Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual

a-Cola HBC Integrated Annual Report 2023 52

Growth pillars

5 Earn our licence

to operate
At Coca-Cola HBC, we are proud to be global We were ranked as the world's most
industry leaders in sustainability. We have sustainable beverage company for
the highest scores and rankings in ten of the the seventh time by Dow Jones
most-recognised ESG ratings. Sustainability Indices 20231
We are clear and ambitious about what we
want to achieve on our sustainability journey.
Our Mission 2025 commitments on climate,
packaging, water, ingredients, nutrition, people
and communities set measurable targets.
We aim to achieve net zero emissions by 2040
and have a net positive impact on biodiversity
in critical areas of our value chain.

You can read more about our sustainability achievements

in this chapter and find out what colleagues think about
our ESG ratings in the video below.

Watch our video online

1 As at 8 December 2023

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 53

Growth pillars continued

Sustainable growth • We became a partner in the $137.7 million Greycroft

5
Coca-Cola System Sustainability Fund with seven

Earn our licence to operate

We are proud to be global industry leaders other bottlers and The Coca-Cola Company.
in sustainability. This year we were ranked –
for the seventh time – as the world’s most We strongly believe sustainability is a true growth
sustainable beverage company by the Dow driver for us and our partners. We continue to
Jones Sustainability Indices1. Our score positions integrate sustainability in our business model
2023 highlights Principal risks and opportunities
us in the top 1% of 9,400 companies across 62 and support value creation for the business:
• Product relevance and acceptability
• Continued our decarbonisation journey in • Sustainable packaging industries. This year we also scored a double-A • In Austria, we invested €12 million in a returnable
alignment with our NetZeroby40 roadmap. • Suppliers and sustainable sourcing ranking for our commitment to transparency on glass bottling line for both one litre and our new
• Focused on packaging decarbonisation using • Managing our carbon footprint climate and water from CDP and we are on CDP’s 400ml resealable bottles3. We also introduced an
a higher percentage of recycled materials. • Water availability and usage 2023 Supplier Engagement Leaderboard. industry-leading, innovative solution to replace
• Supported further roll-out of Deposit Return • Ethics and compliance These achievements are the result of our clear plastic shrink film with 100%-recyclable paper
Schemes in our EU markets. vision and targets in sustainability, bold and on 1.5 litre multi-packs. These innovations help
• Promoted Extended Producer Read more on p88 to 107 entrepreneurial mindset, and continuing investment us improve packaging circularity and win in the
Responsibility (EPR) policies and the launch in technology and innovation. Strong collaboration marketplace as they meet our consumers’ demand
of new packaging collection systems in with our suppliers and partners and highly skilled and for glass packaging and no-plastic packaging.
Material topics
priority markets.
• Biodiversity committed colleagues working across our markets • We have invested more than €50 million in
• Completed biodiversity impact study have also been crucial to this success. We know we three in-house rPET production units. This
• Climate change
following the SBTN methodology. still have work to do and remain committed to being supported our shift to 100% rPET portfolio in
• Corporate citizenship
• Expanded our partnerships in water and part of the solution to global sustainability challenges. selected markets. In-house rPET production
• Responsible marketing
waste reduction. helps us reduce costs compared with buying
• Nutrition Sustainability creates value for our stakeholders and
• Continued our focus on #YouthEmpowered from third-party suppliers and eliminates extra
• Packaging and waste management supports the socio-economic development of the
as our flagship community programme. transport costs.
• Sustainable sourcing communities in which we operate. As we continue to • We exceeded our goal of having 50% energy-
• Ongoing support to communities in need.
• Water stewardship produce our drinks in more sustainable ways, it helps efficient coolers in the market (excluding Egypt,
KPIs us open up opportunities for a better future. which we acquired in 2022), with a total of 55%
• Absolute greenhouse gas emissions Read more on p54 to 68 by December 2023 – two years ahead of target.
Here are some examples of what we are doing:
in scopes 1,2 and 3 These coolers consume less energy, so they
• Water usage in water risk areas Stakeholders • A significant focus for us is promoting plastic generate less emissions, and mean lower
• Young people trained through circularity, and our primary packaging is already energy costs for our customers.
#YouthEmpowered Our customers 100% recyclable. We are making strong
progress towards achieving our other Mission This year we integrated Egypt into our
• % primary packaging collected sustainability strategy – after we acquired the
2025 commitments on packaging of collecting
Our communities at least 75% of the primary packaging we place Coca-Cola Bottling Company of Egypt in 2022
in the market and using, on average, 35% – and developed specific plans for the market.
recycled PET in our bottles2. As we continue to develop our 2030 aspirations,
Our consumers • In 2023, 100% of our electricity in the EU we will integrate our Egyptian operations in our
and Switzerland came from renewable and future commitments.
clean sources. We know that there is a lot to be done, but we
The Coca-Cola Company
• On water stewardship, we now have community are encouraged by the progress we have made
projects in 12 water risk areas where we operate in 2023 and remain committed to accelerating
Our investors – up from eight last year. our efforts to build a more sustainable future.
• We announced a new charitable foundation,
with an initial donation of €10 million, dedicated 1. DJSI as at 8 December 2023.
Volunteers joined The Zero Waste Tisza 2. Excluding Egypt.
to supporting local communities.
programme in Hungary to clean up the river 3. Co-funded by the European Union, NextGenerationEU.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 54

Growth pillars continued

Earn our licence to operate

Climate Looking ahead

In 2023, we updated our net zero roadmap
with two important changes. We integrated
#NetZeroby40 roadmap for scopes 1, 2 and 3
Scope 1+2 Scope 3 Carbon Removal Projects Scope 1+2+3 emissions

Towards net zero emissions our Egyptian operations into our 2030 and
NetZeroby2040 climate targets and, in
In 2021, we committed to achieve net zero
January 2024, we submitted them to the SBTi
emissions across our entire value chain by 2040. In 2016 we were one of the CO2 reduction 2024-2026 We
for validation and approval. We also added
This is our most ambitious, complex and forward- first companies to adopt plan endorsed will introduce
new Forest, Land and Agriculture (FLAG)
looking commitment. We were among the first the Science Based Targets. by SBTi on 1.5º renewable fuels for
targets. We also introduced an
companies to adopt science-based reduction pathway in 2021 thermal Energy
targets by the Science Based Targets initiative After SBTi validation, these changes will be internal carbon price for
business decision‑making
(SBTi). In our net zero roadmap, our starting point reflected in our net zero roadmap:
is 2017, which is the baseline for our science- SBTi baseline 55% of coolers
• In scope 1 and 2, we integrated Egypt and
based targets. for NetZero energy efficient
follow the already established pathway in 2023
We have halved direct emissions and reduced our (1.5°C pathway) for 2030 and 2040.
5,920¹ Accelerate
absolute total value chain emissions in scopes 1, • In scope 3, we integrated Egypt and split NETZERO BY 40 packaging
2 and 3 by a third1 from 2010 to the end of 2023, our targets into two categories: energy and commitment decarbonisation
despite a global increase in emissions2. These FLAG. S1+2: -55% vs. 2017
2010 as of 2025
results come from our sustained investment and • In scope 3, our energy-related targets will
4,963¹ S3: -21% vs. 2017

4,991
focus, and highlight our consistent approach to follow the newly established pathway Well-
decarbonisation. Below-2-Degrees (WB2D) until 2030 and 2017 4,148
then the 1.5°C pathway until 2040, our net 3,740¹

4,400
Reducing carbon emissions is the non-negotiable
zero year. 2023
goal for our business. We continued to work S1+2: -97% v. s 2017
across our value chain to reduce emissions, The SBTi introduced the new targets for S3: -63% vs. 2017

3,791
2030

with a particular focus on packaging, coolers FLAG in 2023. This new standard guides

3,485
and ingredients. We do this because we will make businesses to split greenhouse gas emissions
the biggest progress by delivering sustainable (GHG) into non-FLAG and FLAG-related
1,656¹
solutions in these parts of our value chain. categories. Non-FLAG emissions are
commonly known as energy-related GHG
By the end of 2023, we had reduced emissions
emissions. FLAG-related emissions apply 2040
from scope 1 and 2 from our direct operations
to commodities from forestry, land and

1,637
930
by 36% and in all three scopes, our absolute
agricultural sectors. For us, this means scope
emissions, by 16.4% compared with 2017.

563
3 packaging, wood and paper pulp, and sugar

357

255
1. Excluding Egypt. and fruit juices. We do not have any FLAG-

19
2. Global Carbon Project; Expert(s) (Friedlingstein et al. (2023)). related business or activity under our own
operational control. However, we have them 2023 Actual: -30% vs. 2010
in our upstream value chain in forestry and 2023 Actual: -16% vs. 2017 (SBTi base year)
agricultural commodities (scope 3). From 2024 to 2039:
Beyond value chain mitigation2
We will now update our climate transition
plans to reflect all our main decarbonisation #NetZeroby40
strategies, quantify our main strategic Scope 1+2 and Scope 3: all numbers exclude Egypt Neutralisation of residual goal
resources and milestones, and convert 1. Recalculation of carbon emissions due to conversion factors changes emissions as of 2040
and according to the GHG Corporate Accounting and Reporting Standard.
these to a clear set of actions. 2. As defined based on Science Based Targets initiative.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 55

Growth pillars continued

Earn our licence to operate

Performance summary Scopes 1 and 2 Scope 3: Reducing indirect emissions

We have taken action on two of the main from our value chain
By the end of 2023, we had reduced contributors of scope 1 and 2 emissions: Over 90% of our emissions are in scope 3,
emissions by the following amounts: we focus on three main areas in collaboration with
• Focusing on being more energy efficient by
reducing the amount of energy we use. our suppliers: packaging, ingredients and coolers.
GHG emissions1
• Switching to low carbon and sourcing our • Packaging accounts for 36% of our scope 1,2
vs 2022 vs 2017
energy from renewable sources such as solar and 3 emissions. We are reducing packaging-
Scope 1 and 2 -19% -36% and hydro power. related emissions through a range of
We delivered several projects that helped to actions, including rolling out new packaging
Scope 3 0% -14%
progress reductions in scope 1 and 2 emissions collection systems, increasing recycled
Scope 1, 2 and 3 -1.6% -16.4% of CO2 . content, expanding reuse and eliminating
unnecessary packaging.

100%
1. Excluding Egypt. • In 2023, we exceeded our target of having
50% of energy-efficient coolers in shops and
outlets by five percentage points, bringing
the total to 55%. As a result, we reduced rPET bottles
emissions by 127,461 tonnes compared in Romania
with our 2017 baseline.

Absolute scope 1 and 2 CO2e emissions2 Absolute scope 3 CO2e emissions3 Renewable and clean4 electricity in the European Union
(’000 tonnes) (’000 tonnes) and Switzerland (%)

600 5000 100

100% in 2025 99 100 100
-4%
-55% -21%
97 99
563 2030 vs 2017 -1% 2030 vs 2017
538 -5%
-14% -8% 89
500 4,400 4,359 -11% 87
481 -21% 4000 4,195 -14% -14% 80
-23% -24% 4,046 78
3,902 -21%
443 3,775 3,791
432 426
400 -36% 3,485
3000 60
357
300
-55%
255 2000 40
200

1000 20
100

0 0 0
2017 2018 2019 2020 2021 2022 2023 2030 2017* 2018 2019 2020 2021 2022 2023 2030 2017 2018 2019 2020 2021 2022 2023 2030
goal goal goal
2. Excluding Egypt. 3. Emissions are recalculated due to conversion factors change and exclude Egypt. 4. Clean source means CHP using natural gas.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 56

Growth pillars continued

Earn our licence to operate

We collaborate with our suppliers and partners to Engaging suppliers to reduce energy and
GHG CO2e split by scopes and categories FY 2023 (including Egypt) encourage them to reduce their own emissions. use renewable energy is key to meeting our
In 2021, fewer than ten suppliers were in CDP NetZeroby40 commitments. In 2023, our
to disclose their emissions, so we set up our Supplier Conference focused on ‘opening up a
Fuels in emissions supplier programme. By the end more sustainable future together’. We were joined
Scope
manufacturing, of 2023: by about 200 supply partners. At the conference,
Electricity, Scope 1
own fleet we gave them inspiration and tools to start or
purchased heat, 2 • 189 of our significant suppliers disclose their
continue their own sustainability journey and
steam, CHPs emissions through CDP.
celebrated those who are already on the path to
• 117 have already set, or have committed to set,
reducing emissions. The event was supported
science-based targets.
6% by expert insight from CDP and the World
Other Scope 3 3% • These 189 suppliers buy – on average – 26%
Economic Forum.
3% of their energy from renewable sources.

Outsourced 4% Packaging Innovating for decarbonisation

fleet
36%
Delivering our drinks in more sustainable ways
We can reduce CO2 emissions by changing the types of transport we
19% use. In the first pilot of its kind on the island of Ireland, we are using three
Cooling best-in-class electric Heavy Goods Vehicles (e-HGVs) with a range of
equipment 300km. We expect the e-HGVs to reduce carbon emissions by 229 tonnes
each year – the equivalent of charging over 25 million smartphones1.
We’ve collaborated with a customer and transport supplier on this initiative.
Scope This type of partnership along the value chain aims to showcase how
3 important it is for the industry to work together and share insights
so we can reach our shared and individual sustainability goals.
29% In Serbia, we more than doubled the number of Compressed Natural
Gas (CNG) trucks we use in 2023. Since 2021, we have reduced our
CO2 emissions by around 480 tonnes annually and by the end of 2024,
we expect to save around 830 tonnes each year.
Ingredients
Our key focus projects 1. US Environmental Protection Agency comparison.

• Packaging: rPET; packageless;

Scope • Renewable fuels Scope refillables; lightweighting; replacing
1 • Green Fleet 3 plastic in secondary packaging
• Ingredients: low- no-sugar,
sustainable sourcing
• Cooling equipment: energy-efficient
Scope • Renewable energy coolers, greening of electricity grid
2 • Energy optimisation projects • Critical enabler: suppliers’
emissions improvement
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 57

Growth pillars continued

Earn our licence to operate

Innovating for decarbonisation Decarbonising our value chain Transitioning to a green fleet
We continued our work to meet our emissions In 2023 , we built on the positive momentum of our
Manna drones in Ireland reduction targets for 2025, 2030 and 2040. We Green Fleet Programme, keeping the trajectory to
invested in energy efficiency and recovery, and in achieving our 2030 CO2 emissions reduction goal.
Drones offer fast, safe and quiet home delivery,
low or zero-carbon (renewable) energy sources, We continued our transition to electric and hybrid
and can deliver to a five-kilometre radius in
and continued to improve, for example, our vehicles, which comprise 44% of our total light
less than three minutes. They can also be up
processes, planning and cleaning. fleet, compared with 16% in 2021 and 28% in 2022.
to eight times more efficient in terms of CO2
We reduced our fleet carbon footprint compared
emitted during delivery when compared with Our EU and Swiss manufacturing facilities moved
with our baseline (2017) by 43%, a reduction of
conventional petrol vehicles, according to from using 99.2% in 2022 to 100% renewable and
about 43,743 tonnes of CO2 . We reduced our
a report from Maynooth University in Ireland clean1 sources this year. We have energy transition
emissions on our light fleet by 19,513 tonnes
in 2022. plans in place for other business units to follow
compared with our baseline, and about 24,230
suit. We also intensified our efforts in Nigeria
We are pleased to have invested – through our tonnes of emissions reduction over the same
and Egypt.
Ventures arm – in Manna Aero, an Irish start- period for our heavy fleet.
up leading the way in food and beverage drone By the end of 2023, we had invested about €28
deliveries. We believe this partnership will help us million in energy-efficient solutions, including Top
drive profits, deliver better customer service and, 20 energy savers (excluding Egypt).
importantly, reduce harmful CO2 emissions.We
are looking forward to Manna Aero expanding Sourcing our energy
its operations and bringing drone deliveries to In Nigeria, our eight manufacturing plants
more cities in the EU and elsewhere. now have solar panels and source 14% of their
electricity from renewable energy sources. We
had increased our Nigerian renewable and clean
energy supply from 58% in 2022 to 73% by the end
of 2023. All the electricity supplied from the public
grid is renewable for our Nigerian operations.

Watch Manna Drones in action This year, we started using cleaner sources
such as solar energy from rooftop panels in our
production plant in Challawa. We also continued to
extend these sources in our production plants in
Ikeja and Abuja, reaching total installed capacity to
12 MW compared with 10 MW in 2022.
In Egypt, we installed solar rooftop panels in four
Our Green Fleet Programme helped us to reduce
out of five of our plants, so 10% of our annual
emissions in 2023.
electrical energy comes from renewable sources.
We are working on plans to optimise energy use
solutions and collaborating with our partners to
expand renewable electricity sourcing plans.

1. Clean source means CHP using natural gas.

Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 58

Growth pillars continued

Earn our licence to operate
100%
Packaging
of our primary
Our sustainable packaging model packaging is
recyclable
by design
Packaging plays a central
role in delivering our Mission
2025 commitments and CO2 1. Design
emissions reduction target, • Lightweighted
as it accounts for over a third •
•
Less packaging
Recyclable
of our scope 3 emissions. • Innovations

Improving the sustainability of our packaging is a Sustainable packaging is attractive

critical priority for us. We believe every package to consumers and widely accepted
has value and life beyond its initial use and that
it should be collected and recycled into a new
package or reused. We focused on making our
packaging more sustainable by investing in Consumer Customer
recycled content, expanding reusable formats, 4. Reuse or recycle 2. Sell
in-house rPET production infrastructure – which • Returnable glass
attractiveness acceptance • Energy-efficient
helps us to have a high-quality, steady supply bottles coolers
of more affordable rPET in selected markets • rPET bottles Carbon • Delivered by Green
– and driving the implementation of effective • Dispensed solution emissions Waste Fleet Our LitePac Top
collection models. with bag-in-box innovation in Austria
or cartridge
Packaging can only be circular if it is recyclable.
technologies
Since 2022, 100% of our primary packaging – PET,
• Reusable vessels Sustainable packaging contributes to
glass, aluminium and aseptic cartons – has been
recyclable by design. We achieved this milestone reducing carbon emissions and waste
three years ahead of our 2025 target.
Our Mission 2025 sustainable packaging vision is
built on three main pillars:
• Recovering our primary packaging for recycling 3. Collect
or reuse. • Deposit Return Schemes
• Making our primary packaging fully recyclable. • Packaging Recovery
• Increasing the percentage of rPET Organisations
in our bottles. • Refillables reverse logistics
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 59

Growth pillars continued

Earn our licence to operate

In 2023, we kick-started the Pack Mix of the In Africa, we are working with governments and rPET
Future programme across all EU geographies. other stakeholders to help establish effective Using recycled content is a key part of our
It sets out our vision and trajectory on pack mix Extended Producer Responsibility (EPR) systems approach to making our packaging circular. In
to continue profitable growth while reducing our for packaging collection on a national level. 2023, 16.1% of the PET that we used was rPET1.
CO2 footprint through packaging, In 2023, in Nigeria, we supported a range of This represented a significant increase compared
collection projects, including those of the Food & with our 2022 performance (10.5%) and solid
We continued to explore the role of dispensers
Beverage Recycling Alliance (FBRA). As an alliance, progress towards our 2025 target to have 35%
and reusable vessels to assess how they could
FBRA collected almost 40,000 metric tonnes rPET usage across our Group1.
contribute to increasing reusable packaging. As
(MT) PET in total in 2023 – more than three times
we do this, we leverage existing market solutions By the end of 2023, in Austria, Italy (excluding
the amount collected in 2022.
and pilot new technologies. water), the Republic of Ireland and Northern
In Egypt, we continued our partnership with Ireland, Romania and Switzerland, we had shifted
Collecting and recycling recycler BariQ to collect and recycle more than our locally produced plastic bottles to 100% rPET.
We are leading industry efforts to introduce 20,000 MT PET, while also engaging with the
effective and efficient collection systems in all our Egyptian government to offer our support in With these initiatives, we almost doubled the
markets. These include Deposit Return Schemes establishing a new national Packaging Recovery percentage of rPET in EU markets and Switzerland
(DRS) in most of our EU markets. Organisation (PRO). in the last year from 22.3% rPET in 2022 to
42% rPET in December 2023. To date, we have
Romania became the first market in our Group Tethered or attached closures help capture the invested over €50 million in in-house rPET
in 2023 to combine all three key ingredients of entire package for recycling. From 4 July 2024, all production facilities in Italy, Poland and Romania.
Progress towards our sustainable plastic packaging circularity: plastic closures on beverage containers over three
packaging vision In-house rPET production helps us reduce costs
litres in Europe must have tethered caps to meet compared with buying from third-party suppliers
• A 100% rPET local bottle portfolio.
new rules in the EU’s Single Use Plastic Directive.
Slovakia: Outstanding • An in-house rPET facility. and eliminates extra transport costs.
• A Deposit Return Scheme. In 2023, we extensively rolled out tethered
collection results from DRS closures to over 80% of our beverage containers
We are on track to achieve 50% rPET in our plastic
bottles across our portfolio in EU markets and
By the end of 2023, six of our markets had
PET collection rates in Slovakia soared from in scope, so we were prepared for this EU Switzerland by 2025.
launched DRS: Croatia, Estonia, Latvia, Lithuania,
50% in 2022 to 92% in 2023, after a new Directive. This roll out covered our EU markets and
Romania and Slovakia, The Republic of Ireland and
Deposit Return Scheme was introduced Bosnia, North Macedonia, Serbia and Switzerland.
Hungary launched DRS in Q1 2024. The Hungarian
in 2022. In its second year of operation, DRS will have a six-month transition phase.
the scheme had 3,250 collection points Well-designed DRS have a proven track record
and high levels of consumer engagement. of delivering very high collection rates, typically
This demonstrates how effective a well- over 90%. We are supporting several additional
designed and properly implemented markets to launch DRS in 2025-27. Romania rPET in-house launch video
DRS can be in increasing collection rates.
The scheme gives a right of first refusal to These combined efforts meant that, in 2023, we
all registered producers on the market to made significant progress towards our packaging
purchase their fair share of the collected collection goal, delivering an overall collection rate
post-consumer materials, supporting of 56%, an increase of eight percentage points
circularity and high-quality bottle-to-bottle from 20221.
and can-to-can recycling. New RGB line in Austria video

1. Excluding Egypt.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 60

Growth pillars continued

Earn our licence to operate

Expanding reusable packaging Eliminate unnecessary packaging

Reusable packaging plays a critical role in reducing We launched innovative secondary packaging
waste and our carbon footprint, and minimising for multi-packs of 1.5 litre Coca-Cola, Fanta and
the amount of packaging we produce. Reusable Sprite. The revolutionary new type of cardboard
packaging includes returnable and refillable glass, – LitePac Top – is easy to carry and recycle.
and dispensers such as fountains or freestyle The pilot project in Austria will initially save
machines, provided reusable vessels are used. about 200 tonnes of plastic each year.
We continued to explore new-generation We trialled new, high-performance stretch film
Compact Freestyle Dispensers in selected in Ireland and Austria that reduces the amount
markets. These allow consumers to use their of film needed by 30%. We will continue to test
own cup or vessel for more than 40 soft drinks this in 2024 and plan to introduce this to our Progress towards our sustainable
and cut emissions by up to 70% emissions sparkling soft drinks portfolio in 2025. packaging vision
compared with PET1.
Technology helped us to reduce the overall
In 2023, 11.7%2 of the drinks we sold weight of packaging materials. In 2023, we did this Austria: Innovating to
were in returnable containers and 4.3%2
through dispensers.
successfully in the Baltics, the Czech Republic,
Greece, Hungary, Poland, Nigeria and Northern
expand reusable packaging
Ireland. This saved over 600 tonnes of PET and Coca-Cola HBC Austria is a first mover in our
reduced, on average, the amount of resin we used 29 markets when it comes to innovating with
by 11% for specific stock-keeping units (SKUs). reusable packaging and minimising plastic,
It also reduced CO2 emissions by 1,300 tonnes both of which are in demand by customers
a year. and consumers.
Zoran Bogdanovic, CCHBC CEO, Marcel Ciolacu, Prime Minister
of Romania, and Nikos Koumettis, The Coca-Cola Company, We reduced the weight of aseptic plastic closures In 2023, we opened a new high-speed,
President of Europe Operating Unit, at the opening of our new in the Czech Republic, Hungary, Poland and water and energy efficient, returnable glass
in-house rPET production facility in Romania Romania, and closures for sparkling soft drinks in bottling line in Edelstal. This €12 million
Nigeria. Overall, this saved 300 tonnes of High- investment was co-funded by the European
Density Polyethylene (HDPE) a year, reducing CO2 Union NextGenerationEU.
emissions by over 600 tonnes. For the first time in Coca-Cola HBC, we now
Progress towards our sustainable
packaging vision produce 400ml returnable, resealable glass
Read more on HUG-IT story p17 bottles, so consumers can enjoy our drinks
Poland: Reusing customer displays Increasing recycled materials
on the go or at home.

A new approach to promotional displays has been piloted with We also produce one-litre, reusable and
in secondary packaging universal bottles. This means we use
our customer Żabka, a large chain of convenience stores in
Poland. This new system only requires the customer to change We piloted using 100% PCR content in shrink the same shape of bottle for all our soft
the branding of our products in stores – not the display units film in some of our packs in Italy, Poland and drinks portfolio.
themselves. This means that our customer retains a high- Switzerland. We plan to launch these in markets
quality display and we save money on transport and production in 2024.
costs. This collaborative initiative created commercial value
for us and for our customers while reducing waste and cutting
1. Lifecycle analysis (LCA) by IFEU: LCA study with Product
down on CO2 emissions. Environmental Footprint methodology, July 2022.
2. Transactions excluding beer, coffee and spirits.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 61

Growth pillars continued

Earn our licence to operate

Water Water reduction and stewardship Our water community projects

Our Mission 2025 commitment for water risk
areas is to reduce water-use ratio in plants by Greece: Tackling water
Water touches every aspect 20% compared with our 2017 baseline and help scarcity for impact
of our business. secure water availability for communities in which
we operate. Water scarcity is a threat to farmers, local
Climate change affects water availability and communities and tourism in Crete’s largest
In our operations, we have 19 water priority city, Heraklion. This year we improved irrigation
water quality. Our commitment is to protect this
locations1, including Armenia, Bulgaria, Cyprus, and water supply systems at five locations to
valuable resource, especially in those areas of our
Greece, Italy and Nigeria. These locations face save 14.5 million litres of water a year through
operations where water is scarce or at risk. We do
specific stress factors such as: our Zero Drop programme, which we funded
this by:
• water being scarce; with The Coca-Cola Foundation. The water
• reducing, reusing and replenishing the amount
• local communities lacking access to water and resources protection programme is locally
of water we use in our activities;
sanitation services; or implemented by the Global Water Partnership Our water community projects
• recycling the wastewater from our
• deteriorating water quality in the watersheds. – Mediterranean (GWP-Med) in collaboration
manufacturing sites and returning it to
the environment; In these areas, we focus on water-replenishment
with the Municipality of Heraklion.
Romania: Rivers
• ensuring that communities have access to safe,
clean water; and
activities, nature-based solutions and improving
water quality.
In Profitis Ilias, we replaced old leaking pipes
to secure the water distribution network for
Interceptors project
• engaging with suppliers on our Principles for irrigation. And in Voutes, we upgraded two major Trapping litter on four rivers flowing into
In 2023, our overall reduction in water priority pumping stations, saving energy, reducing CO2
Sustainable Agriculture. the Danube is helping to reduce pollution in
locations was 6.8% compared with our 2017 emissions and preventing water losses. Romania. The innovative cleaning system
baseline. We maintained water efficiency at the
Read more on p66 spreads over the entire width of the river
same levels as 2022 in all our production plants. We shared water-saving advice with the
in specific areas that were chosen after a
In water priority locations, our water usage was local community and a team of environmental
We use water from the start to the end of the technical evaluation of where it would be
0.6 percentage points higher than 2022. educators trained schoolchildren. This
production process for our drinks: most effective. The traps collect litter that’s
included playing a water-saving game of
Our production plants in the following markets floating on, and one metre below, the surface
• Growing core ingredients, such as sugar and snakes and ladders that was specially created
performed well: to stop it from going any further. The River
the fruit that provides our juice concentrates. for the programme. We also produced new
Water Interceptors project brings together
• Using it as the largest component of our • In Bulgaria, we improved the overall water educational displays for one of our customers,
the private and public sector. We are in
beverages and cleaning, washing and sanitising efficiency by 5% compared with 2022. Chalkiadakis stores. These shared tips on how
partnership with the CSR Nest Association,
production equipment and processes. • In Greece and Cyprus, we improved the overall to save water on the promotional displays
a non-governmental organisation that
water efficiency by 6% compared with 2022. and in take-away leaflets for customers.
We have been doing comprehensive risk is managing the project, The Romanian
• In Nigeria, five of our production plants Consumers can also buy our products at
assessments for many years and calculating Waters National Administration and local
delivered strong results on water efficiency. a discount. This important community issue is
the True Cost of Water for investment decisions. municipalities. Since it was set up in February
The decrease ranged from 1% to 5% compared strongly connected with our customer’s ESG
We have updated this every year since 2015. 2022, the traps have stopped over 11 tonnes
with 2022. agenda. Our collaboration increased sales,
of waste from flowing into the River Danube
created a positive perception and benefitted
and on to the Black Sea. This has included
the wider community.
1.5 tonnes of recyclable PET and 8.5 tonnes
We also completed the first part of work in of wood, which we donated to local
Schimatari/Tanagra in Greece to prevent communities to use.
water losses at a local water treatment plant.
1. Excluding Egypt.
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We continued to invest across our markets in Working with our suppliers Water stewardship community projects
technologies with a focus on Top Water Savers We measure the water consumption of our We have 12 water stewardship community
to reach our 2025 commitments. critical suppliers to assess their basin and projects in water risk areas where we have
For example, we have invested in: operational water risks using the Water Risk plants. In 2023, we started new projects in
Filter methodology. We then work with suppliers Maiduguri, Nigeria. With support from The
• dry rinsers that clean without water; operating in high-risk areas to develop plans so Coca-Cola Foundation, we delivered solar-
• automated controls for our reverse they can reduce their water use. powered boreholes with overhead tanks in
osmosis systems; four communities. These aim to give 14,000
• data-driven ion exchangers; local people access to safe WASH services.
• backwash filtration units; We estimate our projects in Nigeria have provided
• optimising chemicals for coagulation; and about 4.8 billion litres of clean and safe water in
• upgrading cooling towers. the last five years.
Our water community projects Some of our production plants in Egypt are
located in water stressed areas, so in 2023
we implemented several projects to mitigate Our water community projects
Nigeria: WASH projects the risks, including the following: Cyprus: Zero Drop
Providing access to clean and safe water
in local communities is an important part
• commissioning a new water treatment in the
Sadat plant to increase capacity and improve
– Mission Water
of our work in Nigeria. In 2023, we built water efficiency; The last phase of the water resources
sanitation and water facilities in Benin, Kano, • initiating an upgrade to the wastewater protection programme “Zero Drop–Mission
Lagos, Maiduguri and Owerri as part of our treatment plant in Sadat; Water” in Cyprus was implemented in 2023
€1 million commitment to celebrate our 70 th • installing new in-line instrumentation by Global Water Partnership – Mediterranean
anniversary in Nigeria. The facilities, which in the Alexandria plant to monitor raw (GWP-Med) NGO in collaboration with the
include a block of toilets, new boreholes water quality; and Municipality of Aglantzia and Coca-Cola in
and overhead tanks, aim to improve people’s • integrating new flowmeters Cyprus, with the exclusive funding from The
lives through access to Water, Sanitation and updating water maps for Coca-Cola Foundation. According to GWP-
and Hygiene (WASH) services in communities all plants. Med, the programme’s technical interventions
where we operate. in the municipality have the capacity to
save an estimated 3,000,000 litres of water
annually, while improving the irrigation of
the municipality’s green spaces. From these
interventions, about 10,000 people from the
local community of Aglantzia, Cyprus have
benefited. This new project builds on the
successful implementation of a previous 10-
year water resources protection programme
in Cyprus that has achieved remarkable results,
saving several million litres of water annually
and positively impacting the lives.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 63

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Earn our licence to operate

People and We are here for colleagues and

communities when disaster strikes

Communities
The world sadly witnessed more devastating
conflicts, natural disasters and extreme weather
events in 2023. We mobilised rapidly to provide
immediate aid where possible. This included
In 2023, we remained the following:
Thank You

focused on making a • Greece wildfires: About 9,000 cases of our

soft drinks, water, juices and coolers were
Fund in the
island of Ireland
positive impact on the distributed through Humanity Greece,
local communities where the Red Cross and local municipalities. Around 60 employees and players
from the Viennese Football Club
we operate. We supported • Greece floods: We donated more than two
million bottles of beverages, mainly Avra
cleaned the home district of SK

young people through

Rapid in Austria. Photo credit
water, to people affected by the devastating by Martin Steiger

#YouthEmpowered with floods in Thessaly, central Greece. Together

with The Coca-Cola Company and Bodossaki
training programmes Foundation, we donated €100,000 to support
and skills development, their immediate needs. Through a mobile unit
of ‘Doctors without Borders’, the donation
and communities in need provided medical and psychosocial support
with product donations, to people affected in Thessaly. We plan
to implement a recovery project in the
volunteering initiatives affected area in 2024.
Working with our communities
and disaster relief activities. • Slovenia floods: Access to clean and safe
drinking water and rebuilding infrastructure
across the country were critical to help
Ireland, Czech Republic and Slovakia,
communities recover. The Coca-Cola System and Italy: Donations to Food Banks
donated Römerquelle water and €100,000 to
We want to support people in need and tackle food waste as part of our
the Slovenian Red Cross to help with this work.
sustainability commitments. Here are some of the initiatives we were
• Turkey and Syria earthquakes: It was involved with this year:
important for us to help provide relief and
• Donated 70,000 meals in December 2023 in the Republic of Ireland. We
support the efforts of The Coca-Cola Company
collaborated with our customer partner Tesco and FoodCloud, a not-for-profit
and The Coca-Cola Foundation when these
social enterprise working to tackle food waste and food security (pictured right).
earthquakes happened. Turkey and Syria are
• Co-operated with food banks in the Czech Republic and Slovakia to donate more
not territories where we do business, but we
than 800,000 litres of beverages to food banks worth more than €360,000.
donated €100,000 to the Turkish Red Crescent
• Supported Banco Alimentare (National Food Bank) in Italy to distribute over
and CARE international in Syria.
1.5 million meals during the Christmas period. We also took part in its National
Food Collection Day with 55 colleagues volunteering. Our seven local family
days donated the proceeds of their Christmas markets to Banco Alimentare.
All figures include Egypt and Bambi.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 64

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Earn our licence to operate

1.5m litres Community support in Ukraine • A kindergarten that was destroyed in the
Providing
community support
We continued to offer practical help and support village of Bohdanivka is now being rebuilt and
in Ukraine
of Coca-Cola to Ukrainian to people in Ukraine and our employees affected will be able to accommodate more children.
families by the conflict in 2023. With The Coca-Cola The Coca-Cola Company donated US $1.2

US$1.8m
Company and NGO partners, we provided water million and we donated US $1.8 million to make
and beverages to affected regions, offered this happen. Our production plant has been
humanitarian assistance, restored infrastructure, operating nearby for almost 25 years.
to rebuild a kindergarten in and installed electricity and heat generation • At the end of 2023 we donated one million
Bohdanivka, Ukraine equipment. Since the beginning of the conflict bottles for the most vulnerable Ukrainians to

8.9m litres
in Ukraine, the Coca-Cola System and The Coca- make the winter holidays a little more joyful.
Cola Foundation have committed US $35 million Many company volunteers were involved in
to support people in Ukraine. the project across the whole country. Our
of beverages for food banks, Ukrainian plant produced a batch of one million
disaster relief, and numerous The Coca-Cola System has helped in the 1.5-litre Coca-Cola bottles with a special
local initiatives following ways: mark on the label ‘For you’. With the help of

> 3,000
• We donated €4.7 million and volunteering partner humanitarian organisations such as
support. In partnership with the Red Cross the Ukrainian Red Cross and Caritas Ukraine

colleagues
Society of Ukraine, we provided 70,000 food we distributed the drinks from December 2023
kits and beverages to people in the regions until February 2024. This token of gratitude was
most affected by food and water shortages. also shared with the communities closest to the
focused on supporting One kit contains one month’s supply of food frontline. We donated some of our beverages
vulnerable communities, youth that does not need to be refrigerated. to the D.R.E.A.M. Charitable Foundation, which
and environment • 54 electric generators were sent to hospitals, works together with the Scottish organisation

>€7.9m
schools, kindergartens, boarding schools and Siobhan’s Trust, to provide warm meals to
centres for temporarily displaced people across residents of such regions.
Ukraine after The Coca-Cola Foundation
• Long-term community
donated US $500,000 to the Red Cross Society
initiatives
of Ukraine. Seventeen centres for internally
• Disaster relief for Greece, displaced people also received 5,000 sleeping
Croatia, Slovenia, Bulgaria, kits for their residents through this partnership
Italy and Austria and strong volunteering support.
• 45 mobile boilers were donated to Ukrainian
All figures include Egypt and Bambi. communities most in need to help to keep
people warm during the winter. The cost of
the project was about US $3.5 million, which
was donated by The Coca-Cola Foundation,
in partnership with the Ukrainian Red Cross,
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 65

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Earn our licence to operate
Lithuania Nigeria

#YouthEmpowered progress
Working with our communities

Co-operation, Creativity,
Communication, Critical
#YouthEmpowered progress Here are just some of our 2023
We passionately believe that every young #YouthEmpowered activities: Thinking and AI
person has the potential to thrive. Through our • In Nigeria, we trained 1,865 young people More than 4,000 young people from Poland,
#YouthEmpowered programme, we are equipping on viable entrepreneurship and career skills Estonia, Latvia and Lithuania joined our
Estonia
them with the skills, experience and confidence during the 2023 campus edition of our 2023 #Skills4Future hybrid event hosted
they need to secure a brighter future. #YouthEmpowered initiative. This is part by Polish influencer, Natalia Sisik.
By the end of 2023, we had trained 944,948 young of our commitment to nurturing the country’s
The theme of the 2023 event was co-
people since the programme launched in 2017. future leaders.
operation, creativity, communication
• To celebrate its thirteenth year, The Coca-Cola
We are confident we will meet our Mission 2025 and critical thinking – and the role of AI
Thank You Fund across the island of Ireland
target of training one million young people ahead in youth development.
doubled the value of its grants to €200,000.
of target year. This year, 28 non-profit organisations were We invited 17 experts and business
awarded grants to help them champion and practitioners to talk about each skill
empower young people to take an active role in and share their experiences, including
By the end of 2023

944,948
shaping, creating, and maintaining sustainable the role of personal branding in the job
communities. The Coca-Cola Fund operates market and combining creativity with
in partnership with the Irish Youth Foundation new technologies.
and YouthAction Northern Ireland and is jointly
During the event, Natalia presented the
funded by The Coca-Cola Company.
young people trained • Experts from the Coca-Cola System across
results of a survey carried out on behalf of
Coca-Cola HBC in Poland. These showed
Bulgaria shared valuable advice and insights
Cumulative number of young people trained that 3 in 4 young people believe that using
with young people to help them develop
through #YouthEmpowered since 2017 modern technologies will translate into
their skills before transition to employment.
their future in the labour market.
1,000,000 Collaborating with SoftUni Digital, Junior
1,000,000

Achievement Bulgaria, Teen Station, and “It was just wow.”

944,948

local universities, free training was delivered

800,000
to 4,788 young people. “I would definitely
794,943

recommend it, good

548,835

600,000 experience.”
“During the practical
338,413

400,000 sessions, I clarified

203,865

what my strengths
are, I learned more
85,812

200,000
about myself.” Watch the video online
21,401

0 Quotes from participants in Lithuania

2017 2018 2019 2020 2021 2022 2023 2025
goal
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 66

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Earn our licence to operate

Sustainable Nutrition • Informed decisions: We provide clear and

transparent nutrition information about what’s

sourcing
inside our drinks, such as the Guideline Daily
Amount (GDA) and traffic-light labels on our
As part of the Coca-Cola System, we core sparkling drinks in 22 markets.
want to deliver great-tasting soft drinks
• No marketing targeting children: We commit
We are committed to sourcing 100% that support balanced diets. We do this to not market any of our drinks directly to
of our key ingredients in line with the in five strategic ways: children under 13 and do not offer any soft
Principles for Sustainable Agriculture • Less sugar, more choices: We have committed drinks in primary schools.
Working with our communities to reduce calories per 100ml of sparkling
as set out by The Coca-Cola Company. • Promoting low- and no-sugar choices: We
soft drinks by 25% between 2015 and 2025 are promoting Coke Zero Sugar as our ‘hero’ in
The Coca-Cola HBC Foundation In 2023, we reached 79%. Of specific importance across all our markets. By the end of 2023, marketing campaigns encouraging more people
to achieving our biodiversity goal are the principles we had reduced calories by 19% per 100ml of to choose low- and zero-sugar drinks.
We were proud to launch The Coca-Cola
on conservation of forests, conservation of sparkling soft drinks. To reach our commitment,
HBC Foundation in December, and donated
natural habitats, biodiversity and ecosystems, we focus on growing zero formulations such
€10 million to support communities in 2024. Read more on p28
soil management and agrochemical management. as Coca-Cola Zero Sugar Zero Caffeine
We have always had a strong focus on Overall, the principles protect and support and new flavour creations within the Fanta
operating sustainably, and a long tradition biodiversity and ecosystems, uphold human and Schweppes brands.
of giving back to the communities we are and workplace rights, ensure animal health
a part of. and welfare, and help build thriving communities. • New and different drinks: We are responding
They apply to farm-level production and form to changing consumer preferences by
We have identified a number of critical innovating our recipes and pack sizes,
the basis for our continued engagement with
areas where we will prioritise our support. offering more choice. New zero formulations
Tier 1 suppliers to ensure sustainable long-
These include: across our brands help us drive growth and
term supply with lower environmental impact.
• natural disaster relief; show how constant innovation is keeping
• packaging and waste management; Read more on p25 to 27 us at the forefront of consumer choice and
• corporate citizenship; and customer preference. In 2023 we launched
• empowering youth and women. nectars reformulation for five mono fruit
flavours with added functionalities and
The new foundation brings clear focus reduced sugar by 30%. We also launched new
to our work and empowers us to make recipes for Schweppes Bitter Lemon Zero
decisions quickly to take action where and Kinley Tonic Water in local markets with
it is most needed. lower sugar and better taste. We expanded
Pink Lemonade, the first zero sugar drink
in our Lemonade range.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 67

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Earn our licence to operate

Biodiversity
Caring for local biodiversity

Poland: Renovating a
We are serious about making a net positive impact
mineral water spring for
on biodiversity in critical areas of our operations local communities in Tylicz
and supply chain by 2040 and eliminating
Tourists visiting the natural water spring in
deforestation in our supply chain by 2025.
Tylicz, Poland, can now enjoy its therapeutic
To reach this objective, we joined the Science
qualities even more after a joint project
Based Targets Network (SBTN) to focus our
helped to bring it back to life. Our local
efforts on the relevant actions so both nature
team worked with Multivita and municipal
and business can thrive.
employees to unblock the flow and build a
In 2023, we undertook the mapping and new casing for the water spring. These both
materiality assessment on biodiversity across help improve access to the water spring,
our value chain to help us set targets in areas that making the region more attractive to visitors.
matter the most and to measure our progress.
This assessment shows that the biggest impact
on biodiversity comes from land conversion and
water withdrawal from our upstream activities, Caring for local biodiversity
mainly from agricultural suppliers.
We will focus in 2024 on collaborating with our Serbia: Creating scenic hiking trails
suppliers to develop plans to address these two Visitors to Lake Vlasina, an area of extraordinary biodiversity
risk areas and develop an appropriate monitoring and beauty in south-east Serbia, can now use 47 kilometres
system to measure deforestation at supplier level. of new hiking trails. We partnered with the United Nations
In our direct operations, we currently report on Development Programme (UNDP), the Ministry for the
seven manufacturing sites adjacent to critical Development of Underdeveloped Municipalities and the
to biodiversity areas. We have initiated a few Municipality of Surdulica to create the new trail. Our natural
biodiversity projects in some of these sites. spring water plant is located in Vlasina – an area of national
We will now learn from these and take action significance due to its endemic flora and fauna, unforgettable
in all the critical areas by following the official gastronomy and rich historical and cultural heritage.
SBTN guidance and engaging with our business Our ambition is to establish Vlasina as a regional must-see
partners and the local communities. tourist destination, while supporting local businesses and
In 2024, we will also start to implement the our neighbours to grow in a sustainable way. Visitors can
recommendations of the Taskforce on now learn about the lake and biodiversity along the trail or by
Nature-related Financial disclosures (TNFD) visiting digital trails on the Serbia Trails portal. Vlasina hosted
recommendations. the nation’s largest hiking event, ROSA Hiking Day, when the
trail opened in September 2023. New waste bins to separate
packaging for recycling were also installed along the Vlasina
Lake and in restaurants and cafes, in partnership with local
waste management operator Sekopak.
Strategic Report Corporate Governance Financial Statements Swiss Statutory Reporting Supplementary Information Coca-Cola HBC Integrated Annual Report 2023 68

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Earn our licence to operate

Caring for local biodiversity

Priorities in 2024
Hungary: Zero Waste • Evolve our sustainability strategy with 2030 commitments.
Tisza River project • Update our NetZeroby40 roadmap incorporating our Egypt
operations and have FLAG targets approved.
Coca-Cola Hungary joined forces with • Continue decarbonisation of our business in all three scopes.
the water management authorities and • Support the roll out of national DRS in EU markets and
civil society to help clean up Hungary’s advance our collection model in Nigeria.
second largest river, the Tisza. More than • Continue to innovate in sustainable packaging formats.
100 tonnes of waste have been removed • Strengthen collaboration across ESG areas with our
since 2019 as part of the initiative. customers and suppliers.
GPS-based tracking maps the amount • Get ready for compliance with new EU ESG reporting
of plastic waste and the path it takes to frameworks.
help find solutions for the future. A lot has • Continue on SBTN roadmap to define our action plan for
been done to improve waste collection biodiversity hotspots.
and treatment in Subcarpathia and a
new water purifying container has been
developed to make clean water more
accessible to the local population. This UN Sustainable Development Goals
initiative brings together the Plastic Cup Our initiatives in communities help advance the global
team and the General Directorate of Water objectives of good health and wellbeing, and sustainable cities
Management (OVF) with support from and communities. Our initiatives to empower youth and women
The Coca-Cola Foundation. contribute to the goals for quality education, decent work
and economic growth, sustainable cities and communities,
and partnerships. Our initiatives regarding water stewardship,
CO2 emissions reduction and waste reduction aid global
progress towards the SDGs for clean water and sanitation,
and climate action.