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Climate change is one of the most serious and complex challenges facing the world – and we are committed to playing our part in global efforts to tackle climate change in line with the 2015 Paris Climate Change Agreement and UN Sustainable Development Goal 13 on Climate Action.

Strategy

This is Forward includes new carbon reduction targets – for both our own business and our value chain – which are fully aligned with climate science and have been validated by the Science Based Targets initiative (SBTi). We are also making a commitment to purchase 100% renewable electricity as part of The Climate Group’s RE100 initiative.

We believe that full transparency about our GHG emissions is important. As a result, we have included information on climate risks and our GHG emissions in CCEP’s Annual Report and Accounts, as well as this stakeholder progress report. We also share detailed information about GHG emissions related to our business in Western Europe through CCEP’s annual response to the Carbon Disclosure Project. For more information on how we calculate our carbon footprint, see our methodology page.

Our Action on Climate supports UN Sustainable Development Goals 7 and 13 on Clean Energy and Climate Action.

Political and scientific consensus indicates that increased concentration of carbon dioxide and other greenhouse gases (GHGs), which can in part be attributed to emissions generated from businesses like our own, are leading to gradual rises in global average temperatures.

This is influencing global weather patterns and causing extreme weather conditions around the world. Climate change has also been linked to greater water scarcity and a worsening of water quality. It can also reduce agricultural productivity, which could in turn affect the availability and cost of the key ingredients that we use in our products. An increase in extreme weather, such as storms or floods, could also impact our manufacturing and distribution networks.

This is a critical issue for society, for those directly impacted by climate change and for our business. We have already made significant progress in reducing greenhouse gas emissions related to both our core business and our value chain.

However, we need to do more and are determined to meet our stakeholders’ expectations on key topics including renewable electricity use and GHG emissions from our core operations including manufacturing, transportation and cold drinks equipment.

 

 

Actions

We’ll cut greenhouse gas emissions by 35% across our entire value chain.

We’ll cut greenhouse gas emissions from our core business by 50%.

We’ll purchase 100% renewable electricity by 2020. 

Progress

  • reduction in the carbon footprint of our core business operations since 2010.

  • reduction in the carbon footprint across our value chain since 2010.

  • of the electricity we purchased for our operations in Western Europe in 2017 was from renewable sources.

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Actions

Reducing Carbon Emissions

What are your carbon reduction targets?

Climate change is one of the most serious and complex challenges facing the world – and we’re committed to playing our part in global efforts to tackle it.

This is Forward sets out ambitious new carbon reduction targets. We aim to halve our direct carbon emissions (across our manufacturing, distribution and cold drinks equipment) by
2025, and, as part of our commitment to the RE100 initiative, purchase 100% renewable electricity by 2020. In addition, we’ll cut greenhouse gas emissions across our entire value chain,
including our ingredients and packaging, by 35%. 

Our carbon reduction targets are fully aligned with climate science and have been validated by the Science Based Targets initiative (SBTi).

How do you measure your carbon emissions?

We measure the carbon footprint both of our core business operations (our manufacturing, distribution and cold drinks equipment) and of our wider value chain including our ingredients and packaging. We work within our own operations, as well as with our suppliers and customers to reduce their carbon footprint.

We report the carbon footprint of our Scope 1, 2 and 3 greenhouse gas (GHG) emissions in tonnes of CO2 equivalent, from our core business operations, for the calendar year ended 31 December 2017. Our GHG emissions are calculated in accordance with the WRI/WBCSD Greenhouse Gas Protocol, using an operational consolidation approach to determine organisational boundaries.

We disclose the Scope 1, 2 and 3 emissions which make up our core business operations (this includes our manufacturing, sales offices, distribution centres, cold drinks equipment and transportation figures). We also report additional Scope 3 emissions (including packaging and ingredients) in our value chain carbon footprint and our publicly available CDP responses.

What is the carbon footprint of CCEP’s core business operations?

In 2017, the carbon footprint of our core business operations was 1,359,746 metric tonnes of CO2e, a 45.3% reduction since 2010 and a 4.1% reduction versus 2016.

What is CCEP's carbon footprint across its value chain?

Across our value chain, the carbon footprint of the ‘drink in your hand’ in 2017 was 268 g CO2e/litre, a reduction of 28.3% since 2010, and a 2.3% reduction since 2016.

What is CCEP doing to reduce its carbon footprint within its core operations?

The carbon footprint of our core business operations is made up of three main areas: manufacturing, transportation and cold drinks equipment. For each of these areas, we seek to reduce carbon emissions in a number of different ways.

Our manufacturing operations and commercial sites represent 7% of our value chain carbon footprint. To reduce the carbon footprint of our factories and warehouses, we are primarily focusing on reducing the amount of energy we use.

Transportation accounts for the second-largest percentage of the carbon footprint of our core business operations – approximately 23% – and for 8% of our value chain carbon footprint. Working with our logistics partners, we’re improving routes across all our territories in order to cut the distances we drive. We are also promoting the use of carbon-reducing technologies, fuels and modes of transport.

The cold drinks equipment we install on our customers’ premises such as coolers, vendors and fountain machines makes up the largest percentage – 57% – of the carbon footprint of our core business operations, and for 20% of our value chain carbon footprint - representing the third largest part of our value chain emissions. We ensure that this equipment is as energy-efficient as possible by purchasing the most energy-efficient models and improving the efficiency of equipment already in our fleet by installing energy-saving devices and LED lighting. Our responsibility extends to the eventual recycling and safe disposal of equipment at the end of its life.

Energy and Renewable Energy

How are you reducing the energy you use in your manufacturing operations?

In 2017, our manufacturing operations used a total of 1,138,526 MWh of energy. We are working hard to reduce the energy we use by investing in new equipment and in training programmes for our employees. These efforts are working. In 2017, we had an energy use ratio of 0.32 MJ/litre of product produced, a 16.4% reduction versus our 2010 baseline.

The attitude and behaviour of employees can play a key role in reducing energy consumption across our manufacturing sites. In Edmonton, Great Britain, we’ve updated our shutdown procedures for our production lines, producing clearer guidelines for operators on how to turn off machinery and conserve power. In our Bilbao site in Spain, we’ve raised awareness through posters that give clear information about the energy consumption and related cost of the plant’s equipment, and guidance on how to use it efficiently.

In Great Britain, all five of our manufacturing sites take part in the UK government's Climate Change Agreement scheme, and each exceeded their 2017 energy targets.

We continue to invest in process innovation and new, energy-efficient technologies, and are looking to roll out best practices across our territories. In 2017, we invested €1.71 million in energy and carbon-saving technologies, saving approximately 4415 MWh per year. See our case studies for more information.

What certifications does CCEP have for climate and environmental management?

49 of our 50 sites are certified under the ISO 14001 environmental management standard, equating to 99.9% of our total production volume. Several of our sites have also achieved the energy management standard ISO 50001, including our manufacturing operations at Wakefield and East Kilbride in Great Britain, Dunkerque in France, Chaudfontaine in Belgium, and Lisbon in Portugal, as well as all of our 23 German production plants, Cold Drink Equipment (CDE) operations and warehousing and distribution sites.  In addition, all of our 50 manufacturing sites are also verified by our external third-party certification to The Coca-Cola Company's audited quality, environmental and saftety certification system, KORE. 

What progress have you made in switching to renewable energy?

In 2017, we signed up to the Climate Group’s RE100 initiative, committing to purchase 100% renewable electricity by 2020. In 2017, 87.5% of our purchased electricity came from renewable sources. We are on track to switch the remainder of our purchased electricity contracts to renewable sources by 2020.

To support our renewable energy target, we are also investing in renewable and low-carbon energy projects at our own manufacturing operations in addition to changing our energy purchasing strategy. These include investments in solar, wind, CHP, biomass, and district heating.

Overall, solar photovoltaic panels on our sites generated more than 437 MWh of electricity in 2017. In Great Britain, 2017 saw the opening of a major investment in solar power: an eight-hectare solar farm near to our soft drinks factory in Wakefield which delivered 3,719 MWh to the site, representing 13% of total electricity consumption for 2017 (see case study). Our site in Chaudfontaine in Belgium uses a combination of solar panels, geothermal heat capture and a new hydro-electric turbine to produce more than 12% of the factory’s electricity. In Iceland, the country’s abundance of hydropower and geothermal sources of energy gives our Reykjavik facility the lowest carbon footprint.

Combined heat and power (CHP) systems can cut carbon emissions by generating electricity and heat on site from low-carbon energy sources such as natural gas. Having installed our first CHP system in Wakefield in 2014, we are now looking at other economic opportunities to use this technology where feasible.

Transportation and Distribution

How are you reducing your transportation and distribution carbon footprint?

We continue to optimise our distribution network to make it as efficient as possible. We’ve cut further road-kilometres by adding warehouse capacity at some of our manufacturing plants, allowing us to deliver directly to our customers from our manufacturing sites rather than via external warehouses. This includes automated storage and retrieval systems (ASRS), at our sites in Wakefield, Edmonton and East Kilbride in Great Britain. Our €48 million ASRS investment in Sidcup in Great Britain will reduce the site’s carbon footprint by nearly 4,000 tonnes of CO2 per year.

Working with our suppliers, we’ve also cut the distances that materials have to travel to reach our factories. Many of our sites are located next to our can suppliers, and some, such as our sites at Grigny, Wakefield and Halle in Germany, have the capability to manufacture their own PET bottle pre-forms, reducing the need for these goods to be transported.

In Spain, we have developed an initiative called Ecoplatform. This centralises our distribution system, bringing together 150 trucks and 20 vans along with the development of a new semi-automated warehouse in Madrid.

 

 

What else are you doing to avoid wasted journeys?

In several of the countries in which we operate, we run front-hauling and back-hauling programmes in collaboration with suppliers and customers.

Front-hauling involves working with suppliers to rationalise the flow of materials into our plants. A rail-based system is particularly well established in Sweden.

Back-hauling combines customer deliveries with collections to ensure full loads on both the outward and return journeys. We currently have back-hauling arrangements with some of our key customers across France and Great Britain.

What role does alternative fuels and technologies play in your efforts to reduce transport emissions?

The majority of the distribution and transportation of our products is done in conjunction with haulier partners. Across our territories, the majority of our main hauliers are moving to the latest EURO VI emission standard and intend that all their diesel trucks should meet this standard by 2018.

We continue to use biofuel to power some of the trucks that we operate. The seven trucks that we own and operate in Iceland all run on biodiesel. Following a successful pilot in 2016, nine trucks in the Netherlands now use renewable diesel B30. In Sweden, where 62% of our trucks run on biofuel, we’re testing the use of hydrogenated vegetable oil as a diesel alternative. Here we also operate dual-fuel delivery trucks powered by a mix of liquid natural gas/liquid biogas and regular diesel. In France, we’re increasing the number of vehicles running on compressed and liquefied natural gas.

We are also expanding our use of fuel-efficient hybrids and electric vehicles across our company car and van fleet. In 2017, we launched an electric vehicle trial for field sales colleagues at our Norwegian headquarters in Robsrud (see case study). In 2017, 3% of our company cars are now hybrid or pure electric and 20% of the company cars in the Netherlands are hybrid or pure electric.

What alternative transport do you use?

Where long-distance transport is unavoidable, we use a combination of rail and road with trailers loaded onto trains and needing only short truck journeys at each end of the route. This method is mainly used in France and is currently being introduced in Germany. In 2017, a total of 2.5 million kms was travelled by train. We are also expanding our use of Eco-Combi trucks in the Netherlands. Longer than conventional trucks, these can carry up to 38% more per journey, resulting in fewer trips and lower emissions. In Sweden, for the same reason, we use larger trucks known as ‘road trains’.

Cold Drink Equipment

How are you reducing the carbon impact of your cold drink equipment?

In many of our territories we are using different makes and models of coolers. One of our key priorities is to review the most energy-efficient coolers across our territories and harmonise our plans in order to buy the best models. By streamlining the number of models and suppliers in our portfolio, we’re cutting the costs of procurement, servicing and repairs and making it easier to roll out innovations such as cooler internet connectivity. In 2017, we reduced the carbon emissions of our cold drinks equipment fleet by 48.3% since 2010, a reduction of 3.1% versus 2016; despite adding a further 13,000 units to the fleet.

We work with The Coca-Cola Company to continually review our refrigeration standards. Wherever possible, our policy is only to purchase HFC-free coolers, vendors and fountain machines. In 2017, 100% of the new coolers we purchased were HFC-free, making the cooler fleet as a whole 47.3% HFC-free, an increase from 40.7% in 2016. If an HFC-free solution is not available for purchase, we work with our suppliers to develop one. We also only buy new equipment which comes with LED lighting, and every unit over 250 litres includes an energy management system (EMS) device. 

Value Chain Carbon Emissions

What is CCEP doing to reduce its carbon footprint across its value chain?

Across our entire value chain, we know that the biggest impact to our carbon footprint lies in our supply chain, in particular, our ingredients (26%) and packaging (39%) We are committed to reducing our supply chain impacts in a number of ways.

One of the main ways we can reduce carbon emissions from packaging is to increase our use of recycled material in all our packaging, including recycled PET (rPET) in the manufacture of our plastic bottles. We are currently on track to increase our rPET use to 50% across all our PET packaging by 2025. In 2017, 24.6% of the PET we used in our PET bottles was rPET. We are also working to reduce emissions by reducing the overall weight of material that we use in our packaging, as well as improving recycling rates across our markets.

Read more about our packaging activities in action on packaging.

With The Coca-Cola Company, we require our suppliers to comply with a number of sustainable sourcing guidelines that include commitments and expectations around carbon management. These include our Sustainable Agriculture Guiding Principles (SAGPs) and Supplier Guiding Principles (SGPs). We work with organisations such as the Sustainable Agriculture Initiative (SAI) and Rainforest Alliance to help develop pathways to compliance for farmers.

Read more about sustainable ingredient sourcing in action on supply chain

How are you working with customers to reduce energy and carbon emissions?

The majority of our carbon impact lies beyond our direct control. Collaborating with our suppliers, customers, consumers and other stakeholders therefore plays a critical role in reducing our overall carbon impact throughout our value chain.

In recent years we have begun working closely with customers to reduce our value chain carbon impact. This work has involved a number of initiatives designed to help customers reduce their own carbon footprints. In Spain, examples include the cross-sector HOSTELERIA#PorElClima initiative, which raises awareness of carbon management practices among customers from the hotels, cafes and restaurants sector, and our Sustainable Terraces initiative. See case study for more information.

Waste

How are you reducing waste within your own factories?

Our manufacturing operations continue to reduce the amount of waste they send either to landfill or for incineration. In 2017, 92.1% of this waste was recycled and 30 of our 50 plants sent zero waste to landfill. To achieve this, we work hard at each of our manufacturing sites to reduce and recycle our waste as much as possible.

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Solar power at Wakefield

Great Britain

2017 saw the completion of our biggest solar project to date: the opening of a new solar farm near our Wakefield site in Great Britain. The eight-hectare farm, directly connected to the site 1.5 miles away, supplies energy to Wakefield as part of a long-term power purchase agreement (PPA).

In 2017, the solar farm generated 3,719 MWh of electricity, covering 13% of the site's total electricity use, and cutting the factory's carbon footprint by approximately 8%. Since April 2017, 100% of the electricity purchased for our operations in Great Britain is from renewable sources.

Car

Electric car trial

Norway

In 2017, we continued to invest in trialing low-carbon forms of transport for our fleet, including electric cars. The trial involved installing 150 charging points on site; half of the total parking spaces covering the increasing number of electric cars among our employees. In addition, at our Norwegian headquarters in Oslo in 2018, we are purchasing 100 new electric cars for our field sales colleagues to use when visiting our customers.

Chair

Sustainable Terraces

Spain

In 2017 we launched the Sustainable Terraces initiative, which provides hotel, restaurant and cafe customers in Spain with sustainable, low-carbon furniture for outdoor terraces. The umbrellas, tables and chairs are made from 100% recyclable materials, which allows them to be produced with less energy and lower carbon emissions and are designed and produced by local Spanish suppliers.

The chairs and tables are fitted with RFID chips, allowing consumers to use their phones to learn about the sustainable story behind the furniture. In 2017 we supplied sustainable furniture to around 4,500 customers through the initiative, and we plan to supply an additional 4,300 customers in 2018. Please click here for more information.

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Heat Recovery Technology

Great Britain

In our Edmonton site in Great Britain, we have installed a new system designed to recover heat from the plant’s air compressors and use it for other applications such as sugar dissolving and domestic heating. This new technology has led to a 10% reduction in gas use at the plant.

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Improving energy efficiency in Iberia

Barcelona, Spain and Lisbon, Portugal

In 2017, our facility in Barcelona replaced its old fluorescent lights to a new LED lighting system that reduced their electricity consumption by 1.2M kWh per year. The new lighting system controls every single lamp individually, and each lamp is provided with a movement sensor, lighting sensor, energy consumption meter and wireless communication system. The system is flexible, allowing the site to adjust lighting according to the site's work schedules, employee's presence, and outside light.

In our Lisbon facility, we have installed a low pressure air compressor, equipped with a management system with more efficient motors, the ability to electronically vary their speed, and an air de-humidification system. As a result the plant has reduced their energy consumption by 40%, saving 350,000-380,000 kWh per year. In addition, variable speed drives (VSD) were installed in a number of pumps with high energy consumption, used in water tanks and cold compressors. This has resulted in an annual saving of 200,000 kWh per year.