The Coca-Cola Company

RATING

SECTOR

Beverages

WEBSITE

CONTACT

1 Coca Cola Plz NW
Atlanta, GA 30313

T: +1 (404) 676.2683
F: N/A
E: press@coca-cola.com

STOCK EXCHANGE

LISTING

  • 100-top Most Powerful Brands By Tenet Partners, CoreBrand (2020) – #1
  • Best Global Brands By Interbrand (2020) – #6
  • BrandFinance Global 500 (100) By Brand Finance (2020) – #34
  • BrandZ Top 100 Most Valuable US Brands By Kantar (2020) – #12
  • Fortune U.S. 500 (100) By Fortune (2020) – #88
  • Sustainable Brand Index in the Netherlands By Sustainable Brand Index (2020) – #87
  • The 50 Most Innovative Companies By BCG ,The Boston Consulting Group (2020) – #48
  • The Top Most Loved Brands By Morning Consult (2020) – 37
  • World’s Most Admired Companies By Fortune (2020) – #12
  • 100-top Most Powerful Brands By Tenet Partners, CoreBrand (2019)  – #1
  • Best Global Brands By Interbrand (2019) – #5
  • Brand Finance US Top 100 By Brand Finance (2019) – #17
  • Brands Most Criticised by Activist Groups By Sigwatch (2019) – #9
  • Fortune U.S. 500 (100) By Fortune (2019) – #100
  • Global Top 100 Brand Corporations By European Brand Institute – Vienna (2019) – #8
  • Sustainable Brand Index in the Netherlands By Sustainable Brand Index (2019) – #95
  • The Brand Footprint Global Ranking Top 50 By Kantar Worldpanel (2019) – #1

EMPLOYEES

86,200

CHIEF SUSTAINABILITY OFFICER

Bea Perez

AWARDS

  • Best Company for Diversity (2018)
  • Best Company Compensation (2018)
  • Top Rated Company for Women (2017)
  • Top Rated Company for Diversity (2017)
  • Top Rated Product Teams (2017)
  • Massmart Supplier Environmental Awards (2017)

CONTENT SOURCE

FURTHER READING

Report created by Sagarika Deshmukh  

The Coca-Cola Company

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Coca-Cola’s vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit. 

The Group’s beverage categories include : Sparkling Soft Drinks, Waters & Hydration, Juices, Dairy and Plant-Based, Coffees and Teas.

The company is a global business that operates on a local scale, in every community where the company does business. The company is able to create global reach with local focus because of the strength of the Coca-Cola system, which comprises the company and nearly 225 bottling partners worldwide.

While many view the company as simply “Coca-Cola,” the company’s system operates through multiple local channels. The primary way that their products reach the marketplace starts with Coca-Cola, which manufactures and sells concentrates, beverage bases and syrups to bottling operations.

Coca-Cola also owns the brands and is responsible for consumer brand marketing initiatives. Then the bottling partners manufacture, package, merchandise and distribute final branded beverages to Coca-Cola’s customers and vending partners, who then sell the products to consumers.

The Coca-Cola Company markets, manufactures and sells:

  • beverage concentrates and syrups 
  • finished beverages (including sparkling soft drinks; water and sports drinks; juice, dairy and plant based drinks; and tea and coffee). 

In Coca-Cola’s concentrate operations, The Coca-Cola Company typically generates net operating revenues by selling concentrates and syrups to authorized bottling partners. Their bottling partners combine the concentrates with still and/or sparkling water, and/or sweeteners, depending on the product, to prepare, package, sell and distribute finished beverages. The finished product operations consist primarily of company-owned or -controlled bottling, sales and distribution operations.

Company Sustainability Activity

The Coca-Cola system views sustainability as a prerequisite for business growth and the scope of our sustainability initiatives is broad, our activities diverse. However, there is a common element in all of them- the community. Precisely because the company is the Coca-Cola system, manufacturing and selling products throughout Japan, from Hokkaido to Okinawa, the company seeks to tackle issues alongside people in communities so that the company may grow together with them in a sustainable manner.

Highlights

Regional Highlights

 Asia & Pacific

  • Through the Clean Water 24 program, the company has provided drinking water to 2 million people in China affected by natural disasters. Since 2013, Clean Water 24 has responded to earthquakes, landslides and other emergencies nearly 200 times, providing water in an average of 11 hours and in as little as six hours.
  • The program transforms the traditional donation format into a life-saving model by integrating the logistical and warehousing advantages of the Coca-Cola China system with the resources of local government and civil society groups. This has enabled them to deliver more than 16 million bottles of drinking water to disaster-stricken communities.

Europe, Middle East & Africa

  • In Spain and Portugal, the company is supporting Mares Circulares (Circular Seas), a program that brings public sector and civil society organizations together to clean open waters and 270 kilometers of beaches of plastic waste.
  • The program incorporates education, civic involvement and research, and is even recruiting 50 fishing boats to participate in the project. All PET-based plastic waste collected will be used in the Coca-Cola value chain in Spain. The Coca-Cola Foundation, Coca-Cola Iberia and Coca-Cola European Partners joined forces to support the innovative program.

Latin America

  • Coca-Cola’s Brazil business unit and the Coca-Cola Brazil Foundation launched Negras Potências, an innovative initiative to empower Afro-Brazilian women and girls, one of the most vulnerable groups in the country.
  • The company joined efforts with Fundo Baobá, a fund whose endowment creation was supported by the Kellogg Foundation to foster racial equality, and Benfeitoria, a crowdfunding platform, to launch Brazil’s largest matching fund. The partners are supporting projects led by Afro-Brazilian women by building the women’s communications and fundraising capacities and matching the funding they raise. 13 of 17 selected projects reached their targets and are now being implemented.
  • Projects raised $549 thousand including Coca-Cola Brazil’s matching funds and $206 thousand without match (individual donors).

North America

  • At the 2018 Special Olympics USA Games, attendees had the opportunity to give back in more ways than one through unique “reverse” vending machines.
  • Coca-Cola North America’s Customer Sustainability and Digital Platforms & Innovation teams collaborated with Special Olympics, Swire Coca-Cola USA and the New York-based equipment supplier, Atlas RVM Systems, in the weeks preceding the games to develop two special recycling stations in Seattle that accept the deposit of PET bottles or aluminum cans. Each recycled package triggered a five cent donation to Special Olympics Washington through the Coca-Cola Give platform, and consumers were prompted to text a code to learn about additional opportunities to support their local communities.
  • To emphasize their commitment to gender diversity, Coca-Cola joined several global and national pledges, including Catalyst CEO Champions for Change, Leading Executives Advancing Diversity (LEAD) Network, United Nations Women and the CEO Action for Diversity and Inclusion.

Targets

  • The company set a “drink in your hand” goal in 2013 to include their full value chain in our greenhouse gas (GHG) emissions reduction efforts. They have cut their carbon footprint by 24% toward their 2020 target of 25% reduction against a 2010 baseline.
  • Aligned with the goals of the Paris Agreement, By 2030, the company aims to reduce total GHG emissions across their full value chain by 25% below 2015 levels.
  • The company has made progress toward their World Without Waste goals, with 16 markets offering beverages packaged in 100% recycled PET bottles.
  • Reducing added sugar – changing recipes to reduce added sugar, promoting low- and no-calorie beverage options, and making smaller packages more available to enable portion control. They have also been expanding our range of beverages—including water, coffee, tea, dairy, fruit juices and plant-based options—and developing the next generation of sugar alternatives.
  • Make 100% of their packaging recyclable globally by 2025—and use at least 50% recycled material in our packaging by 2030.
  • Collect and recycle a bottle or can for each one they sell by 2030.

Progress

Water

  • Safely return to communities and nature an amount of water equivalent to what the company uses in our finished beverages and their production. % of Sales Volume Replenished: 160.0% (2019)
  • Improve water efficiency in manufacturing operations by 25% by 2020. % Water Used Reduction Since 2010: 18% (2019)

Packaging

  • Work with partners to recover and recycle the equivalent of 75% of the bottles and cans the company introduces into developed markets.
  • % of Bottles and Cans the company Refilled or Helped Recover Equivalent to What the company Introduced into the Marketplace: 58% (2018). 
  • % of Bottles and Cans the company Refilled or Helped Recover Equivalent to What the company Introduced into the Marketplace Taking Additional Packaging Types into Consideration: 60% (2019). 

Climate

  • Estimated percentage reduction of the carbon footprint of the “drink in your hand” since 2010 – 24% (2019)

Human Rights

  • In 2003, the company set a goal that 98% of their company locations and system bottlers and 95% of their direct and authorized suppliers will validate compliance with their Human Rights Policy and our Supplier Guiding Principles (SGP) by the end of 2020. As of Q4 2019, 93%1 of company-owned facilities, 92%1 of bottlers and 91%1 of suppliers reached compliance with our Human Rights Policy and SGPs.

Empowering Women

  • The company’s 5by20 commitment to enable the economic empowerment of 5 million women entrepreneurs across their global value chain by 2020 is on track to reach its target. 

Giving Back

  • In 2019, those combined efforts contributed nearly $125 million ($88 million from The Coca-Cola Foundation and $37 million from The Coca-Cola Company) to directly benefit 294 organizations across 129 countries and territories. The donation total in 2019 represented 1.3% of operating income, focused in particular on the Foundation’s giving pillars of recycling, water and women’s empowerment, contributing $18.8 million, $20.8 million and $10.9 million, respectively, to programs and projects in these three categories.

Certificates

UN Sustainable Development Goals

How company covers SDGs

SDG 1

  • By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

SDG 2

  • By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment 
  • By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality

SDG 3

  • By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being

SDG 5

  • End all forms of discrimination against all women and girls everywhere
  • Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life
  • Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws
  • Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women
  • Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels

SDG 6

  • By 2030, achieve universal and equitable access to safe and affordable drinking water for all
  • By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations
  • By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally 
  • By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity
  • By 2030, implement integrated water resources management at all levels, including through transboundary cooperation as appropriate 
  • By 2020, protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes

SDG 8

  • By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
  • Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
  • Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment

SDG 12

  • By 2030, achieve the sustainable management and efficient use of natural resources
  • By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
  • Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle
  • By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature
  • Support developing countries to strengthen their scientific and technological capacity to move towards more sustainable patterns of consumption and production

SDG 13

  • Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

SDG 14

  • By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution

SDG 17

  • Enhance policy coherence for sustainable development
  • Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries
  • Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships

Evaluation

Coca-cola has made some strides towards sustainability. Coca-cola seems to comply with the UN Sustainable Development Goals, but their production contradicts SDG 12, 15 and 3. In addition, the company holds few certifications.

However, Coca-cola has numerous listings and awards.Though they claim to be focusing on efforts to recycle their plastic bottles, they have not provided alternative products to plastic.

The scale in which Coca-cola operates gives them the opportunity to be a leader of sustainability. Coca-Cola has received a rating of D.

Analyst Outlook: Negative

Coca-Cola is the world’s No. 1 corporate plastic polluter, but it won’t stop using plastic bottles because customers like them too much according to Bea Perez, Head of Sustainability at the World Economic Forum in Davos.

Key Points

  • Though the company claims to be exploring low-calorie alternatives, much of their products consist of high sugar, high calorie beverages that have a direct impact on public health and childhood obesity
  • The company has made some general sustainability targets, but they are not significant enough in attempting to offset their overall environmental impact
  • Coca-cola is named the world’s most polluting brand of 2019 for the second year in a row
  • Coca-cola has openly admitted that it will not break away from plastics, which indicates that, despite public disapproval, they are likely to continue to being one of the most polluting brand’s in the world
  • Coca-cola makes the assumption that customers prefer single-use plastic bottles, and because of this notion, refuses to pursue desperately needed sustainable alternatives

 

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