Shaping a sustainable future in Europe

7/31/2019 Shaping a sustainable future in Europe

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COMMITTED TO 20

SHAPING A SUSTAINABLE

FUTURE IN EUROP

CORPORATE RESPONSIBILITY

& SUSTAINABILITY REPORT

2010/2011


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20

24

34

14About this report Inside front cover

A message from our Chairman and CEO 02

A message from our President, European Group 04Where we operate 05

Our business at a glance 06

Our products 08

Energy conservation/climate change 14

Water stewardship 20

Sustainable packaging/recycling 24

Product portfolio 28

Community 32

Active healthy living 34

Workplace 36

GRI Index and CEO Water Mandate Index 40

Assurance statement 41

UN Global Compact Index and further resources 43

Contents

Address:

Coca-Cola Enterprises, Inc.2500 Windy Ridge ParkwayAtlanta, GA 30339+1 678 260-3000

CCE Website Address: www.cokecce.com

Contact: [email protected]

Coca-Cola Enterprises is an Equal Opportunity Employer.Copyright 2011, Coca-Cola Enterprises, Inc. Coca-Colais a registered trademark of The Coca-Cola Company.

Designed and produced by Salterbaxter.Printed by Innovative Output Solutions.

This report has been printed on 9 Lives paperwhich is certified as FSC 100% recycled,

and certified ISO 9001 and ISO 1400.

Front cover feature: The front cover shows our biogas truck, which is powered by gasfrom a landfill site, delivering to customers in London. It has around two-thirds lessCO2e emissions than a regular truck and we plan to introduce another 13 trucks overthe next two years to our fleet.


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Reporting boundariesand standards

This is Coca-Cola Enterprises sixthannual Corporate Responsibilityand Sustainability (CRS) Reportand our first as a Europeanbusiness. It replaces CCEs 2009Corporate Responsibility andSustainability Report and containsa full year of data from January 1,

2010 to December 31, 2010 forour business operations in sixEuropean territories: Great Britain,France, Belgium, Luxembourg,

The Netherlands and Monaco.It also includes illustrative casestudies and business activities

from 2011.

This report is a statement of ourEuropean data over the last yearand charts referring to the last fouryears represent only our legacyEuropean territories. This means

that previously reported corporatedata may differ significantly as italso contained our North Americanbusiness which was sold in October2010. Therefore, unless otherwiseindicated, the environmental andworkplace data in this report coversall operations owned or controlled(production, sales/distribution,combination sales/productionfacilities, administrative officesand fleet) for Great Britain,France, Belgium, Luxembourg,The Netherlands and Monaco.

In some places, as referenced,it also includes introductory datafor our newly acquired business

Our Scope 1 and 2 emissions areindependent of any greenhousegas trades. We have set 2007,the year when we first calculatedour corporate footprint, as ourbaseline year.

Additionally, the water use datain this report refers to productionfacilities, where we have thegreatest water use, and energydata includes only the distribution

impacts of beverages that wedistribute but do not produce,such as Ocean Spray products.All financial data in this report is inU.S. dollars, unless otherwise stated.

This report has been verified bySGS (see page 41) and is alignedwith the Global Reporting Initiative(GRI), self-assessed at level B+.The report also serves as ourCommunication on Progress(COP) for the United NationsGlobal Compact and the water

stewardship chapter serves asour COP-Water, as part of ourendorsement of the UNGC CEOWater Mandate.

operations in Norway andSweden and workplace data forour headquarters in the UnitedStates. We aim to integrateNorway and Sweden fully intoour 2011/2012 report.

Our carbon footprint is calculatedin accordance with the WRI/WBCSDGreenhouse Gas Protocol.An operational control consolidationapproach was taken to determine

organizational boundaries.Data is consolidated from avariety of sources, including ourmanufacturing facilities, fuel useinformation and estimated colddrinks equipment energy use,and is then analyzed centrally.This report includes data coveringthe emissions from our wholebusiness (but does not includeNorway, Sweden and our UnitedStates office locations), divided intothree scopes:

Scope 1: the fuel we use formanufacturing, our own fleet oftrucks, vans and cars and ourprocess and fugitive emissions

Scope 2: the electricity we useat all our sites

Scope 3: the electricity used byour coolers and vendingmachines at our customerspremises, our business travelby rail and air and the fuel usedby our third party distributors.

Determining materialityand boundaries ofresponsibility

Coca-Cola products are madeby over 300 bottling companiesworldwide on behalf of TheCoca-Cola Company, whichcreates and markets brands andtrademarks and manufacturessyrups and concentrates. Licensed,

independent bottling companiessuch as Coca-Cola Enterprises (CCE)purchase these items and produceand package beverages to sell anddistribute to retail and wholesalecustomers. Our relationship withThe Coca-Cola Company thereforeinfluences the way we work andhow our spheres of responsibilityand our material issues aredetermined.

There are seven areas of focus forthe Coca-Cola system which are key

to its sustainability. Each focus areahas a set of measurable goals andtargets, and collectively these makeup the Live Positively platform.

As the local manufacturer anddistributor of Coca-Cola productsin Western Europe, Coca-ColaEnterprises own sustainabilityfocus areas are aligned withLive Positively and we work closelywith The Coca-Cola Company todeliver against these commitments.The national and local demands

of our countries and communitiessometimes require our ownapproach, goals or targetswithin this framework. Our sevencommitments are shown opposite.

About this report

bourg,onaco.

renced,tory databusiness

by our third party distributors.


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Material information where to find it

CCEs CRS programs arecommunicated in a number ofways in a variety of publications.This report is a summary of ourkey initiatives. We also provideCoca-Cola system reports ineach country, which give moredetail on how we work in each

of our territories. Additionally,The Coca-Cola Company providesreports and resources whichprovide further information onsome of the global issues thattouch our business.

This reportThis report aims to provide a conciseoverview of the progress CCE hasmade against our CRS commitmentsin 2010 and our ambitions for thefuture. It includes information on

our business, our governanceand management of CRS, ourstakeholders and the work weare doing in each focus area.It contains a summary GRI Indexand indices showing our compliancewith The UN Global Compact and itsCEO Water Mandate.

Online www.cokecce.comOn our corporate website we coverthe same issues as in this report,based on our CRS focus areas. Herewe sometimes provide further detail

and case studies, for example onour carbon footprint. On our websiteyou can also find our CRS-relatedpolicies and direct weblinks to otherpolicies and documents in this reportas well as a detailed GRI index.

Country reportsEach of CCEs territories producesa Coca-Cola system report inconjunction with The Coca-ColaCompany. Each of these reportsgives local examples of how CCEsCRS commitments are beingbrought to life in our communities.These reports can be found onlineat each of the following websites:

Great Britain: www.coke

corporate responsibility.co.uk

France: www.coca-cola-rse.fr

Belgium and Luxembourg:www.cocacolabelgium.be

The Netherlands:www.coca-colanederland.nl

Norway: www.coca-cola.no

Sweden: www.coca-cola.se

The Coca-Cola CompanyThe Coca-Cola Companyprovides many global sourcesof information to detail itsLive Positively commitments.These include its website,www.thecoca-colacompany.com,which contains many corporatecodes and policies which informCCEs own approaches to CRS.Referenced in this report in particulais The Coca-Cola Companys workon water replenishment andsustainable agriculture, furtherdetails of which can also be foundon its website. The Coca-ColaCompanys 2009/2010 SustainabiliReview, found at http://www.thecoca-colacompany.com/citizenship/index.html, containsa summary of the global Coca-Colasystem sustainability work.

In addition, there are issues such assustainable agriculture that, whileimportant to our business and itslong-term sustainability, have varying

impacts across the Coca-Cola system.The management of these issues isled at a global level by The Coca-ColaCompany and we support this workas it applies to our territories(see page 23 Replenishment in oursupply chain).

Energy conservation/climate change: Reduce the overallcarbon footprint of our business operations by an absolute15 percent by 2020, as compared to our 2007 baseline.

Water stewardship:Establish a water-sustainable operationby protecting our water sources, minimizing our water use

and replenishing the amount of water used in our beverages.

Sustainable packaging/recycling: Reduce the impact ofour packaging; maximize our use of renewable, reusableand recyclable resources; and recover the equivalent of100 percent of our packaging.

Product portfolio: Provide refreshing beverages for everylifestyle and occasion, while helping consumers makeinformed beverage choices.

Community: Make a positive social, economic andenvironmental contribution to the communities in whichwe operate.

Active healthy living: Support active healthy living throughphysical activity programs, nutrition education, and byproviding a wide choice of products.

Workplace:Create a culture where diversity is valued, everyemployee is a respected member of the team, and our workforceis a reflection of the communities in which we operate.


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Corporate Responsibility & Sustainability Report 2010/2011

ITS OURCOMMITMENT

...to be the leader in Corporate Responsibility and

Sustainability in the food and beverage industry.In 2009, we created Commitment 2020, a set of goalsand targets in key areas where we believe we can makethe most difference to our company and the world aroundus. Today, as a European business, we are reviewingthese commitments and listening to our stakeholdersto understand how we can continue to make progress

towards our leadership aspirations. We know the pathto sustainability is a long one and we have a long wayto go. We look forward to your views and support.

This report illustrates our progress alongthis journey so far...

For more information visit: www.cokecce.com


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Message from John BrockThis is an exciting time in the historyof Coca-Cola Enterprises and weenter this new era with CorporateResponsibility and Sustainabilityat the very core of our business.

30 percent emissions reductiontarget by 2020. CRS is integral toeverything we do and is built onthe belief that we can continue ourgrowth trajectory in a responsibleand sustainable way. In this our first CRS Report as a Europeanbusiness we hope to showyou how.

In recent years, we have madesignificant strides and are proud of

our progress, but we also recognizethe challenges that are ahead ofus. Our stakeholders expectationsare rising and they want more fromus increased transparency, betterresults and a renewed explorationof how we can be part of thesolution to some of the pressingenvironmental and social issuesfacing our territories.

As we entered this expandedEuropean operating environment,we asked a number of stakeholders

to tell us what sustainabilityleadership entails now and in thefuture and how we should shapeCCEs journey. They told us thatwe must embed CRS deeper intothe heart of our business, that ourresponsibilities extend beyond ourimmediate operations and existthroughout our value chain, andthat we should choose an area forleadership in which we can begin tochallenge current business models.Above all, we know we need to bemore visionary, expanding our

influence beyond the concept ofreducing our impacts and exploringways to drive true change.

These conversations helped usexpand our thinking aroundsustainability leadership, and weare now working to understandwhat this means for our businessand our communities. In fact,we do not believe that striving tobe the most sustainable company inthe beverage industry is enough anymore. We want to be the CRS leader

A new era for Coca-ColaEnterprises

This is an exciting time in the historyof Coca-Cola Enterprises. In October2010 we completed a transactionwith The Coca-Cola Company (TCCC)by acquiring their bottling operationsin Norway and Sweden and sellingour North American operations toTCCC. We enter this new era with asolid history of success, a platformfor continued growth and a strongheritage as The Coca-ColaCompanys pre-eminent strategicbottling partner in Western Europe.

Even at this time of transition,Corporate Responsibility andSustainability (CRS) remains at theforefront of our priorities. We are asignatory to the UN Global Compactand its CEO Water Mandate and wehave recently signed a business callfor the European Union to adopt a

within the food and beverageindustry. To begin this next part ofour journey, we are developing anew CRS vision in response to thesechallenges, encapsulating howwe aim to grow our businesssustainably in the coming decade.We will then set new goals andtargets in each of our focus areasto make this vision a reality, revisingour established Commitment 2020metrics. We aim to achieve what is

right for our business and also forour communities, and I look forwardto sharing our new commitmentsand targets with you later in the year.

By now, most organizations realizethat sustainability is not a nichepursuit or something that is nice todo. There are real benefits to beinga sustainable, responsible company.For CCE, CRS drives operationalefficiencies and effectiveness andhelps create better relationshipswith our suppliers and customers.

Our commitment to sustainabilityaddresses the expectations ofpolicymakers, NGOs and otherstakeholders, and helps us builda company for which our employeesare proud to work.

We are committed to CRS, and to2020 and beyond. We look forwardto continuing our CRS journey inEurope with you.

John BrockChairman and CEOCoca-Cola Enterprises, Inc. (CCE)


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Message from Hubert Patricot2010 was a great year for CRS in Europe.We have made considerable progressagainst key targets and are proud ofwhat we have accomplished.

Operationalsuccesses this year

Our strong work on CorporateResponsibility and Sustainabilitythroughout 2010 has helped usbring added value to our suppliers,our customers and decisionmakers throughout our territories.In particular, we hosted our firstever Supplier SustainabilitySummit, bringing togetherrepresentatives from our top50 suppliers to discuss how wecan work together to innovateand reduce our impacts throughoutour value chain. We believe thatdeveloping partnerships withstakeholders such as theseacross our territories will be keyto meeting the challenges alongour CRS journey.

Three key areas of progress during2010 demonstrate how we areworking towards industry leadershipand creating a step change inour business:

Energy conservation/climatechange: In 2010, we reduced ouroverall carbon footprint by 35,600tonnes CO2e (four percent) from2009, while growing our volumeby four percent. We invested

$8.1 million in making our colddrinks equipment more efficientand installed 2,800 doors on ouropen-fronted coolers, reducingthe emissions from each coolerby around 50 percent. Thisindustry-leading practice ischanging the way that soft drinksare sold throughout our territories.

Water stewardship: We aresucceeding in driving down theamount of water we use to makeour products. In 2010 we usedan average of 1.42 liters of water

to produce one liter of product,down from 1.51 liters/liter in2009. This exceeded our targetone year ahead of schedule.

Sustainable packaging/recycling: We introducedPlantBottle, a fully recyclablePET bottle made from a blendof petroleum-based materialsand plant-based materials,on some products in Norwayand Sweden and will introducethis in Great Britain, France andBenelux in 2011. In early 2011,we also announced our$7.75 million investment in a jointventure with ECO Plastics todevelop a new purpose-builtrecycling facility in Lincolnshire,Great Britain. This will be one ofthe biggest plastic reprocessingfacilities in Western Europe anda step change, we believe, in theBritish plastics reprocessingindustry. When fully operational

in 2012, the facility is expected todouble the amount of recycled PETavailable in the country at present a demonstration of ourcommitment to creating alow-carbon future. It will alsohelp us ensure that we have thegreenest bottle at the 2012 LondonOlympic Games, made froma combination of PlantBottleand 25 percent recycled PET.

Looking to the futureOur CRS business planning helpsus develop programs which meetthe needs of our business and ourstakeholders. In 2011, we introducedcarbon allowances for each of ourbusiness units, providing guidelinelimits for carbon emissions, anddriving our reductions yet further.We are looking for new innovationand ideas and are excited to learnfrom the sustainability successes

of our colleagues in Norway andSweden as we integrate theirbusinesses. We know there arechallenges ahead related to theenvironmental and social issuesfacing our planet, from climatechange to public health. We wantto be part of the solution and areexcited to set new goals and targetsto make this happen.

We need your partnership andcollaboration and will share ourprogress with you.

Hubert PatricotExecutive Vice Presidentand President, European GroupCoca-Cola Enterprises, Inc. (CCE)

4%volume growthwhile reducingour overall carbon

footprint by 35,600tonnes CO2e


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Corporate Responsibility & Sustainability Repor t 2010/2011

2010 DATA Great Britain France

Belgium &Luxembourg Netherlands Norway

SwedenTOTA

Employees per country 4,600 3,000 2,600 850 1,400 850 13,300

Number of manufacturing sites 6 5 3 1 1 1 17

Carbon footprint (000s metric tonnes CO2e) 4762 99 107 113 n/a n/a 794

Water use ratio (liters water to make 1 liter product) 1.36 1.33 1.76 1.48 2.474 1.86 1.42

1. Please note we also retain an office of 160 people at our headquarters in Atlanta 2. Great Britain is our largest market and has carbon-intense electricity 3. Not including Norway and Sweden

4. Norways water use ratio is higher as we use water to wash our refillable plastic bottles 5. Not including Norway a nd Sweden to be added in 2011

Figure 1: Coca-Cola Enterprises in Europe key statistics

Coca-Cola Enterprises in EuropeWhere we operate

Our countries of operationIn 2010 we added the Coca-Colabottling operations in Norway andSweden to our existing Europeanterritories Great Britain, France,Monaco, Belgium, Luxembourgand The Netherlands.

Serving 165 million peopleacross seven countries inWestern Europe, Coca-ColaEnterprises (CCE) is oneof the worlds largestindependent bottlers ofCoca-Cola beverages.

CCE European HeadquartersCountry head officesBottling plants

17

manufacturingsites

7

countries


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Our businessIn 2010, Coca-Cola Enterprises soldits North American operations to TheCoca-Cola Company and acquiredThe Coca-Cola Companys bottlingoperations in Norway and Sweden,adding to our existing operations inGreat Britain, France, Belgium,The Netherlands, Luxembourg andMonaco and creating a Europeanbeverage business. Our operationswithin Europe have achievedyear-over-year growth in volume

and operating income for the lastfive years. Including the contributionsof Norway and Sweden in thefourth quarter of 2010, we sold

approximately 11 billion bottles andcans (or 560 million physical cases)throughout our territories during2010 and generated approximately$6.7 billion in revenues and$810 million of operating income.We remain a public companyincorporated and headquartered inthe United States and publicly tradedon the New York Stock Exchangeunder the symbol CCE. In May 2011,we announced CCEs secondarylisting on the NYSE Euronext in Paris.We are committed to continuingour success in Europe and creatingmore opportunities for Europeaninvestors to benefit from ourlong-term growth plans.

CCE is one of more than 300bottling companies that produceand distribute Coca-Cola productsas part of the worlds largestbeverage distribution system.

Our business at a glance

$6.7 billionin revenues

$810 millionoperating income

11 billionbottles and cans

1.42 litersaverage wateruse to make 1 literof product

Figure 2: Our impacts -the manufacturing and distribution process

Oursupplych

ain

95 percent of our products are made fromconcentrates supplied by our brand owners.The rest are finished products that we distribute.Our sweeteners, juices, mineral waters, carbondioxide, fuel and packaging materials comefrom a range of approved suppliers. We purchase

sugar directly, but our low calorie sweetenersare already contained in the concentrates webuy. We are looking at ways to reduce the carbonand water impacts of these raw materials in oursupply chain.

Ourbusiness

We use water, energy and packaging materialsto produce our beverages. We are focused onincreasing our operational efficiencies andminimizing our waste. The distribution of ourproducts uses fuel, so we are looking for new,low-carbon ways to get our products to market.As an employer of approximately 13,500 people,we provide jobs and pay taxes in the countriesand communities in which we operate.

Themarketplace

Our wide range of products reflects the changingneeds and demands of our consumers acrossour territories. Refrigerating our products usesenergy, so we are increasing the efficiency of ourcoolers on our customers premises. Our emptypackaging becomes waste unless it is collectedfor recycling, so we are working to increaserecycling rates across our territories.


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Concentrate plants

Ingredients and rawmaterials (page 21)

Third-par ty transpor t

by road/rail (page 17)

CCE fleet transport(page 17)

Customers(pages 11,26)

Cold drinks equipment(pages 18-19)

Consumers(page 11)

CCE manufacturing

facili ties(page 16)

Packaging materials(pages 24-27)

So far we have mainly focused on measuring andreducing our operational impacts and the impactswe can control, such as emissions from our cold drinksequipment. Being a leader means taking responsibilityup and down our value chain. We are increasing ourwork with suppliers and customers to identify waysto reduce these wider impacts.

165m

consumers

13,500employeesOur business hasenvironmental and socialimpacts across the life cycleof our products, from thesourcing and use of rawmaterials and ingredients,to the manufacturing of our

products, to their disposal.We aim to reduce ourimpacts at each stage ofour value chain and to makea positive difference to thecommunities in which weoperate. Figure 2 showsthe different impacts of ourbusiness at each stageof the value chain, andidentifies where, in theremainder of this report, youcan read about how we areseeking to reduce them.


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owned by The Coca-Cola Companyand its affiliates represent morethan 90 percent of our volume,we distribute several brands forother franchise partners, suchas Capri Sun and Ocean Spray.The Coca-Cola Company is ourprimary strategic partner.

Our portfolio of beverages includessome of the most recognized brandsin the world: Coca-Cola, Diet Coke,Coca-Cola light, Coke Zero, Fantaand Sprite, as well as a growingrange of water, juices and juicedrinks, sports drinks, energy drinksand ready-to-drink teas. We striveto offer the leading brands in eachof these categories. While beverages

Our productsCoca-Cola Enterprises (CCE) manufacturesand distributes some of the most popularbeverage brands in the world.

Product category1 Sparkling soft drinks

Brand Coca-Cola Diet Coke/Coca-Cola light

Coke Zero Fanta Spr ite Dr Pepper Schweppes Fernandes Li lt

Country

Belgium & Luxembourg

France2

Great Britain

Netherlands

Norway

Sweden

Product category1 Juices and juice drinks (continued) Energy

Brand Fanta Still Mer 5-alive Appletiser Innocent Kuli (still) Oasis Burn Monster

Country

Belgium & Luxembourg

France2

Great Britain

Netherlands

Norway

Sweden

90%

volume from brandsowned by The Coca-Cola

Company


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Waters and enhanced waters Juices and juice drinks

Tab X-tra Urge GLACAUvitaminwaterTM

Chaud-fontaine

Bonaqua Rosport SchweppesAbbey Well

Viva MinuteMaid

Capri Sun OceanSpray

Sports RTD teas and coffees Squash

Nalu Relentless UrgeIntense

Powerade Aquarius Nestea Chaqwa Kia-ora

Top 5during 2010, our top five brandsby volume were:Coca-Cola, Diet Coke/Coca-Cola light,Fanta, Coca-Cola Zero and Capri Sun

1. As defined by Canadean2. Including Monaco


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Who are ourstakeholders?

At the beginning of our CRSjourney, we mapped ourstakeholders into key groups(see Figure 3). We are currentlyreviewing this landscape withinEurope to see how we can betterunderstand and incorporateour stakeholders views andensure that we align withtheir expectations.

While all our stakeholder groupsare important, we have focusedour CRS engagement on ouremployees and on subjectmatter experts who havebeen able to provide valuableinsight into how we canimprove our efforts.

StakeholdersA wide range of stakeholders influence andare influenced by our business. We listen totheir views and use them to shape the waywe operate and plan for the future.

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Ways we engage with each stakeholder

Figure 3: How we work with our stakeholders

$2.6bnspent with over 12,000suppliers in 2010. Of this,90 percent was spent inour countries of operation.

Did you know...?CCE was ranked #1 in theFood and Beverage industryin Newsweeks 2010 GreenRankings. We are also listedon the FTSE4Good index ofsocially responsible companies.


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Our key collaborationsin 2010 include:

Non-GovernmentalOrganizationsWe are a signatory to the UNGlobal Compact and its CEO WaterMandate and work closely with

the International Business LeadersForum (IBLF). We also work withthe World Wildlife Fund as part ofThe Coca-Cola Companys globalpartnership and we maintain a widerange of relationships with nationalNGOs such as those involved inpackaging recovery (see page 27).In 2010, we convened a roundtablewith water experts from academiaand NGOs in North Americaand Europe to discuss our waterstewardship approach and ourreplenishment target. In 2011,

we aim to convene a further threeroundtables on different topicsmaterial to our business.

EmployeesIn 2010, we launched a partnershipwith the University of CambridgeSustainability Leadership Programand developed a tailoredsustainability course into which weenrolled more than 80 members ofCCEs senior management with theaim of embedding CRS further intoour decision-making. In 2011, we

will continue to run more courses.We also held our third CRS in ActionWeek (see case study opposite).

SuppliersWe spent more than $2.6 billionwith over 12,000 suppliers in 2010.Of this, 90 percent was spent inour countries of operation and 96percent within the EU. We expectall our suppliers to adhere to ourSupplier Guiding Principles (SGPs),a set of standards that includeshealth and safety, human rights,

labor, environment and businessintegrity. We also incorporateenvironmental criteria into ourSupplier Relationship Managementprocess, which covered 80 percentof our 2010 spend with suppliers.We are looking at ways to workwith our suppliers to encourageinnovation throughout our valuechain (see case study opposite).

CustomersOur customers range from smallindependent retailers to largeinternational chains and we seekto be their most valued supplier.We set annual targets for customersatisfaction and measure ourperformance using surveys such

as those by the Advantage Group.In 2010, for the fifth consecutive year,we remained the top supplier in theAdvantage Group rankings of mostvaluable fast-moving consumergoods suppliers in Great Britain.In 2010 we also received the #1 ratingin Benelux and the #2 rating in France.

We want to continue to meet ourcustomers expectations. In 2010,we worked with the Institute ofGrocery Distribution (IGD) and askeddesign agencies, packaging experts

and retailers to think about The Storeof the Future. We sought to examineshopping in 10 to 15 years timeand the role of technology in theshopper experience. The finalreport suggested that CRS willremain very important to ensure thatour products meet our customersevolving environmental needs.

ConsumersThe Coca-Cola Company leadson consumer engagement andresearch, monitoring brand

performance and consumertrends, and CCE operates consumerresponse centers to monitorconsumer feedback and productissues. In 2010, we received 82,539consumer contacts, of which16 percent were product quality-related. This represents 1.23 productquality complaints per million unitssold, six percent lower than theprevious year. Our consumers wantto know more about our products,our ingredients and where they aremade. In 2010, we introduced Trace

your Coke in Great Britain, Beneluxand France a website that allowsconsumers to receive informationabout a product, where it wasproduced and its carbon footprintby selecting the brand and packagetype and entering a code printedon the pack.

Engaging our suppliers: Sustainability Summit 2010In 2010, we held our first ever Supplier Sustainability Summit,attended by representatives from 50 of our top suppliers todiscuss our goals, targets and the ways we can work together.

This meeting demonstrated our commitment to CRS to oursupply chain and created an opening for innovation andcollaborative dialogue. The meeting helped us develop anumber of key CRS projects, from piloting Eco-Combi trucksin The Netherlands (see page 14) to harmonizing the colorsof our bottle caps. We held a second meeting in 2011, focusedon reducing carbon in our supply chain.

A workshop at our 2010 Supplier Summit.

Engaging our employees: CRS in Action WeekTo celebrate Coca-Cola Enterprises commitment toCorporate Responsibility and Sustainability, we heldCRS in Action Week. From 11 to 15 October 2010, we engaged

in community and environmentally focused activities acrossall our countries. This was launched via a video message

from our Chairman and CEO and employees were involvedin a wide range of initiatives from bike races to river andbeach clean-ups; from healthy eating to workshops turningwaste packaging into works of art. The week was well-receivedby our employees and communities and we are planninganother week of act ion in 2011.

Employees removing litter in France.


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Risk management andbusiness planning

Social and environmental risks arestrategic business risks and areassessed annually. Risks that couldadversely affect our business andfinancial results are disclosed in theForm 10-K found in our companysAnnual Report and quarterlyfinancial reporting. These risks

include health and wellness trends,cost or limitations of raw materials,adverse weather, and globalclimate change2. As the ExecutiveLeadership Team (ELT) memberresponsible for CRS, Laura Brightwellis accountable for CRS risks. CRS isalso one of the performanceobjectives that determine thevariable compensation of allmembers of the ELT.

In recent years we have enhancedthe development process for any

major project, product or newinvestment, to consider its impacton our CRS commitments. CRS isincorporated in each BusinessUnits business plan and we havecompiled a five-year Long RangePlan for CRS at CCE.

Our governance structureWe are committed to doing businessresponsibly and strive to maintain aleadership position in the consumergoods sector in Europe, recognizingthat this is a journey, not a destination.

We are embedding CRS into oureveryday decision-makingprocesses. Our strategy is guided

by the CRS Committee of the Boardof Directors1 which meets five timesa year to review our progress.The committee also oversees thecapital expenditure allocated froma specific CRS budget designatedfor CRS projects and technologies.These funding decisions are not

required to meet our internal rateof return standards. We assess thefinancial costs and environmentaland reputational benefits of eachproject and provide this informationto our senior leadership. They thenallocate capital on a fully-informedbasis. The committee is chaired byCal Darden, former Senior VicePresident, U.S. Operations, UnitedParcel Service, Inc. The othermembers are John Brock, ourChairman and CEO; Curt Welling,President and Chief Executive,Americares Foundation; andVronique Morali, Chairman ofFimalac Dveloppement and ViceChairman, Fitch Group, Inc.

Our leadership team alsoparticipates in The Coca-ColaCompanys European System CRSBoard, a pan-European leadershipgroup which includes otherCoca-Cola bottlers. This group meetsbi-annually to evaluate policy onmatters of strategic environmentaland social importance to ourbusiness. Outputs from thesemeetings influence our own internalpolicy and decision-making.

Our CRS Advisory Council is across-functional body of seniormanagers who chair Steering Groupsfor each CRS focus area. They meetfive times per year to review progress,discuss challenges and identify thefuture direction and priorities for CRS atCCE and report back to the CRS BoardCommittee. The CRS Advisory Councilis chaired by Laura Brightwell, SeniorVice President of Public Affairs andCommunications.

Supporting our CRS Advisory Councilis a network of CRS managers and anEnvironmental Stewardship team thatmanages quality, environment, safetyand health across our operations.Members of this team also participatein the Global Coca-Cola Environmentand Safety Council.

GovernanceCCEs vision is to be the best beveragesales and customer service company.Our Operating Framework outlines thestrategic priorities that will help us driveconsistent, long-term, profitable growthand CRS is a key pillar of this framework.

Figure 4: Operating Framework

World class capabilities Revenue Growth Management Supply Chain Sales & Customer Service

Executional excellence every day

Values Accountable Customer-focused Team-driven

Best means:

Being #1 or strong #2 in every category in which we competeStrategic Priority: Grow value of existing brands and expand our product portfolio

Being our customers most valued supplier

Strategic Priority:Transform our go-to-market model to improve efficiency and effectiveness

Establishing a winning and inclusive cultureStrategic Priority:Attract, develop and retain a highly talented and diverse workforce

Drive consistent long-term profitable growth

Corporateresponsibilityand

sustainabilityisourbusiness

Aneffectiverelationshipwith

TheCoca-ColaCompany

VISIONBe the best beverage sales and customer service company


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Focus Area Standard Number of

facilit ies incompliance4

% of facilities

in compliance

Quality ISO9000 16 94%

Food Safety ISO22000 16 94%

Environment ISO14001 16 94%

Occupational Safety OHSAS18001 16 94%

Figure 6: Management systems coverage

incidents are investigatedappropriately and all activity isreported to the Audit Committeeof the Board of Directors andreviewed by our new Code ofBusiness Conduct Violation ReviewCommittee to evaluate trendsand ensure consistent application

of the Code of Business Conduct.

Management systems,policies and standards

We are participating inthe Coca-Cola systems transitionto ISO standards for quality,food safety, environment andoccupational safety. Sixteen of our17 production facilities now havethese standards in place.

Guiding our management

systems are a series of overarchingcorporate policies which we reviewperiodically. This year, we haveagain reviewed our EnvironmentalPolicy to further align it with theexpectations of our stakeholders.

Ethics and complianceWe are committed to a cultureof ethical behavior across allroles and geographies.

At CCE, we follow the RIGHT Waymodel of ethical values. Our actions,

decisions and behavior must alwaysmaintain Respect, Integrity, Goodjudgment, Honesty and Trust. Thesevalues are the foundation of ourCode of Business Conduct andwe aim to embed them ineverything we do, every day.

Our revised global Code of BusinessConduct is the cornerstone of ourEthics and Compliance program andhelps us comply with the U.S. ForeignCorrupt Practices Act and the recentUK Bribery Act. The Code outlines

the behavior we expect of everyemployee and identifies 12 guidingprinciples. These include promotinghealth and safety in the workplace,complying with anti-corruption lawsand upholding our environmentalcommitments. Our Code is one ofthe ways we comply with the 10universal principles of the UN Global

Compact, which CCE signed in2007. It is published on our websiteand intranet and all new employeesare informed of the Code duringtheir inductions.

CCEs Compliance and Riskorganization aims to foster and

enhance the ethical environmentthroughout CCE by embeddingethics and compliance into riskmanagement and monitoringcompliance with the Code ofBusiness Conduct. Our Complianceand Risk program provides training,communication and changemanagement related to the Codeof Business Conduct and otherkey risks.

For our Code to be effective,employees must feel confident

in raising concerns or questionswithout fear of retaliation. CCE hasan Ethics and Compliance hotlineto report such violations3. Employeesare also encouraged to speak totheir manager or to call or emailthe Ethics and Compliance officeto discuss concerns or to reportsuspected violations. All reported

1. Further details of our Committee and its memberscan be found at www.cokecce.com 2. More details onour climate change risk s can be found in our submission tothe Carbon Disclosure Project, www.cdproject.net3. In all countries except France 4. Includes all ownedmanufacturing production plant facilities only anddoes not include our co-packer partners, distribution-only operations or commercial facilities (e.g. ColdDrinks Operations or Vending sites). Also includes

manufacturing operations in Norway and Sweden.

* Support functions represented on OLTand throughout the business units

CCE CRS Governance(from left to right)Cal Darden, Chair, CRS Board Committee

Laura Brightwell, Chair, CRS Advisory Council

Vronique Morali, Member,CRS Board Committee

John Brock, Chairman and CEO,

and member of CRS Board Committee

Curt Welling, Member, CRS Board Committee

Great Britain France

Norway andSweden

Supply Chain

Benelux

CCE Business Units

Operating Leadership Team (OLT)*

Executive Leadership Team (ELT)

Chief Executive Officer

Executive VP and President,European Group

Executive VP and Chief Financial Officer

SVP, General Counsel andStrategic Initiatives

SVP, Public Affairs and Communications

SVP, Human Resources

SVP, Chief Information Officer

CCE Board of DirectorsChairman: John Brock

Figure 5: CCE operationalstructure


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Low-carbondistributionWe now have five Eco-Combi

trucks in our Dutch fleet. Theseimprove the carbon efficiencyof our deliveries by transporting38 rather than 26 pallets atonce, reducing CO2e emissionsby 20 percent per pallet.

2007 2008 2009 2010

Operational carbon footprint

(metric tonnes CO2e)

795,760 850,438 830,802 795,181

Direct energy used in operations (MWh) 203,088 223,352 221,887 218,033

Natural Gas (%) 88.73% 83.62% 83.32% 84.66%

LPG (%) 11.27% 14.33% 14.30% 14.24%

Light Fuel Oil (%) not reported 0.59% 0.16% 0.19%

Diesel (%) not reported 1.46% 2.22% 0.92%

Indirect energy used in operations (MWh) 328,777 324,273 321,216 319,139

Electricity (%) 100% 100% 100% 100%

Energy used in cold

drinks equipment (MWh)

1,234,078 1,588,036 1,471,943 1,439,269

Our 2010 progresscause additional costs and reduceour ability to manufacture anddistribute our products. We want tominimize our climate impacts by

reducing our emissions, increasingour efficiency and changing theway we source and use energy1.

IntroductionClimate change, caused byman-made greenhouse gas

emissions, is considered by manyas the greatest threat to our planet.We recognize the effects that achanging climate could potentiallyhave on the sustainability of ourbusiness and supply chain: threatsto water availability, increasedenergy prices and regulation could

1. For more detail on our climate risks, refer to the CCE Form 10-K 2. See About this Report section for more detail on footprintboundaries. 3. A variety of methodologies were used to measure each part of this footprint. More detail can be found on theCRS section of our corporate website, www.cokecce.com. 4. Our 2010 data includes acquisition of our Morpeth, Great Britainplant (Abbey Well), in-sourcing of pre-form manufacture at our Wakefield plant and enhancements to our Cold Drinks Equipmentsource data. These additions equate to less than 5% of our total carbon footprint. Initial calculations suggest that to incorporatethese data improvements into our original 2007 baseline would increase it to an estimated 809,000 tonnes. Additionally pleasenote that because we use anaerobic waste water biogas at Wakefield, Great Britain, this generated emissions of 137.4 metric

tonnes of CO2e in 2010. We do not include this in our footprint but report it separately, in alignment with the WRI/WBCSD Protocol.

ENERGYCONSERVATION/CLIMATE CHANGE


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Our commitmentXxxx

Figure 7: Estimated carbon emissions across our value chain

5. We are currently aligning the methodol ogies by which the Norwegian and Swedis h carbon footprints are calculated and we wil l include their carbon emis sions in our 2011 footprint calculation, in accordance with our Base Year Recalculation Policy.6. Please note, all numbers are rounded so may not add together to create totals. We do not have PFCs or SF6 emissions. 7.These emissions are classi fied into three different Scopes, depending on their source and origin. Our core emissions are froScope 1 (the direct emissions from our facili ties and our fleet) and Scope 2 (the electricit y we purchase). We also choose to report our Scope 3 emissions (emissions that do not occur at the sites of our business operations but t hat result from our businesFor us, these are mainly emissions generated by the elec tricity used for our cold drinks equipment, which is operate d by our customers on their premises. Under the Protocol, repor ting Scope 3 emissions is optional; however, we measure and seekto reduce our Scope 3 emissions because they are almost 2.5 times greater than our core emissions. 8. This number is estimated and has not been subject to ex ternal verification. 9.Not including Norway and Sweden 10. Based on carbon footprint

modeling for bulk ingredients (e.g. sugar), and does not include flavor components. 11. Based on life cycle analysis data for our main packaging types.

Our energy conservation/climate change strategyThis chapter concentrates on theway we are reducing carbonwithin our own operations themanufacturing, distribution andcooling of our products.

However, over the last few yearswe have been working to betterunderstand the carbon embeddedin our value chain because ourproduct carbon footprinting work

has highlighted that our supply chainis where most of our carbon impactlies. Our initial calculations of ourvalue chain carbon footprint showthat packaging is responsible for the

largest part of that footprint and thatcooling accounts for the second-largest part. Our work on sustainablepackaging (pages 2427) showshow we are reducing the carbonfootprint of our packaging.

Reducing our emissionsOur emissions reduction programis based on our greatest operationalcarbon impacts. In 2010, we invested$10.4 million of capital expenditureon carbon reduction projects.

We have focused mainly on ourcold drinks equipment, but havealso worked to improve efficienciesin manufacturing and distribution.

Reduce the overall carbon footprint ofour business operations by an absolute15 percent by 2020 as compared to our2007 baseline.

Initial indicat ions are that the addition of CCE Norway willincrease our carbon footprint by approximately 13,000 tonnes,and CCE Sweden by 12,500 tonnes5.

Our 2010 emissions by scope and source

Greenhouse Gas (tCO2e)6

CarbonDioxide

(CO2)

NitrousOxide(N2O)

Methane(CH4)

Hydrofluoro-carbons

(HFCs)

Total(scope)(tCO2e)

%Footprint

Scope7

(tCO2e)1 Direct

emissions(e.g. fuel)

112,636 76 444 255 113,411 14%

2 Indirectemissions(e.g. electricity)

98,187 n/a n/a n/a 98,187 12%

3 Related3rd Partyemissions(e.g. cold drinksequipment)

582,587 62 934 n/a 583,584 73%

Total (GHG) 793,409 138 1,379 255 795,181

We are growing our business but not the carbon it produces.During 2010 we reduced our carbon footprint by 35,600 metric

tonnes of CO2e in comparison with 2009, while increasingsales volume by four percent.

CCE supply chain(1.4m metric tonnes CO2e)

8

CCE operations(795,000 metric tonnes CO2e)

Ingredients Packaging Manufacturing Distribution Selling coolingand vending

% CCE core business emissions 22% 16% 62%

% CCE value chain emissions(estimated)9

16%10 48%11 7% 6% 23%

Our carbon footprint 2007-2010 (metric tonnes CO2e)

2007

Manufacturing

Cold drinks equipment

CCE fleet

Third party distribution

Other (includingbusiness travel)

2008 2009 2010

795,760Total 850,438 830,802 795,1814

Our carbon footprintIn 2010, using the WRI/WBCSD Greenhouse Gas Protocol, wemeasured the carbon footprint of our business, not includingNorway and Sweden, at just over 795,000 metric tonnes of CO2e

2.This represents the emissions we generate in our manufacturingprocesses, facilit ies, fleet, and by our cold drinks equipment3.


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ManufacturingOur manufacturing operations makeup 22 percent of our core business

emissions and around 80 percent ofthis comes from energy used at ourmanufacturing and distribution sites.In 2010, we used nearly two percentless energy in our manufacturingoperations than in 2009 a total of494,000 megawatt hours (MWH),down from 504,000 MWH whileincreasing production volume.We have achieved this reductionthrough monitoring energy use,planning and training, energy-efficient technologies, andinvesting in renewable energy.

Energy use monitoring,planning and training

We believe you cant manage whatyou dont measure, so in 2010 weimproved the systems by which wemonitor energy. Each facilitysenvironmental data is reviewedregularly by senior managementand we want to develop evengreater awareness at plant level.Two key initiatives in 2010 helped

us to do this:

Monitoring and targeting (M&T)We have placed energy meterson production lines and energy-intensive equipment such as bottle

blowers, compressors and chillers.These tell us where energy isbeing used and how efficientlythe equipment is working, and

help us to identify energy-reductionstrategies. We installed M&T systemsthroughout Great Britain12 in 2009and in 2010 invested $1.8 millionto install the technology in five furtherfacilities. We aim to reduce siteenergy consumption by aroundthree percent year-on-year. We arealso using M&T systems to reducewater use (see page 22) and willextend the systems to monitorlosses of carbonation CO2, alsoknown as fugitive CO2.

esKO training:We have participated in esKO a Coca-Cola system-wideenergy-saving program. In 2009,six of our manufacturing facilities13,along with other Coca-Cola bottlingplants in other countries, undertookin-depth energy use assessments.Our findings informed a catalogueof best-practice energy-efficiencyexamples for European bottlingplants. In 2010, we held a seriesof training workshops forenvironmental, maintenance and

engineering managers on howto use the catalogue and identifyfuture efficiency opportunities,supplementing our existingenvironmental training.

Energy-efficienttechnologiesWe are rolling out new, energy-efficient technologies wherepossible. In 2010, we focusedour investment on new lighting,compressed air and heat recovery.

Compressed airWe use compressed air throughoutour bottling plants for runningour machinery and drying bottlesand cans before we add labels.However, the process is expensiveand energy-intensive. In 2010,we commissioned a survey ofcompressed air leakages acrossall our sites to identify problemsand make repairs. We identifiedaround 4,700 tonnes of CO2esavings and formed the100 Percent Club for sites thathave repaired all their leaks.

LightingOver the last two years we haveinvested in lighting improvements.Depending on the location and itslighting requirements, we haveinstalled new technologies such asenergy-efficient bulbs and sensors,intelligent lighting systems and LightEmitting Diodes (LEDs). These projectswill save approximately 560 tonnesof CO2e per year. We continue toinvestigate new technologies suchas sun pipes which we are pilotingat our plant in Milton Keynes,

Great Britain.

Heat recoveryFollowing successful pilots, we arealso expanding our use of heatrecovery. This works by piping heatenergy from boilers to be reusedfor other production processes,to reduce our use of natural gas.

Reducing our emissions continued

CRS MasterplansIn 2010, each site mapped its energy and water use anddeveloped a CRS Masterplan to identify short, mediumand long-term projects to reach our currently establishedenergy, water and waste best practices by 2014. Each plan

includes projects such as strategic equipment replacement,optimization procedures, refurbishment and awareness

training for employees.

12. Except for Abbey Well (Morpeth), which is ournewest site. 13. Ghent, Chaudfontaine, Clamart,Grigny, Sidcup and Wakefield. 14. This equates

to 0.6% of our 2010 mileage in France.

Reducing our energy use in Sidcup, Great BritainIn our facility in Sidcup, Great Britain, we have invested $125,000

to replace our standard fluorescent light tubes with new LightEmitting Diode (LED) technology. Each new LED uses a quarter of

the energy of a fluorescent tube, so will save 416 MWH of energyper year, (one percent of Sidcups total usage) and around 197

tonnes of CO2e. As LEDs last longer, we will also make annualmaintenance savings of around $6,000. We have also installeda Ground Source Heat pump at our Sidcup plant. This technologyuses the cooling properties of the cold water in the aquiferbeneath our plant to cool compressors and bottle blowers insteadof using energy from the grid for refrigeration. We estimate that itwill produce year-on-year carbon savings of around 1,612 tonnesand save us $300,000 in energy costs per year.

Monitoring energy at our Sidcup, Great Britain, plant.


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Renewable energyin our facilities

Although renewable energytechnologies tend to be moreexpensive than traditional fossilenergy sources, we believe theywill have a part to play in helpingus to meet our carbon reductiontargets. By adopting suchtechnologies at an early stage, wecan reduce costs in the longer term.

We are exploring the most suitablerenewable and low-carbon energysolution at each site, depending on

geography and location. We areinvestigating a water turbine atChaudfontaine, Belgium alongwith wind turbines in Northampton,

Great Britain and Dongen,The Netherlands and solar panelson our factories at Edmonton, GreatBritain and Marseille, France. Wehope to invest in combined heat andpower, which would allow us to usewaste heat from energy generationin our own processes in Wakefield,Great Britain. To implement theseprojects we must first meet individualplanning-related requirementsat each site.

TransportationTransporting our products currentlyaccounts for 16 percent of our corebusiness emissions. We are workingto improve the efficiency of our ownvehicles and those of our distributionpartners, and to optimize our logistics

network and routes to market.

Reducing emissionsfrom our fleetWe are piloting different engineand fuel technologies across ourgeographies, assessing theircapabilities and rolling out thosebest suited to our needs. In TheNetherlands we have introducedfive new Eco-Combi trucks (seepage 14).

In Great Britain, we are trialing

biogas-powered vehicles (reportedto achieve up to 65 percent CO2esavings across the life cycle of thevehicle) as well as investigating theways in which aerodynamics andstop-start engine technology cansave fuel. In Belgium, we pilotedhybrid vehicles using Renaulttechnology in 2009 and arecontinuing to investigate newalternative technologies to findthe best solution for our markets.

We are also working to reduce

the environmental impacts of thevehicles in our conventional fleet.Trials indicated that eco-drivingtechniques, such as early gearchanges, speed limiters andminimal braking could achieve fuelsavings of five to ten percent, so wewill roll out training to our drivers.We have significantly improved theemissions from our corporate carand van fleet by introducing CO2caps for cars, providing greenchoices to our employees andselecting only best-in-class

energy-efficient vans.

Third-party fleetMost of our deliveries are carried oby third-party haulers. In partnershwith them we saved 900,000 roadmiles and 3,300 tonnes of CO2eemissions in 2010. Our partnershiphave also helped us increase theuse of other modes of transport suc

as rail in Great Britain and Franceand river in The Netherlands. A rivetransport trial showed we couldreduce our CO2e emissions by upto 20 percent per pallet, so we planto carry out further shipments in 201In France, more than eight percentof our transport miles are now by raIn 2011, we aim to increase this by afurther 125,000 miles, to 10 percentof miles travelled in the country.

Backhauling andnetwork optimizationWe are also expanding backhaulinwith customers and suppliers inGreat Britain and France anarrangement by which customersor suppliers use empty vehicles ona return journey to collect or moveproduct. For example, we introducebackhauling with Carrefour in Francon two routes, to their warehouses Bassens and Libercourt. Backhaulinin France saved 780 deliveries,122,500 miles14 and 210 tonnesof CO2e in 2010.

Network optimization has broughtreal carbon benefits. Throughimproved network planning inFrance, for example, we have beenable to remove about two and ahalf miles from every trip, savingapproximately 260,000 milesand 443 tonnes of CO2e per year.Through better route strategy,production changes, andwarehouse expansion andplanning, we will continue to createnetwork and distribution efficiencie

Employee spotlight

Darren ODonnellLogistics Asset ManagerUxbridge, Great Britain

Im proud to have helped put CCE at the forefront of green

vehicle technology. I was given the task of reducing carbonemissions from our transport fleet in Great Britain andinvestigated a number of options. Biogas gives us maximumemission reductions without compromising our operations.We now have one biogas truck, powered by gas from organicwaste at a landfill site. This produces up to 65 percent lessemissions than a normal truck. We now plan to introduceanother 13 of these environmentally-friendly vehicles over thenext two years and are the first operator in the British logisticssector to be running dedicated biogas trucks.

Our river transport trial in The Netherlands.


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Reducing our emissions continued

Our cold drinks equipmentOur cold drinks equipmentmakes up the greatest proportion(62 percent) of our core businessemissions. At the end of 2010we had approximately 490,000coolers, vendors and fountainmachines in the marketplace inour territories15, operated by ourcustomers on their premises.

Existing coolersWe are working to improve theefficiency of our existing coolersby in-market retrofits, so that we donot take equipment out of service,or by refurbishment at one of ourfour service centers16. We aredriving carbon reductions acrossour existing coolers in several ways:

1 Fitting doors We have approximately 21,000open-fronted coolers acrossour territories. By fitting doors,we can reduce energy use byup to 50 percent. In 2010, wefitted 2,800 doors and in 2011,we aim to fit a further 7,500,to reach nearly half of ouropen-fronted fleet.

2 Lighting improvement

We are replacing standardfluorescent lighting withlong-life LEDs which can beup to 80 percent more efficient.We fitted 15,700 LEDs in 2010.

3 Energy managementdevices (EMS-55) Our intelligent EMS-55 devicerecognizes patterns of use andresponds by shutting off lightsand adjusting temperatureswhen the cooler is not beingopened regularly. In this wayit can reduce energyconsumption by up to35 percent per cooler. In 2010,we fitted 24,275 EMS devices

and we aim to install a further43,500 in 2011 so that by theend of the year, we will havefitted devices to 28 percentof our total cooler fleet.

Vending machine programmingWe can also program certainvendor models to use energy moreefficiently. In 2011, we will programover 4,800 of these, to reach sevenpercent of our total vendor fleet.

1

3

15. Not including Norway and Sweden 16. We have four cooler refurbishment centers in ourterritories; Milton Keynes (Great Britain); Londerzeel (Belgium); Dunkirk and Courtaboeuf (France)

17.Pending commercial viability and technology availability 18. Excluding Norway and Sweden

Technology used to improve the efficienciesof our coolers.

2


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New coolersWe have set high standards for the

new coolers that we buy and installin our customers premises. Forexample, all our new coolers thathave a cubic capacity of over 250liters of product now come with ourintelligent EMS device pre-installed.

HFC-freeWe have also committed ourselvesto removing hydrofluorocarbonrefrigerants (HFCs) from ourequipment. HFCs can be powerfulgreenhouse gases if leaked to theenvironment or released when

equipment is disposed of incorrectly.Our equipment is maintained byour technical centers and our fieldengineers. In addition, we havesystems in place for safe disposaland we no longer purchaseequipment that contains insulationwith HFCs. We want to ensure thatour coolers use HFC-free refrigerantsinstead, which are found in thenatural environment and presentno significant risk to the climate.Our challenge is the availabilityof this equipment. Working with

suppliers, we aim to purchase100 percent HFC-free coolers by

January 201317. In 2010, we bought

over 12,500 HFC-free coolers,approximately 50 percent of allour new purchases18 and fourpercent of our total fleet. In 2011,we intend to purchase a further16,000 HFC-free coolers.

Other cooling innovationsWe are constantly looking at newideas and opportunities to reducethe carbon footprint of our coolingequipment. Among other initiatives,we have started to investigate waysin which we can reduce the energy

used to cool fountain drinks invenues such as pubs and cinemas.

Carbon allowances:Driving accountability for carbon reductions

Encouraging accountability for the carbon implications ofour business decisions is one of the ways in which we canencourage our employees to meet our carbon goals. As aresult, we developed carbon allowances for all our businessunits in 2010 and rolled these out in early 2011. We have seta maximum emissions target for each country, and our EnergyConservation/Climate Change Steering Group will work witheach business unit to develop a carbon reduction plan basedon its annual business plan.

Looking to the futureWe are reviewing our carbonreduction goal in 2011, looking atour carbon impacts beyond ourimmediate operations and thedemands of our stakeholdersand policy makers.

Did youknow...?We are committed torecycling and reusing ourequipment we refurbish46,000 coolers in 2010,more than the 31,000that we bought new.

Refurbishing coolers at our Milton Keynes center.

Working with others global partnershipsWe are working in support of climate policy at global,national, industry and local levels. In 2009, we joined more

than 950 companies from more than 60 countr ies in signing theCopenhagen Communiqu and in 2010 we signed the fol low-upCancun Communiqu. These are definitive statements from theinternational business community to pursue an equitable dealon climate change, agreed during the 2009 United Nations

Climate Change Conference in Copenhagen, Denmark andthe follow-up meeting in Cancun, Mexico in 2010.

More recent ly, we have signed a business call, organized andsupported by The Climate Group, WWF and the CambridgeProgramme for Sustainability Leadership, for the EuropeanUnion to adopt a 30 percent emissions reduction target by 2020.

the follow-u

More recentlsupported bProgramme

nion to ado


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6%improvement inwater efficiency20092010

Our 2010 progress1

2007 2008 2009 2010

Water use ratio

(average liters of water perliter of product produced)

1.64 1.57 1.51 1.42

Total water use (billion liters) 8.79 8.64 8.66 8.37

Volume of water municipal

discharged to treatment

plants (m3)

2,683,117 2,462,988 2,347,720 2,167,038

Volume of water treated by

CCE treatment plants (m3)2873,735 842,296 762,467 586,570

% water discharged meeting

aquatic life standards

100 100 100 100

1. Not including Norway and Sweden 2. Includes water from three of CCEs water treatment plants (Chaudfontaine, Ghent andMarseille) which discharge directly to a watercourse. Our wastewater treatment plant at Wakefield discharges processed waterto the municipal treatment system.

IntroductionWater is one of the planets mostprecious resources. It is the main

ingredient in our products and wealso use it for cooling, washing andrinsing at our manufacturing plants.Although Europe is widely seen asa water-abundant continent, weface issues of water quality andsometimes scarcity in some of ourcountries of operation as well asfurther away in the countries from

which we source ingredients suchas sugar. These problems are likelyto be influenced by climate change.We aim to act as responsible

stewards of water and to reducethe impacts of our business on theworld around us.

Savings...Our new bottle washer in Clamartcleans around 80 percent of allour returnable glass bottles inFrance. Its spraying system andwater flow management uses less

than half the water of the previousmachine, saving 36,750 m3 of

water per year.

WATERSTEWARDSHIP


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CURRENT FOCUS FUTURE FOCUS

Stage Manufacturing Supply Chain: Ingredients, Packaging

Water use 1% 99%

Over the last five years we have increased ourproduction by around 12 percent, yet reduced ouroverall use of water by five percent. Our operationsin Great Britain and France are the most efficient in

the global Coca-Cola system.

Our commitmentEstablish a water-sustainable operationby protecting our water sources, minimizingour water use and replenishing the amountof water used in our beverages.

Our waterstewardship strategyIn 2009, we calculated thewater footprint of Coca-Colaproduced at our Dongen plant inThe Netherlands3. The resultsshowed that a 500 ml plastic (PET)Coca-Cola bottle has an embeddedwater footprint of 35.4 liters of water4.Of this, 99 percent is used in oursupply chain, and 76 percentspecifically for the growing andrefining of sugar beet. Although the

footprint varies depending on thecalculation methodology, it is clearthat our water impacts extendbeyond our business and into ourvalue chain.

In early 2010, we conducted aroundtable with stakeholdersand water experts to discussthe development of our overallwater strategy. We heard that ourapproach should be risk-based and

that over time we should developour focus beyond protecting our ownwater sources and reducing ouroperational water use to reducingand safeguarding the water in oursupply chain. While our presentfocus is on increasing our operationalwater efficiencies (see page 22),we are also beginning to investigateways in which we can reduce ourwater use impacts across our wholevalue chain (see page 23).

Protecting our

water sourcesWe aim to sustain high qualitywater sources and to minimize ourimpacts on local communities andecosystems. In 2009, we started aseries of Source Water VulnerabilityAssessments (SVAs) at all ourproduction facilities. We investigatedthe likelihood that our water sourceswill be affected by quality andscarcity issues and assessed

potential water risks to our business,the local community and theecosystem. Less than 20 percentof the water we use comes fromgroundwater withdrawal on-siteand these on-site wells are licensedby government. The remaining80 percent of the water we usecomes from municipal sources.Our SVAs found no critical issuesin terms of water availability.Nevertheless, water stress could

worsen over time in some of theheavily populated areas wherewe manufacture our products.

Our vulnerability assessments haveinformed the development oftechnical Source Water ProtectionPlans (SWPPs) for each productionsite in conjunction with waterproviders, government agenciesand community organizations.At the end of 2010, we hadcompleted SWPPs at all sites exceptMorpeth, Great Britain, and Oslo,

Norway, where the work will becompleted in 2011. In 2011, wewill implement these plans ateach site and will update themevery two years, engaging ourlocal communities and stakeholderseach time.

Working with partnersto inform our waterstewardship strategy

Many external influencesinform the ongoingdevelopment of our waterstewardship strategy. OurWater Roundtable brought

together representativesfrom water-focused NGOs

such as the World ResourcesInstitute (WRI), the WorldWildlife Fund (WWF) and

The Nature Conservancy.We also participate inindustry alliances andpublic-private partnershipson water policy in ourcountries of operation one example being

the Federation HouseCommitment which asks

the food and beverageindustry in Great Britain

to reduce its water use by20 percent by 2020.We submit data andparticipate in water-efficiency benchmarkingand the sharing of bestpractices with otherbeverage companiesat the Beverage IndustryEnvironmentalRoundtable (BIER).

Figure 8: Water use in our value chain

3. A pilot study in conjunction with The University of Twente and the Water Footprint Network.

4. Footprint did not include the flavoring contained in the concentrate.


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Reducing our water useWe are a significant user of water,using 8.37 billion liters in 2010.

Although we cannot reduce thevolume of water in our products,we can focus on making ourcleaning and manufacturingprocesses more efficient. Over thelast five years, we have increasedour production by around 12 percent,yet reduced our overall use of waterby five percent, highlighting thesuccess of this work. We measurethe water efficiency of our operationsby calculating the water we use tocreate one liter of product a termwe call our water use ratio. On this

basis, CCEs operations in Franceand Great Britain were the mostefficient in the global Coca-Colasystem in 2009.

Our 2020 target is to achieve anaverage water use ratio of 1.3 litersof water to produce one liter ofbeverage. In 2010, we used

1.42 liters/liter, down from 1.51 liters/liter in 2009. This marks animprovement of nearly six percent(14 percent since 2007), exceedingour 2010 target and meeting our2011 target ahead of schedule.

We have set a new 2011 target of1.38 liters/liter for our operationsexcluding Norway and Sweden and1.44 liters/liter including Norway andSweden. A target below 1.3 liters/litermay require the use of more energyand we could face a trade-off with

our energy reduction goal. We willcontinue to investigate how toachieve water efficiencies belowthis benchmark on a consistent,low energy basis. At the end of 2010,seven of our facilities had alreadyachieved efficiencies of less than1.4 liters/liter.

New technologiesKey to reducing our water use isthe implementation of new, efficienttechnologies in our plants. In 2010,we developed CRS Masterplanswhich prioritize potential short,medium- and long-term projectsin each plant (see page 16) andspent $1.5 million on implementingproven technologies across ourbusiness, as well as piloting newtechnologies to achieve even greaterefficiencies. These included:

Dry lube We are now using adry lubricant, rather than soapywater, to move containers alongproduction lines and are testingits use on glass bottle lines.

Air rinsers Where we install newlines or replace machinery, wewill introduce ionized air insteadof water to rinse pre-blown bottlesand cans. Approximately 30percent of our plastic bottle andcan lines now use air rinsers.

Recycle and reclaim loops

We are improving our Clean inPlace (CIP) sanitation systemswhich allow us to recover andreuse rinsing water for furthercleaning processes. We are alsotrialing other CIP techniques suchas the use of cold rather than hotwater, new cleaning chemicalsand blowing with air. We aretesting Electro Chemically

Activated water (ECA), whichworks by electrolyzing saltadded to water to create anacidic cleaning solution. Pilotsshow that ECA reduces energyuse by 80 percent, chemicaluse by 90 percent and wateruse by 25 percent.

Bottle washers We haveinstalled a new bottle washerat our Clamart, France facilitywhich handles approximately80 percent of all our returnable

glass bottles in France. With itsimproved spraying systemand water flow management,it uses 7.5 m3 of water per hour,compared to 18 m3 per hour in theprevious machine. This meanswe save around 36,750 m3 ofwater per year.

Monitoring and targetingWe have enhanced the way wemonitor our water use to identifynew efficiencies. By installingsystems similar to those used for

energy monitoring (see page 16),we can assess our water use inreal time. In 2010, we installed watermetering technology at five plants.In 2011, in Dongen, The Netherlands,we will pilot software which linksthe meters to give a comprehensiveview of efficiencies. If successful,we will roll it out further.

Water stewardship continued

Figure 9: Growing ourbusiness but using less water2006-2010 (excluding Norwayand Sweden)

Figure 10: CCE Water UseRatio targets and progress(excluding Norwayand Sweden)

2006

5.25

8.83 8.79 8.64 8.66 8.37

5.50

2008

5.89

2010

5.73

2009

5.36

2007

Total water use (billion liters)

Production (billion liters)

2004

CCE

Target2020

1.3

1.42Target20111.38

2020

Liters water used tomake 1 liter of product

Employee spotlight

Xavier BrelleEnvironment ManagerGrigny, France

With technicians Stphane Marle and Philippe Brun, I led awater mapping project at our Grigny plant to reduce our wateruse ratio. We measured and recorded our water consumptionaround the plant to see which areas needed improvement,

then introduced water-saving projects such as reducing waterin our rinsers. We also installed 13 new water meters on-site,connected to a monitoring device, to alert us when we wereusing too much water. By the end of 2010, our water use ratiowas 1.32, down from 1.49 in 2008, and our plant saved about39,400 m3 of water compared to 2009.


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Recycling the water we useOur water use ratio 2020 target of1.3 liters/liter is made up of one literof water that goes into our beverageand 0.3 liters that is wastewater.Although we aim to reduce thiswastewater, it is our responsibility

to treat this water to a level thatsupports aquatic life beforewe return it to the municipalityor ecosystem.

In 2010, we treated 100 percentof our wastewater to these highstandards. The majority of ourproduction facilities divert theirwastewater back to municipalwater treatment plants after it ispre-treated on-site5. However,four of our facilities have on-sitewastewater treatment plants.

Last year, we discharged a totalof 2,753,608 m3 to the environmentat standards supporting aquaticlife. Of this, 2,167,038 m3 wastreated by municipal wastewatertreatment stations, and 586,570 m3by our own treatment plants6.

Replenishing andprotecting our watersheds

Our business depends on cleanwater and healthy watersheds andwe aim to replenish the water weuse in our beverages by workingwith our employees, engaging withlocal communities and collaboratingwith Non-GovernmentalOrganizations (NGOs).

Each year, the Coca-Cola systemquantifies and publishes the impactof its community water partnershipsaround the world, to show progressagainst its target of replenishing100 percent of the water it uses inits finished beverages by 2020.The current estimate is that projects

implemented by the end of 2010 willprovide a benefit of approximately42.8 billion liters/year, representing31 percent of the target. In 2011, wewill develop a replenishment strategyto enable us to quantify and includeCCE projects in this calculation.

Replenishment inour communitiesAlthough not yet contributing to thisoverall goal, the key replenishmentand watershed protection projectswe carried out across our territoriesin 2010 are:

Protecting aquifers

In Chaudfontaine, Belgium, CCE isworking as part of a public-privatepartnership with the municipality,regional authorities and theUniversity of Liege, to protect thenatural hot spring from pollution.We identified the contaminationrisks such as filling stations, fueltanks, cattle farms and seweragesystems and the Walloon Regionsupported us in implementing300 local protection measuresbetween 2008 and 2013.

Protecting aquifers In Dongen,The Netherlands, where our watercomes from an on-site well, CCEhas worked with the provinceof North Brabant to assess howbest to protect the groundwater.A 25-year protection zone hasbeen introduced to regulate newboreholes in the vicinity. The aimis to reduce the likelihood ofaquifer contamination fromsurface pollution and to ensurethat groundwater extractionis carefully regulated.

Reforestation CCEs Marseillemanufacturing site is located inthe French village of Les Pennes-Mirabeau. The local forest, theMassif de la Nerthe, has sufferedrecent fire damage and haslost some of its ability to retainrainwater. In November 2009,we signed an agreement withthe Pennes-Mirabeaux cityauthorities and the FrenchNational Forest Authority toreforest badly burnt areas byplanting around 2,000 trees in

two hectares to help to retainrainwater and reduce run-off.

Participating in clean-up initiatives We support local communitywater needs by cleaning upwaterways, river banks andbeaches. We participated in awide range of clean-up activitiesin 2010 with key activities in Franceand Sweden (see page 32).

Replenishmentin our supply chainFollowing our water footprint studyin The Netherlands (see page 21),The Coca-Cola Company has leda second phase of validation work,in partnership with our sugarsuppliers. By using specific, rather

than public, sugar beet farmingdata, it emerged that less water wasrequired for irrigation than previouslythought. This reduced the originalwater footprint calculation of a500 ml PET bottle of Coca-Cola fromThe Netherlands by nine percent7.

As a next step, The Coca-ColaCompany has begun further workin Europe on a water footprintsustainability assessment coveringthe environmental impacts of refinedsugar from sugar beet8. It is engaging

with European stakeholders andbeet sugar suppliers for consultationand advice. CCE will continue to workwith The Coca-Cola Company in thisarea, and will ensure that this workinforms the development of ourreplenishment strategy.

Looking to the futureWe will review our waterstewardship goal and targetsin 2011, developing areplenishment strategy informedby stakeholder feedback we

have received and working withThe Coca-Cola Company toaddress the wider impacts ofwater use in our value chain.

Coca-Cola and WWFs Water Saver toolkit

The Water Saver tool developed by The Coca-Cola Company(TCCC) and the World Wildlife Fund helped us to reach our 2011water efficiency target a year early. Each participating plantmust record water use and production data daily and sendit for external review every week, to raise awareness of theimportance of saving water. The tool benchmarks each plantand identifies its optimal water performance based on productand packaging mix, then provides improvement suggestions.As a result of our success in using the tool, TCCC has asked us

to share best practices with other bottlers.

5.We treat our water by neutralising the acidity, removing solids or oils, and regulating any organic pollution in the water(Chemical Oxygen Demand) before returning it to the municipality for further treatment. 6. Excluding Norway and Swede7.Further information from a report by The Nature Conservancy and The Coca-Cola Company: Product Water FootprintAssessments: Practical Application in Corporate Water Stewardship, 2010. 8. In six countries in Europe Great Britain,

France, Spain, Benelux, Romania and Greece.

Did youknow...?

In 2010, we treated 100percent of our wastewate

to levels supporting aquatlife before returning it to thmunicipality or ecosystem


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Key performance indicator 2007 2008 2009 2010

Packaging materials avoided

(metric tons)

N/A 6,800 4,782 5,300

Avoided packaging as a

% of total used

N/A 1.8% 1.3% 1.3%

Recycled PET content (%) Start of

program

5% 10% 17.9%4

CCE recycling rate

(production facilities)(%)

95.8% 98.4% 99.3% 99.5%

Our 2010 progress

Materials used Tonnes

Aluminium 42,650

Steel 48,044

Plastic2 170,902

Glass 66,744

Secondary packaging

(cardboard)

68,412

Our packaging footprint1

In 2010, we used a total of 396,752 tonnes of packaging materials of differenttypes across our countries of operation3.

1. Not including Norway and Sweden. 2. Includes PET, HDPE, LDPE, LLDPE, PE and PP types of plastic. 3. Not includingNorway and Sweden 4. Total percentage for December 2010 5. Derived from sugar and by-products of its production.6. For further information, see Alupros website: http://www.alupro.org.uk/facts-and-figures.html 7.Depending on thetype of plastic being recycled and reprocessed.

IntroductionOur packaging plays a vital rolein delivering our beverages safely

to our customers and consumers.It also remains our most visibleand high-profile environmentalissue. It can be carbon-intensiveand, while our packaging materialscan be recycled, our packagesall too often end up in landfill.

21 tonnes

of packaging was collected at 20 ofthe biggest festivals in Great Britain,France and Belgium in 2010. Our newrecycling program engaged volunteers

from CCE and Vinspired, a youth

volunteering organization, whocollected 840,000 bottles and cansover the course of the summer.

SUSTAINABLEPACKAGING/RECYCLING


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Reduce the impact of our packaging;maximize our use of renewable, reusable,and recyclable resources; and recover theequivalent of 100 percent of our packaging.

Our sustainablepackaging/recyclingstrategy

Packaging is responsible fornearly half the carbon emissionsacross our value chain (see page 15)and we want to reduce this impact.In 2010, we studied our packagingfrom source to disposal, looking atwhere we can intervene mosteffectively to reduce our impacts.Our findings have informed ourstrategy and we are now working

at every stage in the process toreduce the embedded carbonin our packaging (see Figure 11).

Sustainable materialsKey to developing sustainablepackaging is ensuring that thematerials we use come fromsustainable, renewable sources.PET is one of the most recycled typesof plastic, but is still sourced fromnon-renewable fossil fuels. We aretherefore seeking new ways to userenewable materials instead.

PlantBottleIn 2009, The Coca-Cola Company

introduced PlantBottle, an alternativeto fossil-fuel based PET. A fully-recyclable PET bottle made froma blend of petroleum-basedmaterials and approximately30 percent plant-based materials5,

it is chemically and physicallyidentical to traditional PET. Becauseof its sustainable component, it alsohas a lower carbon footprint thantraditional PET. By 2020, we intendthat all PET bottles will be made froma combination of recycled PET (rPET)and plant-based materials.

In 2010, we launched PlantBottlefor selected Bonaqua bottles inNorway and on Coca-Cola productsin Sweden. Our bottles are madehalf from PlantPET and half fromrecycled PET. 30 percent of thePlantPET is plant-based material.We are conducting a life cycleanalysis to see how its carbonfootprint differs from our regularBonaqua bottles. In 2011, we willbe launching PlantBottle with 22.5percent plant-based material for

our small PET Coca-Cola productsin Great Britain, Benelux, Franceand Sweden.

Using recycled materialsWhere possible, we aim to userecycled materials in our packaging.These tend to have lower carbonfootprints; for example, it takes95 percent less energy to producerecycled aluminum than aluminumfrom bauxite ore6. The currentavailability of recycled aluminum

or steel means that the maximumlevel in each can is around50 percent. Our suppliers, thecan manufacturers, are tryingto increase this figure by improvingcan recovery rates.

The market for recycled PET is less

developed, so rPET is not availablein such large quantities and is morecostly. However, it takes around 60percent7 less energy to produce rPEthan virgin PET so, by increasing thrPET content of our bottles, we cansignificantly reduce their carbonfootprints. In 2010, we invested $0.7million of our CRS capital expendituon technology related to rPET in ourplants and in December 2010 wereached an average of 17.9 percenrPET in our PET packaging across outerritories. We will continue to invest

to meet our targets of 22.5 percentrPET by 2011 and 25 percent by 201

Sustainable secondarypackagingWe are seeking opportunities tointroduce Forestry StewardshipCouncil (FSC) certified cardboard foour secondary packaging. We willconvert Capri Sun and corrugatedtrays in Great Britain to FSC-certifiedcardboard in 2011.

Our commitment

We want to focus on the carbon impacts of ourpackaging across its life cycle. This approach willhelp us reduce the carbon fo

Shaping a sustainable future in Europe

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