2015 Sustainability Report ENVIRONMENT Environmental policy ENVIRONMENT Growing responsibly Coca-Cola HBC Italia considers the respect for the environment in which it operates a key pillar for sustainable growth. In fact, it constantly works to minimize its environmental impact during the entire production life cycle, where technically possible and consistently with its high quality standards. The environmental management policy, integrated with Quality and Safety, was revised during 2015 in order to ensure the full integration of the latest environmental regulations and revisions to international standards of reference, in addition to taking into account the Company’s considerable growth. Coca-Cola Company, there was a significant decline, i.e. 31%, in CO2 emissions per liter of beverage produced from 2013 to 2015; also, a reduction of 3% in waste produced in 2015 over the previous year should be noted. Fully consistent with the commitment to take action to mitigate its environmental impact, formalized in an increasingly firm path of responsibility, in 2015 Coca-Cola HBC Italia set up the position of Environmental Manager within the HS&E department (Health, Safety & Environment) to ensure a complete focus on environmental issues, guaranteeing the effective management of its operations aimed at fostering innovation, risk reduction and safety of its processes and products. Environmental performance 2013 20142015 ENERGY CONSUMPTION (MJ/lpb) 0,379 0,391 0,407 CO2 EMISSIONS (g/lpb) 7,92 5,45 5,48 WASTE (g/lpb) 7,41 10,30 9,95 Moreover, a measurement model of the socio-economic and environmental impact on sustainability of investments was prepared in 2015 (pending approval for entry into force in 2016), to be used during tender processes in order to raise awareness among suppliers on sustainability issues. Environmental policy The life cycle of products Resource management Water management Energy management Use of raw materials The sustainability of packaging Waste management and recycling Emissions CO2 emissions Logistics efficiency 38 The life cycle of products With the goal of increasing the efficiency of the environmental performance of the Company’s production activities, the performance indicators can be read and compared in terms of inputs (energy consumption, water, materials), and in terms of environmental outputs (emissions and waste) that the plants of Coca-Cola HBC Italia produce both per liter of beverage under The Coca-Cola Company brand and per liter of mineral water. This analysis allows the Company to identify any significant deviations that are studied in greater depth and followed by dedicated corrective actions. The Company has developed a plan to reduce CO2 emissions per liter of beverage by over 25% by 2020, compared to the 2014 values, and the use of water per liter of beverage by 18% compared to the figure for the same year. It should be noted that in 2015, compared with a 1.7% increase in the production of soft drinks compared to 2014, in reference to the production of drinks under the brand The BEVERAGES PRODUCED BY COCA-COLA HBC ITALIA lpb = liter per beverage With regard to the production of mineral water, compared with an increase of 3.4% in bottling operations over the previous year, CO2 emissions also reported a downward trend of 13% between 2013 and 2015, a substantial achievement that had already been obtained in 2013, when emissions were reduced by 30% compared to 2012. Moreover, the use of water (either withdrawn or utilized) decreased both in the long term over the four years subject to reporting (- 4% and -1%) and in 2015 in comparison to 2014 (-4% and -3%). MINERAL WATER FONTI THE VULTURE Environmental performance 2013 20142015 ENERGY CONSUMPTION (MJ/lpb) 0,146 0,152 0,156 0,38 0,35 0,33 1,15 1,26 1,58 CO2 EMISSIONS (g/lpb) WASTE (g/lpb) REDUCTION CO2 -31% CO 2 emissions (g/Ipb) between 2013 and 2015 39 2015 Sustainability Report ENVIRONMENT Resource management The sustainable management from the environmental standpoint of its business activities translates for Coca-Cola HBC Italia into concrete targets aimed at protecting the most frequently used resources: ensuring the water resources by reducing withdrawals and wastewater treatment, and limiting energy consumption and emissions of refrigerants. Water management Water is the primary ingredient for the production process of Coca-Cola HBC Italia and a necessary source for production activities. Coca-Cola HBC Italia is aware of the importance of the responsible use of water resources and has undertaken to limit its impact on river basins respecting the communities in which it operates. To that end, the company collaborates with suppliers and involves local communities to raise awareness as to the protection of water resources. The Company has set up an improvement plan on the use of water for the five-year period 2016-2020, introducing a new approach to valuation of the environmental impact, which estimates the real cost of water (including treatment, maintenance, etc.) in the estimation of investments. EWS CERTIFICATION In 2015, Coca-Cola HBC Italia completed the certification process for the two plants in Nogara and Rionero in Vulture according to the EWS guidelines (European Water Stewardship), which set criteria for the evaluation of water sources and quality, monitoring and mitigation of potential impacts determined by withdrawals and discharges and protection of HCVs (High Conservation Value Area). The performance level was fully compliant with all the main requirements and 90% of those considered minor, such as to allow the award of the Gold level certification. WATER CONSUMPTION (m3) Company COCA-COLA HBC ITALIA water used 2.290.584 2.074.673 2.079.706 FONTI DEL VULTURE water used 600.243 548.783 556.225 water not used 223.282 190.524 179.038 TOTAL WITHDRAWN WATER (used and not used) 823.525 739.307 735.263 2.890.827 2.623.456 2.635.931 COMPANY TOTAL - WATER USED COMPANY TOTAL - WATER WITHDRAWN The efforts made in recent years have led Coca-Cola HBC Italia to values of excellence with regard to water consumption. During 2015 the company withdrew 2,814,969 cubic meters of water, which includes 5% (equivalent to 103,545 cubic meters of water) of recycled water at the three soft drink manufacturing plants, i.e. recycled water is water from a production process that is reused in another cycle before being sent to final treatment and/or discharged into the environment. 40 201320142015 3.114.1092.813.9802.814.969 The performance indicator of water consumption in 2015 was equal to 1.84 liters per liter of beverage produced under The Coca-Cola Company brand and 1.56 liters per liter of mineral water produced. The latter value however stood at 2.07 liters per liter of mineral water produced if one also considers water not used, that is to say water extracted solely for purposes of quality monitoring of the microbiological parameters and subsequently returned to the aquifer without undergoing any treatment. This success confirms a commitment to improving and reducing the use of water as a result of the process optimization measures introduced. WATER CONSUMPTION l/lpb Company 201320142015 COCA-COLA HBC ITALIA water withdrawn 1,83 1,86 1,84 FONTI DEL VULTURE water used 1,57 1,60 1,56 water withdrawn 2,15 2,15 2,07 In 2015, water discharges linked to production activities of Coca-Cola HBC Italia amounted to 1,011,826 cubic meters, including 80% caused by the soft drink manufacturing plants. In line with the commitment made in 2014, in June 2015 a specific action was initiated at the plant in Nogara in order to reuse 14,400 cubic meters of process water (80 cubic meters / day of wastewater) for washing dehydrators from sludge, thereby reducing the overall consumption of water. WATER DISCHARGES (m3) Company 2015 COCA-COLA HBC ITALIA 811.208 FONTI DEL VULTURE200.618 COMPANY TOTAL 1.011.826 Energy management Coca-Cola HBC Italia has entered into a commitment to minimize energy consumption and the total impact of its emissions. The fight against climate change results in an open dialogue with suppliers in order to minimize CO2 emissions of the entire production chain, from production of raw materials to management of cooling equipment on the market. As a result of the strong commitment to development and implementation of renewable energy sources and the like, photovoltaic systems were introduced at the plants in Nogara, Oricola and Marcianise. Moreover, the choice of the industrial cogeneration service at the three soft drink manufacturing plants (the opening of the first cogeneration plant in Marcianise is expected in June 2016), resulted in the reduction of the supply costs and emissions into the atmosphere, increasing energy efficiency and saving primary energy. Water supplies in 2015 were ensured by withdrawing 94% of the groundwater from wells and 6% from municipal aqueducts. 41 2015 Sustainability Report ENVIRONMENT The sustainability of packaging ENERGY CONSUMPTION (MJ) Company ELECTRIC ENERGY COCA-COLA HBC ITALIA FONTI DEL VULTURE THERMAL ENERGY* 201320142015 284.314.795 225.233.969 52.323.882 49.211.853 51.527.448 COMPANY TOTAL 336.638.677 274.445.821 285.074.789 COCA-COLA HBC ITALIA 188.520.288 209.690.198 227.195.390 FONTI DEL VULTURE COMPANY TOTAL FUEL OIL** COCA-COLA HBC ITALIA FONTI DEL VULTURE COMPANY TOTAL 233.547.341 Coca-Cola HBC Italia continuously works for the promotion of sustainable packaging and in its search for sizes and materials capable of optimizing and reducing the environmental impact of the packaging of its products, both during the production process and after use by consumers. 3.592.873 3.134.634 2.558.856 192.113.161 212.824.832 229.754.245 39.181 18.810 44.070 Reducing and optimizing the weight and volume of packaging; 8.775 8.190 2.379 47.956 27.000 46.449 Optimizing pallets; Using, ecycled materials, where technically possible, for its packaging and recyclable beverage containers; Encouraging consumers to properly dispose of the packs after consumption of its products, raising awareness as to the separate collection of packaging materials and advising against the practice of leaving behind litter; Supporting fair initiatives and stimulating innovative packaging solutions in a closed cycle. This is why the company works to improve five areas of action: * The consumption of thermal energy specifically takes account of methane, refrigeration, steam, hot water and heavy oil. ** The consumption of fuel oil only includes light oil. In 2015, the total energy consumption amounted to 514,875,483 MegaJoule, in addition to 1,366,056 MegaJoule from solar energy. Energy consumption can also be given in terms of quantity of used energy equivalent to 0.4 MegaJoule per liter of beverage under The Coca-Cola Company brand and 0.15 MegaJoule per liter of mineral water produced. In 2015, work continued on the optimization of energy consumption with specific projects at the various sites and, similarly to what was done for water, an improvement plan was launched for the period 2016-2020, which will be engaging the Engineering & Sustainability team in the search for innovative technical solutions. Use of raw materials Coca-Cola HBC Italia controls its processes to constantly monitor the use of raw and auxiliary materials in detail within each production facility. As a result of the increase in production volumes, in 2015 the amount of raw materials used for the production of beverages under The Coca-Cola Company brand and for the bottling of mineral water grew slightly compared to 2014. In 2015, food grade CO2 produced by recycling processes at the plant in Nogara amounted to 9,667 tons (i.e. 100% of CO2 used at the site). 107.531 Sugar and other sweeteners 8.432 Concentrate 17.494 Food grade CO2 INGREDIENTS USED FOR THE PRODUCTION OF BEVERAGES (t) Ingredient SUGAR AND OTHER SWEETENERS CONCENTRATE FOOD GRADE CO2 42 20122013 20142015 Coca-Cola HBC Italia used about 80,000 tons of various materials for product packaging in 2015. MAIN MATERIALS USED (t) MaterialCompany GLASS COCA-COLA HBC ITALIA FONTI DEL VULTURE 201320142015 14.478 11.508 0 0 24.972 0 COMPANY TOTAL 14.478 11.508 24.972 PET COCA-COLA HBC ITALIA 23.135 22.153 23.227 FONTI DEL VULTURE 8.545 5.513 6.372 COMPANY TOTAL 31.680 27.666 29.599 ALUMINUM COCA-COLA HBC ITALIA 17.467 11.557 11.563 FONTI DEL VULTURE 0 0 0 COMPANY TOTAL 17.467 11.557 11.563 4.729 3.895 4.587 1.147 662 909 PE FILM COCA-COLA HBC ITALIA FONTI DEL VULTURE COMPANY TOTAL 5.876 4.557 5.495 CARDBOARD COCA-COLA HBC ITALIA 3.970 3.886 4.158 FONTI DEL VULTURE 794 780 719 COMPANY TOTAL 4.765 4.666 4.877 PLASTIC LABELS COCA-COLA HBC ITALIA 496 478 495 FONTI DEL VULTURE 203 148 201 COMPANY TOTAL 699 626 696 CARDBOARD LABELS COCA-COLA HBC ITALIA 31 30 73 FONTI DEL VULTURE 90 45 54 COMPANY TOTAL 3.090 2.314 127 2.385 1.860 2.410 705 454 449 PLASTIC CAPS COCA-COLA HBC ITALIA 107.531 FONTI DEL VULTURE 9.3218.529 7.898 8.432 COMPANY TOTAL 3.090 2.314 2.859 TOTAL MATERIALS USED COCA-COLA HBC ITALIA 66.691 55.366 71.484 FONTI DEL VULTURE 11.484 7.602 8.704 COMPANY TOTAL 78.175 62.968 80.188 126.173 119.609 104.083 19.82019.136 17.207 17.494 43 2015 Sustainability Report ENVIRONMENT CONAI AWARD Continuing to increase the recycled content of beverage packaging is a goal for Coca-Cola HBC Italia; in fact, in 2015 it used 55% of aluminum and 15% of glass for the production of beverages under The Coca-Cola Company brand and 31% (1,977,019 kg) of Bio PET for the production of mineral water. In a context where the issue of waste and its disposal tends to become more and more critical, attention to how packaging is designed, manufactured and handled after being used has a significant impact both on the Company, which must balance food security, marketing and economic needs, and on the environment. In 2015, Fonti del Vulture was among the winners of the “CONAI Award on prevention - enhancing the environmental sustainability of packaging”, which rewards the most innovative and environmentally-friendly packaging solutions. The award was given to three projects for the light-weighting of packaging, which led to a reduced use of PET plastic bottles. In particular, these actions involved the PET bottleneck area and the high density polyethylene (HDPE) cap resulting in the following percentage reductions in the weight of the bottle: 6% for the 2-liter PlantBottle of Lilia mineral water; 18% for the 0.5-liter bottle of Sveva mineral water and 7% for the 1.5-liter bottle of Toka mineral water. The award ceremony was held at the Triennale di Milano on December 1 in collaboration with Corriere della Sera, which was followed by a communication campaign in regard of the winners promoted in the insert of Corriere della Sera, “Corriere Innovazione”. Waste management and recycling Another indicator monitored by Coca-Cola HBC Italia is the production of solid waste, the management of which is crucial for sustainable development. The total in 2015 stood at 11,832 tons, and the amount of hazardous waste generated further decreased, from 42 to 34 tons. In 2015, nearly all of the waste produced (over 99%) was classified as non hazardous waste (this was, in particular, packaging waste such as paper, cardboard, plastic and glass that are sent for recycling at most of the plants). Although Coca-Cola HBC Italia invests in waste recycling, in 2015 the percentage of recycled materials was 89.30% of the total output, a slight decrease compared to 2014. The delays in the renewal of the operating license by a recycler, certain compliance issues of the forms and the limited capacity of the plants at destination did not allow the Company to report a higher percentage of waste to be sent for recycling. WASTE PRODUCED (t) ClassificationCompany HAZARDOUS WASTE PRODUCED 201320142015 COCA-COLA HBC ITALIA 58 38 34 0,63 FONTI DEL VULTURE COMPANY TOTAL 1 4 59 42 NON-HAZARDOUS WASTE PRODUCED COCA-COLA HBC ITALIA 34 9.204 11.421 11.235 FONTI DEL VULTURE 441 430 563 COMPANY TOTAL 9.645 11.851 11.798 TOTAL WASTE PRODUCED COCA-COLA HBC ITALIA 9.262 11.459 11.268 FONTI DEL VULTURE 442 434 564 COMPANY TOTAL 9.704 11.893 11.832 WASTE RECYCLED (%) Company PLANTBOTTLE: The PET plastic bottle, up to 30% of vegetable origin An example of innovative packaging was provided by The Coca-Cola Company and used for the first time by Fonti del Vulture in Italy in 2014: the PlantBottle, whose use continued in 2015 for 1.5-liter Lilia bottles. The extraordinary revolution of the fully recyclable PET plastic bottle, made up of a combination of traditional materials and a percentage of up to 30% of organic origin, consists in the plastic material from vegetable sources that, unlike the existing ones, can be processed in the recycling installations for traditional PET. The material of the new bottles enables a considerable reduction of carbon dioxide emissions and is fully responsive to the waste reduction, reuse and recycling policy. o e ne PET ni di 44 201320142015 COCA-COLA HBC ITALIA 98,40% 97,81% 88,82% FONTI DEL VULTURE 98,75% 99,38% 99% 98% 98% 89,30% COMPANY TOTAL WASTE RECYCLED by Fonti del Vulture 45 2015 Sustainability Report ENVIRONMENT Emissions ZED - ZERO EMISSIONS DISTRIBUTION Coca-Cola HBC Italia is aware of the effects caused by greenhouse gas emissions and that an energy policy geared to the search for efficiency could mitigate them. CO2 emissions A new approach to the subject is evidenced by the improvement targets set for 2016, in view of the Europe 2020 strategy, which provides for the use of cogeneration sources and renewable energy sources for corporate fleets. In fact, making refrigeration more sustainable, one of the largest sources of global carbon emissions due to the high global-warming potential of hydro fluorocarbons (HFCs), is the greatest commitment of Coca-Cola HBC Italia in this field. Significant investments were made during the course of 2015 to meet the commitment undertaken by Coca-Cola Hellenic Bottling Company not to introduce equipment with hydro fluorocarbons on the market as from 1 January 2016. The purchase of new equipment without hydro fluorocarbons as CO2refrigerants, which avoid 99% of direct emissions, and hydrocarbon refrigerants (HC) is a first step to achieving that goal. Another area of action concerns the selection of suppliers and their awareness. The “Specifications for the provision of primary transport” is a document, an integral part of the contract of carriage, which each supplier has the obligation to respect. It includes the request to use vehicles that at least meet the EURO IV standard (a set of standards on emissions, which apply to new road vehicles sold in the European Union as of 2006, as part of the air pollution reduction policy). The company’s attention to this issue is also reflected in assessments instrumental to the selection of suppliers with regard to the energy sources used and energy consumption plans adopted. -1.037.435 kg of CO 2 avoided thanks to the transport of goods by rail 46 CO2 EMISSIONS (t) Company COCA-COLA HBC ITALIA FONTI DEL VULTURE COMPANY TOTAL 201320142015 9.899 6.065 6.093 145 120 112 10.044 6.185 6.205 For 2015, the value should not be referred to general carbon emissions, which take account both of scope 1 and scope 2 (direct and indirect emissions of greenhouse gases) in the Dow Jones Sustainability Index. The latter, in fact, also includes the impacts of fleet management and the CO2 associated with the consumption of electric energy, while the figure reported here only refers to CO2 associated with the consumption of natural gas only at the bottling sites. Zero Emissions Distribution is a virtuous system that offers a green logistics model, effective and truly sustainable to serve city centers and Limited Traffic Zones. The project, undertaken by Coca-Cola HBC Italia and Mancinelli Due, respectively lead sponsor and main investor in ZED, was developed by Università La Sapienza in Rome (DIET and DIAE), CNR (Italian national research council), POMOS (Polo della Mobilita Sostenibile, center for sustainable mobility) and the Scientific Association BIP - Best Ideas & Projects. An electric vehicle with a 140-km range, lithium and ferrite ions batteries, gradeability of 21% and maximum payload of 2.5 tons was developed and built. In October 2014, the first electric vehicle began operating in the historic center of Rome. When fully operational, the project will distribute about 300 shipments a day in the Limited Traffic Zone of the Italian Capital from a warehouse located 15 km from the city center with 6 electric vehicles powered by renewable sources. The main benefit of ZED in the medium term will be a significant reduction in CO2 emissions (i.e. 1,517,811 kg/year), the effect of which will be equivalent to the reforestation of about 205 hectares. ZED wants to stand as a reference model to be replicated in other Italian cities. 6 veicoli elettrici alimentati da fonti rinnovabili Logistics efficiency ZERO WASTE LOGISTICS Storage and distribution are an essential part of the activities of Coca-Cola HBC Italia: the efforts in the field of logistics innovation, optimization of distribution networks and routes are significant and long-lasting, while still guaranteeing high quality standards in product delivery to customers. The production and distribution network was redesigned in recent years to cope with the changes occurring in the target market, both in terms of the location of customers and for the purpose of following the sales department’s strategies. Investments were made in the distribution network with tangible benefits on the reduction of kilometers traveled by the means of transport. In recent years a reassessment of the supply base was undertaken to favor partners capable of offering the storage of products and delivery of orders by optimizing distances traveled and consolidating cargo. With a view to reducing its environmental impact, the Company also implemented a strategy favoring rail transport against road transport, particularly for mineral water due to the location of the production sites. During the course of 2015, the shipments handled by rail along intermodal routes were 1,902, covering a distance of 1,305,487 km from the beginning of the year, with a total savings of € 234,869.00 and 1,037,435 kilograms of CO2 avoided. In 2015, Coca-Cola HBC Italia earned the award “Logistics of the year”, organized by Assologistica and Euromerci, thanks to the project “Zero Waste Logistics”, in collaboration with CHEP and Carrefour Italia. This project is another example of the Company’s attention to sustainability of its logistics activities, involving the abandonment of the 80x60 disposable wooden pallets to adopt the pallet pooling solution offered by CHEP Italy, with the aim to reduce food waste, costs and environmental impact. Robust pallets are shipped to the outlets without handling along the supply chain: this “one-touch” solution enabled Coca-Cola HBC Italia to decrease the damage to the product by 65% and by 83% with reference to cans alone. Moreover, the 80x60 pallets allow a better visibility of the product at the point of sale thereby improving rotations and reducing the likelihood that products may expire. The CHEP solution is sustainable from the outset since the wooden pallet comes from managed forests and is certified by FSC (Forest Stewardship Council) and PEFC (Program for the Endorsement of Forest Certification schemes). Through the LCA model, “Life Cycle Assessment”, CHEP has quantified the environmental benefits achieved by Coca-Cola HBC Italia in 2015 by using rented pallets: 31% reduction of CO2 emissions equal to 53 tons; wood savings of 93%, equal to 364 cubic meters; 92% less waste in dumpsites equal to 56 tons. The model used is the first LCA on pallet pooling in Italy that was attributed the logo of the environmental footprint assessment program by the Italian Ministry of the Environment. 47 www.coca-colahellenic.it | www.lanostraricetta.it
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