A healthy agricultural supply chain is essential to the well-being of the communities in which we operate and is critical to the success of our business. Our approach to sustainable agriculture is based on principles aimed at protecting the environment, ensuring human and workplace rights, and helping to build more sustainable communities. We seek to mitigate business risks by addressing challenges related to the availability, quality, and safety of agricultural ingredients, to meet consumer demand for products that align with a healthy and sustainable lifestyle, and to balance the costs of sustainability by leveraging relationships and initiating new opportunities where appropriate. Central to this approach is the Coca-Cola System's overall aspiration for sustainability, which aims to grow our business while making a positive difference in the communities we serve.
To meet the expectations of our consumers, customers and other stakeholders, and to enable the continued growth of our company, it is imperative to maintain a safe and sustainable supply of the agricultural ingredients essential to our brands. To this end, The Coca-Cola Company, on behalf of the Coca-Cola System, has developed a set of principles that set expectations of agricultural ingredient suppliers to address the specific challenges of sustainability in agriculture. In April 2021, the Coca-Cola Company updated the policies with a more extensive version of the guidelines, now referred to as the Principles for Sustainable Agriculture (SAP) throughout the Coca-Cola System.
We believe that PSAs provide a mutually beneficial basis for the company and its partners in the agricultural supply chain.
Coca-Cola Hellenic, as part of the Coca-Cola System, has fully embraced the new guidelines. Since April 2021, the PSA has been considered our overriding supplier guidance, and in 2021, we completed engaging our supplier base on new elements added to PSAs compared to previous sustainable agriculture programs.
Agriculture is at the heart of the sustainability challenge. Population growth and rising living standards generate a greater demand for food and agricultural products. In an era of scarce resources, growing demand and price volatility, water, food and energy increasingly intersect businesses, communities and farmers.
Currently, suppliers to the Coca-Cola System and those authorized by the Coca-Cola Company are required to comply with our Principles for Sustainable Agriculture (PSA), which communicate our values and expectations of compliance with all applicable laws, emphasizing the importance of responsible workplace practices that respect human rights. PSAs expand our SGPs (Guiding Principles for Suppliers) and provide specific guidance to suppliers of agricultural ingredients. These Principles set out the framework for defining our commitment to sustainable procurement and are integrated into our internal governance routines and procurement processes.
The Coca-Cola Company and its bottlers recognize that sustainable sourcing poses new challenges, and we intend to work collaboratively with our suppliers to ensure that all agricultural ingredients are sustainably sourced. We encourage all our suppliers to continuously work towards more sustainable practices and to adhere to the following Principles for Sustainable Agriculture:
Human and workplace rights
Human and workplace rights principles apply to all workers on farms, associated industrial processes and transport services. All direct suppliers, intermediate processors, producing farms and employment agencies must respect human rights and the following principles, in line with the international human rights principles and the Coca-Cola Hellenic Bottling Company Supplier Guiding Principles:
1. Freedom of association and collective bargaining:
Respect the right of workers to form, join, or not join a union without fear of retaliation, intimidation, or harassment. Where workers are represented by a legally recognized union, establish a constructive dialogue with their freely chosen representatives and negotiate in good faith.
2. Prohibition of child labor, forced labor, and labor abuse:
Comply with minimum age provisions for all permanent, temporary, or seasonal workers in accordance with applicable laws and regulations. The minimum age for hazardous work is 18 years old. Prohibit the use of all forms of forced labor, including prison labor, debt servitude, bonded labor, military labor, slavery, or any form of human trafficking. Retention of personal documents, recruitment fees, or excessive loan terms is prohibited. All children under 15 living on farms must have access to education.
3. Elimination of discrimination:
Maintain workplaces free from any form of discrimination (e.g. on the basis of gender, race, religion, culture, state of health) or physical, sexual or verbal harassment. Women, minorities, migrant workers, indigenous and tribal peoples, and other vulnerable groups must be treated fairly. Hiring, placement, training, compensation, and advancement decisions must be based on qualifications, performance, skills, and experience.
4. Working hours and livelihoods:
Operate in full compliance with all applicable laws and regulations regarding wages, working hours, overtime, and benefits. Compensate workers in relation to the sector and the local labour market. Farmers' incomes and workers' wages must meet at least basic needs and, where possible, be compared with estimates of living wages. Provide opportunities for workers to develop skills and abilities, as well as opportunities for advancement where possible.
5. Health and safety:
Ensure a productive workplace by minimizing the risks of accidents, injuries and exposure to health hazards. Health and safety risks must be managed through appropriate management plans. Provide and require the use of personal protective equipment (PPE). Offer health and safety training, including the use of PPE. All workers must have access to safe drinking water, sanitation and personal hygiene facilities, and must be informed about the medical services available. All accommodation for workers provided by the employer must be safe, hygienic and comply with the applicable standards defined by ILO Recommendation 115 (Housing for Workers).
6. Complaint and Remedy Procedures:
Provide workers and communities with a mechanism to express complaints anonymously, without fear of retaliation, and ensure that concerns are addressed appropriately and promptly. Ensure that remediation and grievance procedures are aligned with the United Nations Guiding Principles on Business and Human Rights.
7. Community and traditional rights:
Recognize and safeguard the rights of indigenous peoples and local communities to land and natural resources, with a particular focus on marginalized groups, such as women and ethnic minorities. Where applicable, respect the principle of free, prior and informed consent (FPIC). Maintain positive relationships with the community and contribute to local economic development.
Environment and ecosystems
Agricultural and livestock production must be resilient, environmentally sustainable, cause minimal damage and, where possible, be restorative for the surrounding environment in all areas and activities of the farm.
8. Water Management:
Ensure the long-term sustainability of water resources in balance with the needs of the community and ecosystems, measuring the use and quality of water where crops are irrigated, maximizing water use efficiency, and minimizing water quality impacts from discharges, erosion, and runoff of nutrients or agrochemicals. Farms located in water-stressed areas need to actively manage water sources to the highest standards (e.g. using the Alliance for Water Stewardship) and build resilience to climate change by managing uncertainty, extreme events and gradual change. Farms must avoid converting important water areas (e.g., wetlands).
9. Energy management and greenhouse gas reduction:
Avoid contributing to climate change by measuring energy consumption and greenhouse gas emissions (including emissions from deforestation and other land use change), setting greenhouse gas reduction targets, maximizing energy efficiency and renewable energy use, reducing emissions from agricultural practices and livestock farms, and avoiding air pollution.
10. Climate Change Resilience:
Farms must assess climate-related risks and prepare adaptation and resilience plans to appropriately address the current and projected impacts of climate change, avoiding further damage to nature or people.
11. Waste management:
Separate, classify, safely store, transport, and dispose of all waste. Reduce, reuse and recycle waste where possible, avoiding waste incineration on the farm or disposal in freshwater systems (rivers, lakes, etc.). Prevent plastic leaks, liquid waste or manure from farms into soil or waterways. Hazardous materials containers should be disposed of appropriately. Measures must be taken to properly manage organic waste in order to improve soil health, including through composting. All waste must be handled separately according to its classification and disposed of at an authorized location or through authorized waste disposal service providers.
12. Forest conservation:
Promote sustainable forest management and help protect forests from deforestation and illegal logging. New production areas must not be established in natural habitats/ecosystems, including forests or areas of high conservation value, and must not disrupt wildlife corridors or migration routes. Forests must not be cut down or burned for conversion into new productive areas. The deliberate use of fire for land reclamation is prohibited.
13. Conservation of natural habitats, biodiversity and ecosystems:
Identify and help protect natural habitats from conversion. Natural ecosystems must not be altered or burned for conversion into new productive areas. Promote and protect natural habitats, protected areas and biodiversity, including natural pollinators, through the protection and, where possible, restoration of ecosystem services. Farms need to adopt approaches that improve resilience to long-term climate shocks and pressures by taking special measures to protect threatened or endangered species.
14. Soil management:
Maintain and improve soils and prevent degradation, minimize greenhouse gas emissions, protect soil biodiversity and improve soil structure. Implement a Nutrient Management Plan based on an integrated approach and incorporate the "Four Rs of nutrient management" to maintain and improve soil quality and minimize impacts on air, water and biodiversity.
15. Management of agrochemicals:
Follow national and/or local regulations and label directions for safe and proper use of all agrochemicals, in accordance with the label instructions, to ensure the protection of agricultural personnel and the environment. The use or storage of agrochemicals prohibited in the country of operation or prohibited under international treaties is prohibited. All agrochemicals must be managed in a way that complies with the Maximum Residue Limits (MRLs) of the countries where the agricultural materials are grown and, if possible, of the countries where they are used as ingredients.
Animal welfare
The Animal Health and Welfare Principles apply to all animals on the farm, including animals used for harvesting or transportation work, or as livestock to produce agricultural ingredients or products for the Coca-Cola System.
16. Animal Health and Welfare:
Animals must be treated with care, understanding and respect by qualified personnel. Animal health must be ensured and an effective health programme must be implemented. Animal welfare practices on the farm must follow the OIE's Earth Code of Animal Health, including the "five fundamental principles of freedom":
Freedom from hunger and thirst.
Freedom from discomfort.
Freedom from pain, injury and disease.
Freedom to express natural behaviors.
Freedom from fear and discomfort.
Workers must receive regular training on expectations regarding animal health and welfare.
17. Nutrition and Feed Management of Animals:
Animals must be given food and water in adequate quantity and quality. Feed suppliers must be able to trace ingredients back to the farm or region of origin. The safety, sustainability and nutritional content of feed must be ensured. Feed must be stored in appropriate conditions to preserve its quality and avoid contamination.
18. Manure Management:
Manure must be managed in a way that avoids contamination of products or the environment, as well as to prevent discomfort to the animals. Best manure management practices must be applied to minimize environmental impacts and limit nutrient losses during harvesting, storage, treatment, transfer, and use.
19. Transportation Management:
The organisation of the transport of animals must minimise their discomfort, avoid injury and stress and ensure that there is no transmission of disease.
Here is the continuation of the translation, concerning Animal Welfare:
Animal welfare
The Animal Health and Welfare Principles apply to all animals on the farm, including animals used for harvesting or transportation work, or as livestock to produce agricultural ingredients or products for the Coca-Cola System.
- Animal health and welfare:
Animals must be treated with care, understanding and respect by qualified personnel. Animal health must be ensured and an effective health programme must be implemented. Animal welfare practices on the farm must follow the OIE's Earth Code of Animal Health, including the "five fundamental principles of freedom":
- Freedom from hunger and thirst.
- Freedom from discomfort.
- Freedom from pain, injury and disease.
- Freedom to express natural behaviors.
- Freedom from fear and discomfort.
Workers must receive regular training on expectations regarding animal health and welfare.
Nutrition and feed management of animals:
Animals must be given food and water in adequate quantity and quality. Feed suppliers must be able to trace ingredients back to the farm or region of origin. The safety, sustainability and nutritional content of feed must be ensured. Feed must be stored in appropriate conditions to preserve its quality and avoid contamination.
Manure management:
Manure must be managed in a way that avoids contamination of products or the environment, as well as to prevent discomfort to the animals. Best manure management practices must be applied to minimize environmental impacts and limit nutrient losses during harvesting, storage, treatment, transfer, and use.
Transport management:
The organisation of the transport of animals must minimise their discomfort, avoid injury and stress and ensure that there is no transmission of disease.
Agricultural management systems
Management systems must be implemented and records must be maintained to ensure: the health, safety and integrity of all products and ingredients; and the commercial integrity and economic sustainability of the business system.
20. Commercial integrity and economic sustainability:
Conduct business with integrity, comply with relevant laws, and prohibit bribery and fraudulent practices. Know the costs of production and manage farms to increase productivity and profitability, ensuring long-term sustainability and improving resilience to climate, market and other changes. Collaborate with others to address common challenges and expand sustainability practices.
21. Food safety and hygiene:
Food safety and hygiene processes must comply with all applicable laws and regulations to ensure the safety and quality of food in the supply chain. Proper processes and risk assessments must be implemented to minimize biochemical and physical risks during production and handling.
22. Collection and post-harvest management:
The management of collection, packaging, storage and post-harvest transport processes must be effective to minimize losses and waste along the value chain.
23. Identity, selection and management of reproductive material:
Crop and livestock selection must be adapted to local conditions (climate, water availability, pest pressure, etc.) to ensure sustainable yields and productivity over time. Farms must be familiar with animal and plant species and varieties and maintain records proving GMO/non-GMO status. Where GMOs are used, this must comply with regulations. Natural genetic diversity must be preserved.
24. Management, registration and transparency systems:
Develop a system to manage goals, procedures, and practices, and to monitor improvements in sustainability practices over time. Maintain records of practices and procedures, as well as proof of compliance with all applicable laws and regulations. Increase transparency throughout the supply chain and collaborate to adopt and expand sustainable practices. Establish improvement goals and provide support to monitor performance over time. Support traceability from farm to bottler.
8 April 2021
1 http://www.ilo.org
2 FAO Good Agricultural Practices
