Apr 22, 2020 — 84 Bonaqua stations rolled out across Hong. Kong in own cups with Bonaqua’s assortment of In a separate PDF document available here,.
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2LETTER FROM JAMES QUINCEY 3OUR PRIORITIES & PROGRESS 6OUR COMPANY At a Glance 9 The Coca-Cola System 10 Financial Highlights 11 Building a Total Beverage Company 12 Governance & Management 13 Our Priority Sustainability Issues 14 Stakeholder Engagement & Partnerships 15EXPANDING OUR PORTFOLIO/ REDUCING ADDED SUGAR 17 BETTER SHARED FUTURE Bringing a into The Coca-Cola Company 21CLIMATE 22 CLIMATE IN FOCUS Climate Resilience in Action 25WORLD WITHOUT WASTE 26BETTER SHARED FUTURE Extensive Plastic Recycling Launches Across Africa 30WATER LEADERSHIP 31 BETTER SHARED FUTURE A Force for Water Security 34SUSTAINABLE AGRICULTURE 35 BETTER SHARED FUTURE Supporting Smallholder Sugarcane Farmers in India 38PEOPLE & COMMUNITIES 39 Supporting Human Rights 40 Empowering Women 41 Employee Safety & Health 42 Diversity & Inclusion 43 Giving Back to Our Communities 44SUSTAINABLE DEVELOPMENT GOALS 45 OPERATIONS HIGHLIGHTS 47 Europe, Middle East & Africa 49 Latin America 50 North America 51 Global Ventures 52 Bottling Investments Group 52ABOUT THIS REPORT 53 DATA APPENDIX 54 Financial & Portfolio Data 55 2020 Sustainability Goals 61 Packaging 63 Water 64 Greenhouse Gas Emissions & Waste 65 Workplace & Safety 66 Human Rights, 5by20 & Agriculture 67 The Coca-Cola Foundation 68 Assurance Statement 69REPORTING FRAMEWORKS 73The Coca-Cola Company is here to refresh the It™s about working together to create a better shared future for our people, our communities REFRESHMENT IS BETTERSHAREDOur Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks
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3JAMES QUINCEY CHAIRMAN & CHIEF EXECUTIVE OFFICER of empowering 5 million women by the end of 2020 as well as continuing to replenish annually more than 100% of the water used LOVED BRANDS Our foundation for enduring success is that present in almost every beverage category, 700,000 people in our global system help deliver those brands to customers and Ł In 2019, we continued to execute our growth strategy, which led to strong along with gaining value share in 85% of value 6% for the second consecutive year, supported by contributions from Sugar continued to see double-digit Ł We completed the acquisition of Costa leader in expanding beverage categories, including juices, value-added dairy and Ł In January 2020, we acquired full products have been one of the fastest- growing categories in the United States, with fairlife being a large contributor to He also navigated the company through there has been an unprecedented global pandemic caused by the novel coronavirus matter whether times are good or when times, it guides our vision for growth in to craft the brands and choice of drinks that people love, to refresh them in body that create a more sustainable business and better shared future that makes a products continued to perform extremely our World Without Waste goals, with 16 100% recycled PET bottles, with more to DONE SUSTAINABLY We know it™s our responsibility to use our leadership to achieve positive change in the world and build a more sustainable future for this by taking a hard look at data and setting Ł In 2019, we provided consumers more We removed approximately 350,000 basis through approximately 275 product beverages packaged in 100% recycled transition to 100% recycled PET for all Ł We made key investments, including in a cutting-edge bottle-to-bottle recycling facility in the Philippines and, in the United States, we teamed with industry partners and major competitors to This includes a new $100 million industry fund that will be used to improve sorting, processing and collection in areas with the biggest infrastructure gaps to help increase the amount of recycled plastic available to be remade into new Ł We set a new, Science-Based Target, aligned with the goals of the Paris total GHG emissions across our full value Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks Chairman & CEO Letter
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4OUR RESPONSE TO THE CORONAVIRUS PANDEMIC in our company™s purpose, which ensures that we continuously The coronavirus pandemic has posed enormous challenges around and we always emerge stronger, more resilient and more united For more about our company™s actions during the pandemic, please visit our website FOR A BETTER SHARED FUTURE We continue to provide assistance and support to the communities we serve, Ł In 2019, we contributed nearly $125 Foundation and $37 million from The Ł Our economic empowerment programs have been making a meaningful initiative is on track to reach its target of transforming the lives of 5 million women Ł Diversity and inclusion are at the heart of our values and continue to play an and national pledges, including Catalyst CEO Champions for Change, Leading Network, United Nations Women and the Finally, this is the second year for our combined Business and Sustainability business the right way, and this combined approach helps us drive collective accountability and increased transparency back, writing today during a challenging period in 2020, I™m reminded of the power our communities and to constantly work The leaders before us showed the way, in their examples of perseverance and you for your support and partnership James Quincey April 22, 2020 fi In 2019, we laid out our vision to craft the brands and choice of drinks that people love, to refresh them in body and spirit.fl Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks Chairman & CEO Letter
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5 and Director, Allen & Company Incorporated Former Chairman, President and Head of European Portfolio Operations, Executive Chair, Chairman, Davis Selected Advisers – Chairman of the Board and Senior Executive, IAC/InterActiveCorp The Chicago Community Trust New Ventures LLC Lead Independent Director; 4 BOARD OF DIRECTORS in its values. Today, our world is in one of those moments. Our Board of Directors is proud of the past decade, which has put us on a path to by purpose: to refresh the world and make a Maria Elena Lagomasino Lead Independent Director and will retire from the Board immediately following Corporate Governance Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks Chairman & CEO Letter
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/ 2019 BUSINESS & SUSTAINABILITY REPORT 6Our publicly reported 2020 sustainability goals drive us to continually improve, working in concert 225 bottling partners in more than 200 countries our priority issues, developing new and more ambitious plans, such as our packaging goals that OUR PRIORITIES & PROGRESS CLIMATE We set our fidrink in your handfl goal in 2013 to include our full value chain in our 24% toward our 2020 target of 25% reduction published a Science-Based Target 1 for the the share of carbon we need to reduce as a company to help keep global climate change safely below the 2-degree threshold aligned READ MORE : Climate REDUCING ADDED SUGAR Leading health authorities have recommended that individuals should not consume more than 10% of their total calories from added providing choices that support what aggressively changing recipes to reduce added sugar, promoting low- and no-calorie beverage options, and making smaller packages more available to enable portion tea, dairy, fruit juices and plant-based optionsŠand developing the next generation and the majority of the added sugar reductions stem from changes to our sparkling beverage recipes and packaging READ MORE : 20182019Œ1.7%Œ4.0%Sugar – vertical 1.6%2.2% consider the entire value chain, the fidrink in your handfl so we need to achieve these reductions even with handfl goal has been internally vetted using accepted Due to the nature of our franchise bottling system, our manufacturing emissions are normally split between Scopes 1 and 2 for company-owned facilities and fidrink in your handfl calculations, we consider the full in the calculation of our manufacturing, distribution and refrigeration emissions, in addition to the emissions 16 17 18 19 2020 GOAL14%19%21%24%25%Drink In Your Hand Reduce absolute Scope 1, 2 and 3 GHG emissions 25% by 2030 from a 2015 UNIT CASE VOLUME GROWTH AVERAGE SUGAR PER 100 ML Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks Our Priorities & Progress
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8HUMAN RIGHTS Our commitment to human rights starts with our own employees, making sure they have Our suppliers and system partners are also expected to embrace responsible workplace our company locations and system bottlers will validate compliance with our Human Rights Policy and our Supplier Guiding Q4 2019, 93% 1 of company-owned facilities, 92% 1 of bottlers and 91% 1 of suppliers reached compliance with our Human Rights Policy READ MORE : the performance of sites and suppliers critical to the development of the product, including company operations, bottling partners, co-packers and direct suppliers of SGP audits may occur in other areas as well, such as trademarked marketing and promotional equipment; EMPOWERING WOMEN Our 5by20 commitment to enable the economic empowerment of 5 million women entrepreneurs across our global value chain the end of 2019, the program has empowered 2010, the initiative sponsors programs that address business barriers faced by female we enabled the empowerment of 1,323,167 womenŠa 53% increase over the previous NGO partners to build and execute locally relevant programs, scaling those that are READ MORE : GIVING BACK We want a better shared future for the communities in which we live and work, striving to have a positive impact, especially give back 1% of our prior year™s operating income annually through direct company income, focused in particular on the Foundation™s giving pillars of recycling, water and women™s empowerment, contributing respectively, to programs and projects in READ MORE : 16 17 18 19 2020 GOAL89%87%89%92%98%16 17 18 19 2020 GOAL90%88%89%91%95% 16 17 18 19 2020 GOAL1.7M2.4M3.2M4.6M5M 16 17 18 19 2020 GOAL1.2%1.6%1.5%1.3%1%Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks Our Priorities & Progress
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9AT A GLANCE 134 years 2019 GLOBAL UNIT CASE VOLUME BY REGION DIVERSIFYING REVENUE VOLUME GROWTH ~225 ~900 700K+ ~30M We™re growing our business while reducing added sugar and providing consumers with REDUCING ADDED SUGAR We believe a World Without Waste is possible by recycling our packages and packaging material, as well as delivering our beverages through new, virtually package-less WORLD WITHOUT WASTE We strive to replenish water back to nature and communities, and treat wastewater to WATER LEADERSHIP We aim to improve people™s lives and create a better shared future for our communities PEOPLE & COMMUNITIES We look for ways to reduce our carbon footprint across the chain while helping our business and the communities we serve adapt to the realities of CLIMATE OUR SUSTAINABLE BUSINESS PRIORITIES PERFORMANCE/PORTFOLIO $37.3B $236.9B 500+ 4,700+ Diversify Rev 29% 24% 18% 27% 2% 10 11 12 13 14 15 16 17 18 19 30.325.526.727.728.228.629.229.329.229.6Volume Growth Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks Our Company At a Glance Building a Total Beverage Company Financial Highlights System Governance & Management Our Priority Sustainability Issues Stakeholder Engagement & Partnerships
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10 ¹ INNOVATION, CREATION & MARKETING 2.0 billion COMPANYTHEHOW WE Company typically generates net operating revenues by selling concentrates and syrups Our bottling partners combine the concentrates and syrups with still or sparkling water and sweeteners (depending on the primarily of company-owned or -controlled We also operate retail outlets through Costa Limited, which operates nearly China and other markets across Europe, The company™s portfolio also includes a Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks At a Glance Building a Total Beverage Company Financial Highlights System Governance & Management Our Company Our Priority Sustainability Issues Stakeholder Engagement & Partnerships
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11 4 December 31, 2017, were unfavorably impacted by a net provisional tax charge of $3,610 million recorded by the Reported net operating revenues grew 9 percent and declined 5 percent and 13 percent for the years ended income grew 10 percent and 18 percent and declined 10 percent for the years ended December 31, 2019, 2018 Reported diluted net income per share grew 38 percent and 419 percent and declined 81 percent for the years ended 56 For more Financial Data, see the Data Appendix .Year Ended December 31, 201720182019 Net operating revenues $36,212 $34,300 $37,266 Consolidated net income 1,283 6,476 8,985 Net income attributable to shareowners 1,248 6,434 8,920 Basic net income $0.29 $1.51 $2.09 Diluted net income 0.29 1.50 2.07 Cash dividends 1.48 1.56 1.60 Total assets $87,896 $83,216 $86,381 Long-term debt 31,202 25,376 27,516 17 18 19 6%3%5%Organic Revenue Growth Organic Revenue Growth(Non-GAAP)² 17 18 19 13%0%7%Operating Income Growth Operating Income Growth (Non-GAAP)³ 17 18 19 9%1%13%Diluted Net Income Diluted Net Income Per Share from Continuing Operations Growth(Non-GAAP) 17 18 19 96%75%73%Adj Free Cash Flow Adjusted Free Cash Flow Conversion Ratio (Non-GAAP) Our Company Chairman & CEO Letter Our Priorities & Progress Climate Our Portfolio/ Reducing Added Sugar World Without Waste Water Leadership Sustainable Agriculture People & Communities Sustainable Development GoalsOperations Highlights Data AppendixReporting Frameworks At a Glance Building a Total Beverage Company Financial Highlights System Governance & Management Our Company Our Priority Sustainability Issues Stakeholder Engagement & Partnerships
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