A focus on consumer-pleasing issues makes a refreshing read

The Coca-Cola Company’s ninth sustainability report is fully online, with a 122-page GRI report download. It offers a consumer-friendly and clearly explained account of the company’s sustainability performance without resorting to jargon. Focus areas are framed under three simple and memorable pillars: Me, We and World, and grounded in relation to four “bigger picture” global challenges – obesity, water use, human rights and women’s economic opportunity.

The report is geared towards an interested consumer, which accounts for the choice of emotive focus areas and good use of real-life case studies. These feature largely as videos in the “stories of hope” section. Covering some more technical issues in detail, such as governance and stakeholder engagement, the report manages to satisfy the sustainability expert, too.

Coca-Cola reports some commendable achievements. Sustainable product innovation is one such area. Since 2009 the company has distributed more than 10bn fully recyclable PlantBottle packages in 24 countries – an innovative bottle made from 30% plant-based materials (made from (sugar cane and molasses). And now it is exploring the use of non-competitive food by-products, such as plant stems and fruit peel, to make its bottles. Ultimately, the company wants to develop PET plastic that is 100% plant based. Even more encouraging, Coca-Cola has shared the PlantBottle technology with Heinz to package its tomato ketchup.

Emissions from manufacturing operations in developed countries were reduced by 4% from 2010 and water use ratio in manufacturing operations achieved its targeted 20% reduction. In the area of community development, charitable contributions were $124m, up 21% on the previous year. Coca-Cola’s “Copa Coca-Cola” physical activity programme encourages mixed youth football tournaments for 13-15-year-olds. In Mexico alone – where childhood obesity remains a big problem – more than one million young people have taken part since 1998. 

Eye-catching graphics

Coca-Cola’s online report opens up with a moving infographic and key performance and business related statistics. Eye-catching indeed, but a take-home message that Coca-Cola delivers something, in trucks, to people, doesn’t add much meaning to the story. The featured metrics do provide a snap-shot of sustainability progress and business scale. But, failing to make them active links to pages with more detail fails to maximise their value. For example, it is not clear what “126 years young” refers to – an embedded link to the relevant page might have resolved this.

Presentation of metrics is also a bit of a let-down. An uninspiring progress bar, which doesn’t actually benchmark progress, is of little use and makes identifying achievements difficult. The Coca-Cola report also has some underwhelming goals. Addressing obesity, for example, is a prominent focus area and yet targets are unambitious and limited to putting “front-of-pack energy information on nearly all of our products by 2011” and sponsoring “at least one physical activity program in every country we operate in by 2015”. Goals on responsible marketing, nutrition and product quality are absent.

Women’s Economic Empowerment is another focus of Coca-Cola’s sustainability agenda. Supported by the 5by20 initiative, the company aims to empower five million women across its value chain by 2020. As well as being an admirable social mission, it is supported by a sound business case and well linked to the broader 2020 vision of doubling business. “Women are the world’s fastest-growing economic force, controlling two-thirds of spending worldwide,” declares the report. “They also account for a disproportionately high percentage of key segments of our global value chain.” In the Philippines, women own or operate more than 86% of the small neighbourhood stores that sell its products.

But, a repetitive use of vague language – namely relating to “enabled” and “empowered” women – somewhat undermines the credibility of what is an interesting portfolio of work. And no attention is given to the major cultural and social barriers that have hindered women’s economic empowerment for years gone by, and will do for years to come.

It is encouraging to see Coca-Cola recognises the value of integrating social media into its sustainability report. For example, the report can be shared via a range of social platforms such as Twitter, Facebook and LinkedIn. You will have to search to find the share button, however, which remains concealed at the bottom of the page. And Coca-Cola stops short of completing the social media package – iPad and smartphone users are unable to reproduce the report in relevant formats. A slightly half-hearted attempt at embracing social media is a missed opportunity to engage in dedicated dialogue with Coca-Cola’s consumers.

Nevertheless, Coca-Cola’s report is a satisfying articulation of sustainability priorities and performance – and an interesting read.

Phoebe Hayes is a consultant at Context.

Snapshot:

Follows GRI? Yes

Assured? Self-declared B+.

Materiality analysis? No

Goals? Yes

Targets? Yes

Stakeholder input? Yes – internal and external.

Seeks feedback? Yes

Key strengths? A light read covering engaging issues.

Chief weakness? Uninspiring graphics and data presentation.

Pleasant surprise? Work to women’s economic empowerment.

coca-cola  communications  CR Reporting  Pheobe Hayes  sustainability report