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u s t a i n abi li t y Report 2 0 1 4 - Coca Cola Andina (VF).pdfwith Coca-Cola Andina’s 2014...
Transcript of u s t a i n abi li t y Report 2 0 1 4 - Coca Cola Andina (VF).pdfwith Coca-Cola Andina’s 2014...
Su
stainability
Report 2014
The 2014 Sustainability Report collects the
valuable contributions that our collaborators
and the Company as a whole make every
day in Argentina, Brazil, Chile and Paraguay.
In it you will find projects and actions that inspire
others and generate value for our collaborators,
customers, consumers, suppliers and the
communities where we have the privilege
to operate. We also share lessons learned
and work plans in each of the pillars of our
sustainability strategy.
This edition, which follows the guidelines of
the Global Reporting Initiative in its latest G4
version, is presented jointly and complementary
with Coca-Cola Andina’s 2014 Annual Report.
Thus, we are simultaneously putting financial
economic information and that of sustainability
management for the period at the disposal of
our main stakeholders taking a first step towards
integrating both reports for the following periods.
You can access the Sustainability Report
using the pen-drive that is included in the
2014 Annual Report; downloading the PDF
of the online publication from our web site
www.koandina.com; or by scanning the QR
code that is included in the Annual Report and
on the Company’s website.
Everything we have been doing makes us view a 2015 full of opportunities, a year
that we will continue looking for profitable and sustainable ways to keep on growing.
Juan Claro GonzálezChairman of the Board
2014sustainability report
Coca-Cola Andina at a Glance 6
Sustainable Management 14
Beverage Benefits 30
Active Healthy Living 46
Water Stewardship 58
Energy Management and Climate Protection 68
Sustainable Packaging 80
Work Environment 92
Community 116
Challenges for the coming years 144
Characteristics of the Report and GRI G4 Version Content Index 148
We Value Your Opinion 168
content
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One company one team At Coca-Cola Andina we produce and distribute products licensed by The Coca-Cola Company in Argentina, Brazil, Chile and Paraguay in franchised territories servicing almost 52 million people. We are the 2nd Coca-Cola bottler in South America and are among the 3 largest in Latin America.
We are the sole Coca-Cola soft drink producer in Paraguay, the largest producer in Chile and the second largest producer in Brazil and Argentina.
Among the beverages licensed by The Coca-Cola Company, we produce and distribute sparkling beverages, fruit juices, mineral and purified water, flavored water, energy and isotonic beverages.
We distribute beer in Brazil and in the South of the Argentina, and liquors in the South of Chile
In Argentina and Chile we produce PET bottles for soft drinks and REF PET packaging in several formats for our own operations and for sale to other bottlers.
Recent years have been marked by important organic and inorganic growth. The merger between Embotelladora Andina and Coca-Cola Polar S.A., a bottling plant with 41 years of history, made in 2012 was relevant. In addition, the acquisition of Companhia de Bebidas Ipiranga by our Brazilian subsidiary, Rio de Janeiro Refrescos Ltda. materialized in 2013.
coca-cola andina at a glance
During 2014 we delivered
over 4.7 billion liters of soft
drinks, juices and bottled waters
and employed more than 16,100 people in 4 countries.
1 Refillable pet: bottle Polyethylene terephthalate; , since the material possesses adequate density to support collection and sanitation processes, it can be safely reutilized
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2020 Vision
Lead the beverage market, being recognized for our management excellence, people and welcoming culture.
Mission
Add value to grow sustainably, refreshing our consumers and sharing moments of optimism with our clients.
Values
IntegrityAusterityTeamworkResult-orientedAttitudeCustomer approached
Ethics Code
It contains the set of principles and ethical conduct behavioral guidelines of all employees, contractors, consultants and members of the Board in terms of their functions, and to all those who provide services to the Company.It covers aspects such as legal regulations and regulatory compliance; Conflicts of interest; Transparency and accuracy of accounting information; Fraud, corruption and money laundering; Dealings with public officials; customers and suppliers; Political and humanitarian contributions. It establishes an Ethics Committee to ensure compliance and mechanisms for the reception of non-compliance complaints.
our beliefs coca-cola andina
2 You can access the full text of the Ethics Code at www.koandina.com
Integrity We believe in honesty,
transparency and
coherence as a basis for
our behavior, respecting
the Company’s values.
Result-oriented
We approach our
energies on an
efficient work in
order to achieve the
proposed goals.
Teamwork
We promote trust,
cooperation, respect
and diversity in our work
environments, adding the
personal contribution to
the joint creation.
Attitude
We are moved by
passion, commitment and
perseverance, confirming
our desire to always do
our job better at all times.
Austerity We take care of the
resources as if they were
ours, responsibly orienting
costs to the Company’s
needs and requirements.
Customer approached
We know the needs of our
customers and concentrate
our efforts to fully fulfill the
promise of service and
dedication to the market.
our operations
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One of the 7largest Coca-Cola bottlers in the world
Presence in 4 countries:
Argentina, Brazil, Chile
and Paraguay
Over
16,100employees
2nd
Coca-Cola bottler
in South America
3,153MUS$
in net sales
271,000clients
We delivered over
billion liters of beverages
in 2014
4.7
Our operations
Embotelladora del Atlántico S.A.
Andina Empaques Argentina S.A.
Rio de Janeiro Refrescos Ltda.
Embotelladora Andina S.A.
Vital Jugos S.A. Vital Aguas S.A.
Envases Central S.A.
Paraguay Refrescos S.A.
unit cases - total sales volume (Million)
229.4 306.9 231.8 62.5
clients (thousand) 68 88 63 52
workers 3,288 7,560 3,810 1,478
soft drink market share 61.40% 61.40% 68.50% 62.10%
franchise extension km2 (thousand)
1,892 165 398 407
bottling plants 3 3 4 1
other plants 1 4 0 0
distribution centers 41 13 17 3
franchise inhabitants (million) 13.9 21.9 9.4 6.8
regional boundaries
San Juan, Mendoza, San Luis, Córdoba, Santa Fé, Entre Ríos, La Pampa,
Neuquén, Rio Negro, Chubut, Santa Cruz, Tierra
del Fuego and the Western Province of Buenos Aires.
Part of the states of Río de Janeiro,
Espiritu Santo, São Paulo and
Minas Gerais
Antofagasta, Atacama, Coquimbo, Región Metropolitana, San
Antonio, Cachapoal, Aysen and Magallanes
All of the Paraguayan
territory
74distribution centers
2.9million km2
franchise extension
11bottling plants
5other plants
Franchised territories with
52million inhabitants in
the 4 countries
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Note: Revenues are net of taxes pertaining to sales activity.
For more information on our economic performance, you can access the 2014 Annual Report at the following link:: www.koandina.com
2014 Key sustainability performance indicators Argentina Brazil Chile Paraguay
Efficiency in water consumption
Number of liters of water needed to produce one liter of beverage
2.03 1.76 2.7 2.19
Efficiency in energy consumption
Energy used per liter of produced beverage - Mjoules / liter of produced beverage
0.34 0.33 0.28 0.59
Solid waste generation
Grams of solid waste generated per liter of produced beverage
13.76 11.76 15.42 23.3
Recycling of solid waste
Percentage of recycled waste in relation to generated waste
91% 91% 82.90% 80%
Industrial safety
Severity in accidents and number of accidents, indicator LTISR (lost time Injury Severity Rate)
215.01 7.3 62.58 4.08
Client Satisfaction 1
Annual measurement with all of Coca-Cola Andina’s operations in scope
85% 70.8% 61% 83%
Product Quality
Beverage Product Quality Index (BPQI) Rate 93.50% 96.80% 95.20% 94.60%
Packaging Quality
Packaging Quality Index (PCQI) Rate 90.00% 94.40% 87.60% 81.80%
Employee turnover 0.41 3.55 1.93 0.62
Favorable internal environment
Bi-annual survey (2013 data prior to merger with Coca-Cola Polar territories)
63% 60% 59% N/A
Component Concept MU$S
Economic value created (EVC)
a) Sales Net sales plus income from financial investments and sale of assets 3,175
Economic value distributed (EVD)
b) Operating costs Payments to suppliers, royalties and other operating payments
2,370
c) Salaries en employee social benefits Total payments to employees and social contributions. Does not include future payment commitments
467
d) Payments to capital suppliersAll financial payments to the organization’s capital suppliers
162
e) Government payments Gross rates and taxes 39
f ) Investments in the communityVoluntary contributions and investment of funds in the community in the broad sense of the word (including donations)
4
Economic value withheld (EVW) (Calculated as economic value created less Economic Value)
Reserves 133
key sustainability performance indicators economic performance
From the beginning, sustainability has been a part of our business essence. It’s the view with which we conduct, decide and act upon in order to offer the best products to our customers and consumers, creating social value and making a positive difference in the communities we serve.
We permanently monitor key sustainability performance indicators in topics that are relevant for the companies in the sector, for The Coca-Cola Company, for our shareholders and our major stakeholders.
The economic dimension of sustainability refers to the way in which an organization creates value for society. The following
table shows the capital flow between our stakeholders and the main economic impacts of our operation on society.
Our View on Sustainability Our 2020 Vision inspires sustainability management, formalizing goals, objectives and indicators with expected values in the medium and long term.
Coca-Cola Andina in conjunction with The Coca-Cola Company, has defined 4 work areas and 7 priority axis in our commitment to the path of sustainable development. They are aligned to the “Live positively” platform.
sustainable management
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Beverage benefits We want to satisfy the consumption needs in the market, offering a quality beverage portfolio, in which consumers can trust.
Active, healthy lifestyles We promote a healthy and active lifestyle offering a wide range of beverages, providing nutritional information and encouraging physical activity and healthy habits.
Energy management and climate protection We work to minimize greenhouse gas emissions of our operations.
Sustainable packaging We strive to reduce, recycle and reuse materials and conserve the resources.
Water stewardship Our goal is to safely return to nature and communities an amount of water equivalent to what we use in all of our beverages and their production.
Community We seek to contribute to the development of the communities where we conduct our activities through various programs to develop local economies, create opportunity and improve the quality of life of people.
Work envorinment We promote a safe and diverse work environment that enhances the individual qualities of people, to inspire them to give the best of themselves. We adhere to the international principles of Human Rights.
Our Sustainability Management Focal Points
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Market
Environment
Work
Envir
onm
ent
Com
mun
ity
Benefits Living
Stewardship
packagin and Climate protection
envi
ronmen
t
B
everage Active Healthy
Water
Sustainable
energy Management
Work
Com
mun
ity
A plan based on the identification and management of business risks Identifying risks - economic, political, social, competition and environment - is a key concept in managing our business, in order to be prepared should any change or materialization thereof shall occur.
The main risks that could have a negative effect on our business goals are:
• The relationship with The Coca-Cola Company has substantial influence over our business and operations.
• Our business is highly competitive, including with respect to price competition.
• Changes in the market of non-alcoholic beverages are evolving due to consumer preferences, health and nutritional considerations and lifestyle changes.
• Fluctuation in raw material prices.
• Instability in the supply of utility services and oil prices.
• Water scarcity and poor water quality could adversely impact our production costs and capacity.
• Significant additional labeling or warning requirements of our products.
• Perception of risk in emerging economies may impede our access to international capital markets.
• The countries in which we operate may adopt new tax laws or modify existing laws to increase taxes applicable to our business.
• Our growth and profitability depend on economic conditions in the countries where we operate.
A plan adapted to each realitySustainability at Coca-Cola Andina is strategically managed at Group level, but
also providing the operations flexibility to adapt the Sustainability Plan to the particular characteristics of each local context and to the needs of every community where we operate.
Opportunities that arise within the scope of sustainability in the four operations are visualized at the Corporate level. We work on assessing iconic corporate projects, benefitting from lessons learned at the operations and helping in the progress of the sustainability plan in each of them.
A management integrated planSustainability Committees and decision making
Each operation has a Sustainability Committee composed of workers from different areas of the company. These committees are responsible of preparing an Annual Plan of activities aligned to
Andina’s perspective regarding sustainability, visualizing opportunities that arise in each area to enhance sustainable development inside and outside of the company and anticipate contingencies that arise in each of the areas to turn them into an opportunity for development.
This plan is presented to the Chief Executive Officer, the Executive Committee and to the Board of Directors as part of the Business Plan and is approved by the latter.
Each operation guarantees the normal functioning of the committees through a person responsible of coordinating and relating in each operation. Sustainability Management improvements are reported to the Chief Executive Officer and Corporate Officers in monthly sessions. This is when projects, their developments and key performance indicators are presented along with any concerns regarding Sustainability.
sustainability management and governance
Our Integrated Management System allows identifying, monitoring and managing the relevant risks associated with the operation. Each operation produces its legal compliance, environmental impact, occupational safety and health risk matrix. In addition, we incorporate food safety standards.
For more information about our Integrated Management System and certifications achieved refer to the chapter on “Beverage Benefits.“
* For more information visit www.koandina.com 2014 Annual Report
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Monitoring the performance of sustainability key variables The operations of Coca-Cola Andina report monthly on the performance of sustainability key variables to the group’s Chief Executive Officer.
Key indicators monitored
• Efficiency in water consumption (total water consumption per each liter of produced beverage)
• Efficiency in energy consumption (total energy used per each liter of produced beverage) .
• Solid waste (percentage of recycled solid waste of total waste generated, grams per liter of solid waste generated).
• Industrial safety (Severity in accidents and number of accidents). Reported monthly, through the LTISR indicator (lost time, Injury Severity Rate).
• Customer satisfaction: Annual measurement.
• Product quality: measured through indicators of product and packaging quality Rating
• Employee turnover: Monthly measurement.
• Labor environment: Bi-annual measurement.
In addition to the company’s key performance indicators we carry out measurements with international scope tools such as the Global Reporting Initiative, RSE ETHOS-IARSE of the Latin American Program RSE-PLARSE, and also tools of domestic scope in each country.
Also, a follow-up of perception indicators is performed, in order to monitor the opinion of stakeholders on our performance, including surveys on the local community, measurement of labor environment (bi-annual), and customer satisfaction surveys.
Performance results of key indicators for each of the operations occur throughout the various chapters in this Report, according to the sustainability axis to which they belong
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Sustainability in the life cycle of our productsWe work to identify and reduce the impact at each stage of the life cycle of our products.
Life Cycle What we are doing in order to...? In this Report, refer to Chapter...
Ingredients-Packaging Reduce water consumption Water Stewardship
Manufacturing
Guarantee the safety quality of our products.
Use technologies with lower impacts on the environment
Beverage Benefits
Distribution Diagnose carbon printEnergy Management and Climate Protection
Vending - ClientsContribute to the development of our small clients’ network
Beverage Benefits
Consumers
Deliver better information to our clients and contribute to their wellness with our products
Beverage Benefits Active Healthy Lifestyle
Landfill - RecyclingUse returnable and eco-friendly bottles
Sustainable Packaging
Participation and dialogue with stakeholders
The key of our sustainability management is the awareness about the approach not only on issues that matter to us, but also of those who influence on and are important for the system to which we belong.
To do this, we had to begin identifying the main stakeholders with whom we interact. They were defined as part of the systematization work of the Sustainability Strategy carried out in 2007 that is annually reviewed to ensure that there are no substantial changes. The identification criteria used were the proximity, the type of formal or informal relationship that we have with
each of them; and the degree of influence they have on the achievement of business goals.
It is also necessary to know and annually update the expectations they have regarding our operation and the priority assigned to the issues relevant to sustainability management. This is why we have multiple communication channels that allow for a two-way communication flow.
Additionally, we have a whistleblower channel that can be used by any of the stakeholders.
Workers Internal communication,
surveys, labor environment and satisfaction analysis,
internal magazine
Government Meetings
at different governmental levels, regular
communication
Clients and consumers
Surveys and satisfaction analysis, client service and development centers, call centers, regular means of
communication (supervisor visits, developers, etc.)
Coca-Cola Meetings, participation
in joint initiatives, direct relationship with specific areas, regular
communication, joint plan building
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Shareholders Regular communications, shareholders’ meetings, meetings with the CEO.
Andina Day (annual event including a visit to facilities)
SuppliersInterviews,
meetings, regular communication
Neighboring communities and civil society
Relationship activities, participation in organizations, surveys and perception and
assessment analysis
ContractorsPeriodic meetings,
surveys and analysis for feedback
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relevant issues for coca-cola andina’s sustainability management
To identify them we consider priority issues for our shareholders and The Coca-Cola Company; emerging from the dialogue with our main stakeholders; that are key to the sustainability of the companies in the food and beverage sector; those suggested by international organizations with influence in the sector; the ones emerging from the sustainability platform “Live positively”; those that come from other internal sources that highlight economic, social or environmental aspects that can influence our stakeholders and indicators for the Global Reporting Sector (Global Reporting Initiative - GRI) G4 version.
This information and its subsequent order of priority was agreed upon by the Sustainability Working Group, with representatives from the four countries in which the Company operates.
Materiality analysis of the topics included in the matrix, was performed following the guidelines of the G4 guide for Global Reporting Initiative (GRI) and the materiality principle included in GRI as well as AA1000 series (AccountAbility). In addition, the International Standard on Social Responsibility ISO 26000:2010 was considered as a guide to issues to be considered in this analysis, taking its recommendations into account.
Materiality matrixPriority Stakeholders’ Opinion Boundaries Chapters and sections
of the Report on which are informedVery
high High
Medium Low Internal External
Quality, excellence and wellness of the products • • Beverage benefits
Transparency on business • • Coca-Cola Andina at a
glance
Internal labor environment management, lifestyle and people development
• • Work environment
Water management • • • Water Stewardship
Sustainability Commitment (strategy, Reporting process, dialogue with stakeholders)
• • Sustainability Management
Risk management (risk matrix, mapping of stakeholders, assessment of economic, social and environmental impact)
• • Sustainability Management
Coca-Cola relationship management (periodic meetings participation in training sessions)
• • Coca-Cola Andina
at a glance
Value chain development (social inclusion business; client network development, specially small store owners, commercial support and tools for clients)
• • • Beverage benefits - Community
Promote healthy active living • • • Active healthy living
Sustainable packaging and waste management
• • • Sustainable packaging
Economic and social development of local communities
• • Community
Climatic change (energy use, car-bon footprint, efficient distribution)
• • • Energy management and climatic protection
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• 2014 International CSR Conference of the Argentine Institute of Corporate Social Responsibility. The event was sponsored by Coca-Cola Andina Argentina.
• Companies Committed with Disability Club (Argentina).
• FIRJAN Social Responsibility Committee - Federation of Industries of the State of Rio de Janeiro - Brazil.
• “High Endeavors” Program OTR Chile
• WWF (World Wildlife Foundation).
• Junior Achievement Learn to Endeavor in the Environment (AEMA-Spanish acronym).
• Ocean Conservancy Coastal Clean Up Day - Paraguay and Chile.
• Planet time, Water Day, Environment Day.
Excellence” in Latin America for Tatiana Elías, operating excellence unit team collaborator, Coca-Cola Andina Brazil.
- CCIL Quality Ranking (Cariacica Plant) - 1st place in Distribution, 1st place in Product and 2nd place in Packaging, Coca-Cola Andina Brazil.
- CCIL S&OP Certification - 4th place, Silver level, Coca-Cola Andina Brazil
- CCIL Planet Trophy - Honorable mention for the “Cogeneration” project, Coca-Cola Andina Brazil.
- CCIL Internal Communication Awarded I nitiative - 1st place, Coca-Cola Andina Brazil
- Espíritu Santo Business Leader Award of the “Folha Vitoria” newspaper - for Venilson Freire
Fontes, “Leader in the Beverage Industry” category, Coca-Cola Andina Brazil
- Winner of the category Best Employer Brand in the food and beverage sector in the mass consumption category. Employer Brand Study: Trabajando.com., Coca-Cola Andina Chile.
- Best brand presence and the most attractive of the 2014 Job Fair issued by the Santiago 2014 Job Fair, Coca-Cola Andina Chile
-Third place TCCC Quality and Food Safety Award 2013, “Leading Indicators” category.
• The Diario Financiero and PriceWaterhouseCoopers 2014 Ranking recognized us as the 2nd most Admired Company in Chile.
• Second place in the Ranking of Corporate Transparency 2014. Transparent Chile. Chilean chapter of International Transparency, evaluated 19 multinationals in 2014 with highest sales in the country regarding availability of financial information and business market, reporting on anti-corruption programs and organizational transparency.
• Issuing Entity: TCCC-SLBU; Scope: Coca-Cola Latin South America awarded during 2014:
- Performance Distinctions 2013, Coca-Cola Andina Argentina
- Excellence in Growing Single Serve 2013 Coca-Cola Andina Argentina - Quality trophy 2013, Coca-Cola Andina Argentina
- L + Trophy - Live Positively Cup 2013, Coca-Cola Andina Argentina
- RGM Best In Class Award 2013, Coca-Cola Andina Argentina
- CCIL 2014 Execution CUP - 1st place, Best execution in the franchises’ group, with over 25 thousand points of sale, Best Execution of Single-Serve, Best Execution Bar Channel, and Convenience Stores, Coca-Cola Andina Brazil.
- CCIL Operating Excellence Certification (Riberão Preto Plant) and recognition as Coca-Cola’s “First Master in Operating
participation in the public agenda on sustainability
awards and recognitions
The most central area of Santiago, the Chilean capital, is known for the great amount of people and endless activity, but it is also known for the high levels of pollution it has reached, especially during the winter months.
We serve nearly 1,000 customers in this 30-block perimeter known as the “micro-center” on a daily basis, which represents a dual challenge for the company: Achieve high standards service level to our clients and minimize the impact on an area with the above-mentioned characteristics.
Electric trucks have been the perfect solution to meet all those needs. For 15 years these electric trucks, carry the Coca-Cola brand and all the other products in our portfolio to each store in downtown Santiago with zero CO2 pollution. They are the only ones of this type that run
through the busy streets of the sector distributing products.
Each of these small trucks need only six hours of battery charge to travel about 40 kilometers, representing a considerable final savings in relation to other types of transportation. Today the fleet has 12 vehicles, each with a capacity of a pallet and a half travelling approximately 25 kilometers daily.
In addition to the advantage of emitting zero atmospheric pollutions, electric vehicles also have a significant reduction in relation to noise pollution. They do not make noise (other than signaling) which allows for a better coexistence with the environment in such a hectic area.
On the other hand, since the electric vehicles are small they are much more comfortable and efficient above all.
distribution with electric vehicles
outstanding case
A fleet of
serves customers in the downtown area of our capital.
12 electric trucks
Zero
vehicles providing excellent service.
CO2emission, fuel-efficient
“We give a better quality service to customers, improve service speed and arrive at the precise time and anywhere. And all of that, in addition, with zero CO2 emissions, being sustainable”,
says Carlos Ortiz, Head of Operations of the carrier company Aillavilu, who serves us there.
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beverage benefits
a wellness-oriented beverage portfolioWe offer a broad portfolio with high quality drinks to meet the needs of our consumers. Our commitment is to provide options to be and feel good, in the energy, hydration, nutrition and relaxation categories
always caring for consumer needs
Low calories and reduced sugar: Responding to consumer preferences, which include health and nutrition considerations, we offer a line of low calorie beverages: Coca-Cola Light, Coca-Cola Zero, Coca-Cola Life, Sprite Zero, Fanta Naranja Zero, Powerade Zero, Inca Kola Zero, Quatro Zero, Leão Ice Tea, Matte Leão, Guaraná Kuat, Schweppes, Jugos Del Valle, Powerade, Mais, Frugos, and Fuze Tea. In Brazil, a new formula for Fanta Naranja, Uva and Kuat, and in teas with Leão Fuze (hot fill) and Chá Verde.
As a result of a process of listening to our customers and consumers, we
seek to interpret their needs and bring us closer to their tastes to be able to offer the best products.
For this reason, in October 2014, we introduced the new recipe for
Coca-Cola Life which changed its taste profile with a more delicious and refreshing proposal. Sweetened with Stevia and sugar cane Coca-Cola Life continues contributing 36 calories per glass, which makes it low in calories (57% than regular Coca-Cola).
Nutrition: We offer soft drinks with increased nutritional ingredients (vitamins, salts, minerals, natural juices) such as the ready to drink juice Nutri (Cepita/ Frugos/ Del Valle/Andina), Vitamin Water, Powerade, Burn, Fanta Zero con vitamina C, Kapo, Del Valle Kapo and Del Valle Reserva Açaí+Banana.
Returnabilty:
Our returnable formats are designed to be the formats with the most added convenience within the point of sale, allowing accessibility to our products to the people with limited resources. We offer Coca-Cola, Coca-Cola Light, Coca-Cola Zero, Fanta Naranja and Sprite in returnable formats of 0.350 lts., 1lts., 1.25lts., 1.5lts., 2lts., 2.5lts. and 3lts. at accessible prices.
The consumption of this product generates a double value to society: on the one hand it provides accessibility to low-income people and on the other hand, the consumer makes a decision of responsible purchasing, since acquiring sustainable formats for the benefit of the environment, there is a possibility to recover containers and their subsequent reuse.
More than 30% of the brand portfolio offered contains increased nutritional ingredients and contribution of minerals, etc.
46% of our product portfolio is low or Zero-calories, including Coca-Cola Light, Zero, Life and other light soft drinks.
Percentage of returnable format(1) sales
Argentina45.6%
Brazil17.1%
Chile57%
Paraguay49.3%
1Includes family and personal size returnable formats 100% of the packaging of the products we offer is recyclable (glass, aluminum, cans, Pet, Refpet and tetra pack) as well as 100% of the secondary packaging.
Others
Isotonic and Energy Drinks
Sparkling Soft Drinks
Juices
Water
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3534 /
Coca-Cola Brazil works to expand the range of ready-to-drink beverage choices, creating more practical alternatives that provide hydration and well-being. The innovation presented by Del Valle Reserva Acai with Banana is a business model that expresses our vision and our values. “It’s a product that carries nutritional benefits and sustainability from beginning to end of the value chain”
Marco Simões Coca-Cola Brazil Vice President of Communications and Sustainability
Del Valle Reserva Açaí+Banana enters the market with the nutritional value of açaí.
The new launch of Coca-Cola Brazil, is a presentation of the “Del Valle” special line for nectars which was developed by the Research and Development Laboratory of Coca-Cola in Rio de Janeiro, responsible for new drinks for Latin America, and one of the five centers for Coca-Cola advanced research around the world, together with Belgium, Japan, China and United States.
The nectar comes in 1 liter and 250 ml. formats with images that refer to the origin of açaí. Ideal to drink at breakfast and during the early hours of the day.
Del Valle Reserva, brings the nutritional benefits of açaí, and is a source of zinc and magnesium, that help in obtaining energy, and banana pulp, that naturally sweetens the beverage reducing sugar addition.
The Company’s entrance to the growing market of super fruits (called this way given the high concentration of nutrients) through the Reserva signature is accompanied by the creation of the “Coletivo Floresta” project (see outstanding case community chapter), which works with açaí pickers on income generating activities, with an approach on the social and cultural well-being of the communities and the biodiversity conservation of the Amazon forest.
Del Valle ReseRVa açaí+banana
outstanding case
A beverage with the
nutritional benefitsof super fruits and also an innovating project for the development of the açaí value chain
picked by
Amazonian riversidecommunities
quality and excellence in the processes
Quality is a central issue for the company, reflected in the adoption of world class standards since our inception. International best practices that guide our management reach people, processes and products.
We are incorporating into our processes and facilities the variables of eco-efficiency in the use of resources, the minimization of waste in recycling and the improvement in the quality of life of workers. At the same time, we have developed programs to monitor the quality and safety of food in order to continually preserve the health and safety of consumers.
For example, audits are carried out in the production process and finished products, international food safety standards are certified, hazard analysis are implemented, physical, chemical and biological risks are evaluated that may impact on the health of consumers, infrastructure improvements are made to increase the level of safety in the reception of raw materials, processing
and storage of finished product, among others. All these activities are formalized in the INTEGRATED MANAGEMENT SYSTEM, certified according to the requirements of FSSC 22000 food safety certification scheme.
Our integrated management system incorporates international quality, environment, safety and occupational health and food safety standards, according to the requirements of the FSSC 22000 food safety certification scheme
Management Systems at Coca-Cola Andina· Quality: ISO 9001
· Environment: ISO 14001
· Occupational Safety and Health OHSAS 18001
· Food Safety FSSC 22000
· FSSC 2200 includes ISO/TS 22002
· KORE: The Coca-Cola Company’s corporate requirements. Scope productive facilities and distribution centers of the operations in each country on Quality, Environment, Occupational Safety and Health
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At Coca-Cola Andina we manufacture waters, liquid foods and non alcoholic beverages carbonated and non carbonated and we bottle carbonated and non carbonated mineral water.Understanding quality as a broad concept which simultaneously satisfies our clients, consumers, shareholders, employees, suppliers and the community, we have established the following policy:
• Responsibly manage our activities, products and services and in compliance with The Coca-Cola Company’s policies, client’s requirements, applicable rules and legislation;• Manufacture and distribute safe products• Achieve a safe and healthy working environment for workers and visitors;• Optimize our processes for greater productivity;• Develop our suppliers;
Coca-Cola Andina’s management is committed to lead and support the implementation of this Statement
• Promoting excellence, sustainability and efficiency;• Ensuring availability of resources and the best available technology;• Giving priority to the prevention of pollution, damage and diseases;• Managing knowledge and information across the value chain;• Encouraging teamwork and learning as a key factor for human capital growth; • Measuring and evaluating our performance, driven toward a consistent improvement of the effectiveness of the Integrated Sustainability System.
Integrated Sustainability System Policy
Argentina Brazil Chile Paraguay2013 2014 2013 2014 2013 2014 2013 2014
91.70% 93.50% 94.90% 96.80% 91.60% 95.20% 94.60% 94.60%
Beverage Product Quality Index (BPQI) Key 2014 Sustainability Performance Indicators
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Coca-Cola is committed to providing objective, meaningful and understandable nutrition information on all our products. We believe in the importance and the power of an informed choice.
We support nutrition labeling based on evidence and education that enables consumers to make decisions that meet their nutritional requirements and individual energy and those of their families. That is why we did not only adopt the legislation even before the period of validity, but we voluntarily included the necessary information to guide our consumers in their consumer decisions.
We apply Guideline Daily Amounts (GDA)
GDAs are a nutritional information tool presented as tablets in the labeling of products. It is based on evidence to help consumers choose diets that meet the individual nutritional and energy needs.
GDAs are being implemented in South America by different food and beverage companies on a
voluntary basis. Coca-Cola is the first beverage company worldwide which pledged to post calories on the front of its labels. In accordance with Coca-Cola´s global policy, all labels (except glass and water) must contain GDAs. In Latin America, Coca-Cola presents the amount of calories, along with daily value percentage (DV%) on the front of the packaging; being consistent with the commitment to provide consumers with transparent nutrition information about its products.
At Coca-Cola Andina, we include the content of calories and amount of sugar, total fat and sodium in products in our portfolio. In addition, a nutrition facts panel provides additional data on proteins, carbohydrates, fiber and minerals and vitamins, when the product contains them. The percentage of the recommended daily value of the mentioned nutrients on a diet based on 2,000 calories a day, is also presented.
marketing and responsible labeling Responsible Marketing
National marketing campaigns are designed
in conjunction with The Coca-Cola Company.
We have a responsible marketing policy, which
stipulates that advertising is not directed to
children less than 12 years old for any of the
company’s products. There is no advertising
guideline in media whose audience of children
under 12 years old is greater than 35%.
Additionally, children younger than 12 years old
are not shown drinking any products without the
presence of a responsible adult.
Coca-Cola is the first beverage company
worldwide which pledged to post calories on
the front of its labels
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Client channels
Build a cooperation bond with our customers is key to ensure that the quality of our beverages and that the message we want to convey reaches our consumers adequately.
To generate the long-term relationship we have channels so that customers may give us their opinions and expectations, and simultaneously we actively work to meet their satisfaction with our services.
The two main communication tools are Customer Care Service and Satisfaction Surveys.
All our operations have a contact center that receives customer queries and complaints
through various channels: website, phone calls, email, and cell phone text message.
We measure the level of customer satisfaction evaluating factors such as salesmen, dispatch, sales support, billing, supply of product variety, quality and profitability, hotline service, among others. Through the measurement of the performance of Coca-Cola and its competitors in these factors, the competitive situation is determined allowing us to develop action plans for the entire year. Since 2011 operations measurement criteria were unified, thus achieving comparability of results.
ARGENTINAConsumer information: 0800 8888 888Telephone 0810-7777-888Text message 3516212622E-mail: [email protected]
BRAZILTelephone 0800-0235338.www.coca-colabrasil.com.brSAC 0800 -0212121
CHILEHola Coca-Cola 800 219 999
PARAGUAYTelephone 0800-115555*2622 from mobile telephonesE-mail: [email protected]
Contact with consumers The main channels of communication for consumers are the Telephone Contact Center and through the website and social networks.
Contact with consumers is carried out through The Coca-Cola Company´s channel, that in its management procedures, have certain cases which require scaling and solutions on to be handled by the bottler.
When consumers directly contact our operations, the contact is registered and then derived to The Coca-Cola Company to give equal treatment.
How to contact Client Service?
communication with clients and consumers
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271,000clients in the 4 countries
842,429contacts to
Customer Service
49.7%of the contacts conducted
inquiries and service
requests 85% 61%
70.8% 83%
Satisfaction level with
Coca-Cola Andina
Argentina Chile
ParaguayBrazil
13%of the contacts were
sales and taking orders.
37.2%made complaints
The development of this innovative concept that provides small and medium-sized retailers an alternative competition potential in more like conditions with large areas, made us earn the Commercial Execution Award recognition of The Coca Cola Company worldwide for innovation in this field.
This program is part of our strategy of sustainable development of the communities and the traditional channel as a whole. It consists of enhancing productivity of the traditional channel (small shops, kiosks, mom & pop’s, etc.) to improve their business model producing a greater complementarily between adjacent businesses instead of having a competition among them.
Additionally, in certain vulnerable counties, the program was supplemented supporting the community by installing recycling centers and/or recreational places in the surroundings of these businesses.
The local team discovered that there were areas in which there was a concentration of three or more clients with which we could work with to help them complement each other rather than compete, thus satisfying different sales occasions. In this way, this concept was created and sought to promote it in the traditional channel through the strengthening of these Community Retail Centers (CRCs)
The pilot project began in 2011, approaching clients, developing a graphic line which gave a common identity to all these businesses, generating the visual proposal of each type of business, offering the ideal amount of products, forming the implementing teams, finding the necessary suppliers and putting this new concept into operation. In addition, a CRC manager was appointed by business unit.
The year ended with 300 CRCs implemented in Santiago, and sales growth figures that endorse the initial premise: 10% to 12% growth above similar clients in which the CRC concept was not developed.
Additionally, we conducted a quantitative and qualitative study with consumers, i.e. those who ultimately buy the products; obtaining conclusions, such as that the image and the infrastructure of these business groups are attractive factors that positively influence the purchase decision.
Community Retail CenteRs (CRC)
outstanding case
In 2014 we implemented
1,000 CRCsin all areas of our Coca-Cola Andina Chile franchise
It benefits more than
5,000 Clients and their area of influence
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active and healthy living
fair play
teamwork
joy
friendship
At Coca-Cola Andina we promote the integral well-being
of people through initiatives that promote active lifestyle,
maintaining a balance between proper nutrition and regular
physical activity.
In all the initiatives that are carried out, we emphasize
values such as fair play, teamwork, joy and friendship.
our approach
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With the conviction that physical activity and fun together are the best way to fully move along all of life’s stages, the Coca-Cola Cup rescues the essential values of the sport: camaraderie, fair play and an active living, seeking to:
• Promote the benefits of a healthy and active life.
• Promote the free expression of young people through sport, complementing their intellectual training.
• Spread respect, fair play and healthy competition and teamwork.
• Develop a sense of belonging and the interaction between the participants.
This football tournament is the largest intercollegiate sports expression at
regional level, with the participation of teenagers between 13 and 15 years old.
It was born 15 years ago in Mexico and played in Argentina, Brazil, Chile, Colombia, Guatemala, Costa Rica, Honduras, Spain, Nicaragua, Dominican Republic, Panama, Paraguay, Peru, Venezuela, and several countries in Africa. The champions of each country travel to play at the International Coca-Cola Cup.
In every country the program is supported by the generation of alliances with social, sporting and governmental entities in all cities where the Coca-Cola Cup takes place, helping to strengthen the social fabric.
coca-cola cup
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argentina12,032
teenagers enrolled
9,984 men and 2,048 women
752teams enrolled
28cities
reached
1,175games
played
6,000
participating
teenagers between
13 and 15 years old
248men’s teams
80women’s
teams
chile from Arica to
Punta Arenas
Hey Let’s PlayHey Let’s Play aims to promote the physical and cultural activity during breaks, free spaces at schools.
Powerade SponsorshipThe major marathons and sporting events were addressed from the Powerade brand, through the organization and sponsorship of events.
Health Professionals Key EventsWe were present at various events in Paraguay supporting nutrition, sport and the integral well-being of people. To do this we installed interactive “Living Positively” stands, with delivery of products, the possibility to access the website of the Health and Wellness Beverage Institute and to also perform
physical activity through interactive games. We participated in the nutrition day organized by the Private Institute of Integral Nutrition, the Natalia Stipanovich day, the Paraguayan Nutrition Association day, Nutrisys Update day and the World Heart Day organized by the Paraguayan Cardiology Society.
Health and Wellness Beverage InstituteThis Institute is part of the ongoing commitment of The Coca-Cola Company to advance on scientific knowledge in understanding about beverages and the importance of an active, healthy and balanced lifestyle.
It seeks to serve as a resource of information for health professionals about the science, safety and benefits of beverages and their ingredients, as well as the importance of diet, nutrition and physical activity for health and well-being.
other active and healthy living initiatives
Action activated in 160 institutions, reaching 3,000 students from grade school to high school.
In all countries where we operate
More information at: www.institutodebebidas.org
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Coca-Cola’s Active and Healthy Living campaign implemented regionally under the slogan “Escolha sua parada para não ficar parado”, in English “Choose your activity to stay moving”. The campaign’s objective, was the promotion of an active and healthy life among young people.
For its implementation, Andina and Coca-Cola made an agreement with INFOGLOBO. 40 schools were mapped and chosen in the State of Rio de Janeiro and Niterói, whose target audience is teenagers.
Taking advantage of the conceptual foundations of the campaign and its elements, activity with high level of entertainment was structured through 6 sports stations: Battle of strength (the
rope game), skate, trampoline, bike competitions, bowling and racing.
Entertainers, promoters and sports monitors encouraged activities spreading the campaign objectives, helping teenagers in 40 schools to experience the daily activities and choose their favorite in order to stimulate the commitment to a more active life. The participation of the students was encouraged through competitions. At the same time, campaign commemorative panels remained in each of the participating schools thus reminding about the importance of engaging in a healthy lifestyle and wellness activities and shared fun, the values of our brand.
escolha sua parada para não ficar parado
outstanding case
40 schools
enjoy sports stations installed in schools
40,205 students
participated in the activities of the project
6,053 students
ANDINA SCHOOLS “Escolha sua parada para não ficar parado”
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Joining the football spirit initiative at the height of the World Cup Brazil 2014, Fields for Chile was implemented in Chile; a joint project between The Coca-Cola Company, Andina Coca-Cola and Coca-Cola Embonor, that built and enabled 15 fields with green areas throughout the country, one in each region.
Under the pillar of Action and Movement for All, Coca-Cola Andina was partner and an active contributor to this project, which was also supported in its implementation and development by the national NGO My Park Foundation.
Dozens of communities were evaluated and the 15 finals were chosen for their particular
conditions in urban development and high social risk of children and young people. In general, the chosen places shared similar characteristics: abandoned, dry sites, with almost no infrastructure, often defenseless to crime.
After the intervention of Coca-Cola, Coca-Cola Andina and My Park Foundation, and with the support of hundreds of volunteers from the companies and the communities themselves, the picture changed dramatically. The fields today look like professional sports establishments, with synthetic grass and lighting; the environment was filled with grass, plants and trees, beautifying also the place with color and energy. More than 100 workers from Coca-Cola Andina, portrayed
the spirit of Coca-Cola ambassadors, put their effort and commitment in raising these public spaces, enjoyed sharing and working elbow to elbow with the community; inspired also by family members who were invited as volunteers; and acting to make this place a better place to live.
There were more than 56 thousand Chileans impacted by this great project, 26,700 belonging to the regions where we operate. The work sought to generate spaces for living a life in motion, which contributes to the happiness of those communities, especially to children and young people.
FielDs FoR CHile
outstanding cases
United so that all Chile remains moving
“Before, this place was a field in bad conditions, surrounded by very few green areas, which were also poorly maintained.” Children would play here for a short while, they would come here because they had no other place to go, there wasn’t much more. Since we were benefited with Fields for Chile it changed from heaven to Earth. Now it looks beautiful, an equipped field, green surroundings. Children use this field a lot, neighbors come out with their children to play in the evenings. I think everyone feels like I do when we stop and look at what Coca-Cola gave us: proud. It was a very big gift and that is why we take advantage of it and take care of it a lot, there are even neighbors who are responsible for watering the plants every afternoon. We are very grateful”.
Rosa Santander, President of the Board of Neighbors
Oscar Bonilla South / Rancaguafrom our concession areas impacted with the project
26,700 Chileans
We were partners in this Coca-Cola project, contributing in the construction of
in the cities of Antofagasta, Copiapó, Coquimbo, Santiago, Rancagua, Coyhaique and Punta Arenas.
7 soccer courts
The program donated a field and green areas to communities during 2014 for each region of the country.
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water stewardship
As bottlers of Coca-Cola beverages, the care for water throughout our product cycle is one of our main strategic axes. We work to protect this resource, not only because it is vital for human life and the communities where we operate, but also to our business.
Our challenges are based on the following principles:
• Reduce means putting all necessary efforts (resources and technology) so that each day we consume less water in our processes to produce our beverages.
• Recycle part of the water is incorporated into the beverage and another part is used in the production process. The latter is led to an effluents treatment plant that delivers water suitable for animal life and thus returned to nature.
• Replenish is a concept of returning the water used in our beverages from conservation projects that enhance the natural infiltration of water and the care of underground aquifers and water access.
Water is a precious and essential resource for life. We know that in order to make a significant difference, we must approach our efforts beyond the limits of our own bottling plants.
Our goal is to be the true guardians of the water resource; responsible water administrators through the promotion of projects that not only improve water efficiency but also collaborate in the conservation of the sources of this resource and in making water accessible in the communities where we operate.
We work actively in several lines of action in our operations, carrying out strategic alliances with organizations that are familiar with the local problems.
A key concept in this work pillar, transformed into a project, is “Replenish” in which we approach many of our efforts to return to nature the water we use in our beverages. It has a double purpose: the conservation of watersheds for sustainability and access to water as a human right in the areas where we operate, with measurable results in three categories:
• Protection of watersheds
• Water for productive use
• Access to drinking water in the communities
reduce
replenishrecycle
our approach
importance of water resource
A key concept in this work pillar, transformed into a project, is “Replenish” in which we approach many of our efforts to return to nature the water we use in our beverages
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Water Consumption (liters) 2011 2012 2013 2014
Argentina (1) 1,694,360,700 1,873,029,865 2,061,169,755 2,661,571,787
Brazil (2) 1,909,754,000 1,815,232,000 1,884,794,000 1,906,945,242
Chile (3) 1,391,200,000 2,823,436,707 2,887,571,404 2,570,378,697
Paraguay (4) 962,887,000 819,494,770 765,562,370 768,418,161
Note: the ratio of produced soft drink is affected by the type of product that each operation manufactures in each country. We can make three big differences between carbonated soft drinks, non-carbonated soft drinks, and soft drinks in returnable bottles, each one of them has a different production process which entails different water consumption to produce a liter of soft drink. Returnable products or packaging orientation requires greater consumption of water as well as non carbonated products due to its filling process. Ratios in the table are affected by the increase of new categories in the manufacturing mix (juices, isotonic, energy, etc.) and the growing mix of returnable containers.
(1) It corresponds to the Cordoba plant, whose source is 100% underground water wells (2) Includes Jacarepagua and Vitoria. Underground water (wells) and municipal water (treated and channeled through the public network) (3) Corresponds to the Renca plant. Inaugurated in 2012. The extraction of water is done through underground water. The exploited water banks correspond to the Santiago Central sector, according to the Chilean water authority, DGA (for its initials in Spanish) Network water is used as drinking water in dressing rooms, bath rooms, and casinos. (4) Underground water supply coming from Patriño Water Bank, through artesian wells over 150 meters deep.
100% of waste water generated in our processes is treated at our own and/or external effluent plants
2013 2014
Argentina (6) Brazil Chile Paraguay (6)
2013 2014 2013 2014
Total discharge of treated waste water (in liters) into effluent plants
754,808,465 973,027,890
2013 2014415,232,000 582,413,226 680,307,658 1,122,048,901 320,489,110 290,687,081
2013 2014
Argentina Brazil Chile Paraguay
2014 Key Sustainability Performance Indicators
2.14
2.03
1.76
3.06
2.7
2.17
2.19
2013 2014 2013 2014 2013 2014
1.76
Efficiency in water consumption Amount of liters of water necessary to produce one liter of soft drink
6362 /
Rainwater recovery:At Coca-Cola Andina, by means of a rainwater collection system and storage in tanks or lagoons, we use this resource for different destinations such as ancillary services, fire protection and sanitary services at the plant.
Optimization of CIP sanitizing processes:All production lines are equipped with automatic CIP systems (Cleaning in Process: a cleaning and sanitizing process for the line ducts for changing flavors) this allows us to save water and energy. The last rinse water is stored in tanks, and it is then reused in the first rinse of the following cleaning process.
Brazil: Water consumption efficiency: Advances in reducing the consumption of water in Brazil are related to the implementation of an air rinser (system composed of air blowers which are oil exempt aimed to replace the water in the bottle rinsing process) and the replacement of one of the returnable bottles washing machines for a more efficient equipment (Jacarepaguá).
Effluent treatment plant:Vitoria Plant was expanded applying more modern and efficient technologies. New biological reactors were installed which have a greater processing capacity, as well as centrifugation and biological sludge flotation systems.
Chile: RENCA Plant:This Plant, inaugurated in 2012, was designed to maximize the efficient use of water, among other resources. It is certified pursuant to LEED (Leadership in Energy and Environmental Design). The new corporate building was also designed and built pursuant to the same requirements.
Among the plant and building’s main advances regarding water reutilization, we can mention:
• Automatic control of sanitary equipment and drinking water faucets that shut off automatically.
• Nano-filtering Water Recovery: last generation water treatment with nano-filtering membranes, producing optimum quality for the production of drinking water. Characterized
by minimizing the use of chemical products, replaced by physical processes of purification of the treated water.
• Segregated treatment of liquid industrial waste (LIW):Wastewater management is outsourced, through the company Ecoriles, which continuously monitors and analyzes the quality of waste water we treat. Meetings are conducted on a monthly basis with this company to analyze the evolution of the issue. We are in the process of studying a company-owned liquid industrial waste treatment plant.
• Reduction in the amount of non-compliant spilled productions: 4 new lines were installed with volumetric fillers, which decrease the amount of problems of net content.
• Sensors in bathrooms to economize water consumption.
• Washers with high efficiency rinsing systems.
• Research on water source vulnerabilities.
• In depth Hydro-geological research that was used as a basis for the preparation of the current development plan of new wells that ensure water supply in a sustainable manner.
Paraguay: Arroyos y Esteros “Water for All”Donation of a water well in Arroyo y Esteros Coca-Cola Paraguay’s commitment to environmental and social issues is aimed at the sustainable development of our communities. In 2010, within the framework of the “Living Positively” sustainability platform approached on the strategic axis in the support of the community and within the framework of an action associated with the Dequeni Foundation, the municipality and the communities of Toro Paso, Loma’i and Itakúa companies, a water well was inaugurated that today allows access to this resource to 116 families and more than 800 people who previously did not have direct access to this resource.
outstanding initiatives and results
Drinking water, quality of life and health
of an entire community 116 families, 814
people
All production lines are equipped with automatic CIP systems, this allows us to save water and energy
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The aridity of the Northwest of Córdoba, where rain seems to have extinguished and where access to basic needs is a constant struggle, we find Iglesia Vieja, an area inhabited by almost 400 people. It is located 240 kilometers from the city of Córdoba. Close to the capital, but at the same time very far, since they do not have drinking water or electricity. For supplies they depend on the nearby town of Tuclame.
The homes of Iglesia Vieja are located on dirt roads, where vegetation survives in a constant struggle against drought. Access to water was always a huge difficulty. Rainfall in the areas is so low that every drop that falls is a blessing.
People who live in this community had no another option other than going 20 kilometers away on foot, by bicycle, or car, to stock up on
water in the near town of Tuclame. This town has a perforation of 116 meters, connected to a tank elevated at 20 meters which works with a pump provided temporarily by the quartermaster. This is where the people of Iglesia Vieja had to go to have access to drinking water.
Faced with this situation, at the beginning of November 2013, residents resolved to get organized to ensure that each household in Iglesia Vieja had access to this vital resource through the construction of a water network that counted with a pumping system suitable for the domestic distribution.
Miguel Angel Piriz, a neighbor at Iglesia Vieja, one of the people who made efforts to carry out the project shared the initiative with Coca-Cola
Andina which inspired the action “We are away from it all and without access to essential needs for any human. We have to go fetch water in drums, which is tremendous and exhausting. To improve it is crucial to have water and to reach every household.”
Neighbors contacted representatives of different companies. They also contacted Coca-Cola Andina. After knowing about this problem and how neighbors had worked to transform their situation, we provided a 10HP water pump and 13,000 meters of pipeline needed to operate the water supply for the neighbors.
For the correct operation of these facilities a three-phase electric connection was necessary, made with collaboration of our company, distributors of the area and the electric
cooperative that supplies the neighbors of this area.
In mid March, main laying works began with the help of neighbors, and when the household network is finalized - scheduled for April of 2015, the works will be completed with the installation of the final pump.
Access to water is a concrete need in many corners of the territory of our operations, either due to scarcity of the resource, or because it is not fit for human consumption. We maintain our commitment, giving continuity to access and purification projects, for the welfare and the optimism of the communities to which we have the privilege of serving.
aCCess to wateRtuClame
outstanding case
It is located
240 kilometers from the city
Tuclame an area
inhabited by almost400 people
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energy management and climate protection
Coca-Cola Andina’s goal regarding energy consumption is summarized in the concept “The business grows, not carbon”. For the year 2020 we proposed to satisfy the consumer’s needs, using the same energy in absolute terms as the one in the year 2010.
Specifically, in 2010 the goal was to yearly reduce 2% of energy consumption.
This strategy is based on two main axes: on the one hand, we developed a variety of initiatives aimed at increasing energy efficiency of our operations, and on the other, we began to measure our carbon footprint, as a first step to define the baseline for operations, and then move towards reducing and offsetting emissions
our approach
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Energy - Best Practices:Implementation of tools called “Energy Best Practices”, promoted by The Coca-Cola Company. This includes actions of control and repair of compressed air and steam leaks; cleaning of heating, ventilation and conditioning air filters; training and employee participation; scheduled control systems to reduce the amount of energy, lighting systems with movement sensors, among others.
New bottle blower:The installation of new bottle blowers allows working at lower pressures, in addition to having a built-in compressed air recovery system. The impact of this action represented a reduction in greenhouse gas emissions.
Use of ecological refrigerant gas:We are committed to use ecological gas in new equipment purchases in all cooling equipment. In addition, we changed cooling equipment, which use refrigerants that are less harmful to the environment.
Ammonia removal:In the direct cooling exchange, we advanced in replacing ammonia for ethanol-propylene glycol in container lines. The installment of the new system, including coolers, condensers, pumps and solutions control instruments, remote monitoring, among other innovations.
Video conference rooms:New videoconference rooms were installed, contributing to significantly reduce the need to travel between different locations and operations.
New production lines in blockThe addition of lines in block allows reducing consumption of energy and water, since transportations travel shorter distances and the process is simplified.
Paraguay Solar panels at the plant:In 2012, solar panels were installed as a pilot project at the Paraguay plant, aiming to harness the energy of sunlight to reduce electricity consumption in the clothing sector. The investment meant 17,000 USD. Currently, the system remains in operation.
Boiler with energy saver:In Paraguay in 2012 a third boiler was purchased, prepared to operate automatically modulating the circulation in the chimneys and pumps, optimizing the use of energy.
This boiler has an economizer, which uses heat from the gases emitted to heat the supply of water and the fuel used to power it is renewable biomass (coco pit, wood chips or briquettes).
most outstanding initiatives
“... it is a good initiative since it is generated by clean energy, the difference between other traditional systems is not perceived, and it is 100% effective in the generation of warm water...” Marcos Benítez, collaborator and one of the users of the system.
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The “CO-GENERATION” project promoted by the Andina Group, allows the use of more than 70% of the thermal energy from the fuels we use in the production process.
Six months after its implementation we are already underway of registering reductions in electricity consumption. For the future we plan to achieve energy self-sufficiency, for the supply of steam, carbon dioxide, nitrogen and part of the water generated for our facilities in the District of Jacarepagua in Rio de Janeiro.
Following procedures and recommendations from the Corporate Accounting Standard and the Greenhouse Gases Protocols Report in 2010 a first measurement of Greenhouse Gases (GHG) emitted during the year arising from the productive, commercial and logistic activities. We began registering Scope 1 emissions (direct emissions resulting from fuel consumption in production processes and/or by equipment of company ownership or control) and Scope 2 emissions (indirect emissions caused by the consumption of electric energy in processes, commercial activities and logistics by equipment of company ownership or control.)
Having begun to measure our emissions, allows us to complement the company’s energy information. Communicating it, shows the company´s commitment to the environment and contributes to empowering consumers to make a purchase decision choosing the company that shows greater commitment to the environment.
Co-geneRationBRazil
outstanding case
Measuring greenhouse gas emissions 2014
(Scope 1 emissions without fleet) company total
19.64 CO2 gr/liter of product.
allows the use of more than
of the thermal energy
70%
Emissions Measuring greenhouse gas emissions
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With the purpose of reducing the consumption of natural gas, from 2011 we began to use a system of capturing biogas generated in the liquid effluent treatment plant.
The recovery of this renewable energy source was used as fuel in boilers, replacing almost 10% of natural gas in 2013.
During 2014 we carried out the expansion of the liquid effluent treatment plant, maintaining and improving treatment technology.
Biogas generation occurs in the anaerobic reactor where bacteria produce methane to degrade organic matter. Methane is captured in biogas recovery plant, passing-then-by a series of stages of purification for its later use as fuel for the self-supply of the plant and for replacement of natural
gas that is used in the production and specifically in the bottling of beverages.
This technology is more ecological, it satisfies a need for energy and contributes to the improvement of living conditions by reducing pollution.
With the new expansion, potential biogas generation will reach 175,000 m3/month, which will be used for the heating process and natural gas replacement.
It is important to note, that the outcome of the treated effluent is suitable for aquatic life and it complies with the parameters required by Coca-Cola based on requirements of the World Health Organization (WHO) and with the existing legal requirements.
Biogas ReCoVeRy Plant montecristoargentina
outstanding case
Generated 2014
577,050 m3
Percentage of natural gas replaced by biogas
10.03%
“The total capabilities of the plant are defined in 200m3/h of treated flow, with an organic load of 24,100 kg DQO/day, with the possibility to maintain the efficiency of the anaerobic process throughout the year regardless of the Summer season by the incorporation of an effluent warming stage.The addition of an online DQO detector at the beginning will allow us derive the effluents that exceed the limits of the plant design to then treat them without affecting the efficiency of the process, maintaining and improving output parameters according to applicable corporate and legal law compliance.”Lorraine Depetris, Environmental Supervisor
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Total organization energy consumption (renewable and non-renewable fuels, acquired and produced electricity) in Mjoules
2010 2011 2012 2013 2014
Argentina 0.30 0.28 0.33 0.30 0.34
Brazil 0.41 0.36 0.34 0.30 0.33
Chile 0.31 0.24 0.31 0.29 0.28
Paraguay 0.56 0.56 0.54 0.55 0.59
As with used water/liter of beverage ratios, to the extent of the offer expansion of sensitive products, new categories and a greater mix of returnable containers, processes require increased consumption of this resource. The constant challenge is to reduce consumption ratios, even by increasing the supply of new categories of beverages and packaging.
Mjoules
2013 2014
Argentina Brazil Paraguay
2013 2014
381,459,584 445,780,496
2013 2014
322,477,904 357,552,233
Chile
2013 2014
280,560,992 266,557,791 194,232,996 211,853,605
results 2014
Key Performance Sustainability Indicators
Energy used per each liter of produced beverage MJoules/produced beverage
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sustainable packaging
Bottles consisting of up to 25% recycled PET
The E COFLEX bottle represents a 57% PET savings over the bottle previously used, with a significant reduction in the carbon footprint.
This format also seeks that consumers get involved in the compacting process in order to optimize the subsequent transportation to recycling.
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We permanently optimize packaging (primary and secondary) containing our products as one of the cornerstones of our environmental management.
This applies both in the design of the bottles, and the recovery for recycling or reuse.
Bottle to BottleOne of Coca-Cola’s latest advances in packaging design, has to do with the implementation of a bottle consisting of up to 25% recycled PET. It is identifiable by the words “ PCR PET (Post consumer recycled)” added to the standard code of the products.
Since August 2011, Pet is collected from of the market in Argentina that is then taken to CABELMA’s Bottle to Bottle plant in the city of Buenos Aires, where it is prepared through washes and mills to be combined with virgin resin. Through a demanding treatment validated by the food legal authority, this has been implemented both in green and clear resins in more than 80% of our operations’ PET bottles.
Bottle with lesser use of PET plastic - LIGHTWEIGHTINGAdvances have been made in all of Andina’s operations in the reduction of bottle weight, we expect 100% of our bottles to follow this concept.
With the arrival of Bonaqua in 2012, a natural mineral water, we managed to introduce the lower weight bottle in the market, favoring a relevant environmental action in the Light weighting global and gradual process.
This ECOFLEX bottle has been developed to use the least amount of PET resin in its preparation; also significantly impacting the power applied to its conformation in the injection and blowing process.
New packaging designAt Coca-Cola Andina we are aligned with the global strategy designed by Coca-Cola to reduce the weight of containers and minimize its impact on the environment through the reduction of Pet in our bottles and use preforms with caps with smaller threads that accompany this reduction, known as “Short-Finish”.
Plant BottleThis development, implemented since 2012, is related to the incorporation in non-returnable bottles of up to 30% plant-based resin, generated from sugar cane waste.
The bottle has the same appearance, weight and life than the traditional PET and can be 100% recycled along with other PET plastic bottles. Identified by the green Plant Bottle logo presented on the labels. This type of initiative reinforces our commitment to working with sustainable packaging.
most outstanding initiatives and results
our approach
Distinguished worldwide with gold medal in the DuPont awards in the launch of packaging innovation category
1,487 tons of Pet
reduced in our products in 2014,
equivalent to reduce the carbon
footprint impact by more than
5.13 million kgs of CO2
2013 2014 2013 2014 2013 2014
Argentina Brazil Chile
87.80% 90.00% 91.30% 94.40% 86.50% 87.60%
2013 2014
Paraguay
80.00% 81.80%
Packaging Quality Index
2014 Key sustainability performance indicators
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Returnable bottlesWe also have returnable bottles, in which we have invested in technology that allows us to give consumers the opportunity to choose a more environment-friendly product and accessible to all of society.
During 2014 major projects were developed to expand the supply of returnable bottles in Brazil, growing the mix of these bottles by 66% with respect to 2013, which involved investments in bottles and cases.
Recycling Packaging recovery of our products is one of our major challenges in terms of waste management and its impact on the community.At this point consumer awareness and participation are key factors, for which we have developed programs in partnership with other actors, public bodies, institutions, customers and suppliers.Recovered and recycled plastic is incorporated to new bottles in the Bottle to Bottle system and also to manufacture and deliver children’s games, which are
then placed in conjunction with institutions that are oriented towards the recovery of plastic pet and caps for recycling. All Company bottling plants and distribution centers segregate and recycle the waste generated, in addition we invite contributors and visitors attending the plants to bring their Pet residues, which are taken to the ecological islands of each operation to be recycled.Classification of bottles continues in order to reduce unnecessary breakage of the same. This action brings about a reduction of more than 30% in bottle breakage.
Bottle recovery of our products is one of our biggest challenges in terms of waste management and its impact on the community.
This operation has been done for several years. Coca-Cola Andina along with the Coca-Cola Institute support solid waste micro-collectors in Rio de Janeiro and Vitoria (Brazil).The initiative prmotoes jobs in vulnerable areas and gives value to Pet waste in the recycling network. Bottles collected by the cooperative are partially destined to Bottle to Bottle manufacturing and other general products, such as textile, garden tools, construction articles, etc.
Joint work with micro-collectors cooperative brazil
outstanding case
Over
of waste were recovered in 2014
16 thousand tons
Glass recyclingFor this, we have the commitment of consumers to return used bottles for further processing, washing and entry to production.
Bottles are selected and those that are discarded are sent to the ecological island of each plant for preparation and sent to the recyclers, some products manufactured with recycled glass are asphalt paints.
Waste managementCoca-Cola Andina´s Waste Management System covers all of the Company’s operations, approached on minimizing solid waste generation and its proper segregation, using the 4Rs principle: Reduce, Reuse, Renew and Recycle. Also we work to reduce waste generated and increase the recycling feasibility of same, searching for a valid purpose for each one, generating benefits for entrepreneurships and/or external organizations.
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Waste management systemWe encourage to minimize waste generation, and promote proper classification as well for subsequent recycling. Thus, we reduce the environmental impact of the transportation of waste to the landfill, and collaborate with the community in relation to the issue of solid waste management. In addition, we increased revenues, due to the sale of recyclable materials to companies that work with them.
Ecological IslandsWith this tool, we seek to increase the recycling percentage of all solid waste generated in the administrative areas to give it a correct and friendly destination with the environment. For the proper operation of the island segregation at source is required so, much importance is given to the selective collection of all collaborators, suppliers and visitors. Also, the production area has a plastic grinding service and spill of nonconforming product, thus making a comprehensive solid waste management.
Returnable palletsIn order to minimize waste generation we have reached agreements with suppliers to replace packaging materials destined to become waste for returnable materials that allow for several uses. For example the use of returnable pallets in our glass and Ref Pet bottles.
All production destined to the market is done by returnable pallets and separators. In addition, the supply of preforms is delivered in returnable metal crates, thus replacing the volume of wooden pallets and cardboard use.
Selective waste collectionWe segregate at source waste generated by our operations (production and administrative areas) and we send them to the ecological islands of each plant, where, after a preparation process, are delivered to different recycling companies. For example, tetra is destined to a company dedicated to separating aluminum from cardboard, giving it different recycling destinations according to the type of material.
Equipment at waste warehousesIn Brazil, besides the PET plastic processing mill, the use of a can press was implemented. We seek to constantly increase the value of waste, investing in tools and machinery to prepare materials so that they become useful and required by the recycling market.
Internal campaignsWe carry out internal campaigns by means of programs designed to increase recycled material indicators in all of the waste generated. This includes the elimination of personal printers for collective ones; the use of rechargeable toners, the use of recycled paper; internal campaigns for returning PET consumed by each, among others. Everything is communicated through signs and email messages, ensuring that it reaches all territories and operations.
Chile RENCA plant and new technologiesCollected PET is processed at the plant’s mill, transformed into Scrapy then delivered to a specialized company. It is used for different applications, such as plastic trays, polyester for clothes, trash bags, among other things.
BrazilCommon wasteAs a result of our Environment Education Campaigns which makes a more efficient waste management, in 2014 we achieved 41% reduction of non-recyclable waste.
CompostingIn order to minimize the generation of waste and take advantage of its energy potential we use composting as an alternative for the fate of our organic waste from the restaurant. Composting has as main objective the valuation or reuse of organic matter as a fertilizer to increase crop performance.
Eco-barriers built with plastic bottles:This initiative, carried out in conjunction with a strategic partner, FEBRACOM and in partnership with the Government of the State of Rio de Janeiro, is directed to the construction of three barriers (eco barriers made with solid waste) for rivers in Rio de Janeiro (Brazil).
We work to decrease the waste generated and increase the recycling feasibility of same
All our operations have an ecological Island, where 100% of the solid waste is gathered, which undergo a preparation process for their final recycling.
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1 New bottle purchase or return from the market to the plant;
2 Bottle wash and beverage filling;
3 Inventory and distribution at points of sale;
4 Sale to final consumer;
5 Consumer returns bottle to point of sale
(bottle exchange complete);
Glass Recycling Cycle
1 9
2 8
3 7
4 65
6 Bottle returns to the plant;
7 Bottle inspection;
8 Re-entry to production (go back to step 1)
9 Elimination of non-standard bottles to the supplier of new
bottles.
2014\TN* PET** Plastic Glass PP Plastic Sugar Fructose
Brazil 26,981 4,676 1,965 145,959 -
Paraguay 5,637 3,558 688 32,761 -
Argentina 17,696 9,700 2,400 79,500 49,000
Chile 13,104 9,847 1,684 105,162 -
*in yearly tons**PET plastic: consumed preforms, bottles, etc.
Key sustainability performance indicators
Solid waste generation Grams of solid waste generated per liter of produced beverage
Argentina Brazil Chile Paraguay
2013 20142013 20142013 20142013 2014
13.39 13.76 13.10 11.76 14.30 15.42 23.0 23.3
Solid waste recyclingPercentage of recycled waste versus generated waste
2013 2014 2013 2014 2013 2014 2013 2014
Argentina Brazil Chile Paraguay
92.30 91.0 87.8 91.0 75.9 82.9 86.0 80.0
Note: hazardous waste is treated within the territory of each operation, it does not leave the country. 98% is used to generate energy at a cement plant
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work environment
Within the core values underpinning the company, one of them is to promote a good working environment. At Coca-Cola Andina, we promote the importance of people as a basic business pillar and as a future success factor. For us, respecting people is to offer them a development perspective balanced with their professional and personal aspects.
argentina chilebrazil paraguay
Managers and Senior Executives
Managers and Senior Executives
Managers and Senior Executives
Managers and Senior Executives
Other Workers
Other Workers
Other Workers
Other Workers
107 7860 29
2,021 2,0432,202 1,103
687 1,1855,278 246Professionalsand Technicians
Professionalsand Technicians
Professionalsand Technicians
Professionalsand Technicians
473 50420 100
3,288 7,560 3,810 1,478
Temporary Temporary Temporary Temporary
Total Total Total Total
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our approach
16,136total company
collaborators
argentina chilebrazil paraguay
0%
46%
20%
6%
27%
18 and younger
Between 30 and 39
Between 39 and 49
50 and older
Between 18 and 29
18 and younger
Between 30 and 39
Between 39 and 49
50 and older
Between 18 and 29
18 and younger
Between 30 and 39
Between 39 and 49
50 and older
Between 18 and 29
18 and younger
Between 30 and 39
Between 39 and 49
50 and older
Between 18 and 29
0%
35%
19%
8%
38%
0%
32%
25%
15%
28%
0%
29%
11%
7%
52%
argentina 3,035 men
253 women
chile3,260 men
550 women
brazil6,761 men
799 women
286 employees
with disabilities
paraguay1,354 men
124 women
Diversity Indicators
Employees per age
9796 /
The quality of life for all workers is a central issue and permanent task in the operations.
The last measurement carried out in 2013, reached
87% of adhesion and favourability index was 61%.14%Managers and Senior
Executives
10%Professionals and
Technicians
12%Other Workers
Diversity indicators: % of female collaborators by category 5%
Temporary
9998 /
between the employees and their families.
Celebrating Kid’s Day, Christmas party, we carry out sports tournaments and recognize the employment trajectory of employees with several years in the company. In Chile, we perform marriage encounters and lectures relating to communication in the family.
In addition, we carry out visits to the plant for employee relatives. At different times of the year, employees are offered to invite their families to learn where they work and spend a different day. This visit includes a tour, a video and a chat with a guide who invites you to enjoy the day and the magic of the Happiness Factory.
At Coca-Cola Andina we carry out bi-annual organizational climate surveys, in order to know the perception on the company of each of its members and to obtain specific information on the strengths and opportunities for improvement that we have and to implement specific and precise work plans.
commitment to diversity At Coca-Cola Andina we maintain the strong conviction that diversity, integration and employee development is the basis of the business growth. We encourage the inclusion of workers with disabilities in our business, convinced that diversity creates value not only for the company but for the integration and development of people.
At the same time in Brazil, we developed a Training Program for People with Disabilities, with a duration of two years, whose participants have access to expertise provided by all areas of the company having, at the end of the process, skills to improve their chances of incorporation into the company as well as to other companies.
By the end of 2014 Brazil employee staff has 286 workers with disabilities.
With respect to gender diversity it can be noted that 14% of managers and senior
executives as of December 2014 are women, a ratio we are interested in monitoring, to continue ensuring access and equal opportunity.
quality of life and work environmentWe develop a variety of initiatives to achieve one of our major goals: be a better place to work.
The quality of life for all workers is a central issue and permanent task in the operations.
We encourage the integration of working life with the familyWe have an annual schedule of entertainments, celebrating several events or particular dates. Each of them is designed to take advantage of these instances to generate new connections
Argentina2013/14
63%
Brazil2013/14
60%
Chile2013/14
59%
Paraguay2013/14
N/A
Favorable internal climate Key sustainability performance indicatorsBi-annual survey (2013 data territories previous to the merger with Coca-Cola Polar)
At Coca-Cola Andina we respect and support the right to freedom of association existing in all countries where we operate. We have meetings with unions, and provide the required information. Salary updates are negotiated with the unions on the dates specified by categories and there are no differences in the company between men’s and women’s wages that perform the same function.
Salaries are reviewed by position against market surveys.
Surveys and research ensure external equity of the remuneration of our employees. In all operations, the entry salary of an employee who joins the company full-time sits high above local minimum wage.
Employee turnover rates by region, have remained very low throughout the period, and in relation to other industries.
labor relations
Our initial wages, outweigh
by far the local minimum wage.
2013 2014 2013 2014 2013 2014 2013 2014
Argentina Brazil Chile Paraguay
0.3 0.4% 3.7 3.6 2.4 1.9 0.7
Employee turnover 1
1 Calculated as the division between amount of permanent employees who left the company and the amount of employees at the close of each year.
0.6
% Andina minimum entry wage / local minimum vital and mobile wage
215%Argentina
111%Brazil
109.6%Paraguay
139%Chile
101100 /
Percentage of employees covered by collective bargaining agreements
100% of employees of each activity are covered by the corresponding collective bargaining agreement, regardless of their membership status.
Argentina2013/1471.6%69%
Brazil2013/14
6.5%11.9%
Chile2013/1452.3%48.7%
Paraguay2013/14
32%22.5%
We believe in constant learning and providing our workers with the possibility to develop all skills that will allow them to execute their tasks with responsibility, excellence and commitment. Skilled workers allow greater employability of them and ensure the achievement of established goals.
The training process is performed through the management of training and education activities, with the purpose of adjusting skills and expertise to the needs of the position they occupy.
personal development: training and education
In 2014 we invested 3.25 million dollars, developing 243.1119 hours of training, 39.32% destined to professional development programs and 34.30% in skills and technical knowledge.
18.59%Labor safety
2.57%Politics, human rights,
diversity and inclusion
practices
0.18%Code of ethics and
business conduct
34.3%Work skills
development
5.06%Sustainability
39.32%Development of
competencies
Percentage Training hours by topic
Training
Women 25 Training
hours
14 Training
hours Men
Training hours by workers’ category and gender
Managers and Senior Executives
Professionals and Technicians
Other Workers Temporary Total
hours
Country Total hours
M F Total hours
M F Total hours
M F Total hours
M F
Argentina 3,828 3,337 491 16,811 15,217 1,594 15,915 15,686 229 1,900 1,851 49 38,454
Brazil 745 646 99 76,960 68,015 8,945 71,851 48,333 23,518 496 496 150,053
Chile 195 183 12 23,654 18,962 4,692 12,769 10,979 1,790 8,856 7,904 952 45,474
Paraguay 224 159 65 2,350 1,680 670 6,565 5,844 721 0 0 9,139
Sub-Total 4,992 4,325 667 119,775 103,874 15,901 107,100 80,842 26,258 11,252 10,251 1,001 243,119
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We started with a survey to unveil training and development needs in order to define the annual training plan, which includes:
Andina Leader Management skills development programAttended by area heads and supervisors, totaling a group of 72 people approximately.
This program is defined through the analysis and diagnosis of the level of competence demonstrated during the last measurement period (2011). It is aimed at the development of Effective Communication, Analytical Thinking, Negotiation and Leadership.
Coca-Cola Andina University110 collaborators participated during 2014 We worked together with Universities and Educational Institutions, who made in-house executive training programs tailored for the needs of managers, operators and/or administrative personnel.
In this framework, training programs are approached on sustainability, development and consolidation of managerial and strategic skills. Collaborators are prepared for developing skills necessary when facing business changes. This program, also contributes to improve relationships among
collaborators and areas, seeking a vertical and horizontal integration; it favors coaching and the organization’s climate.
Coaching programIt is aimed at officers and managers, with the purpose of developing skills in communication, leadership, interpersonal relations, reinforcement of bonds, etc. This program is addressed specifically and according to analysis on the above topics and on future roles to perform.
“Safe Work” ProgramsIt trains and advises on possible risks and prevention management, approached on the specific contingencies of each position. It promotes self-care and team cooperation for safe work.
Training on sustainabilitySince 2009, in Argentina we carry out the campaign called “Our Era, Our Commitments” which is aimed at creating awareness on sustainable development in all our personnel on Energy, Waste, Water and People.
In addition, we communicate through our Revista Mundo Andina (Andina World Magazine) a whole section about issues related to CSR and sustainable development, highlighting actions taken by our staff. Also, anyone who joins the company, in the induction process, receives training on how Coca-Cola’s 2020 Vision is aligned to all of our company’s processes by activating CSR actions.
Partnering with the Company’s growth objectives, develop a culture of excellence and prepare our employees to take on new challenges, we train our employees in the field of sustainability in all the countries where we operate.
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performance evaluationDuring 2014 we worked on a new Performance Evaluation model for our collaborators. This project with a final scope of all company territories was built with the joint contribution of experts and mentors of each of our operations.
Coca-Cola Andina is committed to offering integral performance management so as to motivate employees achieve improved individual growth and development. It includes a unique Goal and Competence model, as well as an effective goal evaluation and skills’ analysis, both focused on:
• Promote equal criterion in assigning and evaluating performance goals.
• Motivate the creation of skills focused on results, growth aspiration and people.
• Maintain consistence and transitivity in establishing goals emphasizing on team work and the search of global wide Company excellence.
• Encourage a culture which promotes learning from successes and errors, and implement a cross communication style which promotes that we listen to one another.
• Recognize individual contribution of workers with the best performance.
• Deliver a model that contributes in identifying and selecting potential talents within the company.
• Promote equal opportunity for developing positions that require equal competences and responsibilities.
• Provide tools that contribute a suitable planning of people development.
• The performance management model has been designed as a cross system to the organization, without differences in scope to specific segments or areas, and its gradual implementation is considered for all levels of the organization during 2015-2016.
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Social• Leave of absence for marriage, death of member of the family, siblings or grandparents, medical exams.• Nursery.• Tickets to attend events
Economic• Free products and life insurance• School kit, bonus for employee’s children younger than 18 years old
• Housing policy loans which consist of granting subsidy to 5 workers per year.• Retirement bonus• Personnel transportation service and subsidized meals• Contests for collaborator´s children with the best average school grades.
compensation and benefits To improve the quality of life of our collaborators, we offer a variety of incentives and benefits that allow them access to a broad range of products and services:
Health• Maternity and paternity leave.
• Maternity leave and paid nursing time, 6 months decrease to half work day work without salary reduction for women reinstated after maternity leave.
• Assistance and health insurance
• Life insurance additional to that required by law
• Dental plan
• Health insurance or social works plan, according to the country, includes both the employee and the entire whole family group, and it is the Company who absorbs any differences between the plan versus contributions and legal aid.
• Eating habits re-education programs, with the support of professional nutritionists, to adjust
meal plans according to the collaborators’ activities and conditions.
• Labor gymnastics: we offer access to plans of different physical activities, both at our own facilities and in agreement with sporting organizations, to ensure the collaborators’ comprehensive care and recreation
• Preventive vaccination programs, according to the risks and conditions of each region, e.g., dengue, influenza, yellow fever, hepatitis a, etc.
• Conferences, workshops and lectures on health topics for employees and their families. Articles related to prevention and detection of diseases, are also published both in Mundo Andina Magazine, and on the intranet.
Education• Academic excellence scholarships. We provide full scholarships and academic excellence scholarships to children of employees for their college education and we have a discount on fees for different educational programs for our employees.
Benefits granted to our employees promote family development and enjoyment, as well as health care and prevention along with a healthy lifestyle development
Maternity and paternity leaves granted in 2014 and return to work
CountryAmount of maternity
leaves
Amount of paternity
leaves
Amount of maternity leaves returned to work
Amount of paternity leaves returned to work
Return %
Argentina 27 138 23 138 98%
Brazil 30 224 10 116 50 %
Chile 59 - 53 - 90 %
Paraguay 7 24 6 22 90 %
Note: Return rates are consistent with the rotation indicator of each country.
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health and safety
The approach is on the reduction of accidents, loss prevention, legal compliance and ergonomics.
At each operation we activated programs such as “Zero Accidents” and “Safe Work Managers” in order to have the workers commit with the Operation’s Security Management System.
This initiative provides a set of tools to identify critical points and corrective actions, one of them is the Situational Assessment Program, by means of which the majority of managers were trained to implement the development of a secure behavior along with their teams, thus reducing the number of unsafe acts in the workplace.
We have Health and Safety Committees representing 100% of the Company’s collaborators. Each of them involves executives, technicians and operators, also ensuring the representation of the different areas (logistics, industrial, commercial, administration, etc.).
In Argentina the Accident Prevention Committee is composed of workers, Union and process leaders, who work in the analysis and proposals for improvements.
In Brazil, we have an Accident Prevention Internal Commission formed by members and alternate members representing employers and all employees, covering various areas of the company and taking the Brazilian legislation1 into account.
In Chile, Andina’s Hygiene and Safety Joint Committee was created at the Renca facility, which counts with the participation of Company representatives and employees.
In Paraguay there is an Accident Prevention Internal Commission, representing 71% of the workers from the industrial, commercial and logistics divisions.
Regarding safety in the workplace, among other initiatives, training is provided on accident prevention oriented to adaptation and mounting of new facilities and fire prevention of structural material as well as raw materials in storage. Counting with specific equipment for emergencies, accident drills are organized annually to implement contingency plans to ensure the safety of persons and facilities.
We continue training sales personnel in concepts of defensive driving thus contributing to the reduction of accidents and training auto elevator operators through external certification bodies and specific skills for each sector in accordance with corporate security requirements. Also, when negotiating with Unions health and safety issues are included, such as supplemental health insurance to that by the worker directly and vehicle insurance.
At Coca-Cola Andina we seek to create a preventive culture, adopting health and safety measures for risk prevention, performing medical check-ups on our employees, promoting training in accident and disease prevention
No fatal accidents have been recorded at our operations in part as a result of controls and policies which we constantly apply.
1 Regulating Ordinance 3.214/1978-Regulation Standard N ° 5
111110 /
Throughout 2014, Andina Brazil developed a project aimed at the training
of all employees linked to the fleet of vehicles, motorcycles and trucks
performing workshops of defensive driving and security dialogues that
included security on transit issues, obtaining positive results in lower
rates of accidents. Also, the Workplace Accident Prevention Internal
Week was celebrated with all collaborators including health and safety
issues in the workplace, approached on education and integrating the
participation of workers. Additionally, specific training was conducted
for those who perform work in height, in confined spaces or who operate
machinery.
Chile2014
Argentina2014
Paraguay2014
Brazil2014
Absenteeism rate %
2.76 / 3.09
Lost Time Incident Rate (LTIR)
8.45 / 8.2
Lost Time Injury Severity Rate (LTISR)
213.46 / 215.01
Absenteeism rate %
1.54 / 1.9
Lost Time Incident Rate (LTIR)
0.75 / 0.74
Lost Time Injury Severity Rate (LTISR)
6.48 / 7.3
Absenteeism rate %
3.15 / 3.39
Lost Time Incident Rate (LTIR)
6.5 / 4.66
Lost Time Injury Severity Rate (LTISR)
76.97 / 62.58
Absenteeism rate %
1.89 / 1.78
Lost Time Incident Rate (LTIR)
0.82 / 0.67
Lost Time Injury Severity Rate (LTISR)
7.21 / 4.08
Health and Safety Indicators 2014Key sustainability performance indicators
113112 /
We installed recreational spaces or contact points where people were invited to carry out positive behaviors. The points were “Circle with a smile”, for which 2 taxi-bikes were used that transported people who wanted to take a stroll through the mountain village, spreading their smile to the public in general. “Give a balloon”, where a group of promoters gave balloons to adults so that they could give them to the children and finally “End of Stress Zone“ that was installed in a park with hammocks made out of ropes and Coca-Cola cases to create a space for relaxation, fun and entertainment for the public in general. The activation lasted 10 days in which 2 thousand acts of kindness were carried out, more than 2,500 balloons were delivered and more than 2,000 children played in the hammocks and around 500 people enjoyed the ride on the taxi-bikes.“Let’s go crazy” Campaign - Villa Carlos Paz-Córdoba - February 2014
The Ambassadors Program is a global initiative, and it is being implemented in all operations of the Coca-Cola system worldwide.
The goal is that each contributor becomes aware that he or she is the visible face of Coca-Cola Andina and also of the love for our brands.
We become Ambassadors whenever we spread clear and transparent information about our products among other colleagues, families, friends and the entire value chain; when we protect the reputation of The Coca-Cola System and when we act as true representatives of our company and when we promote wellness in the environment of which we are part.
Ambassadors is a way of thinking and operating and of feeling for the business, a movement and also a call to act, a connection between partners that also inspires our customers, our families, friends and those who surround us.
The program consists in preparing our collaborators as true “ambassadors” expanding their knowledge about our products, their ingredients and healthy lifestyle.
We invite you to join campaigns such as “Signs of Kindness”, to inspire to view the world with other eyes and to transform it into a better place with small actions and gestures of kindness; or “International Happiness Day “ which takes place March 20th and that we take care to remember following the slogan of “Open Happiness” because we believe that happiness is in the simple things like going for a walk, hugging somebody, read a book and be touched by it, enjoy what we do, living naturally, dance, laugh, be with friends, and much more.
As ambassadors, we live each of the company’s values and are committed to each one of the people that we reach and with each of the communities in which we operate. Each Ambassador is essential to achieving our 2020 vision. Our products provide simple moments of happiness and freshness, we create these moments while we strive to improve our economies, our communities, and the environment.
amBassaDoRs
outstanding case
Act
Make a positive difference
responsibly and sustainably
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community
Amount of clients per channel Argentina Brazil Chile Paraguay Total
Grocers and small retailers 59,876 31,291 51,181 36,959 179,307
Wholesalers 766 3,194 271 805 5,036
Supermarkets 1,513 1,606 528 243 3,890
On-Premise 5,915 52,181 10,596 13,823 82,515
Subtotal 68,070 88,272 62,576 51,830 270,748
Customer satisfaction
Argentina Brazil Chile Paraguay
2013 2014 2013 20142013 20142013 20148.1 85% 8.1 70% 8.1 61% 8.1 83%
In 2014 the satisfaction survey changed in kind and detail, distinguishing targets and evaluation points in each country.
Our approachOur aspiration of generating value in societies where we are present, not only reaches the communities in each of the countries, but it also extends to our value chain, formed by clients and suppliers committed to the Coca-Cola essence.To help us grow business sustainability we depend on the demand of our customers and partnerships with our suppliers, distributors, large and small customers and the communities where we operate
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clients
grocers and retailers
271,000
180,000
We have defined our Sustainability Axes and 2020 Vision.
To manage each of these priorities, we need to involve our chain; by involving every link in a particular way depending on its impact on the production process.
For this reason, the knowledge of the characteristics of those who compose it; the quality of the relationship we establish with each of them and their development are vitally important to our operations.
The client network becomes a strategic partner in our business development. Among them, small grocers are a fundamental link in our value chain, since in addition to the social impact they generate, they are responsible of an important portion of the Company’s sales.
Annually and reaching all of Coca-Cola Andina’s operations we measure our clients’ satisfaction level, as one of our key sustainability indicators.
business with social impact: our value chain our clients
total 271,000
Argentina 68,000
Brazil 88,000
Chile 63,000
Paraguay 52,000
ingredients
community
recycling
consumers and clients
packaging
manufacture
distribution
cooling
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Happiness FactoryIn 2014 the Happiness Factory was inaugurated in Cordoba, Argentina. This project invites visitors to a magical trip to discover the secret of the Coca-Cola formula. With this plant we complete 3 plants where we offer a unique experience for the school community (Rio de Janeiro, Santiago and Córdoba).
“High Endeavors” Program We add value to our clientsThis initiative seeks to improve opportunities of 20,000 small and medium store-keepers, increasing their business profitability and having a direct impact on the quality of life of its owners, their families and the communities where they are part of.
Route to Market (RTM)The Route to Market (RTM) project in Paraguay is aimed to servicing our clients more efficiently and profitably, providing them with the service they expect and need in terms of attention and investment in their businesses. RTM implementation allows us to improve service level to our clients thanks to the adaption of optimum service models. Management by the commercial area, through different market selling channels, has evolved and sustained our growth and positioning in the country marking a difference with our competitors.
During 2014 we began the pilot project “Coca-Cola Business School”, reaching locations such as Cordoba, Río Cuarto, Villa María, Carlos Paz and San Francisco, and in a 6-month period we reached 615 users
Coca-Cola Business School pilot reached the localities of Córdoba, Río Cuarto, Villa María, Carlos Paz and San Francisco, and recorded 615 users in a 6 month period.
Today this project is the training activity with the greatest private financing in Chile.
Training: “Sales Strategy in the Traditional Channel”Based on the contents of thematic cards through collectible materials (cards) or through Escuela de Negocios Coca-Cola (ENCC initials in Spanish for Coca-Cola Business School) website, we train our clients on topics such as brands, product portfolio, prices and trade and productive processes.
Sales ContestsWe carry out contests every year, rewarding clients recognizing their trajectory with the Company. Each client can follow the development of the contests that are
implemented throughout the year and keep informed on their evolution on a specific website.
Client visit to plantsThis program helps us strengthen our relationship with clients. During the visit they learn about our history and productive processes; we share our Sustainability programs and the Company’s commitment with the environment.
Distributor Sales force Development ProgramImparted by internal instructors, this program is carried out for the most important distributors, with the purpose of aligning their capacities with our own salesforce and delivering tools so they can meet their goals.
Call-Center Argentina Brazil Chile Paraguay
Amount of calls attended by the call center
303,370 257,995 218,801 62,263
Complaints 201,426 27,347 81,483 3,471
Orders (sales) 48,854 6,068 28,560 26,480
Requests (service, visits, etc) 21,538 197,801 87,321 29,543
Questions 31,552 26,779 21,437 2,769
9.700Distance trained clients
in Andina’s South
Region in 2014
9,700clients trained since
2010 until today
More than
66,626
At our plants, we
attended over
visitors during 2014
coming from over 700
institutions and schools.
30,198
We have multiple support tools to deepen the relationship between the Company and each of its
clients, contribute to their development and attend their interests:
The Coca-Cola Company was one of the 2014 FIFA World Cup main sponsors and Coca-Cola Andina as local host accompanied the enthusiasm generated by its realization in Latin America and more precisely in Brazil, with multiple marketing initiatives. The implemented campaign revolved around a clear message: promote the inclusion of diversity with the purpose of the 2014 Cup to become “The World’s Cup”.
We gave a special welcome to the Cup
The World Cup can only be touched by the world champions and heads of State, but reaffirming the concept of diversity inclusion defined for the campaign, we promoted an unprecedented action to exercise our leadership: decreased visual and blind players of the Brazilian national team 5 - current world and Paralympics’ champions - were able to participate in the event and touch the iconic object. This was a historical fact that can still be seen on YouTube and the first time that the FIFA made an exception to the rule.
We launched a promotion of collectible mini-bottles, for the purpose of making it the World Cup memorabilia for young people.
We organized the Trophy Tour, a Coca-Cola asset. More than 2 million people had the opportunity to receive and appreciate the world soccer award.
We launched the most modern and exclusive way to drink Coca-Cola, the 250 ml. aluminum bottles, an exclusive innovation of Coca-Cola Andina for a limited edition which was produced in Andina Riberao Preto.
During the world cup matches:
We brought the world into one Coca-Cola.The consumers could purchase our products in formats from all over the world.
We carried out the FIFA FUN FEST, as an official FIFA point to watch the World Cup publicly in the 12 host cities.
We built the Coca-Cola House in front of the Maracaná Stadium, as a great visibility icon with unique experiences for young people. It had a bar; a store which sold Coca-Cola jeans; a hospitality area to receive VIP guests including clients; a Coca-Cola FM radio study; a media center to receive celebrities and the press and an area to take pictures with the stadium in the background. More than 4,000 young people took part in this experience.
We painted in red with our logo the airports, 11 subway stations, 17 shopping malls, 75 newsstands, among other areas close to the stadiums.
tHe woRlD’s CuP CoCa-Cola anD FiFa woRlD CuP 2014 BRazil
outstanding case
More than 30,000 people participated each day
during the 25 days that the FIFA FUN FEST lasted in Copacabana
1 million gifts and 4,000 exchange posts.
We created millions of memorable experiences at
Everybody’s Cup!
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our suppliers At Coca-Cola Andina we maintain a Win-Win relationship with our suppliers, supporting their activities and generating key partnerships with those suppliers critical to the operation. Our policy is to encourage growth, waging on their continuous improvement, and giving prevalence to those with the best quality, social responsibility and care for the environment.
Our choice: local suppliersWe try to do our purchases and acquisitions from local suppliers based in the cities where our production facilities and principal distribution centers are located.
This decision essentially tries to promote local development of the suppliers, generate integration with the supply chain, and reduce delivery time as well as reducing risk to exchange rate variations of foreign currencies.
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suppliers10,600
Percentage of local suppliers Percentage of expenses on local suppliers
Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay
96.90% 99.10% 97.10% 86.30% 95.50% 98.60% 98.50% 64.80%
Supplier Indicators 2014
Supplier Guiding PrinciplesAt Coca-Cola Andina we are committed to defending fundamental principles of international human rights at the work place wherever we operate.
We believe that the true way to measure a well-managed business does not only consider if the business is economically successful, but also how did it achieve this success. That is why we seek to develop relationships with suppliers who share similar values and who operate ethically.
Our commitment with human rights is formalized by respecting the Universal Declaration of Human Rights; ILO Declaration on Fundamental Principles and Rights at Work and the United Nations Global Compact.
It is portrayed on the “Supplier Guiding Principles”, whose regulations include associated suppliers and independent bottling groups.
These Principles communicate our values and expectations to suppliers and independent bottling groups, highlighting
the importance of responsible practices at the workplace that respect human rights and fulfill-at a minimum- local labor and environmental regulations, as well as key international conventions.
The Principles consider the following topics: · Respect free association and collective bargaining
· Forbid child work
· Forbid forced work and abuse at the workplace
· Suppress discrimination
· Work hours and salaries
· Company integrity
· Complaint and solution procedures
· Adequate and effective management procedures
As a general rule, the supplier must comply with all current local and national laws and regulations on this matter, unless the International Labor Organization should establish greater requirements, in which
case the latter shall prevail. If a suppler does not comply with some kind of aspect of the Guiding Principles’ requirements, it should implement corrective measures. The Company reserves the right to terminate its agreement with any supplier who fails to demonstrate that it is in compliance.
For more information visit the following website: www.thecocacolacompany.com
Supplier Management Tools ClassificationIn order to optimize Coca-Cola Andina’s management role, suppliers are classified in large categories in accordance with their importance and whether they are critical to the business. Although the same relationship policy is the same with all of them, certain processes and procedures are differentiated pursuant to their classification.
DevelopmentWe promote and collaborate in the performance improvement and development of suppliers through feedback controls and
assessments; collaborating on improvement plans; specific training; financial support in critical circumstances; evaluation and feedback with regard to safety and hygiene practices, quality, protection of the environment and social responsibility. In addition, we have strategic alliances and joint projects of improvement and implementation of new technologies, resulting in increased capacity of the supplier and our operation.
Social and environmental requirementsWe have a specific procedure that defines the rules and requirements that existing suppliers must meet, including aspects of health, safety and environment. In addition, all service contracts include the enforcement of local laws with respect to the prohibition of child labor, a correct record and payment of workers from third parties, enforcement of working hours and the prohibition of slave work.
Coca-Cola Andina’s main suppliers must comply with the requirements laid out in the document and then undergo periodic evaluations carried out by independent and accredited supervising companies that specialize in social compliance, on behalf of The Coca-Cola Company.
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EvaluationSuppliers are evaluated every six months, generating a report where workers of Coca-Cola Andina, products and services users, define a compliance evaluation
score. For production supplies, all suppliers undergo Quality Control analysis. Audits are carried out in the event that suppliers provide lower than expected results.
Supply Chain CommitteesWe participated in Supply Chain Committees of the Coca-Cola bottlers where we worked on joint initiatives in order to enhance business volumes and good business practices.
Thus, we achieved supplier development agreements for strategic supplies and adjustments to our quality standards, for example with sugar, caps, preforms, etc. We also developed alliances with other companies and institutions to work on better practices in the value chain, under the Consorcios de Compras (Purchasing Consortia) organization.
Management System RequirementsAll suppliers, contractors and outsourced parties that serve in the plant, are informed about Management System Requirements: ensure the quality of our products and that they are safe for consumption; mitigate
health risks and the safety of persons involved in the Company’s activities; minimize negative environmental impacts; control risks to intellectual and material property of the Company.
Training in SustainabilityProcess Quality and Safety is responsible for issuing training on sustainability, security and environment to the suppliers before working at the plant. In addition, training days are carried out on topics approached on the business. Additionally employees of suppliers are checked for qualifications and the validity of the training they have in the field of accident preventions, according to the task they will develop.
Actions for sustainable packaging production
We worked with our Company’s suppliers, to manufacture PET preforms with Plant Bottle resin, to decrease the weight of lids and disposable bottles using a lesser amount of resin, to manufacture plastic cases with recycled resin and to manufacture cardboard sheets with recycled paper.
Ingredient suppliers
Category Evaluated concepts 2014YTD
Compliance SGP (Supplier Guiding Principles) 96%
GFSI (Global Food Safety Initiative) 85%
SAA (Supplier Authorization Agreement) NA
Packaging suppliers
Category Evaluated concepts 2014YTD
Compliance SGP (Supplier Guiding Principles) 93%
GFSI (Global Food Safety Initiative) 54%
SAA (Packaging & Sales & Marketing Equipment) 98%
Critical suppliers evaluated during 2014
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Our social investment policy is based on 4 strategic pillars: Good Neighbor; Sport and Social Wellness; Education and Social Inclusion; and Environmental Care.
Through these pillars, we mainly promote healthy active living, climate protection and care for the environment, and donations to local communities.
Good Neighbor It is the strategy of social investment to engage actively and effectively with the needs of the community of which Coca-Cola Andina is a part of.
We have constant dialogue and communication tools for the community to meet the needs and the context in which we develop our business, and thus approach the actions in the interests and concerns of the community. Queries and claims are received through the Coca-Cola’s website, which are referred to the regions and corresponding bottlers.
We measure perceptions and needs of our local community, disseminate activities and strengthen links with responsible institutions.
In this sense, we partner and advise expert organizations on the issues addressed, creating synergies and enhancing the results achieved.
Among them are:
• Fundación Banco de Alimentos.• Fundación Junior Achievement.• Club de Empresas Comprometidas.• Fundación Ambiente, cultura y desarrollo (ACUDE).• Fundación AVINA.• Instituto Argentino de Responsabilidad Social (IARSE)• Universidad Católica de Cordoba ICDA• Universidad Nacional de Córdoba• INTA Instituto Nacional Tecnológico Argentino• Fundación TECHO para mi país.• Organizations: Helen Keller, Soles,
Caritas, ACDE (Asociación Cristiana de Emprendedores)• Fundación Dequeni.• Fundación Paraguaya.• World Wildlife Fund (WWF).• Cruz Roja Paraguaya.• ONG “A Todo Pulmón, Paraguay Respira”.• ONG GEAM.• Fundación Coca-Cola• Fundación Educación 2020• Fundación Coanil• Hogar de Cristo• Ort-Chile (TAVEC)• Centro de Estudios Públicos• Unión Social de Empresarios Católicos
Education and Social InclusionWe facilitate integration and educational opportunities for individuals and organizations, promoting entrepreneurship and sustainability values, through education at primary and secondary schools.
Programs with Junior Achievement FoundationJunior Achievement is an international non-profit organization, which aims to encourage and inspire the entrepreneurial attitude in children and young people from primary, secondary and higher education, allowing them to assess their own goals and strive to reach them.
Sharing their purpose, we support and participate in the programs implemented in the countries where we have operations. Our collaborators are volunteers joining the Foundation’s training programs sharing their knowledge, professional experience and an entrepreneurial spirit. The children of our employees take part in Junior activities that promote entrepreneurship, environmental education (activities that are described in the Environmental Care section in this chapter) and the personal-growth values involved in taking a proactive attitude in society.
We seek to improve the quality of life
and promote happier, developed and
sustainable communities
social investment in the community
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Coca-Cola Andina Chile has collaborated with Junior Achievement for more than one decade not only with the economic support, but also with the participation of collaborators as volunteers in classes. “Teaching others, one is who learns the most” is the best expression that sums up the experience of volunteers who actively participated in programs during the last year that were aimed at “learn by doing”, through a participatory and interactive methodology with contents linked to economic issues and entrepreneurship.
I was a volunteer“The feeling is very positive, it is to be contributing in a different way.” The connection that occurs with the children, when you approach them to talk, what we give to each other is super powerful. I had a good time, learning things, it also helped me get out of the bubble in which we live, whether we want to or not. When you go to a school in Renca, you realize that there is much more going on at the
same time and you do not realize it”.Jaime Gacitúa, Head of Service Platforms / volunteer for the “Global market” program - Instituto Cumbre de Cóndores, Renca“Children captured much of what we taught them, they understood what it was and that was super rewarding for me, as a person and as a professional. It helped me a lot to discover skills I believed I did not have. To share with the children was a gift.”Ángel Berríos Microbiology Analyst / Volunteer in the “Global market” program- Instituto Cumbre de Cóndores, Renca and “Our families” - Colegio Juan XXII, La Legua.In Argentina, during 2014 different activities were conducted within the framework of the agreement with Junior. Besides the participation of our volunteers as teachers in the programs implemented in schools, children of employees participated in Forums and National Meetings to promote the entrepreneurial spirit.
Christmas EventEach year we hold an event to live the magic of Christmas, share with the family at recreational activities and inspire the construction of stronger communities. In every town where we have our main production centers, we carry out activities, shows, truck parades, etc.
Training project for handicapped Through this program developed in Brazil, differently-abled people trained in SENAI - during 2 years. The objective of the program is to learn about the areas of a company in order to facilitate the inclusion of participants in the labor market.
We have already formed more than 150 students and work to insert the largest amount in company positions.
Donation of scholarships to students with limited resourcesThanks to the collaboration of Fundación Coca-Cola Chile, the donation of scholarships was held for the ninth consecutive year for students with limited resources, who opt for a technical-professional high school education. Additionally, and in order to contribute with the quality of teaching, 2014 winning schools were awarded TAVEC laboratories (advanced science education technology) called “Science for all” intended for high school students and “Children have the word” for pre-school, grade and middle school students.
A youth delegation of Coca-Cola participated in the 12th edition of the Entrepreneurs Forum held in Mendoza, which counted with the presence of more than 3,000 young people from across the country.
In Córdoba, 13 corporate volunteers dictated more than 250 hours of classes in 26 programs of the Foundation, reaching more than 760 children and young students of primary and secondary schools in the province.
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We donated 1.8 million liters in
products.
We exceeded3 million
dollars supporting
institutions and
organizations with social,
environmental and
educational purposes.
Social Perception Survey in ArgentinaAt Coca-Cola Andina Argentina since 2010, we measure and analyze the perception that society has on our participation in sustainable development, the creation of social value and the care of the environment.
Annually, we perform a statistically representative survey on the perception that the company’s main stakeholders have (consumers, families, public bodies, educational institutions, etc.)
This tool is designed and applied in conjunction with the Catholic University of Córdoba. It appears from the data obtained from the last measurement, that the company is consolidated as in previous years on the 2nd place regarding companies that do a good job in social responsibility; Although we had obtained better results than in previous years in terms of recognition on behalf of the respondents for responsibility actions developed. The study also highlights the strength of the image-brand and highlights fidelity with the product manifested by consumers. It is a tool that we find useful,
also, to identify areas for improvement on which to work to better satisfy our customers and the community in which we operate.
Education in Environmental CareWe communicate sustainability values to children and young entrepreneurs, in order to protect the environment and promote sustainable communities.
Educate in Afforestation Program-Fundación Acude - ArgentinaWe are aware of the importance of educating about environmental care, this is why for the last 4 years we have been supporting the “Educate in Afforestation Program “, directed by Fundación ACUDE.
The program is conducted in grade and middle schools, kindergartens, special schools and high schools in 162 locations in the provinces of Cordoba, Mendoza, Jujuy, Santiago del Estero and Rio Negro in Argentina. It is aimed at teachers and early aged children as well as grade and special, schools. It consists in the installation of forest nurseries in schools, where trees are produced from seed, so that children and teachers can follow all the natural growth process of the native trees that are
being reproduced and at the same time they receive environmental education as a process incorporated into the curricular content of the schools. The trees that are being reproduced are then planted in communities next to each school with the participation of boys, girls, parents and teachers. This experience also comprehensively promotes the strengthening of values such as respect for nature and natural resources, citizen participation, tolerance and the vision of the future.
“This program gave us many opportunities to grow as a community. I’m very happy because, for the first time I got a positive response from a parent group for the construction of the nursery and to get the elements to do this. This project made me understand that one cannot “impose” something on a community no matter how good it is, and the fact that children grow them, and follow step by step how this seed becomes a tree and what it costs, makes them value it much more and it is no longer an imposition. I think that now everything begins to change from the inside out. I hope I stay at this school until I am old to be able to tell parents, which were my students, that we worked great together as a team. I am grateful for having allowed my mentality to change to make change possible.
“IF WE ARE NOT PART OF THE SOLUTION, WE ARE PART OF THE PROBLEM”
Miriam María Acevedo. Escuela Profesor Oscar Raúl Malvasio. B° Obispo Angelelli.
Learn to undertake in the environment - Mendoza - ArgentinaWith the Junior Achievement Foundation and the participation of our volunteers we dictated courses for three schools: Batalla del Pilar, Roque Saenz Peña and Misiones, all in the Department of Godoy Cruz - Mendoza. The training proposal called “Ecological Detectives in Action” encouraged students to learn and assume a proactive activity by proposing solutions to environmental problems.
From the first moment in which the people in charge of Junior Achievement Argentina, along with Coca-Cola, raised the possibility of implementing the program “Learn to undertake” with the students of the school we viewed it as a valuable and creative invitation. The proposal is articulated completely with the conceptual and attitude contents of the school learning areas and encouraged students to propose ideas, propose solutions on environmental problems in the surrounding community and the educational community and inform the community using the
2014 Educate in Afforestation Program
14,596 children and 708 teachers, who worked voluntarily generating environmental awareness in 263 schools and their communities.
We constantly deal with renewing our social permission to operate
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It indirectly reached
more than
people
30,000
school radio. From the educational institution we widely value the possibility to participate in the experience, which achieved impressive results making it possible for more “Environmental detectives in action” to exist in the community.
Mrs. Graciela Costa – Principal at ESCUELA N° 1-666 Batalla del Pilar
Project - Recycling in Schools of Renca, ChileThe initiative is implemented in three Renca schools and consists of an environmental education and minimization of solid waste campaign.
Three establishments participated (1 day care center and 2 schools), with around 1,700 students.
Upon completion of the first stage, an assessment was made through an approach group in each educational establishment, with the participation of teachers and principals, who provided their opinion about the development of the project, their learning, and proposals for improvements for the future.
“Learn to Undertake in the Environment” (AEMA for its Spanish meaning Aprender a Emprender en el Medio Ambiente) - Paraguay Since 2007 “Learn to Undertake in the Environment” AEMA is the joint program of Coca-Cola and Junior Achievement, whose objective is that school children of different ages learn and acquire awareness about caring for the environment.
In addition, through an alliance with Paraguay Educa, since 2011 the educational material of the program was implemented on the XO computers. An interactive software was developed that allows the proposal to reach more than 2,600 boys and girls of Paraguay.
Planet HourWe adhere to this global initiative of the World Wildlife Fund for Nature (WWF) by turning off the lights of the industrial plants and our main advertising posters for one hour, inviting workers and major customers, suppliers and consumers to be part of this initiative that promotes awareness of the need to take action on anthropogenic climate change and polluting emissions as well as save energy and minimize light pollution.
More than 15,300 children have participated since its beginnings until 2014.
19 volunteers from different areas of the company’s Andina Center (Santiago-Chile) in their role as Coca-Cola ambassadors, assumed the challenge of participating as monitors in three different programs: Our Families; Search for your Success; and Global Market.
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The launch of the “Coletivo Floresta” program strengthens the positioning of Coca-Cola as a company that is strongly committed to sustainability and the economic development of the region. “More than a product we have a good cause. When you drink Del Valle Reserva Açaí con Banana, the consumer will make a difference for many people in the value chain of the açaí extracted from the Amazon
“Director of Social Business Coca-Cola Brazil, Claudia Lorenzo
This module of the Coletivo platform benefits Amazon coastal communities, generating income, providing technical assistance and promoting access to a fair trade chain. In the first year, it is expected to directly impact 600 collecting families and, indirectly 1,200 and about 50 communities
Coletivo Floresta stimulates the development of the açaí harvesting communities (fruit of the Açaizeros, a palm tree that grows only in the Brazilian Amazon) providing technical assistance and promoting access to a fair trade chain. Coletivo Floresta acts on three fronts: stimulate and empower communities, provide technical assistance and promote access for collectors to a fair trade chain. It is implemented through an innovative value co-creation process with communities, respecting the culture and local traditions
The project is a partnership between Coca-Cola Brazil and the Government of the State of Amazonas formalized in a cooperation agreement, which establishes 10 principles that govern the relationship with fruit gathering communities; to preserve their culture, the environment and contributes to its sustainable development. 16 non-governmental organizations and entrepreneurs also adhered to this agreement including the Implementation Agency of the German Cooperation for Development, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) - interested in cooperating with the objectives of the project.
The municipalities of Manacapuru and Carauri, were the first to participate in the program. Agribusinesses, approved by Coca-Cola Brazil, which receive the production, were located in these municipalities, within the framework of the international criteria of company quality. The program operates with the assistance of a local promoter who helps in the articulation of partnerships; technical assistance and in the integration of the value chain; and in addition to lead and implement citizen training and community workshops.
To meet the program’s objectives, Coca-Cola Brazil counts on the experience of the Coletivo Coca-Cola platform, present in 150 communities throughout Brazil and since its implementation in 2009 it has already impacted more than 50 thousand people through six different models.
Coletivo Coca-Cola, is one of the most ambitious shared value programs proposed by the private sector in Brazil
ColetiVo FloResta: a new way oF Doing Business
outstanding cases
A shared value project generates profit for
the company and social impact for the coastal populations of the Amazon.
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Solidarity is a value that is grown not with words but with concrete actions. Last December the Helen Keller Institute materialized the illusion of recovering its swimming pool, a new grandiose space of encounter and development, benefiting about 150 visually-impaired students.
The Helen Keller Institute depends on the Ministry of Education of the province of Cordoba, since 1944 it fulfills the noble mission of educating visually-impaired students in an integrated manner. It is recognized by its quality service to contribute to the training of competent persons, favoring the development of capabilities to access better living conditions and so they can live autonomously.
At the time, September 14, 2014, the institute was celebrating its 70th anniversary and was
in need of various repairs to be able to deliver a better education service to its students.
Among the necessary works, the refurbishment of the pool was selected as a priority for the purpose of adding swimming to physical education activities that contribute to the psychomotor development of those who attend the Institute. Thus, the contribution of Coca-Cola Andina, consisted of repairing cracks, recovery and application of a waterproof coating in the 7 meters long by 3 meters wide swimming pool. In addition, the pool sides and entry points were adapted to the needs of the students. This action, articulated with the Ministry of Education, who will be responsible for the completion of the works, perimeter fence, bathrooms, dressing rooms and filtering machines for next year (2015).
Today 150 students have access to new sports activities that contribute to their psychomotor and emotional development.
Also, between October and November, volunteers from Coca-Cola Andina Argentina contributed with their service vocation painting and improving the property’s façade. María Eugenia Ferreyra, Deputy Director of the Helen Keller Institute valued the actions expressing “that the presence of Coca-Cola not only contributes to the maintenance of the building, but it is also a possibility to open ourselves to the community to show them what our role is and so they know how to treat our students not only from their disabilities but from their capabilities”
Atilio Acosta, who since 2010 works in the commercial area of San Isidro, Córdoba Marketing Services and who participated
as a volunteer for the initiative, says: “I like to help because it is a way of generating changes so that society improves and because the children’s smile and that of the people who are involved is very comforting.“ He also appreciated the active response of the Institute to the social commitment of Coca-Cola Andina because “they immediately integrated into the team and they collaborated.”
Subsequent to the intervention and as a way of strengthening the link that was generated with this action, on October 20th the children of Helen Keller came to our Montecristo plant to participate in a guided tour. The result of the visit was happiness and significant learning. Another example that great things come from simple and small actions.
soliDaRity seRViCe Helen KelleR institute
CÓRDoBa - aRgentina
outstanding case
Today
have access to new sports activities that contribute to their psychomotor and emotional development.
150 students
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This initiative is part of AEMA program (Coca-Cola and Junior Achievement) and the group of children and youngsters YAEMA started thanks to this program.It is a known fact that waste is an almost inevitable by-product in human activities that generates great pollution, especially solid waste as plastic bottles, plastic bags and cardboard, among others. The objective of the project is to address this issue, by recycling and re-using waste to generate awareness
in the community in general and more specifically in the town’s educational community.The initiative consisted of two stages. The first began with an awareness campaign to the whole educational community and activities of collection and re-use of plastic bottles to build beds; benches and poufs that are being used by the school. In addition, costumes for dolls, bags & decorations were made from plastic bags delivered by retailers.
The second stage included the preparation of a green wall on the perimeter of the school since it did not have this useful structure to delimit and also to safeguard the integrity of the students. The wall of approximately 720 m² (400 mts. x 1.80 mts) required nearly 30,000 plastic bottles for its construction which were collected in the community.The success of the project, transcended the school awakening
the interest of the residents of a low-income neighborhood who found in it a chance to meet construction needs and at the same time contribute to the protection of the environment and the reduction of pollution of Lake Ypacarai near the town and highly contaminated.
eCologiCal wall san BeRnaRDinoPaRaguay
outstanding case
This initiative is part of
(Coca-Cola and Junior Achievement) and the group of children and youngsters YAEMA started thanks to this program.
AEMA program
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Our work pillars are the result of communication and interaction with our groups of interest, staff, and community, therefore we will continue to build on them, by setting challenging goals:
Market
Environment
Community
Work environment
challenges for the coming years
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Market• Continue refreshing people extending the product portfolio, adding new categories, strengthening the zero-calorie and nutritional aggregates segments for each occasion and lifestyle.
• Continue to expand the offer of returnable formats.
• Boost initiatives that support active living and healthy habits, such as Baila Fanta, Dale Juguemos, Copa Coca-Cola, Sprite Urban Tour, etc.
• Always ensure the supply of high quality products and services in the market, making constant investments in technology, equipment and specific technical training of collaborators.
Environment Energy• Grow in the business, both in facilities and technology, integration processes and category launches, while maintaining stable Energy consumption
• Carry out projects that develop the efficiency in the use of energy for production, cooling equipment and transportation systems involving more and more links in the value chain, for monitoring and management of transversal plans.
Sustainable packagingReduce• Continue developing optimal designs of PET containers in all our packaging, reducing the weight of our bottles.
• Involve our suppliers more and more in joint projects to achieve synergy and improve our primary and secondary packaging.
Reuse• Increase the use of recycled resin (Bottle to Bottle, B2B) in our PET bottles.
• Encourage the use of our returnable products so that each bottle can be re-used again in a controlled way, deepening the expansion into new territories of our operations.
Renew• Progress in the use of plant-derived resin Plant Bottle in our PET bottles.
Recycle• Consolidate the connection model among recyclers, collection points and public entities, by means of agreements with Clients, Institutions, Municipalities and places of high consumption to increase the obtaining of post-consumer Pet and integrate it into the recycling process and/or Bottle to Bottle.
WaterReduce • Continuously improve processes to use less water in the elaboration of our products, with the challenge of maintaining the incorporation of new categories to the portfolio.
Recycle• Treat water integrally and return 100% of the water used in our operations with a quality that will allow for aquatic life.
Replenish• Support and promote projects that impact on the conservation of water sources and access to safe drinking water to communities reached by our operations.
Community• Our goal with the education aims at the sustainable development of our communities. We seek to generate greater educational opportunities and access to work for the most vulnerable areas.
• Expand training programs to clients and the deepening of the route to market (RTM) models, for the development of small businesses.
• Continue the dialogue with interest groups to learn about their concerns and to develop activity plans based on them.
• Generate strong collaboration links with organizations recognized by their “know-how” in the communities where we are present.
• Social perception: Survey on society’s view of us in terms of social, environmental and economic value.
Work environment• Continue to ensure that all areas and activities of our company respect the legal regulations and the criteria established by our Human Rights Policy in the Workplace.
• Maintain a safe and healthy environment for workers and visitors. Security concepts will be incorporated into the ways of people, generating safe conduct guidelines and designing increasingly less risky processes and installations.
• Through partnerships with renowned local and international educational establishments, we will expand our collaborators’ technical, professional and managerial development programs. In addition, we will enhance the development of internal trainers for the dissemination of knowledge and expertise where required; in order to strengthen our human resources
• Teamwork, integrity, attitude. These are three of the values that we identify and that sustain the basis of our corporate culture. We will continue to deepen support for volunteer programs in solidarity initiatives that contribute to sustainable development and where our collaborators are the links for approach needs.
149148 /
Report profile and materiality testThe report follows guidelines developed by the Global Reporting Initiative - GRI, in its latest Guide to Prepare G4 Sustainability Reports and the Sector Supplement for the Food Industry, in the form of essential compliance. The period covered by the report includes January 1st through December 31st, 2014. It is the sixth report presented by Coca-Cola Andina. It includes the operations of Coca-Cola Andina in Argentina, Brazil, Chile and Paraguay: Andina Chile; Andina Argentina; Andina Paraguay; Vital S.A. Chile and Andina Brazil.
CHaRaCteRistiCs oF tHe RePoRt anD gri g4 version content indeX Food and Beverage Sector
This year the Report is presented simultaneously and articulately with the Company’s 2014 Annual Report, taking the first steps to integrate financial economic information and sustainability into future editions.
The process for its preparation was led by the areas of Corporate Management and Control and the Integrated Management System that coordinated the collection of the information that was provided by representatives from all areas of the company.
The guidelines of the G4 Guide (materiality test) and those of the AA1000 (AccountAbility) Standard; the issues that are priority for the Company’s sustainability management; the interests and expectations of its major stakeholders and issues that are priority at the sustainability level for the food and beverage sector, were followed for the definition of the content and material issues to report. The boundaries of material issues are detailed in the respective table included in the Sustainable Management Chapter and the Community chapter (value chain).
Techniques and bases for data measurement, as well as significant changes
related to previous periods are informed throughout the Report if appropriate.
The currency used, unless otherwise specified, refers to “$” Chilean pesos. When it says dollars or “US $” it refers to American dollars.
GRI G4 Content Index The following table shows the indicators referred to in the GRI G4 Report and its Sector Supplement for the Food Industry contemplated in the Report and that are material to Coca-Cola Andina’s management. The ratio of each indicator with the clauses of the ISO 26000:2010 Social Responsibility International Standard are also presented.
Reference
Indicator
• Full
• Partial
• N/A Not available
151150 /
Basic General contents
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
VISION ANd STRATEGy 4.7; 7.2
G4-1 Statement from the most senior decision-maker of the Organization.
CRS, Editorial CRS, page 144 Annual Report 2014, pages 10/11
• 6.2 x
G4-2Description of key impacts, risks, and opportunities.
CRS, pages 18 and 19 Annual Report 2014, pages 73 to 75
• 7.4.2 x
ORGANIzATION PROFILE 4.2; 4.3; 6.3.10
G4-3 Name of the organization CSR, pages 6/7 • x
G4-4Primary brands, products, and/or services.
CSR, pages 6/7; 32/33 • x
G4-5 Location of organization's headquarters. CSR, pages 170/171 • x
G4-6Number of countries where the organization operates
CSR, pages 10/11 • x
G4-7 Nature of ownership and legal form.Annual Report 2014, pages 18/19; 26/27 • x
G4-8 Markets served CSR, pages 10/11 • x
G4-9 Scale of the reporting organization. CSR, pages 10/11 • x
G4-10 Organization Employee breakdown CSR, pages 94/95 • x
G4-11Percentage of employees covered by collective bargaining agreements.
CSR page 100 • x
G4-12Description of the supply chain for the organization.
CSR, pages 118/119 • x
G4-13Significant changes during the reporting period regarding size, structure, ownership or value chain.
Annual Report 2014, pages 18/19; 92/3 • x
G4-14Explanation of whether and how the precautionary approach or principle is addressed by the organization.
CSR, pages 10/11; 14/15; 16/17 • x
G4-15
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
Coca-Cola Andina adheres to the principles and initiatives in which The Coca-Cola Company and the Coca-Cola System participates. Among them are the United Nations Global Compact and the Universal Declaration of Human Rights
• x
G4-16Memberships in associations (such as industry associations) and/or national/international advocacy organizations.
CSR, page 26 • x
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Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
IdENTIFIEd MATERIAL ASPECTS ANd BOUNdARIES 5.2
G4-17List all entities included in the organization's consolidated financial statements or equivalent documents.
CSR and Annual Report • x
G4-18
Process for defining the report content and the Aspect Boundaries. How the organization has implemented the Reporting Principles for Defining Report Content.
CSR, Pages 148/149 •
G4-19Aspects identified in the process for defining report content.
CSR, Page 25 • x
G4-20 Aspect boundary within the organization. CSR, Page 25 • x
G4-21Aspect boundary outside the organization.
CSR, Page 25 • x
G4-22The effect of any restatements of information provided in previous reports, and the reasons for such restatements.
Information is consis-tent with previous CSRs • x
G4-23Significant changes from previous reporting periods in the Scope and Aspect Boundaries.
No changes • x
Stakeholder Engagement 4.5; 5.3
G4-24List of stakeholder groups engaged by the organization.
CSR Pages 22/23 • x
G4-25Basis for identification and selection of stakeholders with whom to engage.
CSR Pages 22/23 • x
G4-26Organization's approach to stakeholder engagement
CSR Pages 22/23; 43; 134 •
G4-27
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded.
CSR Page 24 •
Report Profile 4.2; 4.3
G4-28Reporting period for information provided.
January 1st through December 31st 2014 • x
G4-29 Date of most recent previous report . July 2014 • x
G4-30 Reporting Cycle Annual • x
G4-31Contact point for questions regarding the report or its contents.
CSR Page 168 • x
G4-32Level reached, GRI Content Index, and the reference to the External Assurance Report
CSR Pages 148 to 150; 151 to 166 • x
G4-33Organization's policy and current practice with regard to seeking external assurance for the report.
Not externally verified
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
CORPORATE GOVERNANCE 6.2
G4-34Governance structure of the organization, and committees
Annual Report 2014, pages 20/21; 24 /25 • x
G4- 39 Function of the highest governance body Annual Report 2014, pages 20, 21 and 22 • x
G4 -48
Highest committee or position that formally reviews and approves the organization's sustainability report and ensures that all material Aspects are covered
The CEO and the Board of Directors approve the Annual Report and the Sustainability Report
• x
Ethics and Integrity 4.4
G4-56Organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.
CSR, pages 8/9 •
G4-57
Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity
Annual Report 2014, pages 21 to 23 • x
G4-58
Internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity.
Annual Report 2014, pages 21 to 23 • x
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Basic specific contents
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SUSTAINABILITY MANAGEMENT FOCUS CSR, Pages 14; 16; 18/19; 36/37 • x
Economic Performance: Management Approach Annual Report 2014 , Pages 10 y 11 • x
G4-EC1 Economic value generated and distributed.
CSR, Page 13 • 6.8.1; 6.8.2; 6.8.3; 6.8.9
x
G4-EC2Financial implications and other risks and opportunities for the organization's activities due to climate change
CSR, Pages 18; 20/21 • 6.5.5 x
G4-EC3Coverage of the organization's defined benefit plan obligations
CSR, Pages 108/109; 110 to 113 • 6.8.7 x
G4-EC4Financial assistance received from government •
Market Presence: Management Approach CSR, Pages 12/13 • x
G4-EC5Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
CSR, Page 101
G4-EC6Proportion of senior management hired from the local community at significant locations of operation
64% of the directors of the company are Chileans (9) and the rest: 1 American, 1 German, 1 Brazilian, 1 Argentinean and 1 Peruvian.
Indirect economic impacts: Management approach CSR, Pages 118/119 • x
G4-EC7Development and impact of infrastructure investments and services supported
CSR, Pages 50/51; 52/53; 54/5; 57; 75 •
6.3.9; 6.8.1; 6.8.2; 6.8.7;
6.8.9 x
G4-EC8Significant indirect economic impacts, including the extent of impacts
CSR, Pages 12; 32;66/7; 75; 87; 119; 120/121 •
6.3.9; 6.6.6; 6.6.7; 6.7.8;6.8.1;
6.8.2; 6.8.5; 6.8.7; 6.8.9
x
Procurement practices: Management approach CSR, Pages 38/39; 124; 126 • x
G4-EC9Proportion of spending on local suppliers at significant locations of operation
CSR, Pages 124 • 6.4.3; 6.6.6;
6.8.1; 6.8.2; 6.8.7 x
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
ENVIRONMENTAL PERFORMANCE: MANAGEMENT APPROACh
CSR, Pages 14; 16; 18/19, 36/37 ; 38/39; 82/83
• 6.5
Supplies: Management approach CSR, Pages 88/89 • x
G4-EN1 Supplies used, weight and volume CSR, Page 91 • 6.5.4 x
G4-EN2Percentage of supplies used that are recycled supplies
25% of PET bottles are recycled resin. Packaging returnability CSR Page 32.
• 6.5.4 x
Energy: Management approach CSR, Page 70 • x
G4-EN3 Direct internal energy consumption CSR, Pages 78/79 • 6.5.4 x
G4-EN4 Direct external energy consumption •
G4-EN5 Energetic intensity CSR, Pages 12; 78 • 6.5.4 x
G4-EN6 Reduction in energy consumptionCSR, Pages 72/73; 75; 77 •
G4-EN7Reductions in energy requirements of products and services
CSR, Page 78 • 6.5.4; 6.5.5 x
Water: Management approach CSR, Pages 60/61 • x
G4-EN8 Total water withdrawal by source CSR, Pages 62;63 • 6.5.4 x
G4-EN9Water sources that have been significantly affected by water withdrawal
CSR, Pages 62/63 • 6.5.4 x
G4-EN10Percentage and total volume of water recycled and reused.
It is not reused in the process. The water used or captured by rainfall and delivery is suitable for animal life. CSR, Pages 64/65
• 6.5.4
Biodiversity: Management Approach
G4-EN11
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
All operations are located in urban areas, determined by local governments as industrial premises.
• 6.5.6 x
G4-EN12
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
No Aplica
G4-EN13 Habitats protected or restored CSR, Page 32 •
G4-EN14
Total number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk
No Aplica
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Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
ENVIRONMENTAL PERFORMANCE: MANAGEMENT APPROACh
Emissions: Management Approach CSR, Page 75 • x
G4-EN15Direct greenhouse gas (GHG) emissions (Scope 1)
CSR, Page 75 • 6.5.5 x
G4-EN16Energy indirect greenhouse gas (GHG) emissions (Scope 2) •
G4-EN17Other indirect greenhouse gas (GHG) emissions (Scope 3) •
G4-EN18Greenhouse gas (GHG) emissions intensity
CSR, Page 75 • 6.5.5 x
G4-EN19Reduction of greenhouse gas (GHG) emissions
CSR Pages 28/29; 75; 82 • 6.5.5 x
G4-EN20 Emissions of ozone-depleting substances •
G4-EN21NOx, SOx, and other significant air emissions •
Effluents and Waste: Management Approach CSR, Pages 88/89 • x
G4-EN22Total water discharge by quality and destination
CSR, Pages 62/63; 64/65 • 6.5.3; 6.5.4 x
G4-EN23Total weight of waste by type and disposal method
CSR, Pages 90/91 • 6.5.3 x
G4-EN24Total number and volume of significant spills
No spills were recorded in the period. • 6.5.3 x
G4-EN25
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention (2) Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
N/A
G4-EN26
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff
CSR, Pages 64/65. 100% of the effluents from the company are treated, so that there are no significant impacts on water resources
• 6.5.3; 6.5.4; 6.5.6
x
Products and Services: Management Approach CSR, Pages 36/37; 82/83 • x
G4-EN27Extent of impact mitigation of environmental impacts of products and services
CSR, Pages 32; 82/83 • 6.5.3; 6.5.4; 6.5.5; 6.7.5
x
G4-EN28Percentage of products sold and their packaging materials that are reclaimed by category
CSR, Page 32; 84/85; 87 • 6.5.3; 6.5.4;6.75 x
Compliance: Management Approach x
G4-EN29
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
We had no significant incidents related to non-compliance with environmental regulations.
• 4.6 x
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
ENVIRONMENTAL PERFORMANCE: MANAGEMENT APPROACh
Transport: Management Approach CSR, Page 16 • x
G4-EN30
Significant environmental impacts of transporting products and other goods and materials for the organization's operations, and transporting members of the workforce
CSR, Pages 28/29 • 6.5.4; 6.6.6 x
Overall: Management Approach x
G4-EN31Total environmental protection expenditures and investments by type •
Supplier Environmental Assessment: Management Approach CSR, Pages 126/127 • x
G4-EN32Percentage of new suppliers that were screened using environmental criteria.
All suppliers must meet the standards and requirements of the Coca-Cola System and Supplier Guiding Principles
• 6.3.5; 6.6.6; 7.3.1 x
G4-EN33Significant actual and potential negative environmental impacts in the supply chain and actions taken
•
Environmental Grievance Mechanisms: Management Approach CSR, Pages 22/23 • x
G4-EN34
Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms
We had no significant incidents related to non-compliance with environmental regulations.
• 6.3.6 x
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Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: LABOR PRACTICES AND DECENT WORK 6.4 X
Employment: Management Approach CSR Pages 38/39; 94; 98 • x
G4-LA1Total number and rates of new employee hires and employee turnover by age group, gender and region
CSR Page 100 • 6.4.3 x
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation
CSR Pages 108/109 6.4.4; 6.8.7 x
G4-LA3Return to work and retention rates after parental leave, by gender
CSR Page 109 • 6.4.4 x
Labor/Management Relations: Management Approach CSR Page 100 •
G4-LA4
Minimum notice periods regarding operational changes, including whether these are specified in collective agreements
As a general provision, the minimum number of notice is 30 days in all regions
• 6.4.4; 6.4.5 x
Occupational Health and Safety: Management Approach
CSR, Pages 36/37; 38/39 • x
G4-LA5
Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs
CSR, Page 110 • 6.4.6 x
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
CSR, Pages 112/113 • 6.4.6; 6.8.8 x
G4-LA7Workers with high incidence or high risk of diseases related to their occupation. •
G4-LA8Health and safety topics covered in formal agreements with trade unions
CSR, Page 110 • 6.4.6; x
Training and education: Management Approach CSR, Page 102 • x
G4-LA9Average hours of training per year per employee by gender, and by employee category
CSR, Pages 102/103 • 6.4.7 x
G4-LA10
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
CSR, Page 104 • 6.4.7; 6.8.5 x
G4-LA11
Percentage of employees receiving regular performance and career development reviews, by gender and by employee category
CSR, Page 107 • 6.4.7 x
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE:LABOR PRACTICES AND DECENT WORK
Diversity and Equal Opportunity: Management Approach CSR, Page 98 • x
G4-LA12
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity
CSR, Pages 94/95; 96/97 • 6.2.3; 6.3.7;
6.3.10; 6.4.3 x
Equal remuneration for women and men: Management Approach CSR, Pages 100/101 • x
G4-LA13Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
No differences were recorded in the wages of women and men to the performance of the same activity or function
• 6.3.7; 6.3.10; 6.4.3; 6.4.4
x
Supplier assessment for labor practices: Management Approach CSR, Pages 126 /127 • x
G4-LA14Percentage of new suppliers that were screened using labor practices criteria
100% of new providers were examined • 6.3.5; 6.4.3;
6.6.6; 7.3.1 x
G4-LA15Significant actual and potential negative impacts for labor practices in the supply chain and actions taken
CSR, Pages 128/129 • 6.3.5; 6.4.3; 6.6.6; 7.3.1
x
Labor practices Grievance Mechanisms: Management Approach CSR, Pages 22/23 • x
G4-LA16Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms
•
161160 /
IndicatorPage/Answer/Reasons
for omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: hUMAN RIGhTS
Investment: Management Approach CSR, Page 126/127 • x
G4-HR1
Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
CSR, Page a 126 • 6.3.3; 6.3.5; 6.6.6
x
G4-HR2
Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained
CSR, Pages 102/103 • 6.3.5 x
Non-discrimination: Management Approach CSR, Page 98 • x
G4-HR3Total number of incidents of discrimination and corrective actions taken
We had no significant discrimination incidents • 6.3.6; 6.3.7;
6.3.10; 6.4.3 x
Freedom of Association and Collective Bargaining: Management Approach CSR, Pages 100; 126 • x
G4-HR4
Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights.
All suppliers must comply with the standards and requirements of the Coca-Cola system and the Suppliers Guiding Principles
• 6.3.3; 6.3.4; 6.3.5; 6.3.8; 6.3.10; 6.4.5;
6.6.6
x
Child Labor: Management Approach CSR, Pages 126/127 • x
G4-HR5
Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor
CSR, Pages 126/127; 128/129The prohibition of recruitment of children under 18 years is incorporated in the internal rules of order, hygiene and safety standards, as well as the regulation of contractors. All suppliers must comply with the standards and requirements of the Coca-Cola system and the Suppliers Guiding Principles.
6.3.3; 6.3.4; 6.3.5; 6.3.7; 6.3.10; 6.6.6; 6.8.4
x
Forced or Compulsory Labor: Management Approach CSR, Page 126/127; 128/129 • x
G4-HR6
Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
CSR, Page 126/127; 128/129 We had no significant incidents related to forced or compulsory labor in our operations. All suppliers must comply with the standards and requirements of the Coca-Cola system and the Suppliers Guiding PrinciplesAll suppliers must comply with the standards and requirements of the Coca-Cola system and the Suppliers Guiding Principles
6.3.3; 6.3.4; 6.3.5; 6.3.10;6.6.6
x
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: hUMAN RIGhTS
Security Practices: Management Approach
G4-HR7
Percentage of security personnel trained in the organization's human rights policies or procedures that are relevant to operations
•
Indigenous Rights: Management Approach
G4-HR8Total number of incidents of violations involving rights of indigenous peoples and actions taken
We had no significant incidents related to indigenous rights
• 6.3.4; 3.6.6; 3.6.7; 3.6.8; 6.6.7; 6.8.3
x
Assessment: Management Approach
G4-HR9
Total number and percentage of operations that have been subject to human rights reviews or impact assessments
•
Supplier Human Rights Assessment: Management Approach CSR, Page 126/17 • x
G4-HR10Percentage of new suppliers that were screened using human rights criteria
CSR, Page 126/127; 128/129All suppliers must comply with the standards and requirements of the Coca-Cola system and the Supplier Guiding Principles
x
G4-HR11Significant actual and potential negative human rights impacts in the supply chain and actions taken
No negative incidents were recorded in human rights. Evaluations of new providers and periodic evaluations conducted by the Kore System seek to minimize the potential impacts that could arise from failure to respect fundamental rights such as freedom of association, child labor or forced labor.
• 6.3.3; 6.3.4; 6.3.5; 6.6.6
x
Human Rights Grievance Mechanisms: Management Approach CSR, Page 22/23 • x
G4-HR12
Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms
We have not received complaints about human rights in the period
• 6.3.6 x
163162 /
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: SOCIETY
Local Communities: Management Approach CSR, Page 130 • x
G4-SO1
Percentage of operations with imple-mented local community engagement, impact assessments, and development programs
CSR, Pages 130 to 143 • 6.3.9; 6.51; 6.5.2; 6.5.3; 6.8
x
G4-SO2Operations with significant actual or potential negative impacts on local communities
•
Anti-Corruption: Management Approach Annual Report 2014, Pages 20/21 • x
G4-SO3
Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
Annual Report 2014, pages 20/21 • 6.6.1; 6.6.2; 6.6.3 x
G4-SO4Communication and training on anti-corruption policies and procedures
CSR, Page 1036.6.1; 6.6.2; 6.6.3; 6.6.6
x
G4-SO5Confirmed incidents of corruption and actions taken
We have no significant incidents related to corruption
• 6.6.1; 6.6.2; 6.6.3
x
Public Policy: Management Approach
Our Code of Business Conduct establishes that, as a general rule, no funds or assets including value targets or services of the company’s employees will be used to make political contributions. Political contributions are only accepted if they have express approval of the Board and in accordance with local law. Each political contribution will be recorded in accounting records as a “political contribution”
• x
G4-SO6Total value of political contributions by country and recipient/beneficiary •
Anti-competitive behavior: Management Approach
G4-SO7Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
No legal actions recorded in the period • 6.6.1; 6.6.2;
6.6.5; 6.6.7 x
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: SOCIETY
Compliance: Management Approach
G4-SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
There have been no significant fines or penalties in the period
• 4.6 x
Supplier Assessment for impacts on Society: Management Approach CSR, Pages 126/127 • x
G4-SO9Percentage of new suppliers that were screened using criteria for impacts on society
All suppliers must comply with the standards and requirements of the Coca-Cola system and the Supplier Guiding Principles
•
6.3.5; 6.6.1; 6.6.2; 6.6.6;
6.8.1; 6.82; 7.3.1 x
G4-SO10Significant actual and potential negative impacts on society in the supply chain and actions taken
•
Grievance Mechanisms for impacts on society: Management Approach CSR, Pages 22/23 • x
G4-SO11Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms.
We have not had complaints of this type during the period.
• 6.3.5; 6.6.1; 6.6.2; 6.6.6; 6.8.1; 6.82
x
165164 /
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: PRODUCTS AND SERVICE RESPONSIBILITY CSR, Pages 32; 38/39 •
Customer health and Safety: Management Approach
CSR, Pages 36/37; 48/49 • x
G4-PR1
Percentage of significant product and service categories for which health and safety impacts are assessed for improvement
CSR, Page 38 • 6.3.9; 6.51; 6.5.2; 6.5.3; 6.8
x
G4-PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes
We have had no significant incidents related to this type of breach
• 6.3.9; 6.5.3; 6.8 x
Product and Service Labeling: Management Approach CSR, Pages 40/41 • x
G4-PR3
Type of product and service information required by the organization's procedures for product and service information and labeling, and percentage of significant products and service categories subject to such information requirements
CSR, Page 40 • 6.71; x
G4-PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
We have had no significant incidents related to this type of breach
• 6.6.1; 6.6.2; 6.6.3; 6.6.6
x
G4-PR5Results of surveys measuring customer satisfaction
CSR, Pages 12; 42/43 • 6.6.1; 6.6.2; 6.6.3
x
Marketing Communications: Management Approach CSR, Pages 40/41 • x
G4-PR6 Sale of banned or disputed products N/A
G4-PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes
We have had no significant incidents related to this type of breach
• 4.6;
Client Privacy: Management Approach
G4-PR8Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
We have had no significant incidents related to this type of breach
• 6.71; 6.72; 6.7.7 x
Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: PRODUCTS AND SERVICE RESPONSIBILITY
Compliance: Management Approach CSR, Pages 36/37 • x
G4-PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
We have had no significant incidents related to this type of breach
• 4.6; x
G4 food processing sector indicators
Procurement
FP1Percentage of purchased volume from suppliers compliant with company's sourcing policy
All suppliers must comply with the standards and requirements of the Coca-Cola system and the Supplier Guiding Principles
FP2
Percentage of purchased volume which is verified as being in accordance with credible, internationally recognized responsible production standards, broken down by standard
•
Labor practices and decent work
FP3Percentage of working time lost due to industrial disputes, strikes and/or lock-outs, by country
•
Healthy and affordable food
FP4
Nature, scope and effectiveness of any programs and practices (in-kind contributions, volunteer initiatives, knowledge transfer, partnerships and product development) that promote access to healthy lifestyles; the prevention of chronic disease; access to healthy, nutritious and affordable food; and improved welfare for communities in need
CSR Pages 32; 34/35 • x
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Indicator Page/Answer/Reasons for
omission
Indicator status
F - P - N/A
ISO 26000
Clauses
External Verification
Yes No
SOCIAL PERFORMANCE: PRODUCTS AND SERVICE RESPONSIBILITY
Customer health and safety
FP5
Percentage of production volume manufactured in sites certified by an independent third party according to internationally recognized food safety management system standards
100% of our production is under the standards and certification of food safety and food quality
• x
FP6
Percentage of total sales volume of consumer products, by product category, that are lower in saturated fat, trans fats, sodium and added sugars
CSR, Page 32Please note that this indicator is CSRd focused on the % of our product portfolio with characteristics of reducing calories and nutritional ingredients. The focus of our work is on the supply of beverage options that meet the needs of consumers
• x
FP7
Percentage of total sales volume of consumer products, by product category, that contain increased nutritious ingredients like fiber, vitamins, minerals, phytochemicals or functional food additives
CSR, Page 32Please note that this indicator is CSRd focused on the % of our product portfolio with characteristics of reducing calories and nutritional ingredients
• x
Product and service labeling
Management Approach
Policies and practices on communication to consumers about ingredients and nutritional information beyond legal requirements
CSR, Pages 40/41 • x
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It is important for us to have your opinion to improve our sustainability management.
We invite you to send us your suggestions, questions or any comments related to this Sustainability Report or to our work at Coca-Cola Andina to the following email andina.ir@koandina as well as to our operations’ offices.
For more information about this report or to view our previous reports go to: www.koandina.com
we value your opinion
171170 /
General CoordinationCecilia Andrea Abati, Head of Business intelligence
Collaborators: María Luz Gil (Par), Andrea Baez (Par), Arminda Meza (Par), María del Carmen Soler (Ch), Carolina Losicer (Br), Max Fernandes (Br), Paula Vicuña (Ch), Carolina Hopfenblatt (Ch), Consuelo Barrera (Ar), María Celeste Layús (Ar).
Advice, technical assistance and GRI Content:Alicia Rolando ARS- Reporte Sustentablewww.ars-reportesustentable.com
Graphic design Izquierdo Diseño
DateMarch 2015
ArgentinaRuta Nacional 19, Km 3,7 / CórdobaTelephone (54 351) 496 8800
BrazilRua Andre Rocha 2299 Taquara Jacarepaguá / Rio de Janeiro Telephone (55 21) 2429 1530
ChileAv. Miraflores 9153 / Renca / Santiago / Chile Telephone (56 2) 2462 4286
ParaguayAcceso Sur Km 3,5 / San Lorenzo / ParaguayTelephone (595 21) 959 1000
Corporate Office Av. Miraflores 9153 / Renca / Santiago / Chile / Telephone (56 2) 2338 0520 www.koandina.com
Head of Investor Relations Paula Vicuña / [email protected] / Telephone (56 2) 2338 0520
Identification of the CompanyEmbotelladora Andina S.A.Open Stock CompanyTax Id N°: 91.144.000-8Address: Av. Miraflores 9153 / Renca / Santiago / Chile