Materiality

MATERIAL ISSUES

Our material issues are those that matter most to our stakeholders and broader shareholder groups, and subsequently impact the Company’s value drivers, competitive position and long-term value creation.

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Material issues


LEARNING FROM OUR STAKEHOLDERS

Understanding the needs and interests of our stakeholders – including our partners, customers, suppliers and community members and employees – helps us to prioritise our material issues. This in turn helps us develop sustainable business strategies, enabling us to create value in the long term.

We actively seek out our stakeholders’ opinions and insights by:

  • Organising an annual stakeholder forum; 
  • Interviewing key internal decision makers and external partners;
  • Engaging with external stakeholders on an ongoing basis;
  • Surveying our senior leaders from each function, country and the Group as well as more than 500 external stakeholders nominated by our 28 markets and the Group Corporate Office;
  • Considering the material issues list of The Coca‑Cola Company and other bottlers as well as other food and beverage companies;
  • Listening to feedback from our Group Risk Forum and all Risk registers of our markets.

Managing our material issues

The outcome of our material issues survey constitutes a ranking order of material issues. By assessing the importance of these issues to our stakeholders and their decision, combined with an assessment of the impact of the issue on society and environment, we derive the relative materiality of each issue and prioritise them accordingly. Following the process of prioritising our material issues, the Operating Committee ensures their proper implementation in our overall strategic framework. This includes setting and disclosing targets and metrics to measure progress.

We have linked our material issues to the Sustainable Development Goals (SDGs), established by the UN to achieve long-term growth and development by 2030. In 2018, when introducing Mission 2025 with our sustainability commitments, we aligned our materiality topics not only with the applicable goals, but with all relevant underlying targets for each SDG.


We identify and focus on the issues that have the biggest impact on our business and matter most to our stakeholders.

 

 

Material issues include the economic, environmental and social risks that could affect our reputation and ability to create value over the short, medium and long term.

At Coca‑Cola HBC we aim to understand and address the issues with the highest impact to our business and our communities. We are always looking to improve our approach to identifying the most important of these risks and impacts, and report on our approach and progress against material issues transparently.

The materiality process provides insights to our business strategy and makes sure that our integrated and sustainability reporting is relevant.

 

How we identify and prioritise material issues

To identify the key issues for our business, we monitor external trends and how these affect our ability to grow our business sustainably over time.

We prioritise these issues based on their relative importance to our business and to society at large, mapping the most important ones annually in our materiality matrix.

Our systematic materiality assessment process helps us prioritise the issues in line with the Global Reporting Initiative G4 Sustainability Reporting Guidelines.

How material an issue is to our business depends on how it relates to:

  • Our purpose, mission and business strategy
  • The brands we produce and sell
  • The impact our operations have on the economies, environment and society in the 28 countries in which we operate
  • The importance of an issue to our stakeholders
  • The extent we can influence the issue as a company

 

Learning from our stakeholders

Understanding the needs and interests of our stakeholders – including our partners, customers, suppliers and community members and employees – helps us to prioritise our material issues. This in turn helps us develop sustainable business strategies, enabling us to create value in the long term.

We actively seek out our stakeholders’ opinions and insights by:

  • Organising stakeholder forums
  • Interviewing key internal decision makers and external partners
  • Engaging with external stakeholders on an ongoing basis
  • Surveying over 300 of our leaders from each function, country and the Group as well as more than 360 external stakeholders nominated by our 28 markets and the Group Corporate Office
  • Considering the material issues list of The Coca‑Cola Company and other bottlers as well as other food and beverage companies
  • Listening to feedback from our Group Risk Forum

 

Managing materiality

To ensure good governance, the Social Responsibility Committee of the Board of Directors and the Sustainability Steering Committee, which consists of key subject matter experts and decision makers, regularly review our priorities in light of changing issues and expectations.

We review our material issues annually to make sure that we always reflect new insights from the business and our stakeholders.


Our material issues are linked to the Mission 2025 sustainability commitments and the UN’s Sustainable Development Goals (UN SDGs) and their targets

 

ALIGNING OUR MATERIAL ISSUES

Alignment with SDGs
  • 8.4 - Improve global resource efficiency in consumption and production
  • 9.4 - Increase resource-use efficiency and adopt clean and environmentally sounds technologies and industrial processes
  • 11.6 - Reduce the environmental impact of cities, paying attention to air quality and waste management
  • 12.1 - Implement programmes on sustainable consumption and production
  • 12.2 - Sustainable management and efficient use of natural resources
  • 12.5 - Reduce waste generation through prevention, reduction, recycling and reuse
  • 14.1 - Prevent and reduce marine pollution
  • 17.7 - Encourage and promote effective cross-sector partnerships

2025 sustainability commitments

  • 100% of consumer packaging to be recyclable
  • 35% of total PET used from recycled PET and/or PET from renewable material
  • 20 – Engage in 20 Zero Waste partnerships (city and/or coast)
  • 75% help collect the equivalent of 75% of our primary packaging

Alignment with SDGs

  • 6.1 Achieve universal and equitable access to safe and affordable drinking water
  • 6.4 Increase water use efficiency across all sectors and address water scarcity
  • 6.5. Implement integrated water resources management
  • 6.6. Protect and restore water-related ecosystems
  • 9.4. Increase resource-use efficiency and adopt clean and environmentally sound technologies and industrial processes
  • 11.6. Reduce the environmental impact of cities, paying attention to air quality and waste management

2025 sustainability commitments*

  • 20% water reduction in plants located in water-risk areas
  • 100% help secure water availability for all our communities in water-risk areas

Alignment with SDGs

  • 3.4 Promote mental health and wellbeing
  • 9.4. Increase resource-use efficiency, and adopt clean and environmentally sound technologies and industrial processes
  • 12.7. Promote sustainable, public procurement practices
  • 12.8. Ensure information and awareness for sustainable development and lifestyles in harmony with nature

2025 sustainability commitments

  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles
  • 25% reduce calories per 100ml of sparkling soft drinks (all CCH countries)

Alignment with SDGs

  • 7.2 Increase the share of renewable energy
  • 7.3 Improvement in energy efficiency
  • 9.4. Increase resource-use efficiency, and adopt clean and environmentally sound technologies and industrial processes
  • 11.6. Reduce the environmental impact of cities, paying attention to air quality and waste management
  • 12.2 Sustainable management and efficient use of natural resources
  • 13.1 Strengthen resilience and adaptive capacity to climate-related hazards

2025 sustainability commitments

  • 30% reduction in carbon ratio in direct operations
  • 50% increase in energy-efficient refrigerators to half of our coolers in the market
  • 50% of our total energy from renewable and clean sources
  • 100% total electricity used in EU&CH from renewable and clean energy

Alignment with SDGs

  • 12.1 Implement programmes on sustainable consumption and production
  • 16.5 Substantially reduce corruption and bribery
  • 17.14 Enhance policy coherence for sustainable development
  • 17.17 Encourage and promote effective cross-sector partnerships

Alignment with SDGs

  • 5.5 Ensure women’s full and effective participation and equal opportunities
  • 8.5 Achieve full and productive employment and decent work for everyone
  • 8.8 Protect labour rights and promote safe and secure working environments
  • 10.2 Empower the social, economic and political inclusion of all
  • 10.4 Adopt policies and achieve greater equality
  • 16.7 Ensure inclusive, participatory and representative decision-making

2025 sustainability commitments

  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles
  • ZER0 target zero fatalities and reduce (lost time) accident rate by 50%
  • 1 MIL train 1 million young people through #Youth Empowered
  • 50% of managers are women

Alignment with SDGs

  • 3.4 Promote mental health and wellbeing
  • 12.8. Ensure information and awareness for sustainable development and lifestyles in harmony with nature

2025 sustainability commitments

  • 25% reduce calories per 100ml of sparkling soft drinks (all CCH countries)

Alignment with SDGs

  • 4.3 Ensure equal access to affordable and quality education
  • 4.4 Increase the number of youth and adults with relevant job skills
  • 8.6 Reduce the proportion of youth not in employment, education or training
  • 11.6. Reduce the environmental impact of cities, paying attention to air quality and waste management
  • 17.16 Enhance the Global Partnership for Sustainable Development
  • 17.17 Encourage and promote effective cross-sector partnerships

2025 sustainability commitments

  • 10% community participants in first-time managers’ development programmes
  • 1 MIL train 1 million young people through #Youth Empowered
  • 20 engage in 20 Zero Waste partnerships (city and/or coast)
  • 10% of employees take part in volunteering initiatives

Alignment with SDGs

  • 1.1 Eradicate extreme poverty
  • 8.4 Improve global resource efficiency in consumption and production
  • 8.5 Achieve full and productive employment and decent work for everyone
  • 8.6 Reduce the proportion of youth not
  • 11.6. Reduce the environmental impact in employment, education or training of cities, paying attention to air quality and waste management
  • 12.2 Sustainable management and efficient use of natural resources
  • 12.7. Promote sustainable, public procurement practices
  • 17.13 Enhance global macroeconomic stability

2025 sustainability commitments

  • 100% help secure water availability for all our communities in water-risk areas
  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles
  • 10% community participants in first-time managers’ development programmes
  • 1 MIL train 1 million young people through #Youth Empowered
  • 20 engage in 20 Zero Waste partnerships (city and/or coast)

Alignment with SDGs

  • 3.4. Promote mental health and wellbeing
  • 3.6. Halve global deaths and injuries from road traffic accidents
  • 8.5 Achieve full and productive employment and decent work for everyone
  • 5.5 Ensure women’s full and effective participation and equal opportunities
  • 10.2 Empower the social, economic and political inclusion of all
  • 10.4 Adopt policies and achieve greater equality
  • 16.7 Ensure inclusive, participatory and representative decision-making

2025 sustainability commitments

  • ZER0 target zero fatalities and reduce (lost time) accident rate by 50%
  • 50% of managers are women
  • 10% community participants in first-time managers’ development programmes
  • 10% of employees take part in volunteering initiatives
  • 1 MIL train 1 million young people through #Youth Empowered

Alignment with SDGs

  • 8.3. Encourage the growth of micro-, small- and medium-sized enterprises
  • 12.1 Implement programmes on sustainable consumption and production
  • 12.2 Sustainable management and efficient use of natural resources
  • 12.4 Achieve environmentally sound management of chemicals and all wastes
  • 12.6. Encourage companies to adopt sustainable practices and to integrate sustainability information into reporting
  • 12.7. Promote sustainable, public procurement practices
  • 9.4. Increase resource-use efficiency, and adopt clean and environmentally sound technologies and industrial processes
  • 13.1 Strengthen resilience and adaptive capacity to climate-related hazards

2025 sustainability commitments

  • 100% of our key agricultural ingredients sourced in line with sustainable agricultural principles

Alignment with SDGs

  • 12.6. Encourage companies to adopt sustainable practices and to integrate sustainability information into reporting
  • 12.8. Ensure information and awareness for sustainable development and lifestyles in harmony with nature

2025 sustainability commitments

  • 17.17 Encourage and promote effective cross-sector partnerships

Natural Capital Impact Valuation study

Natural Capital is the stock of renewable and non-renewable natural resources that combine to yield a flow of benefits to people (reference: Natural Capital Coalition).

To understand our impact, we used the methodology of the Natural Capital Protocol, and evaluated our environmental impact across our entire value chain.

Our study translates Life Cycle Analysis (LCA) indicators into a monetary value.

Final impact is the cost that society bears as a result of our activities in the value chain.
 

1. Non-renewable energy use

2. Aquatic ecotoxicity

3. Aquatic eutrophication

4. Land occupation

5. Human toxicity, carcinogen

6. Human toxicity, non-carcinogen

7. Ionizing radiation

8. Respiratory effects (Particulate matter)

9. Ozone Depletion

10. Photochemical oxidation (smog creation)

11. Global warming

12. Water withdrawal (water consumption)



Coca‑Cola Hellenic Natural Capital Impact Valuation study