Coca-Cola HBC has announced a commitment to achieving net zero emissions across its entire value chain by 2040.
Via an existing approved science-based target, by 2030 the company will reduce its value chain emissions by 25%, with a further 50% reduction in the following decade.
To address the 90% of emissions resulting from third party actions, Coca-Cola HBC will broaden its existing partnership approach with suppliers. Wherever emissions cannot be eliminated entirely, the business will mitigate these by investing in other climate protection measures.
Commenting on the announcement, Coca-Cola HBC CEO Zoran Bogdanovic said, “This commitment is the ultimate destination of a journey that we started many years ago. It is fully aligned with our philosophy to support the socio-economic development of our communities and to make a more positive environmental impact. Both are integral to our future growth. Although we don’t yet have all the answers, our plan, track record, and partnership approach give us confidence that we will deliver.”
To achieve its goal, Coca-Cola HBC will continue to have CO2 emission reduction targets as one of the elements in its long-term management incentive plans. The company will invest EUR 250 million in emissions reduction initiatives by 2025 and decarbonise further direct operations by switching to 100% renewable electricity and low carbon energy sources through continuous improvements and innovations in energy efficiency.
Plans are also in place to accelerate the Coca-Cola HBC journey to a more circular, lower carbon packaging approach by increasing rPET use, adopting packageless and refillable options, and removing plastics in secondary packaging. Steps are being implemented to provide energy-efficient and eco-friendly coolers to customers, reduce emissions from agricultural ingredients, and implement a “Green Fleet” program to switch to low and no carbon alternatives.
In addition, Coca-Cola HBC has introduced CO2 emission reduction targets as one of the elements in its long-term management incentive plans.
Coca-Cola HBC was one of the first companies to commit to and deliver science-based targets. During the last decade, the company has halved its direct emissions and the CO2 reduction plan to 2030 is already endorsed and approved.
These measures are gaining international recognition. In March 2021, Coca-Cola HBC was rated the world’s most sustainable beverage company by the Dow Jones Sustainability Index for the fifth time in the last seven years, achieving its highest ever score. It is also ranked among the top sustainability performers in ESG benchmarks such as CDP, MSCI ESG and FTSE4Good.