Sustainability Report 2019
Table of 01 3 Win in the marketplace contents 4 Coca-Cola in Poland 7 Coca-Cola in the world 8 We are devoted to helping every customer grow Sustainability Report 2019
02 05 9 Leverage our unique 24/7 portfolio 34 Earn our licence to operate 10 We ofger a diversifjed portfolio of beverages 34 By building permanent partnership we can do more for every occasion 36 We believe that the World Without Waste Product composition and labeling 12 is possible We strive for sustainable packaging 14 39 We care for minimizing our impact on the environment 47 We search for solutions responding to the challenges and nneeds of the world 03 today 16 Fuel growth through competitiveness & investment 06 54 About the report 04 18 Cultivate the potentcial of our people 18 We always do what is right, not just what is easy 21 We invest in building the best teams in the industry 23 We create a working environment, in which employees feel respected 25 HSE is the basis for the wellbeing of the employees and the company 29 We value our employees and take look after them Table of contents
Sustainability Report 2019
02 Dear All [102-14] [102-15] Our sustainability report is now available. In it, we present the Although Coca-Cola is an iconic brand associated with the USA, activities of two independent, separately reporting companies, our business is fjrmly embedded in Poland. We employ nearly which form the Coca-Cola system in Poland. 2,000 employees, and each job in our system generates another seven jobs in the value chain. We make most of our purchases Coca-Cola has been present in Poland since 1991. We are the in Poland. As many as 92% of beverages sold in this country leader in the non-alcoholic beverages industry. We employ are produced in our Polish factories. We work for the benefjt of nearly 2000 people and have three production plants. the communities in which we operate every day. We encourage Despite our well-established market position, we are constantly employees to volunteer. We support women in developing their looking for new development paths. Our global strategy "Growth professional lives and in returning to the job market, and we Story 2025" sets goals for the coming years. In striving to continue to develop the YEP Academy programme for young achieve them, in 2019 our portfolio was expanded to include people and those excluded from the job market. Costa Cofgee products of the UK's leading global cofgee The publication of our report coincided with the global producer, which was bought by The Coca-Cola Company, we COVID-2019 pandemic. During this diffjcult time, we decided to combined business units in the region to form the new Coca- suspend our advertising activities and provide support to those Cola HBC Poland and Baltics, and we invested PLN 12 million institutions that need it most. As the fjrst company in Poland, in a new logistics centre at the production plant in Staniątki. we supported the Intervention Fund to fjght the coronavirus As a result, we can better respond to the diverse needs of our established by the Great Orchestra of Christmas Charity. consumers through various sales channels and ofger products The total amount donated by us during the key phase of the for every occasion and at any time of the day. pandemic in Poland transferred to medical services in front line But we do not want to just make drinks. We want to make was over PLN 2.6 million. a difgerence. We are fully aware of the problems and Fighting the pandemic is a joint endeavour, and we want to make challenges facing businesses, including our companies, in a difgerence. This is a chance to make these changes real, which our contemporary world, which is why we focus on social is our wish for ourselves and for you, as we invite you to read our responsibility and implement a comprehensive strategy for the latest report, sustainable development of our business. Among our many activities we especially focus on the World Without Waste Jaak Mikkel initiative. We made a commitment that by 2030 the Coca-Cola General Manager of Coca-Cola HBC Poland and Baltics system will help collect and recycle a bottle or can for every one we sell to consumers. This is more than the fjgures assumed by the new European Union Waste Directives (90% by 2030). We can also confjdently say that by being active in industry Rory Taylor organisations and through dialogue with decision-makers, General Manager of Coca-Cola Poland Services we are a leader in promoting changes in the packaging waste management system in Poland, thanks to which it will be possible in the coming years to achieve our ambitious goals, including those imposed by the EU law. Letter from the Presidents
Win in the marketplace We are a leader in the beverage market. Our portfolio built in accordance with the 24/7 strategy, i.e. ofgering beverages for all needs and every time of the day, a wide range of customers and a team of great employees make consumers appreciate our efgorts. Sustainability Report 2019
04 Our goals 5-6% 20-40 by 2025 basis points The average annual increase Fulfjlling our sustainability in revenues commitments The average annual increase in EBIT margin Coca-Cola in Poland [102-7] 15 1834 1600 145, 000 brands employees of Coca-Cola active suppliers points of sale HBC Polska The fjnancial results of the Coca-Cola system companies See also in Poland are presented collectively in the Coca-Cola group SEIS Report sustainable development How does the Coca-Cola system work? We regularly publish a socio-economic report on the impact of our organization on the economy every two years. In 2018, the In each of the more than 200 countries in which it is present, activities of Coca-Cola system companies in Poland generated: Coca-Cola operates based on a system of two companies; the brand owner (the Coca-Cola Company) and bottling company, • PLN 2.95 billion is the contribution of Coca-Cola to the Polish responsible for the production, distribution and sale economy, that is 0.16% of GDP . of beverages. It is similar in our market. • We pay PLN 1.325 billion annually to the state budget, which is 0.17% of all budget revenues Our companies [102-1] [102-5] • PLN 0.74 from every PLN 1.00 spent by consumers on Coca- In Poland, the Coca-Cola system consists of two administratively and legally separate companies: Coca-Cola Poland Services Cola products remains in the Polish economy Sp. z o. o. and Coca-Cola HBC Polska Sp. z o. o. The owner of • 92% of products sold in Poland are made in Poland 100% shares in Coca-Cola HBC is CC Beverages Holdings II • 16,550 jobs created due to the presence of Coca-Cola B.V. The owner of Coca-Cola Poland Services is The Coca-Cola system companies in Poland (thanks to one job position in the Export Corporation, whose 100% shareholder is The Coca-Cola Coca-Cola system companies, 7 job positions are created Company. in various industries in Poland, including transport, sugar [102-2] [102-6] production, agriculture and trade) Coca-Cola HBC Polska is a producer and distributor • Our investments in Poland will amount to PLN 1 billion of beverages - a branch of Coca-Cola Hellenic Bottling in 2010-2020. Company and one of the largest beverage bottlers in the world, The Coca-Cola Company. Win in the marketplace
05 The company has been operating in Poland since 1992 and it the fjeld of market research, marketing strategies and product is the only company in our market that produces and distributes quality, as well as conducts activities related to mineral water and The Coca-Cola Company products. The headquarters of serves as the Joint Services Center for affjliated companies. Coca-Cola HBC Polska is located in Warsaw, from where the It carries out activities related to product marketing, advertising, company's three production plants are managed. brand management and consumer promotions. [102-10] In 2019, the Polish and Baltic organizational units merged into one Coca-Cola HBC Poland and Baltics business unit. The purpose of the merger was to create an efgective business model supporting the implementation of the 24/7 strategy on the abovementioned markets. Radzymin (commune [102-18] of Radzymin) Coca-Cola HBC is managed in accordance with the American and British corporate governance models. It is headed by the Board of Directors elected by shareholders, within which there Staniątki are Committees, including the Corporate Social Responsibility near Kraków (commune Committee. The current management over the corporation Tylicz (commune of Niepołomice) is provided by a General Manager elected by the Board of of Krynica-Zdrój) Directors. The Board reviews the results of the Group compared to its In addition to plant warehouses, we have a network of our own long-term strategy and oversees the work of the Generale or leased distribution centers in Poland and the so-called pallet Manager, it is responsible for setting the company's goals and hotels located in: Mysłowice, Środa Śląska, Warsaw, Poznań, strategy and supports the implementation of its long-term, Łódź, Bydgoszcz, Wyszków, Ostrołęka, Gdańsk, Szczecin, sustainable vision. Koszalin, Radom and T argowisko near Krakóww. Individual business units, such as Coca-Cola HBC Poland and Coca-Cola Poland Services is a representative of Baltics, are managed by the Management T eam headed by the The Coca-Cola Company. It provides consulting services in CEO. Sustainability Report 2019
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