today we have a broad range of beverages in a variety of containers.

Coca-Cola Drycker Sverige is a market leader in the soft

drink segment in Sweden with a market share of over 50%. Soft drinks, and in particular Coca-Cola, account for the

largest portion of our sales, while juice is one of the fast-est growing categories.

In 2008 we launched a number of new beverage flavours and in April we introduced the new Coca-Cola Light, entirely free of preservatives.

Page 4: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 7

Our stakeholders’ expectations guide usWe live in a constantly changing world where we want to make a difference and participate in the development of a sustainable society. This requires an understanding of what is happening in the world around us.

Coca-Cola Drycker Sverige has a broad spectrum of stakeholders. Their requirements and expectations are what guide us in our sustainability work and they are reflected in the content of this report. The information in the report also covers areas where the company has a significant impact on sustainability, such as product information, water consumption and emissions of carbon dioxide, as well as employee issues.

Dialogue with customers In 2008 special meetings were held with several key customers in the grocery retail and restaurant sectors to allow us to describe our sustainability work and learn about future requirements and expectations.

Every year we study how satisfied our corporate

customers are with us as a supplier through a customer satisfaction index. In 2008 one of our most important customer groups, grocery retailers, ranked us in seventh place overall among 20 suppliers, the same ranking as in 2007. In terms of the environment and ethics, we have climbed up the ranks among both grocery retailers (from 18 to 11) and convenience retail customers (from 13 to 1).

Leader in Sustainable DevelopmentOne of our strategic goals is to be a leader in safety, quality, environment and corporate re-sponsibility. Our sustainability work must be at the forefront if we are to achieve our Vision 1 – 1 “beverage for everyone in Sweden every day, everywhere, always – profitable and sustainable.”

Through internal discussions we have identified the stakeholders and players we particularly need to listen to from a sustainability perspec-tive. We have an ongoing and open dialogue with our stakeholders to keep ourselves updated on their requirements and expectations.

Employees

Indu

stry

org

anisa

tions

Customers

Consum

ers

Shar

ehol

ders

Non-governmental

organ

isatio

ns

Suppliers

Authorities

Med

ia

Discussions and

surveys among

employees,

information

meetings,

union work

Meetings, customer

surveys, cooperation

and development projects

Consum

er and attitude

surveys, consumer

contact, field

trips and the

experience

centre

Rep

ort

ing

and

re

gul

ar d

ialo

gue

Cooperation

locally

with

Mentor S

verig

e,

globally

with W

WF

Assessment, cooperation and

development projects

Regular dialogue with

municipalities

and bodies such

as the Swedish

National Food

Administration Reporting

to the municipal

environmental authority

Op

en a

nd c

ontin

ual

dia

log

ue

Coo

pera

tion

with

the

Swed

ish

Food

Fed

erat

ion,

Bre

wer

s

of S

wed

en, R

etur

pack

(dep

osit

syst

em),

UN

ESD

A (U

nion

of E

urop

ean

Beve

rage

s A

ssoc

iatio

ns),

amon

g ot

hers

STR

ATE

GY

A Local model in environmental workHaninge municipality, a local model in environmental work, is working actively on energy issues and is taking part in the Swedish Energy Agency’s Sustainable Municipality pro-gramme. This is a long-term project to make the entire municipality sustainable. The project includes cooperation

with the industry, where Coca-Cola Drycker Sverige is an important player and employer.

Coca-Cola Drycker Sverige is at the forefront with its environmental work and we are happy to highlight the company as a good example here in our municipality. We are discussing cooperation on sustainable shipping solutions and the future local energy supply with the company.

Jeanette Flodqvist,Environmental Strategist Haninge municipality

Common valuesHere at Coca-Cola Drycker Sverige we have a set of val-ues that we live by – both as a company and as individu-als. Our values go through our organisation and form the basis for our sustainability work. Our six values are: Act, Improve, Teamwork, Respect, Personal Leadership and Enjoy. You can read about how our values are applied in our day-to-day work in this report.

Sustainable growthAt Coca-Cola Drycker Sverige we aim to maximise our yield for our shareholders, but without compromising our all-important social responsibility. We are aiming for sus-tainable growth, and in 2008 we increased our net sales by 2.3% at the same time as we stepped up our sustain-ability work which covers all of the company’s activities. We are focusing on the long term and delivering what our customers and consumers want today at the same time as we are developing the products of tomorrow.

Local responsibilityCoca-Cola Drycker Sverige has firm local roots as one of the biggest companies in the Haninge municipality. We are assuming our responsibility in the local community, both in terms of our physical impact on the environment and our role as an employer and business enterprise in the municipality. We work in cooperation with both Haninge municipality and the regional social insurance office.

A full 60% of the Swedish population paid attention to the big advertising campaign of the year.

Page 5: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

8 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 9

STR

ATE

GY Effective processes for

constant improvementOne prerequisite for living up to our ambition of being a leader is that we operate efficiently and constantly make improvements. In order to meet the ever-increasing expectations of our customers we need to make changes to our working methods. We need to think along new lines and find new solutions.

Health and wellbeing are becoming increasingly impor-tant to our consumers. More and more people are asking for information about energy and nutritional content as well as a declaration of ingredients and additives used. Demand is also increasing for health-profiled and natural products as well as for ethical and green products. We are constantly developing our range and are closely following the research into consumer needs and wishes. Another important mission is to support an active lifestyle in various ways.

Sugar from Skåne and water from a local springOur beverages are made from pure and natural raw ma-terials. The sugar comes from sugar beet grown in Skåne and the water is largely from Lake Mälaren. Starting in the autumn of 2008 our spring water is drawn from a local source.

No unnecessary additivesOur aim is to produce pure and natural beverages without unnecessary additives. This is a long-term effort in which we are investing substantial amounts in research, devel-opment and production equipment. As a result, in 2008 we started manufacturing Coca-Cola Zero and Coca-Cola Light without preservatives. The goal is for all of our soft

drink brands to be free from preservatives.Another type of additive that has been questioned,

particularly in the media, is artificial colouring agents. So-called azo dyes and Quinoline Yellow were banned in Sweden in the past but are now permitted within the EU and are used in products such as beverages and confec-tionary. There are no azo dyes in our beverages. Quinoline Yellow is used in one of our sports drinks. We are looking

into alternatives to replace it.Research and facts about sweetenersThe most common artificial sweetener, aspartame (E951), has been tested in various scientific studies over a period of 20 years and no negative effects on health have been shown in these studies. Since aspartame is 200 times sweeter than sugar only small amounts are needed to give a beverage a sweet taste. Our sugar-free products provide an alternative for diabetics and people who want to reduce their calorie intake. Many people also drink our products sweetened with sweeteners because they like the taste.

PR

OD

UC

T &

MA

RK

ET

Great beverages for all tastesCoca-Cola Drycker Sverige is constantly developing products and ranges based on the needs and wishes of the consumers and based on research into the health aspects of our beverages. We produce and sell great beverages of high quality which meet the high stan-dards of social and environmental responsibility.

“We believe that, with a well balanced diet and regular physical activity, there is room to enjoy the food and drink we like – in appropriate quantities.”

Interdepartmental cooperationThe ultimate responsibility for sustainability work within Coca-Cola Drycker Sverige lies with executive manage-ment. On 1 January 2008 we formed a new Business Development department, which will manage the areas of security, quality, environmental and work environ-ment from a company-wide perspective. The purpose is to take a holistic approach and integrate sustainable practices into our business processes. As a tool in this process we are using a “lean” method called Operational Excellence. Cooperation between departments and processes will be increased at the same time as we will focus on our quality, environment and work environment goals. A guiding principle in this work is also one of our values – Teamwork.

“8 types of waste”In the autumn of 2008 we launched our first Operational Excellence initiative. About 50 employees were work-ing in interdepartmental groups to identify areas where improvements were needed. We used the “8 types of waste” tool to perform this task, which involves simply making more while using less. Waste could be wasted time and natural resources, as well as other forms of inefficiency. For us, this is sustainable development in a nutshell. These efforts resulted in a number of proposed

improvement projects from which management selected seven to work on further in a first phase. One example is a project where we are reducing the amount of water used in bottle rinsing.

Award-winning improvement workOne of our values is about continuous improvement. Our employees have invaluable knowledge of our business. In 2008 we implemented more than 2,600 improvement measures within the company! For these efforts Coca-Cola Drycker Sverige received the Alan G Robinson Award 2008 as Sweden’s top company in the area of improvement work. The motivation was as follows: “For their focused and targeted improvement work which, with the support of C2, has had lasting and powerful results.”

Certified working methodsWe have been building systematic and structured work-ing methods for many years. With a management system that is adapted for our business we can guarantee the high quality of our products and that we are working to prevent and avoid any deviations. Our management sys-tem is based on ISO and OHSAS as well as the Coca-Cola Management System which has ambitious guidelines and frameworks which apply to the entire Group.

During the year Coca-Cola Drycker Sverige took a big leap forward in the working environment area. As a result of many years of focusing on working environment issues we have been certified according to OHSAS 18001. We have success-fully passed audits relating to the en-vironment – ISO 14001, and qual-ity – ISO 9001. In 2009 our goal is to implement the ISO food safety standard ISO 22000 and PAS 200.

Important progress in 2008:• New tools for improvement work:

Operational Excellenceand 8 types of waste.

• The Alan G. Robinson Award 2008 as Sweden’s top company in the area of improvement work.

• Work environment management certification according to OHSAS 18001.

Page 6: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

10 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 11

Responsible marketing and sales

To avoid ethical grey zones in our marketing, we test advertising ideas on various target groups. However, during the year Coca-Cola Drycker Sverige was reported and found guilty by Sweden’s Trade Ethical Council of sexual discrimination in advertising for the commercial for Coca-Cola Zero called “The Break-up.” Naturally it is important not to cross the line, at the same time Coca-Cola Zero in particular is a brand that needs to stand out. This unfortunately sometimes leads to the disapproval of certain consumers, which we regret.

We do not target children or schools in our market-ing. Within the Group there are also clear guidelines and rules for marketing different brands/product cat-egories. In 2008 sales of energy drinks to young people was discussed in the media. Our policy is not to market energy drinks to children and teenagers under the age of 14. We state on the packaging that the product is not recommended for women who are pregnant and people with high sensitivity to caffeine. One energy drink (25 cl) contains about two thirds as much caffeine as a strong cup of coffee (15 cl).

Production information for informed choicesTo make it easier for consumers to make well-informed and conscious choices, we are constantly developing our product information. One example is GDA, Guide-line Daily Amount. The GDA label states the product’s energy content and the various nutritional ingredients in one serving as a percentage of the recommended daily intake. In 2008 GDA labelling was expanded to include all Coca-Cola products within the EU. Studies show that around 40% of Swedish consumers are familiar with GDA, i.e. there is room for more communication about the benefits of GDA. GDA labelling is voluntary and supple-ments the information that is required by Swedish law.

Successful campaign: Cold FactsA full 60% of the Swedish population paid attention to the largest advertising campaign of the year which conveyed the message that Coca-Cola is and has always been produced without any preservatives or artificial flavourings. Studies show that the campaign has clearly improved the consumers’ opinion of both the company and our products.

Ecological Coca-Cola?Today we have no products with eco-labels or ethical labels. One reason is that it is difficult to combine large volumes and high and even quality standards with access to ecological raw materials. We are constantly develop-ing our products to meet the desire for more natural contents. We maintain high standards throughout our en-tire range with respect to our environmental and ethical responsibilities and we work actively with our suppliers.

PR

OD

UC

T &

MA

RK

ET

Bonaqua – local spring water Can we continue to drink bottled water without having a bad conscience about the environment? Yes, says Anna Boestad Froom, Category Development Manager at Coca-Cola Drycker Sverige.“We all have a responsibility to make climate-smart choices and it’s important to look at things in a larger context to make the right priorities. A Swede’s consumption of bottled water contributes 3.1 kg of carbon dioxide per year, which is equivalent to drying one load of laundry in a tumble dryer or driving a car for 18 km*. As sales of Bonaqua Silver have increased we have been looking for a spring so that we can offer high-quality, locally produced water.” “Now we are drawing our spring water from the Hanveden spring, just a couple of kilometres away. The water is piped directly into our plant. This reduces our carbon dioxide emissions by 164 tonnes a year, com-pared to transporting pre-packaged water from Norway as we did in the past. Our new water production process has faced a number of challenges. Water is a sensitive product and in order to produce first-class spring water at a soft drinks plant we need to have extra stringent standards for things like hygiene and quality assurance. Several reconstruction projects were also necessary at the plant. Our next challenge is to inform the consumers about the spring close to our plant and show them the environmental benefits of Bonaqua. (*Source: Swedish Environmental Research Institute, IVL, water life cycle analysis).

Anna Boestad Froom, Category Development Manager for water at Coca-Cola Drycker Sverige

It is, of course, important that we market and sell our products in a responsible and appropriate way. We are constantly developing our product information and we comply with the relevant legislation and guidelines for marketing

Important progress in 2008:• New Bonaqua – local spring water.

• More products with no added preservatives.

• Greater customer satisfaction. Grocery retail and convenience retail customers ranked us higher than in 2007 with respect to our environmental and ethical profile.

Page 7: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

12 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 13

PR

OD

UC

T &

MA

RK

ET

2005 2006 2007 2008 Goal 2009*

2,0

1,5

1,0

0,5

0

Goal* From the beginning of 2009 we are counting all complaints received, i.e. including those that prove not to be legitimate. Number of consumer complaints per million filled packaging units

Number of consumer complaints per million filled packaging units.

1,55

1,04

0,57

0,42

1,4

2005 2006 2007 2008 Goal Goal 2009 2015

90

80

100

97

85

96

91

9899 99

9495

94

98 98

Product Packaging unit

Quality index (product and packaging unit)

Highest level of ambition for quality and safetyBeing able to generate the highest quality and product safety for our beverages is extremely important to us. The very small number of consumer complaints and good results from our extensive quality tests are proof that we are succeeding.

MAX wants to be the better alternativeThe MAX hamburger chain has taken the position as the most responsible company in the industry. Among other things, President Richard Bergfors was named as the Green Capitalist of the Year 2008 by the business journal Veckans Affärer. According to Pär Larshans, HR and Sustainability Director at Max, focusing long term is an important success factor for the future.

“We want to be at the forefront and offer consumers a better alternative. And we are convinced that over time we will get back our sustainability investments. Companies that do not take responsibility issues seriously will have no customers or people working for them in 20 years. Suppliers are important partners in sustainability work. MAX looks at the entire value chain and compensates for carbon dioxide emissions, including those from suppliers, by planting trees. The water issue is the most important one for beverage suppliers,” says Pär Larshans.

“Coca-Cola has achieved an impressive improvement in efficiency in its water use and Swe-den has become somewhat of a role model! In the future I would like to see Coca-Cola con-tinuing to develop and supply stronger concentrates and special water purification solutions, particularly in developing countries where the shortage of water is already and will continue to be the main resource issue in the future.”

All of the ingredients in all of our products comply with the food legislation in effect in each of our markets. A large number of laboratory tests are routinely carried out on the beverages. Water and packaging are also subject to stringent tests and studies. The Coca-Cola Company quality management system provides an important basis for our work on product quality and food safety. HACCP, the international standard on food safety, plays a part and covers risk analysis, identification of critical control points and preventive action plans.

Few consumer complaintsProof of our high product quality is provided by the fact that we receive few consumer complaints. In 2008 the number of complaints was reduced further, to 0.42 per million filled packaging units. The most common reasons for complaints are packaging defects or a problem with the carbon dioxide content. There have been no proven cases of contamination causing illness up to now.

International quality indexThe Coca-Cola Company conducts random tests every month where inspectors purchase products in shops and cafés etc.

The beverages are sent to a central laboratory in Brus-sels for analysis. Parameters such as net content, date stamping, bottle cap torque are graded and weighted in a packaging quality index. Sugar and carbon dioxide content, appearance and taste are some of the param-eters that make up the product quality index.

The product quality index has declined slightly com-pared to 2007. One of the reasons is a number of in-stances of low carbon dioxide content in the PET bottles. This is partly due to the new, thinner PET bottles and a change in distribution patterns.

The packaging quality index has improved compared to 2007. The main reason for this is the phasing out of the refillable PET bottles. In the past several problems arose from the use of worn bottles.

Pär Larshans, HR and Sustainability Director forMAX

Reference samples are saved from all production series to be able to compare, for example, with beverages that have been returned in connection with a complaint.

Page 8: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

SUSTAINABILITY REPORT 2008 15

Beverages made from natural and local raw materialsA full 89.5 of a Coca-Cola actually consists of water. In Sweden this means water from Lake Mälaren. Most of our beverages are produced in Jordbro outside Stock-holm and even our main ingredients are local. Since September 2008 we have been using a local spring for our spring water located only 2 km from our production plant. This has resulted in a significant environmental improvement as the water was previously transported from Norway. Another example of local and natural raw materials is the sugar which is grown in Skåne and trans-ported by rail to the production plant. In 2008 we used 34,350 tonnes of sugar and a total of around 585 million litres of water.

Reduced water consumption – good businessWater is the main ingredient in all of our products and we use this valuable resource as efficiently as possible.

Responsible use of resources

Water is our most important resource From a global per-spective, water is the earth’s most critical resource and essential for Coca-Cola plants around the world for production, cleaning and hygiene. We are lucky to have such a good supply of water

of such a high quality in Sweden. But we still have a responsibility for using this resource as efficiency and responsibly as possible and for returning it to nature without polluting it. We will continue to work to further improve the efficiency of our water consumption and we are aiming at 1.65 litres per litre of beverage produced by 2015.

We have managed to reduce our water consumption by changing from refillable PET bottles (returnable bottles). This has reduced our water consumption by around 20 million litres per year, which is equivalent to an annual sav-ing of around SEK 165,000 for water supply and drainage. By fine-tuning the pressure and time for rinsing bottles before they are filled, we have reduced water consump-tion by around 14 million litres a year.

Coca-Cola Drycker Sverige also takes responsibility for the “end of pipe” environmental impact. We are care-ful about what goes out through our drainage system and into the municipal treatment works. Our waste water does not fully meet the standards of the Stockholm Water Company (Stockholm Vatten) for process waste water. The main issue is the pH value which can affect the pipes in the system. Every fifth year we inspect and film the existing waste drainage network as a preventive measure and to ensure that an altered pH value is not affecting the pipe system. This inspection was last carried out in 2008.

EN

VIR

ON

ME

NT

2005 2006 2007 2008 Goal Goal 2009 2015

2,5

3,0

2,0

1,5

1,0

0,5

0

Water consumption, litres per litre of beverage produced. Since 2002 our water consumption per produced beverage has fallen by 26%. The global goal is to be water-neutral and for the company to give back every drop of water we use for our beverages.

Johanna Schelin, Environmental Coordinator,Coca-Cola Drycker Sverige

Important progress 2008:• Local spring in Hanveden for

our Bonaqua spring water.

• Reduced carbon dioxide emissions through electricity with the Good Environmental Choice label, new vehicles, increased percentage of “smart refrigerators” and eco-driving training for all drivers and sales staff.

• First food producer in BLICC (Business Leaders Initiative on Climate Change).

“We have a responsibility to actively contribute to sustainable development, which means, among other things, that we must use common resources with consideration and as efficiently as possible.”Göran Holm, Managing Director of Coca-Cola Drycker Sverige.

2,262,33 1,88 1,80 1,65The Hanveden spring is just two kilometres from our production plant in Jordbro.

1,93

Page 9: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

16 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 17

All of our product packaging materials can be reused or recycled. PET bottles and aluminium cans are part of Re-turpack Sverige’s recycling system. In Sweden 85% of all PET bottles and 91% of cans on the market are recycled. New bottles are made from the recycled ones as well as other products such as pens and fleece sweaters. Today a full 50% of the material in our 0.5 litre PET bottles con-sists of recycled plastic – a market-leading statistic. We have also reduced the weight of our PET bottles.

When the bottles arrive at the plant in Jordbro they look like small test tubes before they are inflated into bottles of the desired size. Thus shipping is more ef-ficient because no unnecessary air is being transported. The transition from refillable PET bottles (returned bottles) to recyclable PET bottles has also reduced the transport requirement by 60%.

Life cycle perspective for our packaging

Our waste – a resource for othersCoca-Cola Drycker Sverige aims to produce beverages while being as economical as possible with resources, and with less waste and more recycling. Our source-sepa-rated waste is a resource that other players are prepared to pay for. We therefore sort our waste very carefully. In 2008 we achieved a recycling level of 98.8%. The total amount of waste was reduced by a full 40% from 2001 to 2008 through improved sorting options, clear signs, a new eco-station and ongoing information and training, to mention some.

New warehouse management system to reduce wasteBeverages that have to be discarded constitute an un-necessary and costly form of waste. In 2008 we started working on introducing a new warehouse management system (WMS) for better management and control of production and stocks.

Sharp reduction in carbon dioxide emissionsIn 2008 Coca-Cola Drycker Sverige received help in examining and verifying carbon dioxide emis-sion calculations. The results show that total carbon dioxide emissions have been reduced by 5,400 tonnes and direct emis-sions by around 6,400 tonnes since 2004. This is equivalent to a reduction of 60.2% (direct emissions and business travel) or 24.3% if indirect emissions are included (commuting, energy consumption for refrigerators, transporting waste and raw materials). The reduction is explained, among other things, by the transition to electricity with the Good Environmental Choice (Bra Miljöval) label, new vehicles in the sales fleet, eco driving training, new energy efficient refrigerators and improved efficiency in the distribution and production processes.

Smart refrigerators save energyCoca-Cola Drycker Sverige owns both refrigerators and beverage vending machines which are placed on our customers’ premises. Today around 23% of a total of 35,000 refrig-erators are so-called “smart refrigera-tors.” They

register how often and when the refrigerator is opened and closed and adjust the refrigeration accordingly. This reduces energy consump-tion by up to 40%. We are gradually introducing more energy efficient refrigerators, and today all the large ones we purchase are “smart refrigerators.” We are also testing new energy efficient solutions for other beverage equipment.

Impact of Coca-Cola Drycker Sverige on the climate in 2008. Breakdown of different sources (percentage of total emissions). “Other climate impact” includes energy consumption from refrigerators and leakage of cooling agents from refrigeration units.Energy consumption at the factory is barely measurable and is therefore not shown in the diagram.

Other climate impact 38 %

Distance heating< 0,01 %

Own vehicles 19 %

Business trips 5 %

Commuting 4 %

Shipment of goods 34 %

Aiming for climate neutrality

We are working actively to reduce the environmental impact of our packaging by looking at the entire life cycle. The aim is to increase the percentage of recycled materials in our packaging and to reduce the overall weight.

Global warming is an enormous challenge. To reduce emis-sions of the greenhouse gases that impact the climate, we are focusing on making production more energy efficient, on green transport solutions and on smart refrigerators.

Bra Miljöval (Good Environmental Choice) is the ecolabel of the Swedish

Society for Nature Conservation. Electricity with this ecolabel

always comes from renewable energy sources – from sun, wind,

water or bio fuel.

The goal is to reduce total carbon dioxide emissions by 30% by 2015, based on the 2004 level, and to be entirely climate neutral in the future.

2005 2006 2007 2008 Goal Goal

2009 2015

25 000

30 000

Carbon dioxide, total tonnes

20 000

15 000

10 000

5000

0

2321

72518

7

2358

3

1685

8

1660

0

1555

4

EN

VIR

ON

ME

NT

Page 10: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

18 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 19

BLICC, Business Leaders Initiative on Climate Change, was launched in 2000

and is a network of companies from different sectors that are working

actively to reduce their own impact on the climate and towards having

industries and a society with zero climate impact.

Sustainable ambitions are important to ICAFor ICA collaboration with suppliers who conduct strategic sustainability work is important.“It gives us the ability to offer our customers a broad range that they can feel good about,” says Kerstin Lindvall, Environment and Social Responsibility Manager at ICA Sverige AB.“Clearly-defined ambitions, goals and measures for the value chain in which we operate are important criteria that are required of suppliers.” According to Kerstin Lindvall, for a company like Coca-Cola the climate is the most important environmental issue to focus on – both the water issue and greenhouse gases. “Here at ICA we have learned about the sustainability work at Coca-Cola Sverige and it is clearto us that they have a very solid foundation. We are looking forward to seeing how Coca-Cola acts in the future on issues such as water neutrality and refrigeration equipment in retail outlets.”

“Through commitment and concrete good examples, Coca-Cola Drycker Sverige is demonstrating its effec-tive climate work in which the company is combining climate and commercial benefits. The companies that assume their responsibility for the climate are the winners in the future,” says Respect CEO Ebba Lindsö.

Act – one of our values.

More beverages with fewer kWhThe energy consumption per litre of beverage produced has been reduced from 0.46 MJ in 2002 to 0.40 MJ at the end of 2008. The goal is to achieve 0.32 MJ/litre by 2015. Examples of measures implemented to improve energy efficiency are:• Recycling heat produced in production, returning it to ventilation systems• Reducing the indoor temperature by 1 – 2 degrees and adjustment of ventilation for optimal operation, saving 859 MWh, which is equivalent to around SEK 560,000 (SEK 650/MWh).• Long-life fluorescent lamps save two lamp replace-ments over a ten-year period, which is equivalent to around 4,000 light fittings, a saving of around SEK 850,000 and a reduction in carbon dioxide emissions of around 2 tonnes (including transport, waste and packaging).• All energy in the form of electricity or heating comes from renewable sources. Since 1 January 2008 we only purchase electricity with the Good Environmental Choice (Bra Miljöval) label, which reduces carbon dioxide emis-sions by around 3,664 tonnes per year. Process heat and heating for buildings comes from the Drevviken thermal power station in Jordbro which burns bio fuel.

The first food producer in BLICCCoca-Cola Drycker Sverige is the first food producer to become a member of the Swedish climate net-work, BLICC – Business Leaders Initiative On Climate Change. Membership in BLICC provides us with unique opportunities to share our knowledge and learn from other companies, but also to help get more companies involved through debate. “No industry can claim that it has a greater right to generate emissions than any other and no industry can do everything, but all of us can do

something,” says Göran Holm, Managing Director of Coca-Cola Drycker Sverige AB.

Aiming for green transport solutionsEvery day one million litres of beverages are transported from the central warehouse in Jordbro to our 13 distri-bution stations around the country for distribution to our customers or are transported directly to customers. Empty bottles, raw materials and other products are transported to our plant in Jordbro as well as beverages produced in other countries for the Swedish market. Certain shipments go by truck, others by rail. Reducing the environmental impact of transports is a high priority and the aim is to improve fuel efficiency and increase the amount of renewable fuel used.

Through the commitment of our drivers we reduced fuel consumption per 100 km driven by 5% in 2008, from 3.32 litres to 3.15 litres. All of our drivers are trained in efficient driving, so called Heavy Eco Driving, and we also set individual goals for our drivers.

We are constantly striving to improve distribution efficiency through route planning and optimised capac-ity utilisation. In 2008 capacity utilisation was reduced by from 93% to 92% for long-distance transports leaving Jordbro. All 60 distribution trucks in our fleet meet the standards of EURO class 2 and most are EURO class 3.

Kerstin Lindvall,Environment and Social Responsibility Manager atICA Sverige AB

EN

VIR

ON

ME

NT

Page 11: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

20 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 21

Satisfied and committed employeesOur staff surveys show that our employees are increas-ingly satisfied with their work. The employee index has improved from 74 (2006) to 78 (2008). Low staff turnover is one indication that our employees are happy.

Rights and working conditionsEmployee rights are explained in The Coca-Cola Company’s “Workplace Rights Policy” and for us, ensur-ing that these rights are upheld is a matter of course. In 2008 an audit of our operations was carried out to as-sess to what extent workplace rights were being upheld. Areas under scrutiny included discrimination, work hours, wages, safety and health as well as collective agree-ments. The results showed that the employees were well informed about their rights and they felt that we as their employer encouraged commitment to and participa-tion in the company’s operations. The audit also led to improvements being made to our overtime routines.

Cola-Cola Drycker Sverige has a collective agreement with the trade unions called Unionen and Livsmedelsar-betarförbundet (Swedish food workers union) and holds regular co-determination meetings. All employees are covered by the collective agreement and in 2008 we drew up a new wage agreement with the food workers union in which our wages exceed those in the current collective agreement for the food industry. With respect to wage equality between men and women, women earned 3% more than men within the group of employ-ees under the collective agreement. In 2008 we had no incidents involving discrimination.

Active Lifestyle – fitness for the body and soulHealthy employees are an important cornerstone in our sustainability work. Within our “Active Lifestyle”

programme we are working actively with wellness and preventing ill health. The programme has three important components: massage, health profit exam and physical exercise. The wellness grant has been increased and a new system of wellness coupons was introduced dur-ing the year. A policy has also been drawn up to define what an ergonomic workplace should look like. It states, among other things, that employees working more than six hours a day at a computer monitor are entitled to an ergonomic packet (desk with adjustable height, flat screen monitor, roller mouse and wrist support).

Active Lifestyle does not necessarily mean only physi-

cal exercise; it also takes into account psychological wellbeing. This may mean that employees can get away to see an exhibition or just experience something new in their spare time. To encourage the employees to lead an active lifestyle we have introduced a competition where teams of employees win exercise and activity points.

In 2008 a health survey was conducted for employees linked to Jordbro. Because the survey is conducted every other year, we were able to compare the results. The results show that our employees are focusing more on health and exercise.

A safe work environmentA safe work environment is a high priority for us. We have become better at identifying and reporting risk areas. Once every quarter we carry out safety inspections with subsequent follow-up with the local and central safety committees. In 2008 there were no legal transgressions. We are also now better at identifying and reporting near-accidents. In 2008 428 near-accidents were reported. By identifying these we can prevent actual accidents and industrial injuries from occurring. Our work on constantly improving the work environment and reducing the risk of work injuries has produced good results. Injuries are both fewer and less serious. One important milestone in 2008 was the receiving of the work environment certification according to OHSAS 18001.

We are also concerned with ensuring that our driv-ers have a good work environment. During the year we worked with Brewers of Sweden’s work environment project to improve goods receiving processes among

Industrial injuries resulting in sick leave measured as number per 100 employees.

2005 2006 2007 2008 Goal 2015

2

1,5

1

0,5

0

Focus on employeesCoca-Cola Drycker Sverige wants to be an attractive employer with informed, committed and competent employees. With employees who are healthy and involved we will be in a strong position to achieve our Vision 1 and step up our sustainability work. That’s why we are working continuously on improving the daily lives of everyone working for us. This includes focusing on issues such as working conditions, diversity, work environment, competence development and wellness.

PE

OP

LE

SMAKCoca-Cola Drycker Sverige uses a

model to increase participation and improve production known by the Swedish

acronym “SMAK” which translates as Safety, Environment, Working Environment and

Quality. The model is based on the requirements in the management system and on internal control using check lists.

The teams on the various production lines must carry out their own risk analysis and

quality control in order to become “SMAK” certified.

Greater mobility from blue collar to white collar jobsJohan Claesson, Coca-Cola Drycker Sverige’s chairman of the Swedish Food Workers’ Union, points out how important it is for a modern, attractive employer to be able to offer, among other things, development opportunities for the employees. In this regard, he sees major differ-ences between Coca-Cola Drycker Sverige now and in the past.“Now we see good examples of employees who have worked both within Production and Warehouse and have gone on to new white collar jobs. Some have even become managers. Something else that Johan feels promotes opportunities for development among the employ-ees is the Operational Excellence method, which aims, among other things, to improve cooper-ation between departments, read more on page 8.“I have noticed that this working method also brings opportunities for development. And we have only seen the beginning. There is plenty of potential left to exploit.”

Absence due to sickness (percentage of total working hours).

2005 2006 2007 2008

4

7

8

3

6

2

5

1

0

Johan Claesson,Coca-Cola Drycker Sverige AB´s chairman of the Swedish Food Workers’ Union (LIVS)

Important progress 2008:• Employee index improved

from 74 (2006) to 78 (2008).

• 81% of the employees gave a positive response in the staff survey when asked about diversity and fairness.

• Industrial injuries have gone down from 1.9 (2007) to 1.5 (2008).

6,8 7,8 6,5

1,91,1 1,5

6,2

The employees have access to our fitness centre at the Jordbro plant.

2,0 0,5

Page 12: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

22 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 23

retailers and restaurants: “Five steps one lift – for the work environment.” Briefly, this means that the industry will ensure that there will be no more than five steps to climb in connection with deliveries. We want to reduce musculo-skeletal disorders among our drivers through discussions with our customers about new solutions to improve receiving conditions.

Most development takes place in everyday work situations Each position within the company has an “expertise star” where the employee and his/her superior together discuss which parts of the job the employee needs to develop and which parts the employee can perhaps teach others about. In our development reviews in 2008 we focused on highlighting the fact that a large portion of competence development and learning takes place in everyday work situations.

Each employee has a personal business plan – also called MAP. In consultation with the employee’s immedi-ate superior individual goals are set for the year ahead. The idea is that this will provide a common theme linking the company’s business plan with the employee’s goals. Every year the employee’s performance is reviewed and development is linked to salary. Assessments are based on three aspects: • Day-to-day work in relation to job description• Observance of the company’s values• Extent to which individual goals are met

Our managers also assess how well the employees match up to the qualities in the manager profile.

Diversity in practiceAccording to the 2008 staff survey 81% of the employ-ees gave a positive response with respect to diversity and fairness. The response to the question about if the employee felt that the company was consistently treat-

ing everyone fairly reflected an improvement of 15% from 2006. A full 88% also felt that the company was endeavouring to create an environment that respects diversity and equality. Work on creating a new diversity plan started in 2008 and will be concluded in 2009. An

important element in the new plan is that the concept of diversity will be broadened from focusing mainly on equality to also emphasise important aspects such as age and ethnicity.

The average number of employees during the year was 830, of which 21% were women, which is a marginal de-crease compared to the previous year. The percentage of female managers and sales staff increased in 2008. The percentage of female seasonal workers also increased.

We are working continuously with equality issues to make Coca-Cola Drycker Sverige more attractive as an employer of women.

Showing respect for each other is part of our value system. A concrete example is the “spiritual rooms” we have built so that our employees have a place where they will not be disturbed while, for example, praying, meditating or making important phone calls.

What does a responsible employer look like to you?

How do the company’s values permeate the day-to-day work at Coca-Cola Drycker Sverige?

“Teamwork and individual leadership are clearly visible here. Everyone is committed and wants to perform.”Malin Tuvesson, Category Project Leader

“Everyone respects and helps each other. There is a positive atmosphere and we openly express different opinions. People are encouraged to take action when something is wrong.”David Sturrock, Full Service Vending Operator

“Teamwork inspires both satisfaction and develop-ment. We learn from each other every day.”Emina Qundos, Team Leader Preparation

“At management level they are good at making use of the employees’ various abilities and qualities for the benefit of everyone.”Jim Engman, Internal Sales

“In order for me to be happy at work I think it’s important that my employer takes overall responsibility for the products we produce, deliver, sell and market”Sandra Bjurström, Class III Coordinator

“A responsible employer is interested in what is happening and gives support where it’s needed, listens to the staff and ensures that everyone has an opportunity to develop.”Mikael Helgesson, Line Technician S10

“A responsible employer goes down to the individual’s level and makes use of the mosaic of skills and expertise.”Rifat Falay, Loading/Sorting Manager

Respect – one of our values

“For me our values represent freedom with responsibility. This makes it possible to take action and make your own decisions.”

Fredrik Johansson, Key Account Sales

“I think it’s important for an employer to show confidence in the employees. Allowing people to take responsibility and to participate enables them to grow.”Christine Frenning, Personnel Officer

“That’s a very broad concept. One important aspect is finding a way to balance work and spare time.”Åsa Lundbäck, Accounting Manager

Cooperation with the social insurance office in HaningeCoca-Cola Drycker Sverige is investing in preventive measures to reduce absence due to sickness. When employees are on sick leave we focus on their work situation and, to improve the chances of a speedy return to work, Coca-Cola Drycker Sverige has designed its own rehabilitation process. We are also working closely with the social insurance office in Haninge. “We have a very good partnership in which Coca-Cola takes responsibility for rehabilitation in an exemplary way. The person on sick leave works with Coca-Cola to draw up a rehabilitation plan,” says Louise Gunnarsson at the social insurance office in Haninge.

With their knowledge of the company’s operations the employees are key players in our improvement work. This is Johan Waller who works in one of our production teams.

PE

OP

LE

Page 13: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

24 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 25

Good ethics in all business transactionsActing honourably and honestly is a fundamental prin-ciple at Coca-Cola Drycker Sverige. Our Code of Busi-ness Conduct provides firm guidelines for how to act responsibly towards each other, our customers, suppliers, consumers and the authorities. All new employees are informed about our ethical guidelines. In practice these address issues such as protecting corporate informa-tion, managing documents, honest product information, bribes and contacts with suppliers.

“The fact that we are getting involved like this makes me feel, if possible, even more proud of working at Coca-Cola.”

“Today has been great fun and it feels fantastic that we can make a contribution and do something as meaningful as we have done today.”

“It’s fantastic that we are doing this. I’m proud of being part of this and proud of Coca-Cola. Well organised and arranged. An eye-opener in many ways. Thanks!”

Responsible relationships and good partnerships

Responsible supplier chainOur relationships with customers and suppliers are based on trust. That is why we build long-term partnerships with both customers and suppliers who share our values and ethical principles.

As a supplier we are careful to live up to the require-ments and expectations of our customers in our busi-ness relations. We expect the same from our suppliers. Our contracts stipulate that our suppliers are to comply with our “Supplier Guidelines” which summarise our

requirements and emphasise good working conditions according to the environment and workplace legislation in effect. Among other things, we require our suppliers to comply with laws and regulations relating to manufactur-ing, safety, discrimination, working conditions, freedom of association and collective agreements.

In the procurement of materials and services we fol-low environmental, quality and working environment standards. To help with this process, our purchasers have check lists containing requirements that must be met and evaluation criteria that should be met. With the aim of influencing our suppliers, we are constantly making our requirements more stringent. The suppliers are evaluated annually with respect to quality, the environment and sys-tematic working environment

Unique collaboration with the Volunteer Agency and MyrornaIn February 2009 we had a Volunteer day in cooperation with the Volunteer Agency and the Myrorna charity shop chain. This was a way for us to do something to benefit the community and to put our social responsibility into practice. The Volunteer Agency coordinates volunteer contacts and the unique thing in this case is that they were working with such a large company with 800 em-ployees. We worked with Myrorna to set up an outdoor market, sort donations and collect them from private individuals, organise various information tasks, clean premises, work with clothing and food donations for the homeless and contact companies to encourage them to increase their cooperation with Myrorna.

An evaluation of the Volunteer Day showed that the employees had a very positive opinion of it.

We want to be a responsible member of society that makes a difference. Therefore, how we act on a daily basis towards each other and the world around us is important. Sometimes this involves unexpected elements, forexample when we held our Volunteer Day in cooperation with the charity shop chain Myrorna.

The local community in focus in a pioneering collaborationWe didn’t decide to work with Coca-Cola Drycker Sverige until after we had studied their sustainability work. Their sustainability work is serious and at the forefront and they want to make a difference, which is something we are happy to encourage. A crucial factor was also their intention for the proj-ect, which are in line with both our values and theirs. The Volunteer Day was a concrete attempt to really do something to benefit society by getting involved in the local community. Coca-Cola was result-oriented throughout the project and the community benefited from the employees’ efforts to the tune of around SEK 6.4 million. This partnership was the first of its kind in Sweden and it clearly shows the way forward. Johan Oljeqvist,

Managing Director Myrorna

Voices from employees during the Volunteer Day.

Eva Okmian, one of the Coca-Cola Drycker Sverige employees who took part in the Volunteer Day.

PE

OP

LE

Page 14: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

26 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 27

The Coca Cola Company is the world’s larg-est supplier of carbonated beverages, juice, fruit beverages and ready-to-drink coffee and tea products. The company markets a total of almost 500 different brands and more than 3,000 products.

The Coca-Cola Company works in partnership with more than 300 independent bottling companies around the world.

The Coca-Cola Company produces and sells bever-age concentrates and is also responsible for consumer marketing globally. Apart from beverage distribution, the bottling companies are also responsible for customer marketing and sales in their respective local markets.

Through partnerships with bottling companies the busi-ness can operate globally while at the same time being firmly rooted in local communities. The company’s size and global reach carry with them a large responsibility.

Partners

Profit

Portfolio

Planet

People

PeopleEmployees: Everyone working for The Coca-Cola Company will be treated with respect. In 90% of more than 200 countries production operations use local employees and local ingredients.

PartnersCooperation partners: Effective and evolving cooperation with suppliers and stakeholders.

ProfitValue: Maximising value for shareholders while showing consideration and taking responsibility.

PlanetEnvironment: A leader in terms of responsible use of water, efficient packaging and less impact on the climate.

PortfolioPortfolio: Beverages of the highest quality, throughout the entire range of more than 3,000 products.

THE

CO

CA

-CO

LA C

OM

PAN

Y

We can make positive differenceTaking responsibility and working for sustainable development are crucial if The Coca-Cola Company is to be prosperous. Today consumers are not merely choosing products based on flavour and quality, but also based on a company’s values and social responsibility. With operations throughout the world and brands that almost all people recognise, The Coca-Cola Company has both a large responsibility and an opportunity to make a positive difference. This is something we are striving to achieve every day! Much of our sustainability work takes place in cooperation within our local bottling companies throughout the world. Coca-Cola Drycker Sverige is a good example and a driving force in the area of sustainability – which I as a Swede am naturally very proud of.

Jacob Wallenberg,Board memberThe Coca-Cola Company

Through the world’s largest beverage distribution network, our products are consumed around 1.6 billion times every day in more than 200 countries. One of them is Egypt.

The Coca-Cola Company wants to help make society sustainable by taking its social responsibility seriously, showing consideration for the environment and promot-ing economic growth in the locations where the company operates. A long-term approach and long-term respon-sible action are also crucial for economic success.

Approach to sustainable developmentToday the world faces a number of major challenges. To achieve sustainable development considerable efforts and partnerships are needed among various players in society. The Coca-Cola Company works in partnership with several different groups of stakeholders, including suppliers, local communities and non-profit organisa-tions. The Coca-Cola Company has signed the ten principles of the UN’s Global Compact, which represents an active commitment to work for human rights, establish good working conditions, take responsibility for the environment and fight corruption.

Manifesto for growthThe Coca-Cola Company’s vision for and approach to sustainable growth is based on five main areas, as stated in the “Manifesto for Growth.”

Sustainable business operations and communities

Society

Authorities Business transactions

Page 15: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

28 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 29

THE

CO

CA

CO

LA C

OM

PAN

Y

An active lifestyle for better heathA quarter of the world’s population is overweight and the statistics continue to rise. This is affecting people’s health and well-being as well as national economies.

The Coca-Cola Company is working with various play-ers to identify and implement solutions, such as educa-tional tools and activities that may help people become more active and live healthier lives.

Water – our most important resourceMore than a billion people today have no access to safe drinking water. The Coca-Cola Company has set a goal to return the same amount of good quality water back to the natural cycle as is used in the products and production processes. One important step the company is taking is efficiently cleaning waste water so that it can be returned to nature. In partnership with the WWF the company has also developed a programme that helps plant managers reduce water consumption.

The Coca-Cola Company is part of several global partnerships to protect the world’s important fresh water resources and to improve local sources of drinking water. Since 2005 The Coca-Cola Company has established more than 200 water projects in 60 countries.

Lighter packaging and less wastePackaging materials give rise to waste and require en-ergy and resources to produce. The lifecycle perspective is a guiding principle in the company’s efforts to develop the best packaging alternatives and recycling systems. Great progress has been made. Since the launch, for ex-ample, the weight of one of our glass bottle models has been reduced by more than 50%.

The level of collection and recycling of beverage packaging units is high compared to other types of food packaging. An aluminium can contains an average of 40 – 60% of recycled materials.

Energy & climateThe Group’s impact on the climate comes mainly from beverage vending machines and refrigerators. In 2000

a decision was taken to improve energy efficiency in refrigeration equipment by 40 to 50% by 2010. Through various initiatives, such as the purchase of energy ef-ficient and Freon-free refrigerators, we are on our way to reaching this goal.

The Coca-Cola Company has been focusing for many years on improving energy efficiency and reducing greenhouse gas emissions from the company’s produc-tion and distribution operations. Now the company has begun evaluating the emissions generated throughout the life cycle of a product. In cooperation with the Car-bon Trust, we are documenting the carbon footprint of our products and looking into ways of communicating this information to consumers.

Outlook Outlook El SalvadorThe Coca-Cola Company is working with a number of ini-tiatives to ensure healthy conditions in the supplier chain. Ensuring that child labour does not occur is one impor-tant aspect of this. In El Salvador The Coca-Cola Company has taken part in a joint initiative where thousands of chil-dren were given the opportunity of an education instead of working in sugar cane fields.

Outlook HaitiHIV/AIDS is a major challenge and presents a traumatic situation for millions of people. The Coca-Cola Company is working in several locations around the world mainly to educate people on this issue. For example, the com-pany has contributed USD 158,000 to a local initiative to reduce HIV/AIDS infection among young people in Port-au-Prince. The focus of the project is to provide an entertaining form of education for life-long learning. More than 50,000 young people will be reached by the initiative.

Outlook ChinaThrough a partnership with the Chinese authorities The Coca-Cola Company is working for better water use and clean drinking water in China’s rural areas. The initiatives involve, among other things, showing good examples of

technologies for safe drinking water and water drainage as well as sustainable farming methods. The company has contributed more than a million dollars to the four-year project.

Outlook AfricaMalaria is a source of great suffering for many people. The company has sponsored the “NetsforLife” project, the purpose of which is to prevent the spread of malaria by distributing one million impregnated insect nets in 16 African countries. The target groups are mainly sensi-tive groups such as children under the age of five and pregnant women.

Global Challenges – local solutionsA number of global challenges are affecting both The Coca-Cola Company and the communities in which the company operates. The Group’s global reach combined with local roots where the company operates make it possible to work across borders and adapt working methods in the pursuit of sustainable de-velopment. Flourishing local communities are essential to the company’s success.

Our commitment is making a differenceColombia faces major challenges in the form of

poverty, organised crime and corruption. It is one of the countries in the world most affected

by injustice and violence towards people who are actively involved in trade unions. Employees at Coca-Cola plants have also been affected.

Coca-Cola Drycker Sverige is also affected by the problems in Colombia. Customers, consumers and our employees are dealing with the problem and safe-guarding human rights.

In October 2008 a group of communications direc-tors from Coca-Cola in various European countries travelled to Colombia. Peter Bodor, Communications Director at Coca-Cola Drycker Sverige was on the trip.

“Although we get reports from the head office in Atlanta about what the Parent Company is doing on

human rights issues, it means a lot to be able to answer questions based on our own impressions and experiences on the ground. I believe that as a subsidiary we should also be a driving force and show that we care.” According to Peter the trip provided convincing proof that the company wants to do the right thing and is open to scrutiny and dialogue, and that our colleagues in Bogotá, just like in Jordbro, clearly want to work for a company that takes its responsibility seriously. The trip included visits to a brewery and meetings with HR managers and union representatives. The visitors received information about how The Coca-Cola Company is encouraging union involvement and therefore has a higher number of union workers than other workplaces, and how wage levels are above average. The delegates also visited a village where The Coca-Cola Company supports a vocational school for young people who are given new opportunities following a life of drug use, crime and exploitation by the mafia. Almost all of them go on to secure real jobs and can restart their lives.

“It’s a powerful experience to meet a fifteen year-old who has been given a chance for a new life after being exploited by the guerrilla’s. Some claim that we are investing in social responsibility just to sell more products, but that is an incredibly cynical way of seeing it.

Peter Bodor, Public Affairs & Communications Director Coca-Cola Drycker Sverige

Read more about sustainability work within The Coca-Cola Company: www.thecoca-colacompany.com/citizenship/index.html

www.thecoca-colacompany.com/citizenship/pdf/2007- 2008_sustainability_review.pdf

www.cokefacts.com/

Page 16: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

30 SUSTAINABILITY REPORT 2008 SUSTAINABILITY REPORT 2008 31

Contact usWe welcome your views and questions concerning our sustainability work.e-mail: [email protected]: +46 (0)8-500 75 000Contact: Peter Bodor, Public Affairs & Communications DirectorCoca-Cola Drycker Sverige ABDryckesvägen 2C136 87 HaningePlease also visit www.coca-cola.se

About this report – GRI

GR

I

Credible sustainability reportingCoca-Cola Drycker Sverige’s 2008 sustainability report complies with the guidelines of the Global Reporting Initiative (version G3) and this is our second report ac-cording to GRI. The content of the report relates to the operations of Coca-Cola Drycker Sverige AB and covers

first and foremost the company’s sustainability work in 2008. Our reporting follows the GRI guidelines which ensure relevant and credible reporting. For this report we have decided to comply with GRI level C and allow GRI to verify this. We have further developed the report from the 2007 report to include more sustainability indica-tors and key ratios. We are also looking into how we can develop the report in the future and we are considering reporting at level B. We intend to continue to provide an annual sustainability report.

GRI indexOn the following page is a table showing mandatory indicators as well as performance indicators that are relevant to Coca-Cola Drycker Sverige and that we have chosen to report. The table also shows whether we have reported fully or partly according to GRI’s guidelines for each individual indicator and where in the report the information can be found.

2002 C C+ B B+ A A+In Accordance

SelfDeclared

Third PartyChecked

GRIChecked R

epo

rt E

xter

nally

Ass

ured

Rep

ort

Ext

erna

lly A

ssur

ed

Rep

ort

Ext

erna

lly A

ssur

ed

Man

dat

ory

Op

tio

nal

GRI-IndexGRI-indicator Status/Comments Page Reference

STRATEGY AND PROFILE 1.Strategy and Analysis 1.1 Statement from Managing Director 32.Organisation Profile 2.1 Name of the organisation 42.2 Primary brands, products, and/or services 4-52.3 Operational structure of the organisation 42.4 Location of organisation’s headquarters 42.5 Countries where the organisation operates 42.6 Nature of ownership and legal form 4-52.7 Scale of the reporting organisation 42.8 Significant changes during the reporting period 4-52.9 Significant changes during the reporting period No significant changes have taken place –2.10 Awards received in the reporting 83. Report Parameters 3.1 Reporting period 303.2 Date of most recent previous report 303.3 Reporting cycle 303.4 Contact point for questions regarding the report or its contents 303.5 Process for defining report content 63.6 Boundary of the report 303.7 Specific limitations on the scope or boundary of the report No limitations on the scope or boundary –3.8 Basis for reporting on subsidiaries There are no subsidiaries –3.10 Explanation of any re-statements of information provided in earlier reports No significant changes have taken place –3.11 Significant changes from previous reporting periods in the scope, boundary,

or measurement methods No significant changes have taken place _3.12 GRI content index 314. Governance, Commitments and Engagement 4.1 Governance structure of the organisation 4-54.2 Indicate whether the Chair of the highest governance body is also an executive officer

(and, if so, the reasons) 4-54.3 For organisations that have a unitary board structure, state the management structure The company does not have a Unitary Board –4.4 Mechanisms for shareholders and employees to provide recommendations or direction

to the highest governance body (Board) 5,7, 20-224.8 Internally developed business concepts or fundamental values, codes of conduct and principles for

financial, environmental and social behaviour, and how well these are implemented in the organisation 7, 24-25 4.11 Application of the Precautionary Principle 8-9 12, 214.14 List of stakeholder groups engaged by the organisation 6-74.15 Basis for identification and selection of stakeholders with whom to engage 6-7PERFORMANCE INDICATORS Economic EC1 Economic value generated and distributed, including revenues, operating costs, employee

compensation, payments to capital providers 2, 5, 7EC2 Financial implications and other risks and opportunities due to climate change 17-18Environment EN1 Material use in weight and volume 2, 15EN4 Indirect energy consumption 17EN5 Energy savings through saving and efficiency improvements 17-18EN8 Total water withdrawal by source 15EN9 Water sources that are significantly affected by water consumption 11, 15EN16 Total direct and indirect greenhouse gas emissions by weight 2, 17EN18 Initiatives to reduce greenhouse gases and reductions that have been measured 17-18EN21 Total water discharge by quality and destination 15EN22 Total weight of waste by type and disposal method 16EN26 Initiatives to mitigate environmental impacts of products and services 15-16EN27 Percentage of products sold and their packaging materials that are reclaimed by category 16EN28 Fines and other sanctions due to failure to adhere to environmental legislation No transgressions –Product Responsibility PR1 Life cycle stages in which health and safety impacts of products and services are assessed

for improvement 9-12PR3 Type of product and service information required, and percentage of products and services

subject to such requirements 11-12 PR5 Customer satisfaction routines, incl. customer surveys 2, 6-7PR6 Programmes for adherence to laws, standards and voluntary codes related to

marketing communications 11PR7 Total number of cases where rules and voluntary codes relating to market communication have

not been observed 11PR9 Financial value of substantial fines resulting from failure to adhere to laws and ordinances

regarding the provision and use of products No fines –Labour Practices LA1 Total workforce by employment type, employment contract and region 5, 22LA4 Percentage of employees covered by collective bargaining agreements 20LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of

work-related fatalities by region 2, 21-2LA14 Ratio of basic salary of men to women by employee category 20Human Rights HR2 Percentage of significant suppliers and contractors that have undergone screening on human

rights and actions taken 24-25HR4 Total number of incidents of discrimination and actions taken 20SO3 Percentage of employees trained in organisation’s anti-corruption policies 24

Page 17: SUSTAINABILITY REPORT 2008 - Coca-Colaassets.coca-colacompany.com/.../2008_drycker_sverige.pdf · Our business will be sustainable in ... 6 SUSTAINABILITY REPORT 2008 SUSTAINABILITY

Coca-Cola Drycker Sverige AB produces, distributes and sells non-alcoholic beverages in the Swedish market. Our brands include Coca-Cola, Fanta, Sprite, MER, Burn, Nestea, Bonaqua Silver, Powerade and Minute Maid. Around 800 people work for Coca-Cola in Sweden, of which around 600 are

in Jordbro outside Stockholm. Here we produce around 1 million litres of beverages every day. Coca-Cola Drycker Sverige is owned by The Coca-Cola Company which operates in more than 200 countries. The recipe for Coca-Cola was created in 1886 by pharmacist

John S. Pemberton in Atlanta, USA. Coca-Cola was launched in Sweden in 1953. For more information, please visit www.Coca-Cola.se.