Sustainability Report

Transcription

1 Sustainability Report

2 Live Positively: sustainability in each drop.

3 This report was printed on recycled PET (jacket) and Vitopaper (cover and inside part) synthetic paper made from post-consumer recycled plastics. The ink used to print it is made from plant-based oils, which are less harmful to the environment. Coca-Cola Brazil s choice of these materials is designed to ensure that the publication can be, in of itself, a recyclable item, thereby minimizing the environmental impact.

4 <3.12> Contents 5 Creating Value, Promoting Well Being and Making a Difference Sustainability Report 2010/ Sustainability in Each Drop Organizational Profile and Corporate Governance Environmental Well-Being 22 The Most Precious Resource Global Water Stewardship 30 Innovation Generates Energy Energy Management and Climate Protection 36 Recycling is a Must Sustainable Packaging Reading Guidelines These symbols identify and indicate the location of the GRI indicators met, as well as the Essential Items. Example: <EN8> References in the text Social Well-Being 44 Transforming the Individual Means Transforming the World Community 52 The Value of People Workplace EN8 Label at the top of the pages Personal Well-Being 64 In Benefit to the Consumer Beverage Benefits 70 What Matters is Your Health Active, Healthy Living 76 Parameters for the GRI Report 80 Indicator Index

5 Creating Value, Promoting Well Being and Making a Difference For 70 years, Coca-Cola has been a part of Brazilians lives. We have dedicated a great deal of effort here toward developing and delivering high quality products and building a system with top professionals. Based on the 2020 Vision a set of sustainable goals that orient our decisions, our mission is to refresh the world, inspire moments of optimism and joy, create value, and above all, make a difference. Live Positively has been our sustainability platform since However, it has now earned new contours, anchored in three main areas, as well as in a value creation model that offers a common tool that can be used to evaluate all priorities: Personal Well-Being (Me), Social Well-Being (We) and Environmental Well-Being (The World). In these main areas, we have regrouped the seven pillars that make up our Live Positively platform Global Water Stewardship, Sustainable Packaging, Energy Management and Climate Protection, Community, Beverage Benefits, Active, Healthy Living and Workplace. Besides this, we also introduced new topics that have gradually gained force, such as the Economic Empowerment of Women, Hydration and Nutrition and Sustainable Agriculture. I believe that Sustainability plays a central and strategic role in our business. And that only sustainability will bring the world a virtuous cycle of development in which, indeed, everyone wins. Xiemar Zarazúa CEO of Coca-Cola Brazil

6 2010/2011 Sustainability Report Coca-Cola Brazil Organizational Profile and Corporate Governance In each drop, the focus is sustainability Adopting the concept of shared value is strategic for Coca-Cola Brazil, since it guarantees sustainable development for the businesses and a better future for its associates and consumers. The Coca-Cola Brazil 2010/2011 Sustainability Report classifies in Level C of the Global Reporting Initiative application - GRI/G3. Twelve economic, social and environmental indicators were fully met and seven were partially met. Organizational Profile <2.1> Coca-Cola Brazil has one of the <2.3> With a sales volume of 10.7 four largest operations within The billion liters in 2011, Coca-Cola Brazil Coca-Cola Company, which is present in recorded earnings of R$ 19.2 billion, more than 200 countries and offers over representing an 8.2% growth compared 3,500 non-alcoholic beverage products to the previous year and mobilizing a including four of the five most highly system consisting of 16 business groups consumed brands on the planet: Coca- responsible for elaborating the final Cola, Coca-Cola Light, Fanta and Sprite. product and distributing it to more than 1 million points of sale located all <2.5, 2.6> A major company that has over Brazil. been present in the country for more than 70 years, Coca-Cola Brazil operates <2.8> Considered strategic information here as a limited liability company for the company, the figures associated (Ltda.). Only the head unit, located in with net revenue are disclosed globally Atlanta, Georgia, has shares traded on only as opposed to specifically by the stock exchange in the United States. country. <2.8> The structure of the Coca-Cola Brazil system is maintained through the work of some 63,000 employees including direct and indirect ones. Brazil has been one of the main driving forces behind the global economy, with outstanding potential and great capacity for innovation and adaptation. For nearly eight years, the national sales of Coca- Cola Brazil products have increased consistently each six months, and the Coca-Cola Brazil System is prepared to grow together with the country. During these seven decades that it has operated in Brazil, Coca-Cola Brazil has Investments table year by year Total From 2012 to 2016 R$ 1.3 billion R$ 1.5 billion R$ 1.8 billion R$ 2.2 billion R$ 2.6 billion R$ 9.4 billion R$ 14 billion consolidated its position as a company that prioritizes sustainable growth. It plans to invest R$ 14 billion over the next five years representing a 50% increase compared to what was invested from 2007 to <2.3, 2.2, 2.7> The 16 business groups that participate in the Coca-Cola Brazil System are authorized bottlers of the brand s products, with 46 bottling plants located in all regions of the country (during the period of the report). However, it is only the Manaus concentrate bottling plant that produces the original and unmistakable Coca-Cola formula. The system guarantees the national distribution of an extensive line of nonalcoholic beverages that includes waters, nectars, soft drinks, teas, dairy beverages, sports drinks and replenishers. There are more than 150 products and extensions of the line available to consumers. <2.2> The constant expansion of the product portfolio, with the entry into new beverage segments and the recent launch of new packaging, was one of the factors of success for the growth of Coca-Cola s operations in Brazil. The actions focused on active, healthy living habits have been the highlight and the portfolio follows the proposal of offering products designed for a range of different demands and occasions. 6 7

7 2010/2011 Sustainability Report Coca-Cola Brazil Organizational Profile and Corporate Governance <2.2> Main Coca-Cola Brazil products Burn Powerade; i9 Matte Leão; Ice Tea Leão Kapo Chocolate Crystal Coca-Cola; Coca-Cola Zero; Coca-Cola Light Plus; Fanta; Kuat; Sprite; Aquarius Fresh and Schweppes Del Valle Mais; Del Valle Kapo; Del Valle Laranja Caseira ( Home-Squeezed Orange ); Del Valle Limão&Nada ( Lime&Nothing Else )/Maracujá&Nada ( Passion Fruit&Nothing Else ) 8 9

8 2010/2011 Sustainability Report Coca-Cola Brazil Organizational Profile and Corporate Governance Head Office Regional Offices Concentrate Bottling Plant Authorized Bottlers Main changes in the groups structure RJ <2.5> Map of Growth with social-environmental management operations The Coca-Cola Brazil corporate policy Coca-Cola Brazil is a global reference company has been testing out new includes principles focused on social when it comes to responsible water use. energy sources for its plants, such as <2.4> The company s head office is located in Rio de Janeiro, in the neighborhood of Praia de Botafogo. In order to provide support for the national operation, there are also regional offices in the cities of Rio de Janeiro, São Paulo, Fortaleza, Brasília, Curitiba and Porto Alegre. and environmental issues so that the company s growth in the country takes place responsibly and consciously. The company has made a commitment to protecting and preserving the environment and reducing its impacts. The efforts are concentrated on key areas in which there is greater opportunity to make a difference, such And it could be no different, considering that water is the main raw material used to produce non-alcoholic beverages. Today, the water use index is 1.91 liters for each liter of beverage produced. By 2020, the company plans to reduce this ratio to 1.5 liters per liter of beverage produced. One of the leaders when it comes to biodiesel. The distribution fleet also receives investments and is learning to use its fuel increasingly more efficiently. At the same time, Coca-Cola Brazil invests in pioneering projects to create gas refrigerators whose operation is CO2-based, with a much lower environmental impact when compared to regular equipment powered by CFCs <2.3> The Coca-Cola business unit in Brazil accounts for the company s fourth largest operation in the world and reports to the Mexico office, which centralizes the Latin American markets. Each year, an international meeting is held to approve the company s global business plan. as the management of water resources, climate protection and sustainable packaging, observing the following: Management System. Legal Compliance. Risk Assessment and Management. Trained and Committed Employees. promoting recycling in the country, Coca-Cola Brazil has had a formalized cooperative support project in place since 1996 and has contributed toward making Brazil the global champion in the reuse of post-consumer container materials more than 98% of the aluminum and 57.1% of the PET in circulation are sent and HFCs. In addition to not releasing gases that are harmful to the ozone layer, a refrigerator like this one also offers the advantage of reducing energy consumption by up to 30%. Coca-Cola Brazil also wants to become a reference in the social business Performance Objectives and for recycling. The company currently concept in the country. That is why it is Monitoring. supports more than 200 cooperatives promoting projects designed to insert Incident Management and Crisis and plans to reach 500 by youth into the job market, such as the Resolution. Coca-Cola Coletivo, which offers income Commitment to Stakeholders. The work to reduce greenhouse gas generation and professional training emissions has been constant and the programs. <2.9> 2010: <2.9> 2011: Renosa Group: total spinoff from Renosa Logística Ltda., transferring the operation and retail to the company Tocantins Refrigerantes S/A, which opened branch offices in the state of Mato Grosso to manage the operation. Spaipa Group: it created and opened the following branch offices to serve as administrative sales offices: Guarapuava (PR); Paranaguá (PR); Cianorte (PR); Ivaiporã (PR); Medianeira (PR); Catanduva (SP); Presidente Venceslau (SP); Jales (SP) and Barretos (SP). A Closed Deposit was also created in São José do Rio Preto (SP). During 2010, the Spaipa capital increased from R$ 212 million to R$ 220 million. Ipiranga Group: installation of a new PET bottling line line 08. Renosa Group: acquisition of the former Conviver, which represents the states of Alagoas, Sergipe and part of Bahia, responsible for the industrialization and operation and retail of noncarbonated products, all administered by the company CBA Cia. de Bebidas e Alimentos do São Francisco. Acquisition of CAF Cia. de Águas Funcionais do Nordeste, another company that participates in the Conviver group in the production of mineral waters. SABB Group: Change in the head office from São Paulo to Linhares, where the company s bottling plant is located. Spaipa Group: creation and opening of the following branch offices, designed to provide the combined services of office, administrative support and product loading and unloading: Campo Mourão (PR); Assis (SP); Oswaldo Cruz (SP); Andradina (SP); Apucarana (PR) and Toledo (PR). Opening and creation of a branch office to serve as the Marília Closed Warehouse (SP). Change in the address and activities of the Lençóis Paulistas (SP) unit, which began operating to provide the combined services of office, administrative support and product loading and unloading. Principles of Conduct for Suppliers <4.8, 4.12> The Principles of Conduct for Suppliers are an essential pillar of The Coca-Cola Company programs focused on human rights and responsibility in the workplace and which communicate the company s values and expectations with relation to suppliers, emphasizing the importance of responsible practices in the workplace that respect human rights and comply with, as a minimum condition, applicable environmental laws, local labor laws and regulations and fundamental international conventions. In the environmental area, these principles demand that the supplier comply with all local and national laws and conduct its business in a way that protects and preserves the environment. Among the effective actions undertaken by Coca- Cola Brazil as part of this process, we highlight the requirement of the Forest Stewardship Council (FSC) Seal for all graphic material produced for the points of sale. The initiative, which began in 2009 with awareness raising efforts and the certification of the supplier printing presses, was consolidated during the period of this report

9 Relatório de Sustentabilidade 2010/2011 Coca-Cola Brasil Organizational Profile and Corporate Governance Awards received during the period <2.10> The company s sustainability practices in the environmental, social and economic areas have earned it important distinctions from the market. Leadership: considered by the magazine Carta Capital as the Most Admired Company in Brazil in 2011 in the area of non-alcoholic beverages, Coca-Cola Brazil was also champion in the beverage sector among the Most Prestigious Companies that same year, elected by the Época Negócios 100 Yearbook. Beto Richa, Governor of Paraná, Chico Santos, Mayor of Fazenda Rio Grande, and Axel de Meeüs, President of SABB, during the receipt of the LEED certification for the Green Bottling Plant Certifications Sustainability Awarded: Coca-Cola Brazil is also proud to have been awarded for its sustainable actions with the 2011 Rio + Entrepreneur Award, promoted by the Rio de Janeiro Entrepreneurial Leaders Group (Lide Rio) in partnership with the agency Rio Negócios. Quality Guaranteed The Coca-Cola Brazil Quality System (CCQS) rules incorporate internationally recognized standards in the areas of quality, safety and the environment, in addition to establishing requirements for supplier acquisition, outsourcing and management processes. The company also uses the Supplier Maturity Continuum (SMC), a management tool for quality audits, certifications, international standards and for evaluating the bottlers satisfaction with relation to the suppliers. To face the challenge of guaranteeing a single quality standard for its processes, the company regularly conducts training with the bottling plant managers to increase qualification in the areas of quality, environment, workplace safety, occupational health and food safety. Incentive toward Excellence In the permanent quest for improvement, the Quality System seeks to meet the requirements of Brazil s National Quality Award, promoted by the National Quality Foundation (FNQ). More than just being a globally recognized award, the initiative fulfills the function for the Coca-Cola Brazil System of elevating the requirement level for the company s practices. In the same sense, the company s Quality Board has also promoted the Quality Award each year since 1998, with aims of encouraging the System suppliers to promote advances in the quality area for those products sold to the bottling plants, such as ingredients and packaging materials, as well as the market equipment or production services (co-packing). They play a crucial role in terms of ensuring the quality and integrity of the beverages. Ethical Conduct Similarly to all the other management fronts, the Coca-Cola Brazil System follows the same principles of ethics and compliance as those practiced by The Coca-Cola Company. In each country, there are Ethics Compliance Committees with global guidelines. All of the employees participate in training, in which they must follow the Corporate Code of Conduct. The SQCC rules incorporate standards that are internationally recognized for the areas of quality, safety and environment: ISO 9001 (quality management); ISO (environmental management); ISO and PAS 220 (food safety); OHSAS (occupational safety and health); ISO (process standardization). Communication: the company is among the Companies that Best Communicate with Journalists, an award launched Marco Simões, Vice President of Communication and Sustainability, and Flávia Neves, Sustainability Manager at Coca-Cola Brazil, receive the Rock in Rio Sustainability Award in 2011 by the magazine Negócios de Comunicação. The survey was conducted by the specialized consulting firm H2R with 25,000 journalists all over the country and elected Coca-Cola Brazil one of the top seven in the Food and Beverage segment. Recycling at City of Rock: Coca-Cola Brazil made sustainability one of its top priorities during its participation in Rock in Rio So much so that the company received the Rock in Rio Sustainability Award for its VIP box built with recycled and recyclable materials. To complete the process, at the end of the festival all of the material used in the Coca-Cola Brazil spaces was directed at recyclable material collectors cooperatives. Some awards received by the system bottlers <2.10> 2010: Finalist in the Management category of the Amazonas Quality Award, organized by the Amazonas State Federation of Industries (Simões Group); The 100 Most Innovative in IT Use, from the magazine Information Week Brasil (Spaipa Group); Brazil s 100 Most Connected Companies, according to the ranking of the magazine INFO (Saipa Group); 1st place in the Coca-Cola Brazil Quality Award Marília Plant (Spaipa Group); Gold Level in the Quali MT (Mato Grosso Quality Program) of the Mato Grosso State Federation of Industries System (RENOSO); Gold Medal for the São Paulo Management Quality Award (PPQG) from the São Paulo Management Excellence Institute (IPEG) located in Ipiranga

10 2010/2011 Sustainability Report Coca-Cola Brazil Organizational Profile and Corporate Governance <2.10> 2011: Bronze medal in the Management Category for the Amazonas Quality Award, organized by the Amazonas State Federation of Industries (Simões Group); Friend of Sports Entrepreneur, Award in the Dedication and Incentive category, created by the Ministry of Sports (Spaipa Group); University Student TOP of Mind Award for being the most highly recalled company by Curitiba university students (Spaipa Group); 1st place in the Coca-Cola Brazil Quality Award Maringá (Spaipa Group); Best Places to Work Award Brazilian Association of Human Resources/Jornal do Commercio-PE (Guararapes); Elected by the Great Place to Work Institute as one of the best places to work in the country (Recofarma); 2011 Supplier of the Year, Award from the Mato Grosso Association of Supermarkets - ASMAT (Renosa); Top of Mind 2011 in the Industry category National Soft Drink from the magazine RDM (Renosa); State Governor Trophy Level III for the São Paulo Management Quality Award (PPQG) granted by the São Paulo Management Excellence Institute (IPEG), located in Ipiranga; Planet Trophy awarded by Coca- Cola Indústria Ltda. (Ipiranga); 1st place for the Quality Award awarded by Coca-Cola Indústria Ltda., located in Ipiranga; Corporate Governance <4.1, 4.3> Coca-Cola Brazil works with the Senior Leadership Team, a group of leaders whose mission is to define the strategic guidelines for the company. The corporate governance model adopted attributes to the vice presidents the responsibility to conduct the businesses and make decisions. These professionals are named based on the strategies implemented and are also responsible for ensuring the quality and integrity of the legal and regulatory requirements, for the company s operations in Brazil and for the quality of the internal control and business risk administration systems. <4.4> The Senior Leadership Team holds four meetings per year with employees to share results and establish objectives. These meetings involve the participation of the company s CEO, who takes advantage of the opportunity to establish closer contact with employees. <4.2> Meet the leaders of Coca-Cola Brazil Xiemar Zarazúa: CEO. Bruno Pietracci: General Manager of the Southeast Regional. Claudia Lorenzo: New Business Director and Executive Director of the Coca-Cola Brazil Foundation. Flavio Camelier: General Manager of the Rio 2016 Olympic Games. Henrique Braun: Vice President of Operations. Jack Correa: Vice President of Government Affairs. Javier Meza: Vice President of Marketing. João Marcelo Ramires: General Manager of the Southeast Franchise. John Pinto: Vice President of Strategic Planning. Marco Antonio Araújo: Administrative and Financial Vice President. Marco Simões: Vice President of Communication and Sustainability. Michel Davidovich: General Manager of the FIFA 2014 World Cup. Paulo Dias: Director of the Northeast Unit. Pedro Rios: General Manager of the North Unit Franchise. Raissa Lumack: Vice President of Human Resources. Rino Abbondi: Vice President of Technique & Logistics. Rita Oliveira: Legal Vice President. Sandor Hagen: General Manager of New Beverages. Main stakeholders Government Consumers Bottlers Shareholders <4.14, 4.15> Coca-Cola Brazil has the practice of defining stakeholders based on each business project. The company practices the integrated management of the territories in which it operates, constantly evaluating the partners and segments affected in each activity. Furthermore, there is also the determination of the social-environmental actions to be implemented, constantly seeking dialogue and promoting the establishment of partnerships. Retail Press Medical Associations Communities Suppliers Internal Public NGOs Employers Academic Community 14 15

11 Organizational Profile and Corporate Governance Coca-Cola Brazil System codes, principles, standards and orientations Environmental policy The belief that environmental Management System: implement the performance is crucial for success is environmental management policy, part of the global culture and applies to standards and programs with aims of the entire Coca-Cola Brazil system. The leveraging the continuous improvement company concentrates its environmental of performance. protection and preservation efforts in the following key areas: management Legal Compliance: guarantee compliance of water resources in the communities with all applicable laws, regulations in which it operates; climate protection, and legal rules and with the company s with a reduction in carbon emissions; and internal requirements associated with sustainable packaging. environmental management. According to the company s Risk Assessment and Management: environmental policy, each organizational conduct periodic assessments with aims level of the Coca-Cola System must of identifying and treating environmental meet specific objectives that need to be risks, in addition to ensuring compliance coherent with the risks and circumstances with The Coca-Cola Company of each operation, as approved by The requirements and applicable laws. Coca-Cola Company. Trained and Committed Employees: establish the defined roles and responsibilities, training, communication systems and opportunities for participation to promote effective engagement by the employees at each level. Performance Objectives and Monitoring: establish and monitor the organization s environmental performance objectives and goals. Incident Management and Crisis Resolution (IMCR): manage environmental incidents so as to protect the assets of the company, employees, third parties, clients and the public. Commitment to Stakeholders: collaborate with public and private entities to promote the advance of environmental management, sustainable business and community sustainability initiatives. <4.12> Coca-Cola Brazil follows the orientations of the Atlanta head office, which has also strived to conduct its businesses responsibly and ethically, with an active participation in the United Nations Global Pact. The company respects international human rights principles, including the United Nations Human Rights Declaration and the International Labor Organization Declaration on Fundamental Principles and Rights at Work. Code of Corporate Conduct Code of Commercial Conduct Principles of Conduct for Coca-Cola Brazil System Suppliers Evolution of the Coca-Cola Quality System (evolution 3) Global Rights in the Workplace Supplier Orientation Principles Coca-Cola Brazil Quality System Expectation for Supplier Perform Environmental Management System (EMS) The company signed the National Pact for the Eradication of Slave Labor, a joint document created by the Ethos Institute of Companies and Social Responsibility, the International Labor Organization (ILO) and the NGO Repórter Brasil; the Business Pact for Integrity and Against Corruption, an initiative of the Ethos Institute, of UniEthos Training and Development of Socially Responsible Management and Patri Government Relations & Public Policies; as well as the United Nations Development Program (UNDP), the United Nation Office Against Drugs and Crime (UNODC) and the Brazilian Global Pact Committee. The principles described below reflect the values sustained by the Coca-Cola System in its own policies and what the company expects its direct suppliers to follow in order to guarantee respect for all human rights: guarantee freedom of trade union association and collective bargaining prohibit child labor, forced work and abusive work eliminate discrimination work hours and salaries offer a safe and healthy workplace environmental protection business integrity procedure in case of complaints and solution management system Sustainability Leadership The Vice Presidency of Communication and Sustainability is responsible for defining the sustainability guidelines and establishing and adapting the specific local characteristics to the Live Positively platform. The strategies established by this vice presidency are approved and monitored by the company s presidency and by the Senior Leadership Team (SLT)

12 2010/2011 Sustainability Report Coca-Cola Brazil Organizational Profile and Corporate Governance Cycle of Active, Healthy Living Dialogues Based on the Cycle of Sustainability Dialogues, held in 2009, Coca-Cola Brazil promoted the first Cycle of Active, Healthy Living Dialogues in 2011, with aims strengthening the relationship between the company and some of its stakeholders, assessing the impact of the health program and the company s product portfolio and also understanding the expectations of this stakeholder when it comes to the Coca-Cola Brazil initiatives in the area of health. Held in Rio de Janeiro and São Paulo, the cycle gathered representatives from medical associations, government and teaching institutions, as well as clients, the internal public and suppliers. Rio de Janeiro São Paulo Held on May 17, 2011, it gathered 18 participants at five debate tables: representative associations and entities; academics; government, internal public and clients. Held on May 19, it gathered 20 participants at four debate tables: representative associations and entities; academics; clients and suppliers and the internal public. TABLE 1: REPRESENTATIVE ASSOCIATIONS AND ENTITIES For this group, there is no such thing as a bad food. The problem lies in eating too much of certain things and a lack of food education. The regular practice of physical activity together with healthy eating habits are essential for achieving active, healthy living. TABLE 1: REPRESENTATIVE ASSOCIATIONS AND ENTITIES Group believes that no food should be considered bad and that balance is the key to a healthy lifestyle. For them, the strategy is to combine the consumption of the vitamins necessary for the organism with pleasure. TABLE 2: ACADEMICS They view Coca-Cola Brazil as a leader in the sector and believe that the company has the responsibility to supply information, develop research and promote joint actions with other public and private institutions. For them, there is no scientific evidence that soft drinks are harmful to health and that they are simply a beverage that provides hydration without the need to nourish. TABLE 2: ACADEMICS The group expects Coca-Cola Brazil to supply information both nutritional as well as its initiatives in the social responsibility area, and suggests joint actions for the development of research and clinical studies on the products to prevent inappropriate consumption. It believes that the company s participation in scientific conferences can be a good path for producing correct, credible information. TABLE 3: GOVERNMENT Through the Live Positively platform, the group came to know about company initiatives that were unknown until then by the authorities present. As representatives from the public health area, they believe that Coca-Cola Brazil should support programs that encourage the practice of physical activity through leisure, TABLE 3: CLIENTS AND SUPPLIERS They established the seven Active, Healthy Living pillars: Eat well, Move Around, Build Relationships, Relax, Work, Travel and Love. According to them, the moderate ingestion of soft drinks is not harmful to health and the variety of the portfolio increases the option of choices for the consumer and adds value to the brands. primarily for children and adolescents. TABLE 4: Considered it important for the company to present itself as a leader TABLE 4: INTERNAL PUBLIC They believe that Coca-Cola Brazil has a commitment to work from the inside out and that the company should create a scientific board to interfere in strategic decisions, in addition to sponsoring athletes to promote changes in society s behavior with relation to well-being and active, healthy living. INTERNAL PUBLIC in the fight against obesity and in the promotion of healthy lifestyles, reinforcing the importance of have a more encompassing vision of all company areas when it comes to the topic. According to this group, the scope of Coca-Cola Brazil favors its power as a catalyst for the discussion on obesity in the country. They also believe that the company should encourage its employees to become examples of balanced, active and healthy living. The group sees events such as the Cycle of Dialogues as important TABLE 5: CLIENTS tools for exchanging experiences and starting effective actions. They believe that the company should reinforce the individuality of each consumer in its communication, making it clear that different options exist based on each person s lifestyle

13 2010/2011 Sustainability Report Coca-Cola Brazil Timeline Timeline The post-mix machines offered consumers Coca- Coca-Cola already had 11 bottling plants in Technological innovations Cola, made right then and Rio de Janeiro, São Paulo, Minas Gerais, Bahia allowed the Company to develop there and served in cups. In 1942, only Coca-Cola was produced at the Santa Clara and Rio Grande do Sul. At the time, the slogan new packaging, such as the Advertising campaigns Mineral Water Bottling Plant in Recife (PE). In 1945, the "Isto faz um bem (roughly translated as It s medium-sized 290-ml bottle. created abroad featured Period marked by important launches: Rio de Janeiro unit began operating, producing 150 a good thing ) emerged, lasting for 14 years. In 1962, with the emergence a Brazilian touch, such as soft drink in a can, in 1981, lime- bottles per minute. With the expansion of the franchises, It highlighted the refreshing flavor of the soft of raw material suppliers, the "Isso é que é, Coca-Cola!" flavored Sprite, in 1984, in addition to the company installed Liquid Carbonic, a producer of drink and the country s political and cultural concentrate formula began to be (A non-literal translation the one way (disposable) packaging CO2, an essential ingredient for soft drinks. transformations. manufactured in Rio de Janeiro. for "It's the real thing"). and the twist-off top, in In celebration of the World Cup, there was the launch of Coca-Cola 473- ml cans featuring Pele s image. The Coca-Cola Brazil came in at first place Playing an important role in social, cultural, company also began to undertake As part of an agreement established with among all of The Coca-Cola Company sports and environmental projects, Coca-Cola a national diversification process, the Brazilian Olympic Committee (COB), the units based on the criteria of market brought the market Big Coke (2-L size), the launching non-carbonated beverages sponsorship of the artistic gymnastics, judo performance aligned with sustainability L size and the 100% recyclable aluminum for the such as water (Bonaqua), ice tea and swimming Olympic teams was designed practices. During the same year, there was entire line of products, in addition to the Super (Nestea), fruit-based nectars (Kapo) to offer support during their preparations for the launch of Coca-Cola in a 250-ml mini- Family a returnable 1.5-L plastic bottle and an energy drink (Burn). the 2004 Olympic Games can and a 200-ml glass bottle Coca-Cola launches the slogan "Gostoso é viver" ( Life itself is what is pleasurable ). Focused on emphasizing the positive moments in life, the campaign included during that same year the re-launch of the small "contour" 237-ml glass bottles, bringing the most wellknown and charming packaging back to life The company developed a plan to reuse rainwater as an 2005 alternative source during industrial processes to minimize the use of water originating from watersheds. There was also the launch of new lines of products, such as Aquarius The company launched Reinvent Active, a low calorie replenisher, The Coca-Cola Brazil Foundation is launching The company invests in bottling Yourself: Life Planning, to help Creation of Bottle to Bottle, the Kapo Chocolate, Schweppes Light the Brazilian Rainforest Water Program, which Coca-Cola Brazil plants designed under the support employees professional and packaging made partially from in the flavors Citrus and Tonic, Kuat recovers watersheds through the reforestation launched its Live sustainable concept, with personal life planning. The post-consumer recycled PET. The Zero, Nestea, Mate Light and Fanta of 3,000 hectares of riparian forests. The Positively platform, mechanisms for rainwater collection investments in the well-being of the company was able to reduce the Discovery, in addition to the arrival recently launched Coca-Cola Zero was the which translates and for reducing the energy professionals and their dependents use of water in the production of the global juice brand Minute leader among low calorie soft drinks and Laranja the company s consumption for refrigeration with totaled more than R$ 296 million, and process by 23%, and with respect to Maid to Brazil, which merged with Caseira ( Home Squeezed Orange Juice ) was sustainability the better use of the air circulation, 98% of the employees stated that they sexual diversity, it extended medical the Brazilian brand Mais. the most highly sold in the 1-L packaging. strategy. among other innovations. felt proud to work at Coca-Cola Brazil. insurance to same-sex partners

14 Environmental Well-Being Global Water Stewardship Environmental well-being Global Water Stewardship Water savings and reuse The most precious resource Coca-Cola Brazil is aiming to become water neutral by the year This is a fundamental resource for the company s activity, since it is the basic ingredient of all the beverages produced. Coca-Cola Brazil and its bottlers constantly invest in new technologies to reduce consumption and return the water used it its processes back into the environment. According to the standards and goals established on global brand platform, the company recorded over the past nine years a considerable drop in the water consumption per liter of beverage produced: a total reduction of 23%. In 2002, the company used 2.47 liters of water per liter of beverage produced, whereas in December 2011, this use dropped to 1.91 liters. However, the company is still not satisfied: the goal now is to reach 1.5 liters of water per liter of beverage produced by ,5liters of water per liter of beverage produced is the goal to be achieved by 2020 To reach this objective, the main challenge now is to reduce the consumption of the resource even with the growth in production and while following the marketing pressures to increase sales. In 2010, it used 19,978,172 m3 and in 2011, 19,655,524 m3 (see graphic on page 26), an increase of approximately 10% compared to the volume consumed in Furthermore, the company s strategic planning includes progressive production expansions by 2020, and the goal is to approximately triple the volume produced. Accordingly, it is necessary to use new technologies to achieve the desired result

15 EN8 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Global Water Stewardship Another measure adopted voluntarily by Coca-Cola Brazil promises to help the company reach its goals to save water: all of the company s new product bottling plants must receive the Leadership in Energy and Environmental Design (LEED) Certification, which guarantees the use of sustainable materials and processes for a building s construction and operation. All of the company s buildings are undergoing a process of adjustment so that they can obtain this seal. Since 2011, the administrative head office in Rio de Janeiro (RJ) has been undergoing construction work that includes energy saving measures, such as the application of films on the windows to minimize the passage of heat, and consequently, reduce the need to use air conditioning, as well as the use of vacuum-powered urinals and intelligent faucets that allow for the reduced use of water. The concentrate bottling plant, which operates in Manaus (AM), has already earned several certifications, such as the ISO 14001, ISO 9001 and ISO 22000, and it is estimated that it will also receive the LEED Certification by Following this trend, 13 Coca-Cola Brazil bottlers are currently in the process of obtaining this certification. The bottlers are replacing all of the production lines for others that eliminate the need for bottle rinsing or pre-washing. During the traditional process, the bottle was blown, rinsed with water for disinfection and then later filled with the beverage. Since 2010, the bottlers began to adopt a new line of machines, which complete the production in blocks. In other words, the production of the bottle and filling process take place in the same equipment, thereby eliminating the need to use water to rinse the packaging, which saves the resource. The system is already operating at the following bottlers: Femsa (Jundiaí), Uberlândia, Ipiranga (Ribeirão Preto), Cia. Fluminense (Porto Real), Andina (Jacarepaguá), Simões (Belém), Spaipa (Maringá) and Brasília, and is being installed at Norsa (Fortaleza) and in Guararapes (João Pessoa). Other processes designed to cut water consumption include the recovery of water from the activated charcoal filter backwashing, the reuse of water from the distiller, the replacement of the powder washer, the mapping of leakage points in the industrial area, the recovery of the water from the rinser, the replacement of pumps with waterbased cooling for air-based cooling pumps, the reuse of pre-rinsing water to wash the boxes and the use of a washer with low water consumption, with an average of 11 m3/h. Rainwater collection and storage system at SABB, located in Paraná. To the side, the sample collection point for the water returned back into the environment Water consumption and reuse Official data on the volume of water collected during 2009, as obtained after the publication of the Sustainability Report for that same year, indicated a final value of 18,010,167 m3, which, compared to the total volumes of the following years, demonstrates an increase of approximately 10% in the collection of water to supply the Coca-Cola Brazil System. However, the higher water consumption is due to the increased number of bottling plants during the period analyzed, together with the 16.9% increase in the production of beverages, which leapt from 8,784,261 m3 in 2009 to 10,269,930 m3 in Despite the increase in the total consumption, it is important to point out the reduction in the specific indicator used for monitoring water resource use, called the Specific Water Consumption index (represents the water consumed per liter of beverage produced). Due to the consumption efficiency achieved, the increase in the production volume also generated an increase in the water collected when comparing the 2009 volume with the 2010/ 2011 period. However, this was lower than predicted if there was no improvement in the consumption performance. Therefore, we generated what we call the Avoided Water Volume, estimated from 2009 to 2011 at 1.4 billion liters. In 2004, the company developed and adopted a plan to reuse rainwater as an alternative source in its industrial processes with aims of minimizing the use of water originating from watersheds. The measure further protects freshwater resources, producing benefits for biodiversity and even reducing costs associated with environmental remediation. Source Volume Collected (m 3 ) Volume Collected (%) 2010* 2011** Municipal Supply ,10 41,69 Ground Water ,47 36,47 Surface Water ,69 20,17 Rainwater ,07 0,09 Other Sources ,67 1,58 Total <EN8> The results obtained demonstrate that 13,891 m3 of rainwater were collected in 2010 and 16,826 m 3 in For the effects of calculating the EN8 indicator, the volumes of water consumed were considered *In 2010, the Bauru bottling plant was in the process of being negotiated for sale to the Spaipa Group, and for this reason, there is no history of EN8 indicator monitoring for the period. **Does not include figures from the Maceió bottling plant (Vieira), deactivated in

16 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Global Water Stewardship Total volume of water collected by the Coca-Cola Brazil System Volume collected (m 3 ) Total production (billions of liters) ,00 2,20 10,50 9,50 9,00 5,50 8, m 3 2, Specific water consumption (l/l) m , m Total production vs. specific water consumption 1, ,10 2,00 1,90 1,80 ano year Total production (billions of liters) Specific water consumption (l/l) The rainwater reuse pilot project at the company was implemented at the Andina bottling plant in Rio de Janeiro, becoming a pioneer in the planning and evaluation of the process. In 2005, the first quality analyses for the action and the program structure were presented to Coca-Cola Brazil. In 2006, the project was approved, delivered for evaluation and implemented at the Bottler Groups. The plant in Vitória, for example, installed the water reuse system in 2006 on a 7,000-m 2 rooftop area with a water collection capacity per year of 12,320 m 3. Reference in reuse The project developed by the bottler Spaipa, located in Maringá (PR), is considered a reference for Coca-Cola Brazil in terms of rainwater collection and reuse practices. The bottling plant is estimated to save some R$ 12,000 per year by collecting approximately 3,500 m3 of rainwater during the same period. The Spaipa rainwater reuse system has yet to reach its maximum efficiency. The water is collected with the help of chutes and then stored in an exclusive cistern. It passes through special filtering for particle removal. After that, it is mixed with the water from the public system and the wells to then be sent to an Effluent Treatment Plant (ETP). Then, the water returns to the plant to be used in the production processes. After that, another 13 Coca-Cola Brazil System units began evaluating the costs to adopt the system. The Coca-Cola Brazil head office has also used a rainwater reuse system since January The building, located in the neighborhood of Praia de Botafogo, Rio de Janeiro, has a 200-m 2 roof area adapted for water collection. The water has a collection capacity of up to 12 m 3 during periods of heavy rains; a rate equal to 80% the daily consumption of the building s cooling towers (air conditioning)

17 EN /2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Global Water Stewardship Forest Water Since 2007, Coca-Cola Brazil has worked to preserve one of the planet s most important ecosystems: the Atlantic Forest, which today is reduced to 7% of its original size. The Forest Water program promotes the recovery of watersheds with the reforestation of their riparian forests, which play an important role in terms of protecting the rivers. After all, they are what retains the rainwater, irrigating the water tables, as well as filtering the debris brought by the rain and preventing erosion factors that lead to the silting of the rivers. In partnership with the Atlantic Forest SOS, over recent years a total of 75 hectares have been planted with approximately 1,800 native seedlings at the Piraí River Basin (SP), recording a 100% improvement in the quality of the water at the points monitored by the project. In 2011, a new partnership was established with The Nature Conservancy, which will be responsible for planting 200 hectares along the Guandu River (RJ). In addition to reestablishing the ecosystem and populations access to clean water sources, the Forest Water project helps neutralize carbon emissions, based on international guidelines, and has an innovative methodology that has been recognized by the Clinton Global Initiative. By the end of 2012, the program plans to sequester 300,000 tons of carbon equivalent, and by 2037, this number should reach as high as 3 million tons. Our concern with water Positive advances are being made toward reaching the goal of 1.5 liters of water consumed for each liter of beverage produced by Learn more about the projects focused on the reuse, savings or more efficient use of water implemented by some of the Coca-Cola Brazil System bottlers: Production: Water Treatment Plant (WTP) Optimization of washer water consumption; Backwashing of charcoal and sand filters; Returnable container washer (after pre-rinse); Use of ultrafiltration for the WTP. Pump seals; Bottle area vacuum pumps; Others: Simple syrup cooling in new batches (applied to Reuse of rainwater; conventional treatment with hot charcoal). Use of ion exchange for simple syrup treatment; Rinsers; Closed CIP; Reuse of treated effluent for non-potable uses. <EN21> Total volume of effluents generated m 3 19,85% Clean Water Project Developed by Coca-Cola Brazil since 1995, the Clean Water Project follows the standards of the ekosystem the company s environmental management system. Through it, the bottlers achieve one of the top water reuse rates used in production. It is also due to the Clean Water Project protocols that the bottling plants return the water used in production back into the environment in better conditions than when it was first collected. To demonstrate this in practice, 16 bottling plants have lakes with fish at the exits from the Effluent Treatment Plants (ETPs) m ,15% m 3 18,97% The association of a range of different measures designed to save water guarantees the product s absolute integrity, the continuity of supply and reduction in production costs. The improved system performance resulted from a series of investments made by Coca-Cola Brazil and by the 16 bottler groups, which concentrate their efforts on reusing water during different phases of production, using the Water Treatment Plants (WTPs) as a tool. Comparison of the annual volume of effluent generation* m 3 81,03% m 3 = m 3 = 2010 Disposal at Public Effluent Treatment Plant (ETP) Launch into receiving body m 3 = 2011 * The volume of effluents generated was estimated through the following calculation: total water collection total production volume

18 Environmental Well-Being Energy Management and Climate Protection Environmental well-being Energy and Climate Improved energy efficiency Produce more, using fewer resources. This premise, which serves as the base for its sustainability strategy, is a goal that Coca-Cola Brazil pursues when it comes to energy use whether in its installations, operations or logistics system. Innovation generates energy The company has adopted measures that include the development and application of new technologies designed to efficiently reduce energy consumption and the emission of greenhouse gases along the different points of its value chain. The company has worked to reach its objective of boosting the production capacity and increasingly reducing its greenhouse gas (GHG) emission levels. Accordingly, it opened different fronts, such as solutions for bottling plant design and technology, all focused on this reduction. In order to make it possible to identify the focal points of the action and then later measure the results, the Coca-Cola Brazil Environmental Control System (ECS) calculated its Carbon Footprint (CF) in 2008, which records the GHG emissions based on an inventory of its entire value chain. The results obtained currently serve as the base for decision making. With the overview of emissions available, the company defined the main points that would receive investments and began to implement the necessary changes. One of the main points of opportunity for reducing these emissions is the investment in new technology for the network of refrigerators used at the points of sale, which began to be done in The new features used in the refrigerators helped Coca-Cola Brazil continue forward on its path toward sustainable growth

19 EN4 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Energy Management and Climate Protection Awareness when opening the door Efficient consumption Intelligent sensors Since 2011, the company has invested in an important initiative: the replacement of the R134a gas, normally used in the equipment, for CO2. Seeking to reduce its emissions increasingly more, The Coca-Cola Company signed an agreement with the Global Clinton Initiative with the commitment, starting in 2015, to ensure that all new refrigerators acquired by the Coca-Cola Brazil System will already have this new technology, which has the potential to generate energy savings of up to 30%. With this measure, the company and its bottlers will need to increase the investment in machinery production by approximately 20%. The major differential of these new devices is that they no longer use R134a, a refrigeration gas that contain hydroflourocarbon (HFC), which causes the greenhouse effect. To replace it is CO2, a gas that exists naturally in nature and which is less aggressive than HFC. However, because CO2 has smaller molecules, in order to have a refrigerating function, it requires certain changes in the entire refrigerator system, meaning that the technology must be gradually adopted. The initiative is still in its first year and may be extended after an evaluation. Today, the universe of Coca-Cola Brazil refrigerators includes 600,000 units. Another measure is the replacement of the refrigerators internal light bulbs for models that use LED technology, which generates energy savings as high as 15%, depending on the size of the refrigerator. It is estimated that the useful life of this type of light bulb is nearly 10 times greater than the traditional incandescent ones, which last from 6,000-8,000 hours. Seeking to also avoid increasing its energy use, the company periodically monitors the Specific Energy Consumption Rate, which calculates in addition to the electrical energy from the network, which is of an indirect nature those types that are direct, such as the energy generated at the plant, fuels, energy for the production of pre-molds, etc. Patented by The Coca-Cola Company, Accordingly, the refrigerator begins the EMS-55 sensor is also a new feature operating with the lights turned off and in the refrigerators. EMS- 55 has been with the temperature in Standby mode, used since 2007, and Coca-Cola Brazil s automatically returning to its operational goal is for all equipment with an internal mode (from 0ºC to 5ºC) two hours capacity of more than 250 liters, which before the point of sale opens again. corresponds to approximately 90% of the portfolio of devices distributed During the period with less movement, throughout the country, be equipped the internal temperature is slightly with this innovative technology by higher (8 C to 9 C), thereby reducing The main advantage of EMS-55 is that the energy used without affecting the this controller establishes a profile of integrity of the displayed products, the refrigerator operation, considering since the door will not be opened. The the flow of people and how much the controller also has a panel that indicates doors are opened during peak hours the equipment s internal temperature and those of lower use. Sensors help and transmits alert messages about develop the profile of equipment use, any operating errors, in addition to indicating the period during which the protecting the refrigerator compressor commercial establishment is closed. from overheating. Energy consumption in MJ per liter of beverage* 0, MJ/l 0.33 MJ/l 0.34 MJ/l 0,30 0,20 This, accordingly, prevents an increase in energy use and does not negatively affect the refrigerators useful life. <EN4> Within the operational sphere, the increase in the production and installation of new bottling plants during the years 2010 and 2011 came together with the replacement of the traditional lines for blocked lines, which are more efficient, together with the acquisition of process equipment. Because of such acquisitions, the company recorded an increase in indirect (electrical) energy consumption during the period compared to 2009, recording a peak in 2010 due to adjustments and process shutdowns, required to install the new lines. 0, * Indicator calculated based on the total energy consumption, both direct and indirect, due to the volume of beverage produced each year. <EN 4> Indirect energy consumption in GJ , , ,00 year The supply of indirect energy consumed by the Coca-Cola Brazil System comes from public utility concessionaires, which offer electricity based on the sources included in the Brazilian Energy Matrix, presented in the table below. The table presents information from the Brazilian National Energy Balance, developed by the country s Ministry of Mines and Energy with aims of documenting and disclosing extensive research and accountability each year on the offer and consumption of energy in Brazil, including the activities of primary energy resource extraction, its conversion into secondary forms, import, export, distribution and final use of the energy , year WHEN WE CARE FOR THE ENVIRONMENT, LOOK AT HOW IT THANKS US

20 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Energy Management and Climate Protection Brazilian domestic offer of electric energy by source Energy Matrix Energy Matrix Hydraulic 74,00% 75,00% Nuclear 2,70% 2,70% Natural Gas 6,80% 4,60% Coal and 1,30% 1,40% derivatives Biomass 4,70% 6,50% Wind 0,40% 0,50% Oil 3,60% 2,50% Derivatives Imports 6,50% 6,70% Source: Brazilian Ministry of Mines and Energy Website: Bottling plants with LEED certification A panel at the Green Bottling Plant, located in Rio Grande, Paraná, informs associates of all the plant s sustainable points A good example of an investment in the environmental area is the Brazilian Food and Beverage System (SABB) bottling plant, located in the municipality of Fazenda Rio Grande, near Curitiba in Paraná. It is the site for the production of the dry line for the brand Matte Leão, such as the teas for infusion. Inaugurated in 2007, the unit rigorously follows all Brazilian civil construction standards (Brazilian Association of Technical Standards - ABNT/CB-02 for Civil Construction and National Environment Board - CONAMA Standard 307), in addition to the high standards established by Coca-Cola on a global scale. In order to demonstrate the commitment of the Leão brand, the plant obtained the Leadership in Energy and Environmental Design (LEED) Certification, a distinction granted by the Brazilian Green Building Council, which guarantees the implementation of good sustainable building practices. On a 110,000-m 2 terrain, the development was constructed while thinking about sustainability in every detail. Such efforts made it the first industry to obtain the LEED Certification in the country in the New Construction category. It is estimated that the development s total energy savings come to 23%, thanks to its architectural characteristics. These include the translucent roof tiles, which make the most of natural lighting in areas such as warehouses, the shipping area, production area, as well as in the cafeteria, dressing rooms and technical rooms. Some of the plant structures, such as the public buildings, cafeteria, technical rooms and entrance, are covered by a green roof, the largest found in Latin America, which is formed by succulent plants that have the capacity to store water. This structure serves as a type of natural thermal insulator and air purifier. The adoption of other elements, such as the reduced volume discharge valves and intelligent faucets, also help reduce the consumption of this resource. Throughout the 20,000 m 2 of built-up area, the company prioritized the use of certified construction materials that cause less environmental impact in their extraction and manufacturing processes, certified woods (such as eucalyptus) and materials with low levels of volatile organic compounds (VOC). Other creative solutions, although fully aligned with environmental education and the employees engagement with the issue, are also visible around the plant, such as preferential parking spots for workers that carpool together and for those who use biofuels. In order to further reduce the need to use air conditioning near the production area, large venetian blinds guarantee natural ventilation. All of the water used in the dressing rooms and the laboratory is heated by solar panels, which are installed at the entrance of the unit. The average water consumption drops 36% with the reuse of rainwater, employed primarily in the bathrooms, for cleaning and irrigation, through outdoor faucets. In all, the rainwater collection system at this plant has the capacity to collect and store 300 cubic meters. Green Roof: Latin America s largest green roof covers all the administrative areas and the cafeteria. It promotes environmental comfort and reduces the heat island effect. The plant support plates are made from recycled material. SABB also offers chartered buses for the employees who live in Curitiba and who need transportation to Fazenda Rio Grande. Besides the Matte Leão bottling plant, another two plants are currently in the advanced stages for obtaining the LEED certification: the juice plant, located in Linhares (ES), and the liquid tea plant, located in Fernandes Pinheiro (PR). Above, the plant s Green Roof, and to the side, a special parking place for workers who carpool 34 35

21 EN22 Environmental Well-Being Sustainable Packaging Environmental well-being Sustainable Packaging Commitment to the correct disposal of waste Recycling is a must In order to guarantee the sustainable use of its packaging up until the end of the product lifecycle, the company aligns its knowledge on the topic with the system s wide distribution to develop innovative and creative solutions both in terms of the production of the packaging that generates less waste as well as to help drive the recycling chain from Brazil s Northern to Southern regions. Instituted in August 2010, the new National Solid Waste Policy includes among its most important points the conviction that it is necessary to have shared responsibility between governments, companies and society when it comes to the generation and correct disposal of waste. Based on the impacts generated by the waste inherent to its operation, the company has adopted a series of measures designed to mitigate these impacts. In order to ensure the success of its activities focused on the environment, the integration between Coca-Cola Brazil and its bottlers is considered crucial. After having accumulated 15 years of experience in recycling, Coca-Coca Brazil believes that it has all of the right credentials to lead this agenda, working pro-actively and positively influencing its stakeholders, including the final consumer, which needs to be engaged with the cause. <EN22> Over recent years, the amount of recycled waste compared to the total generated by the company reached 76% in 2010 and 82% in * year Annual Amount of Solid Waste Generated (ton) Annual Amount of Solid Waste Recycled (ton) *By 2009, the plants did not report the waste generated during internal civil construction work. Starting in 2010, these values were inserted into the management process, producing a significant change in the indicators. There was also extensive work to develop the training and qualification of the employees, seeking to reduce the generation of waste during 2010 and

22 EN1 EN1 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Sustainable Packaging Responsibility Begins at the bottling plant Coca-Cola Brazil s commitment to responsible waste management begins with the production of more sustainable packaging, developed through investments in research and innovation designed to offer the consumer environmentallyresponsible products from the very start of their value chain. Contributing toward this objective was the 2010 launch of the PlantBottle, the first ethylene terephthalate (PET) bottle in South America made from a plantbased raw material. The bottle is manufactured using fewer oil derivatives, replacing these with sugarcane ethanol. Besides polluting less, since the CO2 emissions from its production process are 25% lower, the PlantBottle production technology uses 30% plant-based sources and allows the company to depend less on non-renewable resources. In 2011, Coca-Cola Brazil became a pioneer in the use of recycled materials in its packaging with the launch of Bottle-to-Bottle, a PET packaging produced partially from recycled post-consumer PET bottles. The production of Bottle-to-Bottle initially uses 20% recycled PET resin and 80% virgin PET resin, but this proportion tends to increase together with the growth in the offer of recycled PET. During the recycled resin manufacturing process, the collected PET packaging is selected and shredded, generating flakes that undergo a rigorous cleaning and disinfection process until they display the correct degree of purity. The technology used is validated by Brazil s National Health Surveillance Agency (ANVISA) and gives recycled PET the same characteristics as a new material (virgin PET resin), from which the packaging is made. It is estimated that, by 2014, all of the PET packaging from the company s portfolio will be produced with this new technology, increasing these savings to 60,000 tons of PET per year. Over recent years, the weight of the PET packaging has dropped between 8% and 26%, depending on the size. The weights of the glass and aluminum containers were also considerably reduced. One of the changes in the packaging design promoted by the company that allowed for this gain was the mini-cap for PET bottles with smaller dimensions compared to the traditional design used in the industry, reducing the consumption of the oil-derived resin. Specific solid waste generation index* 2009** ,31 g/l 9,07 g/l 9,41 g/l (grams per liter - g/l) *Annual quantity of solid waste generated per liter of beverage produced **See comment on previous page Direct Use material <EN1> The company decided to present the volumes of CO2 and sugar two of the main ingredients of the soft drinks produced by the Coca-Cola Brazil System. Raw material (in tons) Products Sugar CO Guararapes case Innovations that respond to the demand for sustainable packaging are not restricted to PET alone. The Guararapes bottling plant launched the KS Ultra bottle, which uses 25% less glass in its production compared to the traditional method. The packaging, which is 100% recyclable, is more resistant to breakage and 100 grams lighter. Thanks to its design, the KS Ultra, even three centimeters smaller, holds the same amount of soft drink - the 290-ml size. Primary packaging <EN1> Considered that in direct contact with the product, designed to protect, conserve and contain it. Type Weight in tons Weight (%) of Material PET 184,8 189,6 52,4 52,3 Glass 78,1 79,5 22,2 21,9 Aluminum can 41,3 43,9 11,7 12,1 Plastic closure 15,0 16,3 4,3 4,5 Steel can 12,0 12,4 3,4 3,4 Tetra pack 10,2 11,5 2,9 3,2 Others* 11,0 9,6 3,1 2,6 Total 352,4 362,8 100,0 100,0 *Others: steel crown, glass (non-recyclable), returnable PET, plastic cups. Secondary and tertiary packaging <EN1> Designed to reinforce the product s protection and facilitate the handling and transportation of large volumes. Type Weight in tons Weight (%) of Material Thermo-retractable plastic film (LDBE**) 23,6 22,7 50,0 46,4 Corrugated cardboard 12,5 13,0 26,5 26,6 Plastic grades 4,4 5,6 9,3 11,5 Stretch film (LDPE) 4,4 4,6 9,3 9,4 Label 2,2 2,8 4,7 5,7 Cardboard 0,1 0,2 0,2 0,4 Total 47,2 48,8 100,0 100,0 37% reduction in the volume of discarded Crystal packaging Crystal case The company s recent victory was the November 2011 launch of the Eco packaging by Crystal, the Coca-Cola Brazil mineral water brand. The new packaging uses 20% less PET. The bottle, also called crushable, can be twisted and smashed after the product is consumed, reducing the volume of the packaging discarded from this product by 37%, thereby facilitating the transportation and storage of the same. It is important to point out that the new packaging is 100% recyclable. At the same time, the new Crystal water bottle also adopts the PlantBottle technology, in which up to 30% of the raw material comes from sugarcane ethanol instead of oil, reducing the CO2 emissions in the production process by approximately 25%. The launch of the Crystal Eco received the support of the Akatu Institute, the entity International Conservation, SOS Atlantic Forest and the Brazilian Business Council for Sustainable Development (CEBDS). **LDPE: Low Density Polyethylene

23 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Sustainable Packaging Another mindset, another culture The final consumer s engagement when it comes to the importance of recycling and reuse of materials through the correct disposal of packaging is a strong characteristic of the advertising campaigns and promotional and marketing actions undertaken by Coca-Cola Brazil. One of the most successful examples of raising the general public s awareness is the campaign Reasons to Believe. The Good Ones are the Majority. Publicized on different communication channels, such as television, Internet and outdoor and print media, the action debuted with the movie Coro, which presented interesting comparative data, demonstrating how positive events, behaviors and feelings are more abundant than negative ones. Another campaign designed to show the consumer why recycling is so important for environmental preservation was launched on Christmas With the slogan Together We Will Make the Magic Real, the initiative involved different communication channels, such as the company website, where the consumer could interact, share applications and receive step-by-step instructions on how PET bottles were transformed into recycled Christmas gifts. The idea was developed in partnership with the NGO Asta, which works with the reuse of materials for handicrafts to generate income in small Rio de Janeiro communities. Coca-Cola Brazil also took advantage of the major artistic and cultural events held in 2010 and 2011, gathering a large concentration of people and the media to implement actions focused on sustainability and environmental education. Packaging with a long life Coca-Cola Brazil s strategy for achieving a greater reduction in the impacts generated by the disposal of its packaging involves operations on three main fronts: cultural, social-environmental and economic. The first is focused on cultural and behavioral transformation, with aims of instilling in consumers the habit of separating the dry and wet garbage; the second is designed to increase the volume of the material collected in the country, with measures such as the support for recyclable material collectors cooperatives and curbside collection in the municipalities; and the third, the generation of value for products created from recycled material, considering that, besides minimizing environmental impacts, the recycling of the packaging also promotes the social inclusion of millions of families in Brazil due to its economic potential. 57,1% volume of PET packaging recycled in Brazil In order to achieve these objectives, besides producing more sustainable packaging, Coca-Cola Brazil also prioritizes new applications for recycled materials and the rational use of natural resources in its projects. The goals of this area for the upcoming years are bold: by 2020, the objective is to achieve 100% recycling of its packaging types. Today, throughout Brazil the general recycling rate is 57.1% of PET containers, 98% of aluminum cans, 47% of glass bottles and 25% of tetra pack boxes. 125 Reasons To Believe In A Better World For every 1 million tons of waste recycled, 2,000 sources of work are created. Ecology doesn t just preserve the environment; it also offers opportunities. Excerpt from the book 125 razões para acreditar ( 125 Reasons to Believe ), with tips that encourage consumers to see the good side of life. The book is available for download at: site Fashion Rio The recycling of packaging and other solid waste was also the focus of the company s action during the Fashion Rio Winter 2011 show, held at Mauá Pier in Rio de Janeiro. A curbside collection action, promoted by Coca-Cola Brazil, recorded more than one ton of items Quantity of material collected during Fashion Rio 2011: Material Collected Plastic Can PET Mixed paper Glass Cardboard Total Weight 322 kg 265 kg 162 kg 150 kg 132 kg 45 kg kg collected. Trash pickers who worked during the Rio de Janeiro fashion week used t-shirts made from recycled PET with the slogan Fashion comes and goes, and bottles too, with a clear message of environmental awareness

24 2010/2011 Sustainability Report Coca-Cola Brazil Environmental Well-Being Sustainable Packaging Rock in Rio During Brazil s largest musical event, called Rock in Rio, whose third Brazilian edition took place in September and October 2011, Coca- Cola Brazil reinforced its commitment to sustainability issues on different opportunities. The structure of the VIP box occupied by the company, built exclusively with recycled and recyclable materials, was formed by 1,600 used crates collected at the bottlers. The internal decoration included pouffes made from PET bottles and large pillows lined with recycled PET fabric. Besides this, the floor and furniture found in the space were made from wood that originated 100% from reforestation. To give the area a creative touch, the Coca- The company was also present at the Cola Brazil partner cooperatives used festival s VIP area, with a bar decorated caps, bottles and cans to give shape to with 33,000 soft drink caps. At the the decorative objects. end of the seven days of shows, all of Preservation is measured in mons Coca-Cola Brazil supports more than of more than 300 Recycling Stations 200 cooperatives, distributed inside the stores of the retail chain. throughout 20 states. The increase in the number of cooperatives assisted reflects The support for these organizations the company s concern with follows its own specific methodology. environmental issues: in 2009, there During the first phase, ICCB and/or its were 55 groups in 19 states, the next maintaining partners indicate a year, another 30 cooperatives came to cooperative to participate in the Recycle be benefitted, and in 2011, this number and Win Program. The criterion used to more than doubled, reaching 192. From either approve or reject the cooperative is 2010 to 2011, there was a recorded the analysis of the Program Expansion average increase of 17% in the income of Plan and/or the identified deficit of the the benefitted trash pickers. cooperative at the site. Immediately following its approval, the NGO Donate The company s goal is to collaborate to Your Garbage the operational partner make the cooperatives all over Brazil for the program undertakes an in-depth increasingly more profitable and well technical assessment, which defines the managed. Coca-Cola Brazil develops classification level for this organization actions to achieve this objective through among the four that exist. Once the the Coca-Cola Brazil Foundation (ICCB). alignment is completed and business plan Some partnerships are considered crucial elaborated, the cooperative will begin to for achieving these objectives, such as the receive constant visits by a supervisor one established with the Wal-Mart from ICCB, who will help diagnose the Institute, which resulted in the installation needs of these organizations. the material used in the VIP box was donated to the recyclable material collectors cooperatives, initiating a new cycle of reuse. The final objective of this work is to obtain the formalization of the cooperatives and leverage the management process of the same. Recycle and Win also aims to supply material for the cooperative to mobilize the population s engagement with the recycling activity and achieve sustainable logistics. The program also guarantees the supply of personal protection equipment (PPE) and safety training, machinery protection and the structuring of the electric and hydraulic installations in the installation space. In order to help boost the cooperative s production, the screening warehouse begins following organization parameters for the production area, work teams, quality and quantity of the material received. This allows the cooperative to add value to the final product sold ESTRATÉGIA STRATEGY EXECUTION EXECUÇÃO ICCB ICCB / BOTTLERS FABRICANTES + TOOL + FERRAMENTA 4. CAPACITAÇÃO MANAGEMENT EM TRAINING GESTÃO ON EM SIX SEIS FRONTS: FRENTES: FINANCES FINANÇAS LEGISLATION LEGISLAÇÃO ADMINISTRATION ADMINISTRAÇÃO LOGISTICS LOGÍSTICA INFRASTRUCTURE INFRAESTRUTURA SUSTENTABILIDADE SUSTAINABILITY The value of transformation An important step taken by Coca-Cola Brazil to close the recycling cycle is its support for initiatives that generate value for recyclable materials. In the Brazilian case, the aluminum can collection and reuse rate is high precisely because of this: it is more profitable material. Now, the company s goal is to make the other products manufactured from these materials more valued, so that they can be increasingly reused and transformed. Today, through the Art Coletivo program (read more in the Communities chapter on page 45), the skillful hands of craftsmen and women create innovative uses for PET bottles. These include design and decorative objects, domestic utilities, purses and accessories made from empty plastic bottles. On an industrial scale, one creative example is the line of clothing from the Coca-Cola Clothing designer label made from recycled PET, which arrived to the catwalks of the fashion world. During Rock in Rio 2011, the label launched the Nature Recycle collection, and even set up a concept store at the event designed to raise youths awareness as to the value of recycling. Approximately five recycled PET bottles are used to manufacture each shirt. History of the Recycle and Win project Launch: support for the schools Project change: support for one cooperative Start of partnership with DSL*: support for 70 cooperatives 2009 *NGO Donate Your Garbage 2012 Support for 300 cooperatives by the end of the year / New ICCB structure With the reused packaging, the NGO Asta a partner of the Arts Coletivo coordinates the work of production groups that transform the PET into garments with design Support for 500 cooperatives with efficiency goals, generating a significant social impact Support for 800 cooperatives 42 43

25 4.15 SO1 Social well-being Community Social well-being Community Transforming the individual means transforming the world Besides having its products present at the table of every Brazilian, Coca-Cola Brazil wants to be recognized as a socially responsible company. In order to put this ideal into a practice, the company adopts measures and programs that establish a productive and transparent relationship in the communities in which it operates. Coca-Cola Brazil in the brazilian communities Created in 1999, the Coca-Cola Brazil Foundation (ICCB) seeks to consolidate the company s social investment and transform the communities in which it operates through projects focused on the generation of income, development of education and preservation of the environment. The ICCB programs use their own methodology, one that is based on building technical and behavioral support for the participants, developed through values, practices and competencies that value self-esteem, a pro-active approach and the entrepreneurial profile, especially among the youth and women who live in the communities. ICCB also works to promote diversity, exchange ideas, maximize potential talents, generate opportunities and prepare a collaborative future for the communities with which it relates. Its operations, through the construction of knowledge that seeks real solutions, extend far beyond temporary programs. The ICCB methodology is based on three pillars: Values, Learning Strategies and Competencies. <4.15, SO1> It is important to point out that, in its programs, the foundation encourages the involvement of all the parties that make up the Coca-Cola Brazil System, from the bottlers to the corporate level. Among the examples of such integration is the responsibility given to the bottlers to map the needs of the communities in their respective areas of operations, transmitting the collected information to the ICCB team, which then conducts complementary surveys to better assess the need to install one of the company s programs at these sites. Currently, two programs have earned attention, both for the social impact achieved as well as for the increasingly greater scope of participants: Coca-Cola Coletivo and Recycle and Win

26 Social well-being Community 2010/2011 Sustainability Report Coca-Cola Brazil CE AM PE AL BA GO MT Social technology <4.14, 4.16> The Coletivo Platform is an innovative social technology focused MG on valuing self-esteem and the generation of income through the training SP and qualification of the residents of low income communities, working always through partnerships with local entities. RJ PR Seeking to reach an ample public, the Coca-Cola Coletivo is divided into four different projects: Retail Coletivo, Entrepreneurship Coletivo, Internet Café RS Coletivo and Arts Coletivo. The following is a presentation of the methodology and results already recorded and consolidated by two of these Arts and Retail. Retail Coletivo: focus on the job market Arts Coletivo The target public of the Retail Coletivo encouraged to work in a team in a groups, offering them intense training is youth ages 15 to 25 anos who are cooperative fashion with his or her during a three-week period for a total of completing or who have completed colleagues, educators and partners. 96 hours. The Arts Coletivo was created in 2011 high school. The project s goal is to with aims of developing production improve the employability of the In the Retail Coletivo, each group consists In order to help the youth assisted through groups made up of women oriented to participants, maximizing their chances of up to 20 participants during a total of the social projects supported by the produce objects made from recycled of entering the formal job market. The 32 hours of training distributed throu- company enter the job market, Coca-Cola material, including personal use items, training is structured based on the ICCB ghout eight weeks. With 125 units in 14 Brazil maintains partnerships with decorative items for the home, bags, etc. methodology, covering three pillars: Brazilian states, each Coletivo has the companies of all sizes, helping them values, practices and competencies. capacity to assist up to 500 youth per participate in the selection processes. During the process, besides just year. From 2010 to 2011, approximately Approximately 30% of the participating teaching techniques, the Arts Coletivo The practical pillar gives the participant 15,000 youth were benefitted by the youth are contracted at the end of the demonstrates design elements that, if contact with important aspects of the program. Coletivo. applied to pieces created manually, will retail market and also a hands-on idea of make that handcrafted product more the reality of this segment. The experien- In addition to structuring the partner Looking toward the future, Coca-Cola attractive to consumers and more sellable. ces come from fun, experimental NGO for each Retail Coletivo, Coca-Cola Brazil s goal is to implement the program The groups also come to have access to activities. Under the play module, a Brazil also selects in the community itself in the country s main communities by 2014, sales channels, which is another need game simulates a market environment the educators to be responsible for the for a total of 250 centers in operation. inherent to this type of business. for students to apply the knowledge acquired during the training sessions. The Arts Coletivo pilot took place in Rio de Janeiro. The project worked with five groups, each one with approximately 10 craftswomen. At the end of the year, the Arts Collective included some 43 women. The initiative is expected to grow over the coming years and train craftswomen throughout the national territory. 46 Under the experimental module, partici- Learn more about the project Who participates? Craftswomen production groups People benefited by groups and 43 women Present and future until Assist more groups in Rio de Janeiro the end of 2012 and benefit up to 8,000 cooperatives in other states pants are prompted to share their own contributions for real ventures, analyzing both their strong and weak points, with the task of producing a business plan that qualifies the studied ventures. During this process, the participant is Learn more about the project Who participates? Youth ages from low People benefited by ,000 youth trained and income communities who were able to fill job openings Present and future 25 Coletivos created and with the goal until the end of 2012 to create 250 units in Brazil by

27 2010/2011 Sustainability Report Coca-Cola Brazil Social well-being Community Optimism Week Recycle and Win Recycle and Win is an ICCB project that qualifies recyclable material collectors cooperatives. Besides the positive impact in terms of generating income for the cooperative members, Recycle and Win is also part of the Coca-Cola Brazil strategy, considered crucial for the company s results in this area. The program s main objectives include accelerating the expansion of the supported cooperatives each year, refining the management model focused on supporting the improved generation of value with the cooperative networks and raising people s awareness that garbage is income. the business, its operation, obstacles and potentials. These elements are used to develop a business plan for each one. During the following stage, ICCB identifies the best type of training and support for each benefited unit. The Recycle and Win investment in the cooperatives ranges from the support for formalization, to training and even investments in equipment and infrastructure, so that the cooperative can become self-sufficient. Until the end of 2011, the project had assisted some 200 cooperatives in 24 Brazilian states, directly benefiting approximately 7,000 cooperative members. This figure represents an 85% increase compared to 2010 in terms of the number of participating cooperatives. The Coca-Cola Brazil Foundation s goal is to assist 300 cooperatives by the end of One factor worthy of attention is women s growing role in the recycling activity. Today, women s participation in the cooperatives benefited by Recycle and Win accounts for 60% of all labor, in line with the company s commitment to promote the continuous empowerment of women. Every year since 2007, Coca-Cola Brazil has promoted Optimism to Change Week. During this week, each product sold generates a donation for the Coca- Cola Brazil Foundation projects. During 2010 and 2011, the campaign collected approximately R$ 11.5 million. The action includes more than 150 products from the portfolio, including soft drinks, nectars and fruit drinks, replenishers, energy drinks, children s drinks, teas and waters. It receives the support of partners such as Cinemark, Carrefour, Wal-Mart, the Pão de Açucar Group, McDonald s, Spoleto, KoniStore and Domino s, which publicize the action in their spaces. The campaign is designed to encourage people s organization to adopt sustainable practices and positively engage stakeholders (Members of the Coca-Cola Brazil System, opinion shapers, clients and consumers). The idea is to demonstrate that individual action can make a difference, and as a leading company in its segment, Coca-Cola Brazil believes that it has a duty to motivate its consumers to participate in actions that benefit society and the environment. In 2010, one of the highlights of Optimism Week, held from May 209, was the Current of Optimism. Consumers were encouraged to send a creative video with any Coca-Cola Brazil beverage, generating collaborative content for the campaign website and promoting engagement. During the 2011 edition, consumers were invited to send the campaign website photos showing themselves as they consumed the beverages, which were then added to a space called the Wall of Good People, as part of the recognition for their donation. Still during that same year, the promoters switched off at the points of sale to record the consumers participation. To reach the internal public and the Coca-Cola Brazil System, employees are invited to spend a morning completing the sales route and distributing advertising materials. All of them take advantage of the occasion to describe McDonald s Support the purpose of the initiative and increase McDonald s support knowledge about the Coca- Cola Brazil Foundation. Another important action undertaken by the 2011 Optimism Week was the meeting between business and community leaders and scholars on the topic Environmental Sustainability with a Focus on Recycling. The event was held on May 24 and involved the participation of the Coca-Cola Brazil Vice President of Communication and Sustainability, Marco Simões; leader of the National Trash Pickers Movement, Tião Santos; and economist Sergio Besserman. By adopting a weekly monitoring routine for each participating cooperative, diagnoses can be performed and solutions presented for the challenges identified. The methodology is based on the division of the cooperatives into levels by surveying the characteristics of Learn more about the project Who participates? Cooperatives all over Brazil People benefited by cooperatives and 7,000 cooperative members Present and future Assist 300 cooperatives, until the end of 2012 benefiting up to 8,000 cooperative members Coca-Cola Brazil Associates Engaged with the Campaign 48 49

28 2010/2011 Sustainability Report Coca-Cola Brazil Social well-being Community ,000 Brazilian school students assisted benefited by 2011 For an A+ education The Coca-Cola Brazil System, through ICCB and its bottler Ayrton Senna (IAS) at the Champion Education project, investing in improved education for children and youth in the state of Maranhão. By the end of 2011, 19 regional education units were included (São Luís, Açailândia, Caxias, Chapadinha, Imperatriz, Itapecuru, Rosário, Timon, Bacabal, Balsas, Barra do Corda, Pedreiras, Pinheiro, Presidente Dutra, Santa Inês, São João dos Patos, Codó, Viana and Zé Doca), for a total of 160 municipalities. In all, 594 schools were benefited during this period, reaching a total of 163,000 students. This project is designed to help the municipalities define and implement an educational policy focused on ensuring the student s success, with the main action called A+ Management, whose methodology was developed and has been implemented by IAS. Accordingly, it focuses its actions for the school systems to become integrated with autonomous schools, which are managed by technically competent and ethically commitment principals. This means the investment in developing the principal s leadership, in the construction and development of autonomies both pedagogical and administrative, in the efficiency of the financial management and systemization of actions within the sphere of the secretary s office and the schools in an integrated and coordinated way. The proposal of the Champion Education project is based on the legal foundations that govern the country and guide education: the Brazilian Federal Constitution, Law 9394/96, Law of Educational Guidelines and Bases (LDB), Statute of the Child and Adolescent (ECA), as well as budgetary and specific financing legislation. In order to ensure the institutionalization of the management team responsible, which is based on indicators and goals, the image of a competent principal capable of exercising leadership is considered crucial. However, to meet this goal, the respective educational departments must guarantee a type of access that privileges their capacity and gives them possibilities for autonomy when it comes to decisions that must be made on a daily basis. A+ Management requires the systematic adoption of management practices and administrative processes, such as information records and short, medium and long term planning. By 2013, there are plans to increase the number of students benefited by the Champion Education project, surpassing 200,000 students at the basic and primary levels already assisted in the state of Maranhão. Learn more about the actions of A+ Management: Adoption of standards that privilege technical competency when filling the position of school principal. Planning and re-planning through diagnoses of the indicators for success and with aims of achieving previously established goals. Creation or adjustment of laws to guarantee the system s efficiency. Adoption of effective and objective public policies in the area of education that are amply disseminated to the intra- and extra-school communities. Systematic evaluations of the process and result as a strategy for guaranteeing the effectiveness and efficiency of the educational policies. Living and standing forest The industrial center of Amazonas state is home to the only bottling plant where the original and exclusive Coca-Cola formula is produced. The concentrate formulas for the production of all the Coca-Cola Brazil System bottling plants come from there, as well as that exported to other South American countries. Therefore, the region is extremely important for the company. In addition to participating in the development of the industrial center with the maintenance of jobs and an entire value chain that generates income for approximately 11,000 families, Coca-Cola Brazil invests heavily in local culture. Since 2005, it has directly supported the region s most traditional event, the Parintins Festival, providing more than R$ 70 million in sponsorship until A partner of the Sustainable Amazonas Foundation, Coca-Cola Brazil has already donated more than R$ 20 million since 2009 to the projects supported by the institution, all with a strong focus on sustainability, considering that for both organizations, a standing forest is more rich and valuable than a cleared one. This partnership assists 7,500 families a universe of 33,000 people. Other initiatives in which the company participates actively in the state include the Gramixó Project, focused on generating income and improving the quality of life of the riverside populations. It benefits 1,630 families in 14 municipalities, guaranteeing the purchase of all the handmade production of brown sugar. Besides this, the company also sponsors cultural initiatives in the region, such as the opera, jazz and film festivals of Manaus

29 LA1 LA2 Social well-being Work Environment Social well-being Work Environment A company made up of thousands of associates The value of people All of Coca-Cola Brazil s innovation and success is not due only to modern technologies or major financial investments. Rather, people s creative potential is what builds the company s history from day-to-day. That is why it invests in the development of its associates, encouraging them to use their talent to the fullest. <LA1> By the end of 2011, the Coca-Cola Brazil System had more than 63,000 associates, 52,754 of which were direct and 10,743 indirect or outsourced, which represents a 3.5% growth in the number of employees compared to Coca-Cola Brazil also has 472 interns and 152 apprentices. <LA2> The average monthly turnover at Coca-Cola Brazil System in 2011 was 2.58% the overall total. Compared to the previous year, the monthly turnover rate remained stable. In 2011, 15,931 people were hired, 16,335 were dismissed, while in 2010, 17,535 were hired and 14,058 were dismissed

30 EC5 2010/2011 Sustainability Report Coca-Cola Brazil Social well-being Work Environment Coca-Cola Brazil commits to being an excellent workplace where people are inspired to be the best they can be is the number of people hired in is the number of people hired in 2011 Employees during a visit to points of sale during Optimism to Change Week Remuneration Comparison with minimum monthly salary People Hired People Dismissed Distribution of the Direct Work Force by Region in Brazil Associates by Region (%) Region Southeast 37,8% 39,0% South 19,7% 19,5% Central-West 17,6% 16,0% <EC5> The minimum salary paid in 2011 by the Coca-Cola Brazil bottling plants is 32.12% higher than the minimum monthly national established by the Brazilian Federal Government. All of the bottling plants included in the Coca-Cola Brazil System respect the minimum monthly wage applicable to the country or salary floor defined in the local collective bargaining agreement. Variation between the lowest salary and minimum salary Minimum salary* R$ 510,00 R$ 545,00 Lowest salary R$ 655,85 R$ 720,10 % higher than minimum 28,59% 32,12% Variation 1,29 1,32 * Minimum salary established by the government on December 31, 2010/2011. For calculation purposes, the figured considered was the average between the lowest salary at Northeast 17,2% 17,8% North 7,7% 7,7% the bottling plants that form the Coca-Cola Brazil System. In the Brazilian Food and Beverage System (SABB), the calculation base is the standard floor for the category (collective bargaining agreement or convention) and not the minimum monthly salary

31 LA13 LA2 2010/2011 Sustainability Report Coca-Cola Brazil Social well-being Work Environment Distribution of associates by gender and age group <LA13> Due to the large concentration of labor in bottling activities, the work force in the Coca-Cola Brazil System is primarily made up of men, at 88% (46,356 professionals) and with 12% women (6,398). On the other hand, the company aligned with its global planning has been intensifying actions to empower women along its value chain. Coca-Cola Brazil participates in the Latin America Council of Women s Leaders, responsible for elaborating means of strengthening women s role in the Coca- Cola Brazil System and worldwide, at its suppliers and in the communities in which it operates. This allows Coca- Cola Brazil to assume a strategic role when it comes to the company s global objectives, which are: 5by20 global campaign to support 5 million entrepreneur women by /50 internal campaign to promote the growth of women in positions of leadership within the company s facilities. In terms of the age range of its employees, 53% of associates are 30 years old and under, while the portion of individuals ages represents 41% of the total. Associates over the age of 50 correspond to 6% of the direct workforce. <LA2> When analyzing the turnover of professionals at the company, it was verified that 88% of the dismissed associates are men, corresponding directly to the profile of active associates during the same period. In terms of age, the percentage of dismissals in the age group of 30 years and under was the highest, at 57%, followed by the group age 30-50, which accounted for 39% of all dismissals. The lowest rate was among the associates age 50 and over, with just 4%. The Coca-Cola Brazil System promotes the inclusion of people with special needs, encouraging harmony in the workplace within a panorama of diversity. In 2011, more than 1,200 people with special needs worked at the different Coca-Cola Brazil System business units, with a 17% increase compared to One of Coca-Cola Brazil s priorities is to be an inspiring organization. The company seeks to meet this objective not only by adopting good Human Resources practices, but also by exposing people to the magic of its brands and demonstrating that they are a part of a socially responsible company. An Internal Climate Survey conducted in 2010 revealed that 98% of associates state they are proud to be a part of The Coca-Cola Company. People management The greatest expression of the company s The high level of relationship with its associates, the interest in the job Our Contours program consists of five opportunities opened pillars that translate the corporate values at Coca-Cola Brazil into behavior. These are: Exemplary reveals this spirit, Leadership, Making it Happen, Catching since it seeks the Collaboration, Constructive Non- direct involvement Conformism and Creative Boldness. of the associates. The company encourages its associates Approximately 40% of to adopt positive attitudes, valuing a the positions offered transparent posture, pro-active approach, by the company are horizontality and entrepreneurship. filled by candidates recommended by Based on the recognition of people s employees. In the same value for achieving the Mission and sense, the company Vision, the company aims to guarantee encourages internal the continuous development and recruitment as a way motivation of its associates, whether of recognizing and to overcome current challenges or to making the best use of establish new paradigms for the future. its employees. This focus on the professionals is visible Currently, this type of recruitment is able in the recruitment processes, professional to fill 49% of all job openings, promoting recognition actions, career planning and improved internal dynamics and fostering alsothe concern for their physical and the continuous development of our mental well-being. professionals. Horizontal contribution and transparency Aware of the importance of recognition when it comes to promoting the company s general objectives, Coca- Cola Brazil demonstrates the importance of each one within the system through several different actions. One of these is the award granted based on the employee s time working at the company. For every five years worked at the company, the associate receives a trophy and award of distinction. The delivery takes place at the traditional holiday party, so that everyone can share in this moment. A company that values the behaviors presented in the five pillars that form Our Contours has the mission of constructing an open-door environment, one in which associates can have direct access to their colleagues, whether at the work station next to them or at the top leadership. Accordingly, the company seeks to promote frequent meetings between the different areas, helping create an environment marked by dialogue and constructive collaboration, which always reflects new drivers for the growth of everyone involved. In this sense, it promotes everything from small meetings, such as the Vapt Vupt meetings, suggestion and question forums held during lunchtime and open to all associates, to larger events, such as Meetings with the CEO. Every three months, Coca-Cola Brazil promotes meetings involving associates and representatives from the company s top leadership, with the highlight being the CEO. The idea is to monitor the evolution of the strategy, better understand the results, inform associates about the most relevant projects and celebrate achievements. There is also a global mechanism for listening to associates thoughts called Ethics Line, which is available 24 hours per day, seven days per week. Via Intranet or phone, any associate can ask questions or report a problem related to behaviors or events that violate the Corporate Code of Conduct or the Policy on Rights in the Workplace. Furthermore, the members of each area relate to their peers at the different bottling plants through committees, such as the ones created for HR, Communication, Supply Chain, etc. These groups, whose activities are fostered by the company, promote meetings, workshops and continuous training

32 LA3 2010/2011 Sustainability Report Coca-Cola Brazil Social well-being Work Environment Internal climate survey 2010 Internal climate survey 98% are proud to be part of the company. 95% would recommend the company as a good place to work. 91% believe strongly in the company s strategic priorities. 98% feel that the company operates with integrity when working with its partners (bottlers, consumers, suppliers and others). 88% believe that the highest level executives demonstrate that having a diverse workforce is important for business success. 97% consider that the people they work with are good guardians of the brands. 89% feel they are treated with respect. 95% trust that their superiors practice the values of The Coca-Cola Company. Since 2004, the company has conducted the Internal Climate Survey globally in partnership with the specialized consulting firm Towers Watson, and all associates are invited to participate voluntarily. The idea is to measure their commitment to the organization, understand the areas for improvement and recognize what should be maintained. The most recent survey was conducted in 2010 and involved the participation of 226 associates. After compiling the results of the surveys, the associates are invited to learn the findings and offer suggestions on what should be improved. Each area holds a meeting with the leader, HR consultant and associates to replicate the general results and have a more indepth discussion on the specific sectorrelated data, collect suggestions and ideas and elaborate an action plan. The survey is also designed to elaborate the people and culture plan, in which associates can see their suggestions become real actions. This plan is integrated with the Business Plan and is reviewed each year together with the proposals from other areas so that everyone is integrated with the company s strategy. Some of the actions created include the Reinvent Yourself program and the remodeling of the fitness gym. Associate recognition policy and quality of life Because the brands and products that carry the Coca-Cola Brazil brand are present in the country s artistic and cultural agenda through marketing actions, sponsorships and partnerships, the company believes that the people who work to make this possible should have access to such events. An excellent example was the distribution of tickets to each associate for Rock in Rio Associates can also receive tickets by participating in the different drawings available on the company s Intranet, which offers tickets for the Coca-Cola VIP Box during the Rio de Janeiro Carnival, Parintins Festival, VIP box at Maracanã Stadium, tickets for movies featured at the Cinemark theaters and a toy kit from the McDonald's chain, among others. As part of its focus on promoting the general physical well-being and health of its associates, the head office offers a full fitness gym. To better meet users expectations and guarantee the best possible use of the space, associates were invited to answer a survey about what they would like to find in the fitness gym. This survey reflected the desire to include activities such as Pilates, Yoga and an external circuit at Praia de Botafogo. Additional services geared toward personal care and well-being and a local Weight Watchers group were among the new features offered at the gym, with 50% of the costs subsidized by Coca-Cola Brazil. For those who work at the head office, the company guarantees the reimbursement of part of the monthly value paid for the fitness gym of the associate s choosing. <LA3> All Coca-Cola Brazil System associates, with the exception of third parties, are entitled to meal tickets, transportation vouchers, daycare assistance, eyeglasses when necessary, medical and dental insurance, life insurance and training and professional development programs. Besides these, other benefits are offered based on the needs of each region, the profile and work system at the bottling plants. The health services covered by the company s insurance plan include psychotherapy, assistance program for children with special needs (PACE), vaccination campaigns held at the company s facilities, an annual check-up for executives and a specific check-up for women. There are also other doctor prescribed therapies offered that are reimbursed by the company. In 2010, considering the meal tickets, health insurance, periodic exams, educational assistance, leisure and recreation, training and professional development programs, daycare assistance, transportation vouchers and other benefits, the Coca-Cola Brazil System investments focused on the well-being of its employees and dependents totaled more than R$ 296 million

33 LA /2011 Sustainability Report Coca-Cola Brazil Social well-being Work Environment Personal and professional development and career planning <LA11> From 2010 to 2011, 408 Coca- -Cola Brazil System associates participated directly in the training and qualification process in a range of different strategic areas for the company, with a highlight on the management and supply chain program, strategic HR indicators, training and instruction in food safety. However, the number of associates trained indirectly tends to be greater, considering that this training is multiplied at all the bottlers. The expenses with training and professional development totaled a record R$ 9 million over the past two years. The company believes that people development is one of its main competitive differentials in the market. Coca-Cola Brazil invests so that associates can have access to the resources and competencies necessary for them to achieve success in their respective job functions. In Choices and productivity Coca-Cola Brazil aims to help associates achieve balance between their personal and professional lives, adopting the following practices: Flexible working hours: working together with his or her immediate manager, each associate can define the time to begin working, either at 8:00 or 10:00 a.m., and accordingly, have a more flexible time to leave work. The associates have six free days during the year, chosen at their own discretion, to spend as they please. They simply need to define the period together with their manager. Remote work: associates who have a company laptop can manage the best days with their immediate manager to work outside the office. Guided by a respect for diversity, in 2011 Coca-Cola Brazil began extending the health insurance benefit to the same-sex partners of its associates. real terms, it is with this spirit that the company promotes the improvement of professional skills by implementing the following actions: Strengthening of the Coca-Cola Brazil Universe and expansion of the offer of actions for associates development through training in the areas of leadership, marketing, commercial, franchise leadership and personal effectiveness. Offer of more than 1,500 books to associates through the online library. Mentoring program for high potential associates and for trainees. People trainer instruction with the use of tools such as structured training, evaluation programs and 360 evaluation to guarantee that the company has the right people leading and building teams. Executive coach for key professionals in the top leadership. Offer of the opportunity for associates to continue their education through a reimbursement program for graduate level and MBA programs. <LA11> In the area of career planning, the annual People Development Forum (PDF) promotes meetings of the company s functional and first-line areas, involving the presence of the CEO and all the Vice Presidents with a focus on the planning and monitoring of all the internal transfers, succession, career and development of associates of all levels in a structured fashion. The idea behind making the leadership level available to talk and discuss the profile, career and next steps of Coca-Cola Brazil professionals is to guarantee the consistency of the actions implemented and strengthen the feeling of justice and transparency among all involved. Approximately 35% of the Coca-Cola Brazil System bottling plants, the bottling groups Femsa, Norsa, Rio de Janeiro Refrescos, CVI, Sorocaba and the Brazilian Food and Beverage System Ltda. (SABB), have a formal Performance Assessment process designed to align the competencies and technical capacities of each employee with the company s strategic goals. For 2012, the Brasal bottling plant plans to launch the Performance Assessment Program for its entire work force. At the company Monteiro, the Training and Development area was recently implemented and the development and education processes are under revision

34 LA11 EC3 HR5 LA4 HR7 HR6 2010/2011 Sustainability Report Coca-Cola Brazil Social well-being Work Environment Emotions balance, reflection, friendships and joys Work achievement, environment and culture, development, leadership style and belonging EIS / GPTW PDF / Career Recognition Spirituality balance, reflection, Health well-being, exercises, Weight Watchers Physical Activities Periodic check-ups friendships and joys eating habits, prevention, information and orientation Health Insurance Health Campaigns Culture general culture and entertainment Finances planning and balance Personal Finances Previcoke Lectures Musical Events Cultural Activities Readings Leisure sports, hobbies, socialization and entertainment Family flexibility and balance Annual Holiday My Time Flex Time Home Office With a focus on the future <LA11> As one of the actions that emerged from the organizational climate survey, another highlight in the area of people recognition and training is the program Reinvent Yourself: Life Planning, launched in 2010, which includes within its scope the personal life of associates and strategies for their future professional even after they leave their job at Coca-Cola Brazil. All associates were invited to participate in workshops that addressed topics such as the phases of life and their motivations; personal financial planning; career and post-career planning, care with one s health; review of the time dedicated to work and the maintenance of relationships and friendships. The workshops were divided into two groups, lasting one day for those with less than 20 years of career and two days for those with more than 20 years of career. The rate of satisfaction and approval of the activity was greater than 90%. As part of the continuance of this program, it gained a new thematic edition in 2011 called Reinvent Yourself: Finances, which offers associates the opportunity to analyze their personal finances and evaluate the best planning to reach their objectives and achievements. During that same year, the Reinvent Yourself Culture and Reinvent Yourself Leisure were launched, with lectures by external professionals who are renown in their respective areas of activity to discuss current topics. <EC3> Still thinking about the future of its professionals, Coca-Cola Brazil promotes the maintenance of a private pension plan for its associates, since this allows them to form a long term financial reserve. The type of plan offered is option and based on a defined contribution (DC), whose benefit value is associated with each associate s accumulated reserve balance. The contributions are calculated based on the salary amount and the value calculated when contracting the plan, with the possibility of changing this plan twice a year, in December and June, if the associate so chooses. Previcoke is the entity responsible for administering the Coca-Cola Brazil plans. Over the past two years, Coca-Cola Brazil s contribution to its associates pension plans has been approximately R$ 5 million per year. This value does not include contributions made by associates. The importance of shared value <HR5> Coca-Cola Brazil respects <HR7> The company has also signed its associates right to freedom of the National Pact for the Eradication of association and collective bargaining. Slave Labor, an initiative created by the These topics are addressed primarily Ethos Institute of Companies and Social during the new employee integration Responsibility, the Social Observatory process, when the company presents Institute, the NGO Brazil Reporter and its governing principles and values and the International Labor Organization code of ethics, among other relevant (ILO). Coca-Cola Brazil follows the information. corporate values defined by The Coca- Cola Company that are formalized in the The company recognizes the trade global Workplace Rights Policy. unions as legal and legitimate representatives of the employees, <HR6> Combating child labor is one of maintaining a Collective Bargaining main commitments assumed by Coca- Agreement to which to send their Cola Brazil. The company complies claims. In 2010 and 2011, the general with all the applicable provisions of topics covered in the negotiations the laws and regulations related to included: salary raises, working hours, the minimum age for work. Coca-Cola profiting sharing (PLR) and benefits. Brazil s prohibition of child labor meets The Coca-Cola Brazil System bottlers ILO standards. also negotiate specific issues such as overtime work, a bank of hours and <HR6> With aims of monitoring compensation. The round of collective compliance with the main principles bargaining at each operational unit takes of conduct expected, Coca-Cola Brazil place each year with the presence of a undergoes external evaluations every trade union representative. These rounds three years. In Brazil, the audits are vary depending on factors such as the conducted by Intertek do Brasil region and involvement of the trade union, among others. <LA4> Over the past two years, 100% of the Coca-Cola Brazil employees were included under the Collective Bargaining Agreement. Every year, an annual training is held focused on the Corporate Code of Conduct with directors from the Legal and Financial area for all associates, in addition to periodic e-learning sessions. The Policy on Rights in the Workplace is displayed in visible sites in all offices. In addition to the commitments assumed with its associates, Coca- Cola Brazil believes in shared value as a strategy for generating resources and promoting benefits for society. As one of the companies that signed the United Nations Global Pact, Coca-Cola Brazil publicly expresses the principles and values it believes in and which are present in all the company s activities. Consumer Goods, which is also the company responsible for the audits at The Coca-Cola Company. The audits are conducted at all Coca-Cola Brazil System bottlers and are based on the Principles of Conduct and Policy on Rights in the Workplace. Between November 2004 and December 2011, a total of 164 audits were conducted, and each one of the Coca-Cola Brazil System units was audited at least three times during this period. The re-audit in Social Conformity is conducted every three years at most. <HR5, HR6, HR7> From 2010 to 2011, the audits verified that there were no occurrences of operations with the risk for forced labor or that analogous to slave labor, the occurrence of child labor in the Coca-Cola Brazil System and among its suppliers nor risks to the guaranteed right to freedom of association

35 Personal well-being Beverage Benefits Personal well-being Beverage Benefits Coca-Cola Brazil: one mission and 150 ways to get there In benefit to the consumer Coca-Cola Brazil s position as leader of the nonalcoholic beverage market is the result of its work dynamic, the high diversity of products it offers the market, and primarily, the way it relates to and interacts with its consumers, seeking to understand their expectations and desires. With the mission to refresh the world in body, mind and spirit, Coca-Cola Brazil offers its consumers different types of products designed to suit a range of different tastes during the main daily occasions. The portfolio includes carbonated and non-carbonated beverages and gathers approximately 150 products, such as teas, nectars, waters, replenishers, soft drinks, dairy beverages and energy drinks. This allows the company to reach practically all consumer profiles in the country, making it the current national leader in the main segments in which it operates: soft drinks, teas, waters and nectars. Carbonated beverages Included in the group of carbonated beverages are the soft drink brands, notably both those sold nationally, such as the Coca- Cola, Kuat, Fanta and Sprite family, but also those regional brands, with a specific presence in certain states of the country. The main regional soft drinks included in the portfolio are the guarana Jesus (Maranhão), guarana Tuchaua (Amazonas, Pará, Rondônia, Roraima, Acre and Amapá) and guarana Charrua (Rio Grande do Sul). These brands are representative of a regional culture and are widely accepted by the local public. Accordingly, Coca-Cola Brazil is able to balance the recognition of local identities with the economic return from these products

36 PR5 Personal well-being Beverage Benefits Sports drinks Another new feature in the Coca-Cola Brazil portfolio, the Powerade ION 4 replenisher, is directed at consumers who practice prolonged physical exercises frequently. Present in 70 countries, Powerade ION 4 was launched in 2010 and is designed for consumption before, during and after the practice of physical and sports activities. Available in the flavors Mountain Blast, Orange, Grape, Tangerine and Lime, the Powerade formula serves as a source of Complex B vitamins (B3, B6 and B12), and also has electrolytes, potassium, sodium, calcium, magnesium and an ideal serving of carbohydrates for consumption during prolonged physical exercises. Its launch in the country coincided with the World Cup in South Africa, in which Powerade was the official sports drink for hydrating athletes during the competitions. Limão&Nada and Maracujá&Nada The beverages Limão&Nada ( Lime&Nothing Else ) and Maracujá&Nada ( Passion Fruit&Nothing Else ) are part of the new Del Valle family line of products and are made from the most refreshing fruits. Accordingly, they meet Brazilian consumers expectations very effectively. These products have only fruit juice and sugar as their main ingredients, without any addition of preservatives. Non-carbonated beverages Attentive to the changes in Brazilian represent a market trend due to a lack consumer habits, Coca-Cola Brazil of time in people s busy day-to-day life. expanded its portfolio considerably Besides these, in this category Coca-Cola and currently has a diversified array Brazil also produces waters, teas, energy of products designed for a range of drinks, sports drinks and chocolate different occasions. For example, the beverages. ready-to-drink nectars Diversify the portfolio and offer choices Seeking to satisfy the profile of the consumer who wants quality and adopts healthy lifestyle habits, Coca-Cola Brazil diversified the products from the Del Valle family even further, launching Limão&Nada of orange for longer. Laranja Caseira contains 67% juice, a high content for the traditional nectars of this flavor and segment. The Laranja Caseira Light version is also sweetened with Truvia. ( Lime&Nothing Else ), Powerade and Laranja Caseira com Truvia ( Home- Squeezed Orange Juice and Truvia ). Learn more about the sweetener Truvia Truvia is the name patented by Coca- Organization (WHO) and the United Del Valle Mais Laranja Caseira is a nectar without preservatives or artificial coloring produced using mature oranges. It has the flavor and aroma of fresh fruit and includes the orange pulp. The heat treatment, which is based on the process that makes the aseptic bottling of the product possible, maintains the flavor Cola for Rebiana, a highly pure extract taken from the leaves of stevia, a plant from the Chrysanthemum family that originates in South America. It has no calories. It is an ingredient approved by entities such as the World Health Nations Food and Agriculture Organization (FAO). Coca-Cola Brazil currently uses Truvia in more than 20 products, in combination with other ingredients, in countries such as Argentina, Canada, France, Japan and the United States. Open ears to the consumer <PR5> In addition to offering high quality products, another factor that guarantees Coca-Cola Brazil s distinguished place in the Brazilian market is the consumer assistance it offers. The Coca-Cola Brazil Customer Assistance System (SAC) is considered a strategic partner for the company. The entire SAC management process is conducted by the Quality and Consumer Relations Board, whose mission is to both meet the needs of stakeholders while also adding value to their relationship with the company. Accordingly, the company undertakes satisfaction surveys each year, using the Customers Operations Performance Center (COPC) methodology, which is focused on service quality and client satisfaction. Coca-Cola Brazil also follows the consumer assistance guidelines established by The Coca-Cola Company. The search for high quality assistance and client satisfaction is a commitment adopted by all bottlers, which offer phone assistance services under their call center system (toll-free number). These channels are responsible for assisting approximately 1 million people per year. Coca-Cola Brazil also has online channels: the social networks and Contact Us form that is available on the company s website. During 2010 and 2011, 70% of these contacts were made by consumers and 30% by direct clients of the company, such as the retailers. Coca-Cola Brazil also has online channels: the social networks and Contact Us form that is available on the company s website. During 2010 and 2011, 70% of these contacts were made by consumers and 30% by direct clients of the company, such as the retailers

37 PR6 2010/2011 Sustainability Report Coca-Cola Brazil Personal well-being Beverage Benefits Recognized respect Over the past eight years ( ), for up to eight product segments they the survey entitled Companies that Most effectively use. For each segment, the Respect the Consumer, conducted by interviewees cited the names of the the consulting firm Shopper Experience companies of which they are clients. in partnership with the magazine In this way, the survey measured the Consumidor Moderno, has included consumers real experience, going Coca-Cola Brazil on the list of companies beyond the simple perception or image considered a reference in this area. In of the brands, products and services. 2011, 1,389 consumers were interviewed in São Paulo, Ribeirão Preto, Rio de Coca-Cola Brazil also adopts other Janeiro, Recife, Porto Alegre and Belo practices focused on customer Horizonte, covering men and women satisfaction, including: from Classes A, B, C and D over age 18 who had effective experience with Coca-Cola Operating Requirements the brands, products and services and (KORE), a system globally adopted by clients of the companies in the industry, The Coca-Cola Company, that seeks consumer, retail and services segments. to guarantee higher product quality, Every interviewees answered questions safety and occupation health standards Satisfaction surveys The company has systematically Accordingly, it was ranked above the applied satisfaction surveys since average for the food and beverage Until 2010, this process was undertaken sector in Brazil, which is 30 points by the Coca-Cola Brazil internal team, (based on 2010 data), as well as above and starting in 2011, it was passed on the U.S. average, which is 38 points, to the Brazilian Customer Relationship according to the American Society for Institute (IBRC). Quality (ASQ), the world s largest entity in the Quality area. In 2011, IBRC began to prepare the company s SAC to adopt a new evaluation This survey was conducted with technology, known as the Net Promoter consumers during personal interviews, Score (NPS), compatible with global which evaluated both the product as survey methodologies. Its objective is well as the quality of the assistance to measure the consumer s loyalty and satisfaction with the assistance provided, based on the Perception of Value and Customer Satisfaction. During this same year, the company calculated the NPS to serve as a reference for 2012, with a highly positive result. The company s SAC received 64 points, placing it within the range of excellence. and environmental norms, describing clear requirements for policies, specifications and programs that guide all operations. Annual SAC Workshops Together for the Consumer. Integration and Knowledge and Process Alignment Program for Consumer Assistance. Monitoring of Product Launches. Information Management. Support for Promotions. Satisfaction Surveys held annually. through the entire Coca-Cola Brazil System area of operations (with the exception of Recofarma and SABB, since they do not have a direct relationship with the consumer.) A total of 6,717 interviews were conducted in 2010 and 2,380 in The number of interviewees is proportional to the contacts made through the SAC. Due to the fact that there were more SAC contacts in 2010 because the World Cup, the numbers were higher than in Responsible advertising <PR6> In its advertisements, Coca- Cola Brazil always respects applicable advertising activity standards. In 2010 and 2011, the advertising transmitted complied with the regulations and codes associated with communication and marketing. To guarantee compliance with these standards, Coca-Coca Brazil is affiliated with the Brazilian Association of Advertisers (ABA). It is also a member of the Brazilian Food Industry Association (ABIA), designed to contribute toward the development of legislation suitable for the constant technological evolutions of food processing; encourage the use of best production techniques; promote the economic and financial strengthening of the sector; and foster the development of the food industry in Brazil, with a focus on the consumer s interest and defense of the environment. The Coca-Cola Company and Coca- Cola Brazil have always taken their commitment to responsible marketing and self-regulation very seriously, in all brands and all media types. All of the Coca-Cola Brazil advertising communication shares the concern of ensuring that there is no advertising for its soft drinks on television, radio and the Internet, as well as publications in magazines, whose main target public is formed by children under age 12. This commitment has been assumed by Coca-Cola Brazil since 2008, based on The Coca-Cola Company guidelines, and in 2009, it was reaffirmed with the signing of a public commitment together with an additional 20 leading companies from the food and beverage sector associated with ABIA and ABA. The main points of the Coca-Cola Brazil Marketing Policy include: Television/Radio/Magazines/ Internet: Coca-Cola does not publish advertisements of its products on channels with an audience that is more than 35% made up of children under age 12 or that directed at children. Images: in its advertisements, the company does not show individuals under age 12 consuming its products without the presence of an adult. Furthermore, in all of the photos of children and adolescents, the models will be and will appear to be over age 12. All of the characters portrayed will be those that are relevant for everyone, regardless of age, gender or culture. Schools are communication-free zones. The availability of the products will be discrete, and any communication will be focused on educational messages associated with an active, healthy living and nutrition. The Coca-Cola Brazil Marketing Policy is based on two principles: Recognize that parents and legal guardians are responsible for what their children consume. Not direct any marketing at children under age

38 Social Well-Being Active, Healthy Living Social well-being Healthy Lifestyle Balance, leisure, pleasure and awareness Through the Active, Healthy Living pillar, the Live Positively platform encourages the practice of physical activities and balanced eating habits, always seeking to balance pleasure, leisure and well-being. This is a global guideline, reinforced on the company s packaging and in its campaigns, reflecting its responsibility toward society. To meet the needs of the different consumer profiles, it has an extensive line of non-alcoholic beverages that includes soft drinks, nectars and fruit drinks, replenishers, energy drinks, children s beverages, teas and natural mineral water. What matters is your health Two actions worthy of note, initiated in 2011, included the approximation with professionals from the medical and sports area and also the incentive toward scientific research through the Pemberton Award. Constantly aligned with the latest trends, Coca-Cola Brazil develops a series of activities that encourage active, healthy living and balance based on its Live Positively platform

39 2010/2011 Sustainability Report Coca-Cola Brazil Social Well-Being Active, Healthy Living Del Valle and Del Valle Kapo family In 2011, the children s beverage Del Valle Kapo underwent an important change, inspired by a survey undertaken with mothers, children and nutritionists and the results of the Family Budget Survey (POF/IBGE). Based on this information, Coca-Cola Brazil verified that the main vitamin deficiencies in the Through its participation in events and age group ranging from years old seminars, Coca-Cola Brazil seeks to strengthen included Vitamins E, D, A and C. To meet its relationship with the segment the demand, the new Del Valle Kapo formula was developed by The Coca-Cola Company research and development laboratory in Rio de Janeiro. The new recipe does not contain artificial coloring and contains Vitamins A, B3, B6, B12, C, D and E. Regardless of the flavor, the Kapo beverages have the same number of calories as one apple 78 which meant an up to 28% reduction compared to the original formula. Another important change was the replacement of artificial coloring for fruit and vegetable juices, which provide natural coloring, such as carrot, blueberry and red currant. The new flavors received a 99% approval rating by children, according to surveys contracted by Coca-Cola Brazil and conducted on consumers. In addition to these changes, in 2010 the entire Del Valle family began indicating the quantity of fruit used to make each product. Flavor Del Valle Mais Home- Squeezed Orange 335-ml cans 750-ml box 6 1 L box L box 12 Support for research in the area of health To the side is a presentation of the average quantity of fruit present in each Del Valle nectar packaging Del Valle Mais Orange Del Valle Mais Grape Del Valle Mais Peach Del Valle Mais Guava Del Valle Mais Mango Del Valle Mais Passion Fruit Del Valle Mais Cashew Del Valle Mais Pineapple 1,5 1.5 bunches 2 0,5 1 1,5 2 3 slices 3,5 3.5 bunches 4,5 1 2,5 3 4,5 7 slices bunches 6 1,5 3,5 4, slices 7,5 7 bunches , slices In 2011, Coca-Cola Brazil strengthened its bonds with the scientific community by addressing highly relevant topics, thereby promoting the exchange of information. During the course of the year, the company participated in 12 scientific symposiums, involving medical specialties such as endocrinology, nutriology, nutrition, gastroenterology, pediatrics, cardiology and sports medicine, among others. During these symposiums, approximately 20 physicians respected in their areas of activity were called in to talk about health and well-being to more than 4,000 participants in the states of São Paulo, Rio de Janeiro, Ceará, Bahia and Rio Grande do Sul. Another networking action was the invitation made to approximately 15 stakeholders from the area of health to visit the Coca-Cola Research and Development Laboratory in Latin America, where the company presented its development process for new products and the different beverage production stages. The Active, Healthy Living topic was also present in the two regional cycles of dialogue promoted in Rio de Janeiro and São Paulo, involving the presence of opinion shapers from the area of health, government representatives, suppliers, clients and the internal public (read more on pages 18 and 19). Also in 2011, the company promoted the first edition of the Latin American Scientific Series on sweeteners in Bogotá, Colombia. To strengthen the debate, Coca-Cola Brazil invited professionals with extensive knowledge on the topic, enriching Brazil s participation in this important international event. The following edition, held in 2012, took place in Brazil in the city of Guarujá (SP)

40 Social Well-Being Active, Healthy Living Pemberton award, active, healthy living in focus The Pemberton Award, launched in 2008 with aims of promoting scientific research focused on active, healthy living, had its second edition in The name is a tribute to pharmacist John Pemberton, creator of the Coca-Cola formula. This award is an important item in the company s sustainability platform, Live Positively, within the Active, Healthy Living pillar, which recognizes academic work in the segments of Medicine, Physical Education, Nutrition, Dentistry and similar areas, developed by professionals, research institutions and universities. The initiative s success is proven by the increase of nearly 50% in the number of works received and 35% in the number of participating institutions when compared to the first edition, with a total of 208 studies from 85 teaching institutions. The winner was the study entitled Mono- and Polyunsaturated Fatty Acids in Controlling Inflammation and Hypothalamic Apoptosis developed by biologist Juliana Cotrin Moraes, a researcher at the Center for Experimental Medicine and Surgery at the State University of Campinas. The work studied the molecular mechanisms that alter the proper functioning of the hypothalamus in cases of diet-mediated obesity. For first place, a cash prize was offered to be divided between the researcher and the university. The researcher won a trip to the United States to visit the Coca-Cola head office in Atlanta, and also to learn more about the company s global initiatives in the area of health. The second and third place winners received a cash prize, respectively, and were also invited to tour the Coca-Cola Research and Development Laboratory in Latin America, located in Rio de Janeiro. Coca-Cola Brazil presented the winners from the 2 nd edition of the Pemberton Award during the 15th Brazilian Nutriology Conference, held in São Paulo in September This edition received the institutional support of the Brazilian Society of Endocrinology and Metabolism (SBEM); Brazilian Association for the Study of Obesity and Metabolic Syndrome (ABESO); Brazilian Society of Food and Nutrition (SBAN) and the Brazilian Association of Nutriology (ABRAN). Sports Working in Favor of Health and Citizenship Well aware of the important role played by soccer in Brazilian national culture, Coca-Cola Brazil undertakes actions designed to consolidate the brand in campaigns that encourage the practice of sports and promote social inclusion. In 2010, the company launched the Coca-Cola Cup. Focused on boys and girls ages 13-15, it became the country s largest youth sports tournament, gathering some 10,000 amateur athletes from 29 cities and 15 states. All of the participants must be enrolled in the schools from their respective regions. During the first edition, the men s champion was the team Joaquim Gomes, from Maceió (AL). The girls who earned first place are from Volta Redonda (RJ), and belong to the team Redonda Futebol Clube. Still in the area of incentive toward sports, Coca-Cola is an official FIFA partner and has been present at all editions of the World Cup since 1950, when the competition was held in Brazil. For 2014, the company is already preparing to repeat the traditional FIFA World Cup Trophy by Coca-Cola, when consumers have the opportunity to see the real FIFA trophy up-close, in all of its 6,175 grams of solid gold. The company also prepares a marketing action to distribute official soccer balls to consumers through a random drawing

41 2010/2011 Sustainability Report Coca-Cola Brazil Parameters for the Report Parameters for the Report Objectives of the publication The model adopted allows for a detailed analysis of the integration between sustainability and the company s business strategy, in addition to containing orientations that are amply accepted worldwide. In this way, Coca- Cola Brazil invites the public to learn more about its business and areas of operation, so that it may serve as an example and build an increasingly <3.1, 3.2, 3.3> This is Coca-Cola Brazil s second Sustainability Report, associated with the period from January 1, 2010 to December 31, 2011, and follows the guidelines of the Global Reporting Initiative (GRI), version G3, at Application Level C, in which the company reports its economic, social and environmental performance. The report presents a total of 19 performance indicators a number similar to that reported in 2009, with 12 of the indicators fully met and seven partially met. In the case of the indicators that were not fully met, the company has already begun the strategic planning to include them fully in the next report cycle. This process includes the improvement of the collection and monitoring of the indicators, as well as the training of the team directly involved. <3.2> The first version of the report was launched two years ago, associated with the period of The emission cycle will continue to be every two years. <3.3> During the process of elaborating this sustainability report, efforts were focused on presenting the information clearly, objectively and concisely. <3.9, 3.10, 3.11> The report process was coordinated by the Coca-Cola Brazil Communication and Sustainability area, and also had the direct participation of several key areas from the entire System. As for the measurement method, there was no significant change compared to the previous publication. The company maintained as a data collection methodology its performance management system, called SDW, together with electronic spreadsheets. We used the metric of absolute values, and in those cases in which it was necessary to make an estimate, we adopted the criterion of the bottler s representativeness in the Coca-Cola Brazil results and we detailed such information. The figures associated with the performance of the entire system are presented as consolidated data. <3.6, 3.8> It includes the consolidated information from the 16 Brazilian bottle groups, present in all regions of the country, in addition to the Brazilian Food and Beverage System (SABB), a joint venture formed between Coca-Cola Brazil and its regional bottlers, together with the Coca-Cola Brazil corporate area: 1 Refrescos Bandeirantes Indústria e Comércio Ltda. 2 Brasal Refrigerantes S.A. 3 CVI Refrigerantes Ltda. 4 Coca-Cola Femsa S.A. 5 Coca-Cola Guararapes. 6 Companhia de Bebidas Ipiranga 7 Companhia Fluminense de Refrigerantes. 8 Coca-Cola Norsa. 9 Recofarma. 10 Renosa Indústria Brasileira de Bebidas S.A. 11 Rio de Janeiro Refrescos. 12 Brasil Norte Bebidas Ltda. Grupo Simões. 13 Sorocaba Refrescos S.A. 14 Spaipa S.A. Indústria Brasileira de Bebidas. 15 Uberlândia Refrescos. 16 Vonpar S.A. The report is available on the Coca-Cola Brazil* website for the consultation of all stakeholders. The printed version of the report will be sent individually. <3.4> In the case of questions associated with the report or its content, the Coca- Cola Brazil Customer Assistance Service is available to serve you: Phone: * transparent and collaborative relationship. This sustainability report, which serves as a tool to promote the continuous improvement of the company s management, is also an important communication instrument with consumers, employees, communities, suppliers, governments and all those who are interested in Coca-Cola Brazil s activities. Engagement of stakeholders and materiality <3.5>The indicators and priority topics presented in this publication were selected based on the Live Positively Platform, created in 2008 (read more in the page to follow and in the Organizational Profile section), which consists of the main Coca-Cola Brazil sustainability management tool. <3.5> In addition to this, the company also has its different communication channels, available for its stakeholders (shareholders, bottlers, business associates, consumers, suppliers, communities, trade unions, the press, financial institutions, etc.), to provide information on topics and figures that reflect the significant economic, environmental and social impacts or which may substantially influence the evaluations and decisions of these stakeholders. These instruments include the Coca- Cola Brazil Customer Assistance System (SAC) and the satisfaction polls conducted with consumers and workshops held by the Consumer Relationship area, among others. The company still does not have a formal, structured process for identifying the most relevant topics (materiality) for its stakeholders. Nevertheless, as part of the continuous process to improve the report, the next sustainability report, to be published in 2013, will include the structured definition and prioritization and engagement of its main stakeholders, the materiality analysis, as well as the training of the employees whose activities are related to the target information of this publication, among other activities

42 Personal well-being To include Active, Healthy Living, Beverage Benefits, Hydration/Nutrition and Responsible Marketing. Social well-being Will cover the pillars of Community, Workplace and Women s Economic Empowerment. Actions and Commitments <3.5> This report is structured based on However, the company believes that the seven Pillars of Operation of the Live this report, besides ensuring that the Positively Sustainability Platform: company is accountable to society about past information, can also provide an Global Water Stewardship indication of the future, reinforcing the Sustainable Packaging commitment to a better society for all. Energy Management and Climate Until 2012, Coca-Cola Brazil worked Protection to build the institutional structure Community foundation for these seven pillars. During Beverage Benefits this time, the Live Positively platform Active, Healthy Living served as the base that integrated all of Workplace the company s actions geared toward sustainable development. Because citizen and consumer expectations about responsible actions have been growing consistently all over the world, Coca-Cola Brazil decided with the help of market research and benchmarking with other companies to identify factors that could make this platform even more successful. After the evaluation, the company concluded that it was necessary to concentrate the actions into three main areas that reflect its care with well-being on three levels: environmental, social and personal. Environmental Well-Being Will include major environmental concerns: Global Water Stewardship, Sustainable Packaging, Energy Management and Climate Protection and Sustainable Agriculture. To learn more about the company s sustainability platform, please visit: and

43 2010/2011 Sustainability Report Coca-Cola Brazil Indicator Index Fully met Partially met Global Reporting Initiative - GRI G3 Indicator Index GRI Indicator Compliance with GRI Page 1. STRATEGY AND ANALYSIS 1.1 Message from the CEO 5 2. ORGANIZATIONAL PROFILE 2.1 Name of the organization Main brands, products and/or services 7, Operational structure of the organization, including the main divisions, operational units, subsidiaries and joint ventures Location of the organization s head office Geographic presence 7, Type and legal nature of property Markets served Organization size Main changes that occurred during the period covered by the report associated with size, structure or ownership Awards received during the period covered by the report 13, PARAMETERS FOR THE REPORT REPORT PROFILE 3.1 Period covered by report Date of last report Report publication cycle Contact information in case of questions related to the report 79 REPORT SCOPE AND LIMIT 3.5 Definition of report content 77, Report limit Limitations to the report scope or limit Base for elaborating the report Data measurement techniques and calculation bases Consequences of the reformulations of information supplied in previous reports Changes in scope, limit or measurement methods compared to previous reports Summary of GRI content 5 4. GOVERNANCE, COMMITMENTS AND ENGAGEMENT GOVERNANCE 4.1 Organization s governance structure 15 GRI Indicator Compliance with GRI Page Indication if the President from the highest legal of governance is also an Executive Director 4.2 Comment: The Coca-Cola Brazil Corporate Governance is exercised by the Presidency, 15 led by Xiemar Zarazúa together with four Vice Presidencies. There is no Board of Directors in its governance structure in Brazil 4.3 For organizations with a single administrative structure, declaration of the number of independent board members or non-executive members from the highest level of governance 15 Comment: Coca-Cola Brazil does not have a Board of Directors in its corporate governance structure. Therefore, there are no independent or non-executive members 4.4 Mechanisms so that shareholders and employees can make recommendations or provide orientations for the highest level of governance Declaration of mission and values, codes of conduct and relevant internal principles for economic, social and environmental performance, as well as the stage of their implementation 11 COMMITMENTS TO EXTERNAL INITIATIVES Charters, principles and other initiatives developed externally of an 4.12 economic, environmental and social character that the organization signs 11, 17, 63 or endorses ENGAGEMENT OF STAKEHOLDERS 4.14 List of stakeholder groups engaged by the organization 14, Identification and selection of stakeholders with which it engages 15, Approaches for engaging stakeholders 46 ECONOMIC PERFORMANCE INDICATORS ASPECT: ECONOMIC PERFORMANCE EC3 Coverage of benefit pension plan obligations 62 ASPECT: MARKET PRESENCE Variation of the proportion of the lowest salary compared to the minimum EC5 55 local salary in relevant operational units ENVIRONMENTAL PERFORMANCE INDICATORS ASPECT: MATERIAL EN1 Materials used by weight or volume 39 ASPECT: ENERGY EN4 Consumption of indirect energy, listed by primary source 32, 33 ASPECTO: ÁGUA EN8 Total water removal by source 25 ASPECTO: Emissões, Efluentes e Resíduos EN21 Total disposal of water, by quality and destination 29 EN22 Total weight of waste, by type and disposal method

44 2010/2011 Sustainability Report Coca-Cola Brazil GRI Indicator Compliance with GRI Pages SOCIAL PERFORMANCE INDICATORS ASPECT: JOBS LA1 LA2 LA3 Total number of workers per type of job, employment contract and region Total number and employee turnover rate, by age group, gender and region Comparison between benefits for full-time and temporary employees 53 53, ASPECT: RELATIONS BETWEEN WORKERS AND GOVERNANCE LA4 Percentage of employees covered by collective bargaining agreements 63 ASPECT: TRAINING AND EDUCATION LA11 Programs for competency management and continuous learning 61, 62 ASPECT: DIVERSITY AND EQUAL OPPORTUNITIES LA13 Composition of corporate governance and description of employees by category based on gender, age group and other diversity indicators 56 PERFORMANCE INDICATORS RELATED TO HUMAN RIGHTS ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING HR5 Operations identified in which the right to exercise freedom of association and to collective bargaining may be running significant risk and the measures taken to support this right 63 ASPECT: CHILD LABOR HR6 HR7 Operations identified as presenting a significant risk for the occurrence of child labor and the measures taken to contribute toward the abolition of child labor Operations identified as presenting a risk for forced labor or that analogous to slave labor PERFORMANCE INDICATORS ASSOCIATED WITH PRODUCT LIABILITY ASPECT: CUSTOMER HEALTH AND SAFETY PR5 Practices related to customer satisfaction, including the results 67 ASPECT: COMMUNICATION AND MARKETING PR6 S01 Programs related to the compliance with laws, standards and voluntary codes associated with marketing communications, including publicity, promotion and sponsorship Programs and practices for evaluating and managing the operations impacts on the communities

45 / THOSE RESPONSIBLE FOR THE REPORTED INFORMATION Coca-Cola Brazil Vice President of Communication and Sustainability Marco Simões Sustainability Manager Flávia Neves Sustainability Analyst Diego Fernandez Corporate Marketing Coordinator Karina Sutherland Communication Consultant Rodrigo Mourão / TECHNICAL CONSULTING Conestoga-Rovers & Associados - CRA GRI Consulting and General Coordination Vânia Marques Verification and consolidation of indicators and technical review Amanda Gonçalves Bianca Amorim Karina Venuto Ingrid Cicca / CONTENT Approach Comunicação Integrada General Coordination Germana Costa Moura Juliana Leite Leonardo Aguilar Research, Verification and Text André Besserman Fernanda Castelo Branco Lygia Freitas Maria Estrella Natatsha Neri Renata Mello Vinícius Ferreira Editing Monique Cardoso Proofing Mariflor Rocha / GRAPHIC DESIGN AND DESIGN Graphic Design Approach Comunicação Integrada Alessandra Guimarães Design Alessandra Guimarães Celina Carvalho Patrícia Martins Rocha Finalization and Image Editing Antônio Souza / PHOTOS Coca-Cola Brazil Image Bank Conspiração Filmes Estúdio Fotonauta: Guillermo Giansanti Klacius Ank Páprica Fotografia Photocâmera: Hedson Silva R2 Comunicações: Fábio Cordeiro Thinkstock Coca-Cola Brazil performed a self-evaluation of its report as GRI Application Level C Report Application Level C C+ B B+ A A+ G3 Profile Result Responds to the following items: 1.1; 2.1 a 2.10; 3.1 a 3.8, 3.10 a 3.12; 4.1 a 4.4, 4.14 a 4.15; Responds to all criteria listed for Level C, plus: 1.2; 3.9, 3.13; 4.5 a 4.13; 4.16 a 4.17 The same required for Level B REPORT CONTENT Information about the Form of Management for G3 Performance Indicators for G3 & Performance Indicators for the Sector- Specific Supplement Result Result Not required Responds to at least 10 Performance Indicators, including at least one from each one of the following performance areas: Social, Economic and Environmental. With External verification Information about the Management Method for each Indicator Category Responds to at least 20 Performance Indicators, including at least one from each one of the following performance areas: Economic, Environmental Human Rights, Labor Practices, Society and Product Liability With External verification Management Method disclosed for each Indicator Category Responds to each essential indicator of G3 and Sector-Specific Supplement* with the due consideration for the Principle of Materiality in one of the following ways: (a) responding to the Indicator or (b) explaining the reason for omission. With External verification * Sector-Specific Supplement in its final version

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