The Coca-Cola Company

Sustainable development strategy
The Coca-Cola Company discloses a long-term sustainability strategy in which it sets targets that cover sustainability topics related to the environment, nutrition and social inclusion. The company also lists its priority environmental, social and governance issues based on the impact they have on the company as well as the concern to stakeholders.

Plastic use and packaging waste
The Coca-Cola Company has set the following three targets: to reduce use of virgin plastic derived from non-renewable sources over the next five years; to make 100% of its packaging recyclable globally by 2025 and use at least 50% recycled material in its packaging by 2030; and to collect and recycle a bottle or can for each one it sells by 2030. The company reports progress against each of these targets.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
The Coca-Cola Company engages with relevant stakeholders across its value chain around issues related to the environment, nutrition and social inclusion. It discloses the outcomes of its activities around sugar reduction, water reduction and human rights issues. However, it does not disclose a process for how it identifies its stakeholders.

Stakeholder engagement
The Coca-Cola Company discloses that accountability for and oversight of sustainability lies with the highest governance body. However, it does not disclose its remuneration policy. It mentions that its Compensation and Incentives Committee is developing a methodology to link sustainable development performance criteria to its remuneration policy for the executive leadership team, which was not finalised at the time of assessment.

Scope 1, 2 and 3 greenhouse gas emissions
While the company has set a target to reduce scope 1, 2 and 3 greenhouse gas (GHG) emissions by 25% by 2030, the target is aligned with a well-below 2-degree trajectory. The company can improve its performance by aligning with a 1.5-degree trajectory and disclosing progress against this target.

Protection of terrestrial natural ecosystems
The Coca-Cola Company has a target to sustainably source 12 of its key ingredients. However, its definition of sustainably sourced does not necessarily include deforestation-free. While the company does disclose that 100% of its soy is deforestation-free, it can improve its performance by setting targets for achieving deforestation and conversion-free supply chains for all its relevant high-risk commodities.

Soil health and agrobiodiversity
The Coca-Cola Company set a 2020 goal to sustainably source its 12 priority ingredients. It defines sustainably sourced as ingredients that adhere to the company’s Principles for Sustainable Agriculture, which includes agrochemical management. However, no further target to improve soil health and agrobiodiversity was found.

Water use
The Coca-Cola Company has released a 2030 water strategy, which highlights its desire to deepen engagement with agricultural suppliers. The company’s 2020 strategy included targets to reduce water across its supply chain, and it reported progress against them. While the company provides evidence of its dependency on water-stressed areas, it is unclear whether it yet engages with suppliers in those areas.

Food loss and waste
The Coca-Cola Company has an opportunity to disclose a commitment by demonstrating policies and/or activities that specifically tackle food loss and waste. The company discloses evidence around waste in general, but it is not clear whether this applies specifically to food loss. The company mentions that it tracks more waste-related data internally as its external reporting has shifted to focus only on very material topics.

Availability of healthy foods
The Coca-Cola Company demonstrates that it is reducing the amount of added sugar and calories in its drinks. However, the company has an opportunity to provide quantitative information on its reformulation efforts to increase the level of positive nutrients (e.g. fruits) across its product portfolio. Moreover, the company can increase its disclosure around the nutritional criteria used to guide its product (re)formulation.

Accessibility and affordability of healthy foods
The Coca-Cola Company commits to addressing accessibility and affordability of healthy foods. It discloses commercial activities to improve consumer access to healthier options in several countries. For example, the company has introduced the Del Valle Nutri Vegetables at affordable prices in Mexico to help consumers reach the recommended intake of fruit and vegetables per day. However, the company does not link these activities to nutritional standards or guidelines. The company can further improve its performance by setting time-bound targets to increase the accessibility and affordability of healthy foods.

Clear and transparent labelling
The Coca-Cola Company has a commitment to make nutritional information available to consumers in a clear, intuitive and accurate way through both back-of-pack and front-of pack labelling. However, the company does not disclose the percentage of products for which back-of-pack labelling has been rolled out.

Responsible marketing
The company has a responsible marketing policy aligned with international codes and guidelines. It’s responsible marketing policy is tailored to children and teens across all media channels. However, it has an opportunity to disclose evidence of activities promoting healthy foods.

Child labour
The company prohibits child labour from its operations and supply chain. The company has also committed to conduct third-party due diligence studies focused on child labor, forced labor and land rights related to its sugar supply chain. However, the company can improve by requiring suppliers to verify the age of workers recruited, rather than expecting them to adhere to this condition.

Forced labour
While the company commits to prohibiting forced labour in its own operations and supply chain, it has an opportunity to disclose a requirement that prohibits its suppliers from retaining workers’ personal documents and restricting workers’ freedom of movement.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same.

Farmer and fisher productivity and resilience
The Coca-Cola company provides evidence of several activities to support smallholder farmers and discloses that it is measuring the outcomes and impact of these activities. The company can improve by ensuring that it is systematically measuring the impact of all farmer support activities, as part of a holistic strategic approach.

Through its publicly available policies and commitments across all topics, The Coca-Cola Company demonstrates leading performance on respect for human rights. The company scores highest in this pillar with its commitments to respecting human rights and disclosure of its due diligence process. The company has grievance mechanisms in place for its operations and external individuals and communities, and also commits to respecting the rights of freedom of association and collective bargaining.

The Coca-Cola Company publicly commits to respecting the health and safety of its workers, and while it discloses LTIR, it doe not disclose quantitative information around health and safety, such as fatalities as a result of work-related injuries. It also discloses information around workforce diversity, and publicly commits to gender equality and women’s empowerment. While it works to support the practices of its supply chain partners in relation to freedom of association and collective bargaining, it does not disclose the percentage of its workforce covered by collective bargaining agreements. Finally, the company has not committed to paying a living wage, or to ensuring workers do not work more than regular overtime hours.

The Coca-Cola Company addresses most key issues for ethical business conduct through publicly available policies or statements, but there remains an opportunity for these to be strengthened. The company has a public policy prohibiting bribery and corruption and takes steps to address risks and incidents. While Coca-Cola has a public commitment to protecting personal data, as well as a policy statement setting out its lobbying and political engagement approach, it does not have a public global tax strategy, nor does it disclose its corporate income by jurisdiction.