Technological

Entrepreneurship and Global

Development

What Is the Coca Cola Sustainability Initiative Effect on Production?

Basil Al-Halil 4780930

Supervisor:

Dr. J. O. Kroesen
 Abstract

Due to globalisation, business trends have been changed, and the complex organisation are

more tend towards sustainability. Every business entity is striving hard and putting too many

efforts on business sustainability by making different strategies in the globalised world. Most of

the organisations like Coca Cola company are focusing rigorously on corporate social

responsibility for their business survival by taking different sustainability initiatives as well. The

case study is based on Coca Cola’s sustainability initiative of “World without Waste”. The

report aims to discuss how the company has transformed its production units around the world

by taking into account recycled bottles. The company aims to give new life to recycled bottles

and intends to use at least 50% recycled bottles by the end of 2025. This has given an immense

edge over its competitors with respect to improvement in production level.

Keywords: Sustainability, World without water, Coca Cola Company (CCC), Technology,

Institutions and Values

 Table of Contents
Abstract ........................................................................................................................................... 2
Introduction ..................................................................................................................................... 4
Background of Coca Cola Company (At a Glance).................................................................... 5
Research Question ...................................................................................................................... 6
Problem Statement ...................................................................................................................... 6
Discussion ....................................................................................................................................... 7
Sustainability- A concern for Companies in the UK .................................................................. 7
The Triangle of Technology – Institutions – Values .................................................................. 9
Explanation of the Case Study ...................................................................................................... 10
Case Study: World Without Waste ........................................................................................... 10
Analysis of the Case...................................................................................................................... 10
Sustainability initiatives by Coca Cola ..................................................................................... 10
Different Sustainability Programs of Coca Cola around the Globe .......................................... 18
Future Sustainability Plans (2025) ........................................................................................ 23
Coca Cola Sustainability Initiative Effect on Production ......................................................... 24
Evaluation of Coca Cola Sustainability .................................................................................... 25
Conclusion .................................................................................................................................... 25
Recommendations ..................................................................................................................... 26
References ..................................................................................................................................... 27
Appendices .................................................................................................................................... 31
 Sustainability Initiative Coca Cola Company and its Effect on Production?

Introduction

In a globalised world, every business entity is integrating sustainability into its business

operations in the contemporary world of competition. The more focus is on sustainability in

business because those companies who did not focus or made their strategies towards business

sustainability have been gone out of the business or completely vanished from the competition

race. Business sustainability, all around called corporate sustainability, is the organisation and

coordination of standard, social and financial related demands and stresses to ensure strong, great

and pushing accomplishment. In an unyieldingly far-reaching setting, social, normal and money

related mentioning are seen as the three backbones of sustainability (Grant, 2019). Sustainability

puts together with respect to watching out for the necessities of the present without haggling the

purpose of restriction of individuals later on to address their issues. The likelihood of

sustainability is made out of three pieces: money-related, regular, and social—also suggested

coolly as focal points, planet, and individuals (Spiliakos, 2019). As per the Mckinsey Survey,

more than seventy per cent organisations are now more focused on sustainability, and they have

the official governance of sustainability, especially the manufacturing entities are more

concerned on sustainability as well.

America and South Africa, our Mount Franklin, Ciel, and Bon Aqua water brands are

sold in 100% recycled plastic bottles. Plant Bottle technology— introduced in 2009—has been

used in more than 60 billion packages worldwide. The goal is not only to increase Plant Bottle's

impact but also to spur further innovation. The adaptation of technology is good, and this clean

should be used as widely and effectively as possible. The manufacture of PET plastic creates a
carbon footprint that can be reduced if we use more recycled plastic in our packaging. Obtaining

sufficient and suitable recycled plastic is not as easy as it may seem, however, so we are taking

action to raise the share of recycled PET plastic in our packaging. This critical technology will

help us increase the share of recycled plastic in our packaging (Rouse, 2019).

Background of Coca Cola Company (At a Glance)

The Coca-Cola Company is an American multinational corporation, and manufacturer,

retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is best

known for its flagship product Coca-Cola. The company was formed on 8th of May, 1886 by Dr

John Pemberton as the first bottle of Coca Cola was served in Atlanta, the USA at Jacob's

Pharmacy. Coca-Cola is a well-known worldwide company which supplies beverages. The first

time the company became the total and iconic beverage company when they acquired Minute

Main in 1960. Now Coca Cola has a presence in more than 200 countries along with plus 500

brands quenching the thirst of the valued consumers worldwide (Coca Cola, 2019). Today’s, the

company’s brands start from Cola to Zico Coconut water to Costa Coffee around the globe.

Since Coca Cola is a global company, it does have more than seven hundred thousand employees

worldwide, including bottling partners as well. Coca Cola is not a company; it's a diversified

culture consisting of qualified professionals associated from all part of the world. People matter

the most for Coca Cola, that's why the company takes care of them. The company believes in

equal employment opportunities, and that's the reason everyone aspires to be part of the Coca

Cola company. Through “The better shared future campaign”, the company works for the

wellbeing of people directly as well as indirectly around the globe. For this purpose, the

company has invested more than one billion dollars under the umbrella of the Coca Cola

Foundation by donating to more than twenty-four hundred organisations worldwide.

 The company has a mission on which they work and produce their beverages. They also

have a large network of companies all around the world, which consists of several stakeholders,

millions of employees and workers. The company has to work keeping in mind their quality,

quantity and profit as well (Coca Cola, 2019). The company has values that include to work with

the employees and their leaders in collaboration and provide people all around the world with

excellent quality. They also want their employees to be hardworking and have accountability in

them. They want their beverages and ad campaigns to be divergent. Indeed, this brand stands out

as one of the world's top beverages company. The company stands upright to their values and

goals. They reward their people for the risks they take to solve the issues and problems. They

also guide their employees to work smartly and produce good results even in pressure. They

teach them how to work efficiently even in limited time. The company has a similar vision and

set of values. Their main purpose is to provide people with refreshing and sweet beverages. They

serve side purposes to help the poor and bring humanity together. They work in a well

collaborated and organized way to earn maximum profits. Their ad campaigns are very

distinctive and creatively genius. In this way, the Company does well according to their stake

holder's interests. They provide quality and taste, which is the reason Coca-Cola is popular

worldwide (Coca Cola, 2019).

Research Question

What is sustainability and what challenges faced by the company to implement and its

impact on production?

Problem Statement

The word "Sustainability" comes from sustain. It means that the ability to be maintained

at a certain rate or level. Today, every business entity makes strategic policies on how to sustain
or maintain its business reputation in the contemporary world of competition. Since the business

competition is stiff, every business entity strives hard to lower done the expenditures to

maximise the profitability by making such policies on how to sustain in the market. Now every

business entity has realised the importance of sustainability in the business, but fewer have been

able to tackle down by coming up new innovative ideas how to do so (Kuhlman and Farrington,

2010). Those who have already on the way to business sustainability like Coca Cola, still face

multiple challenges that have to be tackled down as much as possible because much importance

to business sustainability has not been given so far especially in the context of "World Without

Waste." The Coca Cola company is among the few global beverage brands who have taken the

initiative of recycling its bottles which has left an immensely positive impact on its production as

well (Wong et al., 2015).

Discussion

Sustainability- A concern for Companies in the UK

The UK business entities are more pushing towards the eco-friendly in full swing and

making their business strategies how to sustain in the business while increasing their

environmental-related expenditures until summer 2021 comes. Katie Leggett, sustainability

manager at innocent drinks, says: “It’s the truth that we’re often charged more to purchase

products that have embedded purpose. The benefit to the business may not be short term but may

instead be for the planet, and the knock-on impact associated with that (Dyllick and Hockerts,

2002). For example, less extreme weather means more predictable harvests and therefore more

consistent supply across the global agricultural system. We vote for the world we live in with the

products we buy, and people are starting to vote for products that consider the environment and
society as they're being made." She further explains that "In my role, I'm helping to support IT

resellers complete tenders where responsible business practices make up as much as 40pc of

scores. The public sector, thanks to enlightened legislation, is helping to drive this. The market

for talent is so tight in many sectors that employers have to prove they take sustainability

seriously to potential employees who shop around for jobs as consciously as consumers now do.

Generation Zs and the Millennials before them are part of this trend, but it’s true now that

sustainability and ethical business practices are things that most people really care about,” Ms

Crozier adds further (Telegraph Media Group Limited 2020).

Among the 2,500 organisations studied, 69pc will concentrate their spending limits on

making producing increasingly supportable. While building up a sustainability technique has

across the board benefits, organizations shouldn't anticipate that it should seek free,

notwithstanding. Blameless beverages, a B Corp organization focused on adjusting reason and

benefit, is seeing more interest than any time in recent memory for items which have an effect

past simply the cost. Nonetheless, organizations need to acknowledge that making the best

choice can cost more. Frederik Dahlmann, associate professor of strategy and sustainability at

Warwick Business School, echoes this sentiment, warning: “If companies ignore these issues,

they may not be able to attract and retain the customers and employees they need to manage and

develop their businesses. At the very least, companies who don’t act risk falling behind the

competition.” As business communities have tough competition in the contemporary world of

business, some of the UK organisations are focusing on brand enhancements. In order to appeal

and retain more and more customers, most of the organisations are putting their true efforts on

business sustainability because their brand enhancement will give them an edge how to get
through in the globalised business competitive environment as well (Charuvichaipong and Sajor,

2006).

It also helps these organisations to hire the best and retain the best because brand image

plays a critical role in this regard. To save money from the applying, the state-of-the-art

production facilities help these organisation in produce refined goods and services as business

sustainability has bestowed how to excel in business in the contemporary world of business

competition (Ren et al., 2015). While applying the sustainability approaches in production, it not

only gives the individual organisations to have the edge over their competitors as well as it adds

significant value addition to the whole economy as well as to the society. It also adds value

addition to the environment as well. Gudrun Cartwright, environment campaign director at

Prince of Wales' Responsible Business Network, notes: "We know from our members that this is

the case: Unilever sees the fastest growth in their sustainable product lines; PwC can demonstrate

how their credentials attract and retain the best people." But some organisations in the UK are

facing problems and have severe concerns about how to be business sustainable in the

contemporary world of business competition (Walsh and Dowding, 2012).

The Triangle of Technology – Institutions – Values

No company can survive in the globalised business world without having state-of-the-art

technology within the institution that values its reputation in the contemporary world of business.

The distinctive contour of a Coca-Cola bottle is a signature of our brand and our company. It is

more than 150 years old. It is trademarked and, it is part of what sets us apart. But it is time that

our iconic bottle stood for something even bigger, and so we are reimagining all our packaging

to make it better for our planet and our business: fully recyclable, with more recycled content.
Explanation of the Case Study

Case Study: World Without Waste

One of the few companies around the globe have stepped forward and have taken the

initiative of "World Without Waste", and Coca Cola Company is one of them. As said by James

Quincy, chief executive officer of Coca Cola company, "Imagine if we were all putting our

expertise and resources into solving this problem. Imagine if we all worked to help keep the

packaging out of the places where it doesn't belong. Suddenly, a world without waste is possible.

We have taken our role as an environmental steward seriously, and it is ingrained in our

corporate DNA to do business the right way, not the easy way.” In an environmentally

responsible way, the Coca Cola company has transformed its production facility to operate

sustainably in the contemporary world of business (Timko, 2019). The case study “World

Without Water” contains three chapters; chapter 1, chapter 2 and chapter 3 along with

introduction (already given above), and future plans (what’s new).

Analysis of the Case

Sustainability initiatives by Coca Cola

The company took the initiative about packaging waste in 2017 how it could be

minimised as much as possible because previously it was not looked after the way the company

approached this time. The initiative was very sensitive because everybody is contributing to

pollution by dumping plastic bottles, cans and other stuff including containers into seas and

oceans and this is the major cause of climate pollution. The recycling bottles have a duo benefit

(Rotzoll and Pendergrast, 1994). One is to add valuation addition to the society by minimising

the waste as much as a possible plus to the recycled bottles has caused to lower down the

production cost with respect to bottling. With sincere efforts, more than 87% of Coca Cola's
packaging has been recycled, which further has reduced the cost of production immensely. This

was the first step towards sustainability that has brought not only profit maximisation as well as

brought the brand’s image more prominent along with wealth enhancements of stakeholders as

well. The main goal is to make the world without waste. The company is overly ambitious in

order to battle the challenge on a long-term basis. The company is also determined to return to

the society the water is used the same as it is being used in the beverages as well. In

collaborating with different bottlers, other key stakeholders, regulators, retailers, as well as the

environmentalists (Timko, 2019).

The world without waste campaign has been running in more than two hundred countries

successfully adding value addition not only to the environment but society as well. This is also

termed as Corporate Social Responsibility as well. Giving back something good to society

ultimately returns the company as well. The fundamental goals of the world without waste are

based on such principles; 1. One of the main goals is to make our packaging material 100%

recyclable by the end of 2025 as well as use 50% recycled material by the end of 2030. 2. To

collect every bottle, we sell out and recycle it by the end of 2030. 3. To make a debris-free

environment, work and support each other for this noble cause. In order to make old packaging

the new one, the Coca Cola company is striving hard a well as working in a closed-loop. The

company aims to collect every bottle and can it sell out to get back and give them a new life in

order to make it useful as well. A great initiative not only for sustainability as well as for the

society as giving back something in a good package at all ( et al., 2014).

The plastic packaging, we use today is far lighter than glass, which makes it easier and

less energy-intensive to ship. But we are looking to bring that weight down even further because

every gram of plastic saved means less energy expended across our supply chain. That said, the
light-weighting is a scientific challenge: How do you retain carbonation and freshness in a

container with less to it? Our researchers around the globe are making impressive strides (see

"Introducing: Dana Breed," right). One example is our tiny-but-mighty Affordable Small

Sparkling Package. This 250-millilitre container, now being used in India and Indonesia, is the

world's lightest-weight, best-performing bottle— and it is 100% recyclable (Blecher et al.,

2017). Here at The Coca-Cola Company, I’ve had the opportunity to improve the environmental

impact of packaging and to help oversee incremental but important changes on a global scale.

Our innovation team works on a range of issues, but our major initiative is to make our

packaging 100% recyclable by 2025. We're also trying to use less plastic and more plant-based

resins in our bottles while improving their ability to keep beverages fresh. Of course, we're just

one of many companies looking to improve recyclables and recyclability. Our suppliers,

competitors, and other companies are all working on this issue—and we're eager to work with

them (Curran, 2006).

We recently allowed other companies—including our competitors—to access the

technology behind our fully recyclable Plant Bottle packaging, made from up to 30% plant-based

materials. We are also working with outside firms to enhance our recycling technologies so that

we might repurpose materials otherwise lost to the packaging economy. Both of these important

initiatives have brought me back full circle to what I’ve always wanted to do—use my

background to make the world a better, cleaner place. Of course, one of our most significant

innovations has to do with how we deliver beverages. Our research and development don’t stop

at making our packaging more sustainable (Moye, 2018). We are asking ourselves such

fundamental questions as: How do we deliver our products to consumers? Must that always

mean a package?
 It is a big goal—and we know it. Already, we are recycling or refilling 59% of our bottles

and cans. Still, we have more work to do. Although we are a global company, we have always

operated on a local level—and that is exactly how we are approaching the challenge of

increasing recycling rates around the world. With operations in more than 200 countries and

territories, we are deploying a market-by-market strategy. As we’ve worked to determine how

best to help drive, create, and accelerate collection systems in different markets, one thing has

become clear—one size does not fit all (MacDonald, 2018). There are different collection

solutions for every market, based on factors such as consumer behaviour, government relations,

and socioeconomic structures. We are ranging from a network of recycling cooperatives in Brazil

to a total recycling solution in South Africa. Although each is tailored to its individual market,

we are looking to apply the lessons learned from these and other successful initiatives to

communities around the world.

In Brazil, we partner with 160 recycling cooperatives across the country through a

program known as Recycle for Brazil. Each co-op defines its own goals and objectives; promotes

recycling for all demographic groups; provides training suited to local conditions, and sets a

series of evolving annual goals. The results speak for themselves: In 2018, 68% of cooperatives

achieved a higher classification standard. Recycle for Brazil is an evolution of Coletivo

Recycling. We decided to join forces with our biggest competitor, delivering greater investment

and a stronger program while eliminating overlaps. What's more, we are investing $100 million

Brazilian reais (about US$25 million) in launching a "universal bottle," returnable packaging that

can be refilled with any flavour. Our goal is 50% refillable packaging by 2030—up from 20%

today (Coca-Cola, 2013).

 In the early 2000s, South Africa was choked with plastic waste, recycling rates were in

the single digits, and the government proposed a packaging tax for beverage and food containers.

We offered a more holistic approach: Promote the reuse of plastic in packaging and other end

products; Provide infrastructure to recycling centres; Support collections by establishing a

guaranteed floor for the price of recycled plastic; Create the PET Recycling Company (PETCO),

the South African PET plastic industry's effort to self-regulate post-consumer PET recycling (see

"Introducing: Casper Durandt,"). Through fees to PETCO, we support more than 50% of these

efforts and contribute more in-kind through event and marketing efforts to raise awareness of

collections and giving away equipment such as bins, one-ton bags, scales, and trolleys. Today,

South Africa's recycling rate has risen to 67%, and the country is on the verge of becoming a

closed-loop—producing and recycling 100% of its PET plastic. In 2018, we successfully

launched the same approach in Kenya, and we are working to do so in Tanzania, as well (Moye,

2013).

To achieve more sustainable end-to-end recycling, what is manufactured in a market

must also be collected and recycled in that market. That’s easier said than done. So, we formed

the PET Recycling Company (PETCO), the South African plastic industry’s effort to self-

regulate PET recycling. Our view is, if you make money from PET plastic, you should take

responsibility for recovering PET plastic (DeGruson, 2016). It’s as simple as that. In order to do

this effectively, you need to facilitate the buyback of plastic bottles. If you guarantee a market

for your bottles, people will start collecting them. This can help create a more sustainable income

opportunity for many South Africans currently without a job. To date, PETCO has created some

65,000 income opportunities. A lot of these jobs yield only about R300 (around US$25) per

day—but bear in mind that more than half the population lives on less than R992 (around
US$75) per month. As effective as buying back containers can be, you must also support a robust

recycling infrastructure with "tools of the trade" such as collection bins, scales, cages, trolleys,

and collection bags. Thanks to PETCO, in some cities there is a buyback centre in virtually every

suburb. Coca-Cola supports PETCO financially, and PETCO in return, subsidizes the buyback of

every plastic bottle in South Africa. The PETCO model has proven that a voluntary model can be

much more cost-effective than, say, a government-run deposit-return system. More importantly,

it ensures a closed loop when it comes to recycling. For every bottle made and sold, there will

always be funds to buy it back—and to make sure it gets to a recycling plant so it can be used

again (Independent Digital news, 2018).

Throughout Central and Eastern Europe, we are working with government officials to

combine a deposit-refund system with vigorous collection efforts and industry participation.

Estonia, a relative newcomer to the European Union, for example, had to play catchup to meet

the EU's recycling targets. The country passed a mandatory deposit-refund law. However, in

order to ensure the best possible outcome, Coca-Cola Hellenic Bottling Company committed to

engaging in anti-littering and other public-education campaigns, enhancing post-consumer

packaging collection, and more. The result? The recycling rate of municipal waste in Estonia.

Mexico’s packaging recovery rate now stands at more than 74%—the highest in Latin America

and well ahead of Brazil (62%) and the United States (35%). The key? Industry collaboration.

Coca-Cola created a nonprofit environmental organisation in Mexico, made up of 24 beverage

and food companies, representing more than 80 brands. And in June 2018, dozens of people from

across the Coca-Cola system travelled to learn best practices (Sylvain Charlebois, 2016a).

To solve a problem as big as packaging waste, we need to build a global network of

competitors, consumers, elected leaders, environmentalists, regulators, retailers, and stakeholders

of every kind. That is why we have reached out to others around the globe to broaden and deepen

our impact. We have done this before. When we set out in 2007 to meet an ambitious goal to

replenish 100% of the water we use, we knew we could not do it alone. So, we partnered with a

whole host of others to get the work done. And we met our goal—five years ahead of schedule.

We take our status as the global beverage leader seriously. Much is expected of us—and we are

aiming to deliver. Before we announced our waste recycling and reduction goals, we consulted

with not only all of our business units but also nongovernmental organizations, regulators, and

other stakeholders. And one message came through loud and clear: scale matters. As a result, we

have worked side by side with our bottlers, retailers, and suppliers to examine every aspect of

our packaging and how to educate and inform consumers about adopting more environmentally

responsible waste-management habits (Sylvain Charlebois, 2016b).

One powerful way to reach our recycling goals is through education and marketing.

Whenever we engage in a local campaign to encourage collection and recycling, we pour

resources into vital infrastructure and promoting good habits. Our campaign in Great Britain—

“Coca-Cola: A Bottle Love Story” (below right)—tells the story of two plastic bottles who fall in

love after meeting, again and again, thanks to recycling. It is the first commercial ever made with

100% recyclable packaging. And the whimsical ad—shown online, in theatres, and on

television—continues to reach a broad audience, with 1.4 million views on YouTube alone (and

counting). In the Netherlands, our "Across the Tracks" TV commercial and corresponding

recycling label focused on getting consumers to recycle some 160 million packages. The

campaign was subsequently rolled out across France, Sweden, and the United Kingdom (Kumar,

Teichman and Timpernagel, 2012).

 Most of us are familiar with the horrific image of the so-called Great Pacific garbage

patch. Closer to home, we all may have noticed debris on beaches or on a local lakeshore or

riverbank. At the Coca-Cola Company, we are focused on reducing the number of plastics that

end up in water through partnerships with organizations all over the world. We are a founding

member of and a major contributor to Ocean Conservancy Trash Free Seas Alliance, a

partnership that has helped result in 220 million pounds of trash being cleaned up from more

than 375,000 miles of coastline since 1995. We were an inaugural industry investor in Circulate

Capital, an impact investment firm dedicated to financing companies, infrastructure, and

innovation that prevent the flow of plastic waste into the world's oceans (Madhavan, 2012). In

Indonesia—the second-largest global contributor to ocean waste—we helped form an industry

consortium to meet the goals of the Coordinating Ministry for Maritime Affairs’ Plan of Action

on Marine Plastic Debris. We participated in the Organisation of Southeast Asian Nations’

(ASEAN) multi-stakeholder workshop in Bali on marine debris and packaging waste. And we

worked with UN Environment to collect baseline data on Malaysia and Thailand. We

subsequently hosted a workshop in Malaysia to share key learnings and discuss the waste

management landscape, postconsumer packaging material flow, and the case for global/local

action (Coca-Cola, 2018).

Recycling in the United States is hampered by a lack of access to proper facilities, with

the result being that recyclables are picked up but often transported to landfills. Consequently,

we are committed to improving the country’s recycling infrastructure in a number of important

ways. People think of ocean plastic as an environmental threat, but it’s also an economic one.

Plastic waste in our oceans hurts biodiversity, fisheries, and the tourist industry—to the tune of

about $13 billion a year. It’s an expensive problem, but that also makes it an economic
opportunity (Walsh and Dowding, 2012). When we came up with the idea of Circulate Capital,

our goal was to put the discipline of competition and to invest to work in recycling and waste

reduction. The Coca-Cola Company was a founding investor in Circulate Capital, which we

created in collaboration with Closed Loop Partners, Ocean Conservancy, and a few other like-

minded companies. Coca-Cola put $15 million behind our idea, and it was an early advocate

within the industry. The company saw that we were trying to do something nobody else had

attempted—to finance the value chains that turn plastics from a net cost into a net benefit. Plastic

pollution is a huge challenge, but we know where to start. Studies show that we can achieve a

45% reduction in plastic waste by improving collection and recycling infrastructure across South

and Southeast Asia. That means if we incubate and invest behind the companies and ideas that

can do this work, waste can be diverteded away from the oceans and back into productive use.

The key is to take one of the biggest barriers out of the equation: access to capital. By putting

real dollars on the table, we can accelerate and scale the best ideas and solutions. We know how

to solve the problem of ocean plastic. It's time to make it happen (Walsh and Dowding, 2012).

Different Sustainability Programs of Coca Cola around the Globe

Among our priorities in sustainability is to support the communities we serve through

effective CSR programs. In 2016 our community support efforts focused primarily on women

and youth empowerment, responsible water usage and employee volunteerism. In collaboration

with WWF, our 21 water filtration plants in Pakistan provided clean drinking water to 750,000

people, contributing to a 10-15% decrease in the transmission of water-borne diseases. We

continued to run various programs to empower youth across our operational geography - our

flagship legacy program 3.2.1 Move! Has empowered thousands of youth through sports, games
and skills training. In 2017 we planned to include refugee youth and engage more CCC

employees as volunteers in the program. Another key priority is engaging our employees to act

as One Team while empowering leaders to move our sustainability journey forward. In 2016 we

announced a new strategy and framework for fostering diversity and inclusion. In line with our

commitments to the UN Women’s Empowerment Principles and TCCC’s strategy, we aim to

increase the share of women in our workforce (Karnani, 2013).

In occupational health and safety (OHS), we launched our new "Hand in Hand" program

in 2016 to standardize practices across our operations. Nonetheless, despite all our efforts and

focus on OHS, in 2016 we, unfortunately, had a work-related fatality as a result of a motorbike

traffic a CCC dent in our Pakistan operation, where we sadly lost one of our reseller colleagues.

Following this regrettable incident, we decided to focus more on traffic safety programs in

Pakistan and launched a safety campaign for motorcycle drivers in 2017. A further priority area

for sustainability is reducing our environmental impacts in areas such as water, energy, GHG

emissions and packaging wastes. Achieving environmental sustainability in all our operations is

of vital importance to the continued success of our business. Our commitment to this extends

across our entire value chain, from ingredient sourcing to packaging, recycling and recovery. Our

first rule is to seek ways of producing more while using less. This year CCC received an “A”

score in the sixth annual Climate Change Report published by Turkey’s Carbon Disclosure

Project, which recognized us as one of the country’s leading companies on climate change for

the fifth time. In 2016 we also launched a sustainable sourcing program to comply with the

Sustainable Agriculture Guidelines of The Coca-Cola Company (Ren et al., 2015).

Within each focus area, we strategically manage specific material issues such as water

management, women and youth empowerment and volunteerism throughout our various
operations. We evaluate each issue’s performance results, determine the points of development

and put real practices into our company life, work and product that increase the value we create

for our stakeholders. We achieved more than 11% CO2 reduction per product through our

Lightweight Packaging Program at our Turkey, Kazakhstan, Kyrgyzstan, Azerbaijan and Jordan

operations between 2010 and 2016. The company that has been listed in the Global Compact

Sustainability 100 Index since 2013. CCC was included in the new FTSE4Good Emerging Index

for 2016-17 and ranked 4th among global beverage companies with AA rating on the MSCI

Global Sustainability Indexes in 2016 and 2017 (Mccallum et al., 2012). After our 2016-year

performance, CCC was included in the 2017 ECPI Sustainability Index for the first time.

Additionally, for the third consecutive year, we have been listed in the Borsa, Istanbul

Sustainability Index. Since the inclusion of financial information in sustainability reporting has

become an accepted corporate discipline, CCC has set a target to issue an integrated report by

2020 reporting with its 2019 performance by increasing the boundary of the scope to 100%

coverage (Komula, 2011).

The Red initiative was taken in 2016. As a result of our focus on superior execution, in

2016 we managed to win two separate GCCL Awards which is the premier opportunity for The

Coca-Cola System customer and commercial associates globally to celebrate and share

best-in-class work with each other and the system. The first one is, “Segmented Execution

Strategy in Traditional Channel, Turkey” implementing the Traditional Trade segmented

execution guidance to Turkey’s market and creating a mechanism for outlets’ shopper profile

and potential classifications for a robust execution capability and best shopper experience. On

top of the previous segmentation model, new segmentation maximized value opportunities and

also offered general solutions to each segment, regardless of different shopper profiles, and
growth potential at the point of sale (Kytle and Ruggie, 2005). The second one is “A step change

in Coca-Cola Incidence @ Cinemas, Turkey”, creating a coke journey for consumers through

several craving interaction zones in order to increase IC consumption in cinema channel. In line

with our 2025 Vision, we are regularly making improvements to our talent management

approach. In 2016, the main focus of talent management was on developing leadership

behaviours. We introduced the new CCC leadership behaviours and CCC Talent Management

Principles and shared it with all employees. In 2016, we published our Performance Management

Policy and also introduced the Performance Calibration Guideline to equip managers and senior

leaders with calibration philosophy (Symons and Lamberton, 2014).

In 2016, a fatality occurred as a result of an unfortunate traffic a CCC dent experienced.

Our pre-seller lost control of his motorbike in an effort to avoid a hole in the road and hit a trailer

that was being pulled by a tractor. After this loss, CCC decided to focus on traffic safety

programs and act as a pioneer for national traffic safety in Pakistan. We raised a safety campaign

for motorbike riders and drivers, which other multinational companies followed. The campaign

will begin in 2017. CCC has operations in 10 countries with 25 plants and creates direct and

indirect positive economic impact. Sixty girls' schools from Baghdad also participated in the

football tournament which is a great initiative by the company towards sustainability, marking

the first time in Iraq where girls' schools actively participated in a sporting event of such large

scale. Since 2006, both FFA and CCC have jointly started football campaigns in Kazakhstan as

this grassroots football tournament reached around 400,000 students in 6,200 schools in its 10th

season during the 2015- 16 academic year. Honoured twice by UEFA awards, the Coca-Cola

Bylgary Dop is the largest football tournament in Kazakhstan reaching 80% of the country's
student population and opens the doors to a professional football career for several youths

(Casaqui and Riegel, 2016).

Witnessing the program’s success and impact in Turkey, CCC expanded the project to

other countries. In Pakistan, 3.2.1 Bhago! was launched in August 2014, and runs in 30 schools

from low-income rural areas in Lahore. It engages around 3,000 boys and girls as youth team

members through weekly physical activity programs at schools. It also trains students to become

youth leaders and coaches and to organize their own sports events for the local community,

which creates a rippling effect. So far, 75 coaches and 120 youth leaders mobilized close to

30,000 youth in Pakistan. The program also helps develop healthy relationships between mentors

and youth to support personal development, focusing on teamwork, leadership and

communication skills (‘Coca-Cola keeps the water flowing’, 2014). In our CCC Turkey

operation, we managed to reduce our total Scope 1 emissions (due to mainly combustion of

fuels, transportation and fugitive gases) from 104,635 tons to 89,827 tons compared to 2015.

Increase in the IEA Turkey Country GHG Factor corresponded to a 15.9% increase in Scope 2

emissions due to electricity use at CCC Turkey operation. Additionally, emissions from

distributor coolers have slightly increased compared to the 2015 figure. However, we achieved

3.63% reduction in emissions through GHG emissions reduction activities, an 11% decrease in

cooler emissions as a result of good maintenance and decrease in cooler disposal, and reductions

of 21% in business travel and 42% in employee commuting. Water Workshop in the Industry

Sector, conducted in cooperation with the Ministry of Industry and Technology was held at our

İzmir Plant (Anonymous, 2010). Representatives from the ministries of Industry, Forestry and

Water Affairs and Environment and Urbanization as well as from NGOs, sector peers, academics

who attended the workshop to discuss water issues and legal requirements, draft Water Law
requirements and relevant EU Directives. The event aimed to conduct awareness-raising and

capacity developing studies and increase effective water management culture by enhancing

communication and cooperation of public and private sectors and NGOs in order to support the

sustainable production activities of businesses. At the event, our İzmir Plant was visited as an

exemplary practice. We aim to continue to communicate CCC's water-related strategy and

achievements of CCC to local communities, government agencies and media in forthcoming

periods.

In all CCC plants, we develop, invest and implement water-saving programs every year

in line with OE Culture. The “Top 10 Water Saving Program”, reuse of pumps cooling water in

aseptic lines, garden irrigation and cooling towers at CCC Turkey plants, optimization of reverse

osmosis water use at the Azerbaijan plant, recycling of cooling water and water from ion

exchangers regeneration, CIP - last stop water collecting at the Kyrgyzstan plant, water savings

by softeners capacity enhancement, carbon backwash recovery Project, and Ammonia Cooling

system Treated Water Flushing for temperature control projects at Pakistan plants are some

examples for water minimization projects that were implemented in 2016 (Freling et al., 2005).

Future Sustainability Plans (2025)

Having reduced the environmental impact from our plants and reached a respectable

performance level, we will continue our efforts in 2017-18 by first carrying out a life-cycle

evaluation of our impacts, then setting science-based targets for our next generation of

sustainability goals. In the medium term, we will continue to focus on water usage, women and

youth empowerment, sustainable sourcing and packaging recovery. We will continue to honour

the UN Global Compact's ten principles and Women's Empowerment Principles (The Coca-Cola

Company, 2014). We commit to further improving our environmental performance by reducing

water use in our plants and our value chain and continue to implement local water replenishment

programs where water stress is high. We will also look for new opportunities to increase

recycling of post-consumer wastes, thus accelerating our transition to lifecycle-based

sustainability practices. As we make progress in our journey and advance to higher levels of

sustainability, the challenges also tend to become harder and more complex. Overcoming them

requires full and sincere commitment, innovative approaches, and close collaboration among all

stakeholders. CCC is determined and committed to working as one team to make sure our

business thrives in a sustainable way that creates value for all our stakeholders. With the aim to

achieve our 2025 vision, in addition to integrating sustainability into our business practices, we

also reviewed our business model and assessed our value creation process in 2016. Focusing

strategically, future orientation and integrated thinking, we will share the value creation for the

future, including short, mid and the long-term goals in the Integrated Report that we will issue by

2020 (Coca-Cola, 2018).

Coca Cola Sustainability Initiative Effect on Production

The bottle recycling has a greater impact on its production because the cost of production

has been decreased by more than 50% of its Coca Cola's overall production. How the

sustainability created a greater impact can be elaborated as it evolves around three steps such as;

"Design, Collect and Partner." The packaging has been transformed since the inception that can

be further elaborated in the below figure. The company is committed in sustainable packaging

and has been striving hard by taking bold initiatives with respect to recycling, and the company

does have long-term plans as it intends to use more than 50% recycled bottled by the end of

2025. The packaging is the part of the production and recycled bottles have given an edge by

taking the company to new heights as well (Boyjoo et al., 2017).

 People living in a remote area where they only rely on water resources were scared off

because on the extensive shortage of water, and some of the well-renowned companies like Coca

Cola were facing allegations of using the water resources extensively. The company started a

program under the umbrella of Water Stewardship Program with a goal of eating a “water-

sustainable” business. The water replenishment initiative has helped the company to optimise its

production as well as using the recycled bottles not only helps to minimise the cost of production

as well.

Evaluation of Coca Cola Sustainability

The case study, “World without waste” has encashed the overall profitability of the

company immensely because it has been a burning issue for all the corporate world how to

sustain and the different CSR projects help them how to optimise the available resources. The

case study revolves around the triangle of technology, institutions and values and the CCC has

utilised it enormously by optimizing them at all. As compared with PepsiCo and other well-

renowned beverage companies, CCC has got an edge over them since the company coined the

initiative “World without waste” (Walsh and Dowding, 2012).

Conclusion

Since the organisation are more focusing on sustainably, their production process has

become complex as well due to the advanced technologies in the contemporary world of

business. Ordinarily, an alliance will give sustainability targets and will progress toward them.

The objectives are discontinuously reasonable—cut releases by 5%, for example—so when the

business achieves their sustainability marks, they can call themselves "green" or "sensible."

Research shows that organisation with high ESG evaluations have a lower cost of obligation and

respect, and that sustainability exercises can help improve money related execution while
making open assistance. Around 3,000 specialists said the most grounded moving parts to

understanding a sensible aura are to line up with an alliance's targets, missions, or characteristics;

manufacture, keep up, or improve reputation; satisfy customer's needs, and develop new

movement openings. Cash related masters see factors, for instance, an alliance's carbon

impression, water use, sort out advancement endeavours, and board middle of the road

collection. Sustainability urges relationship to plot decisions to the degree years and decades

instead of on coming up next quarter's compensation report and to consider a more perceptible

number of parts than in a general sense the favoured position or disaster included. In order to

sustain in the business competition, some of the organisations are tended towards offshore

productions, or they have moved to outsource its production to third parties as Coca Cola has

partnered with many organisations for its bottling around the globe.

Recommendations

Although the company has been doing exceptionally well towards business sustainability,

there are still a lot more can be done in order to sustain in the business market. It is

recommended that for sustainable potential growth, the company needs to focus more on

corporate social responsibility by breaking the ice towards global climate change. Since this has

been a burning issue for the whole world where CCC can take advantage of that by working on

climate change.
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Appendices