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Coca-Cola HBC commits to net-zero emissions by 2040

coca cola hbc commits to netzeroby40

Coca-Cola HBC (CCH) has announced a commitment to achieving net-zero emissions across its entire value chain by 2040.

Via an existing, approved science-based target, by 2030 the company will reduce its value-chain emissions in scopes 1, 2 and 3 by 25 per cent, with a further 50 per cent reduction in the following decade. To address the 90 per cent of emissions in scope 3, resulting from third party actions, CCH will broaden its existing partnership approach with suppliers. Wherever emissions cannot be eliminated entirely, the business will mitigate these by investing in other climate-protection measures.

“This commitment is the ultimate destination of a journey that we started many years ago,” said Coca-Cola HBC CEO Zoran Bogdanovic, commenting on the announcement.

“It is fully aligned with our philosophy to support the socio-economic development of our communities and to make a more positive environmental impact. Both are integral to our future growth.

“Although we don’t yet have all the answers, our plan, track record and partnership approach give us confidence that we will deliver.”

A robust plan

To achieve its goal, Coca-Cola HBC will continue to have CO2 emission reduction targets as one of the elements in its long-term management incentive plans. More specifically, CCH will:

  • Invest €250 million in emissions reduction initiatives by 2025
  • Decarbonise further direct operations by switching to 100 per cent renewable electricity and low-carbon energy sources through continuous improvements and innovations in energy efficiency
  • Accelerate its journey to a more circular, lower carbon packaging approach by increasing rPET use, adopting package-less and refillable options, removing plastics in secondary packaging. The total reduction in the use of packaging materials is of strategic importance for Coca-Cola HBC Cyprus. In 2021, the company invested €4 million for the removal of plastic film in aluminium packaging by switching over to using new KeelClip™. This initiative was implemented for the first time in the non-alcoholic beverages sector this year, but also in Cyprus, and is equivalent to a reduction of almost 287 tonnes of plastic per year.
  • Provide energy-efficient and eco-friendly coolers to customers. In the Cyprus market, 44.4 per cent of the Company’s coolers are already energy-efficient, with the goal of reaching 50 per cent by 2025. 
  • Reduce emissions from agricultural ingredients
  • Implement a “Green Fleet” programme to switch to low- and no-carbon alternatives

In addition, Coca-Cola HBC has introduced CO2 emission reduction targets as one of the elements in its long-term management incentive plans, an action that is already being implemented in Cyprus by replacing the fleet with hybrid and electric vehicles that have a lower carbon footprint.

A strong track record

Coca-Cola HBC was one of the first companies to commit to, and deliver, science-based targets. In the last decade, the company has halved its direct emissions and the CO2 reduction plan to 2030 is already endorsed and approved on the 1.5-degree pathway.

In March 2021, Coca-Cola HBC was rated the world’s most sustainable beverage company by the Dow Jones Sustainability Index for the fifth time in the last seven years, achieving its highest ever score. It is also ranked among the top sustainability performers in ESG benchmarks, such as CDP, MSCI ESG and FTSE4Good.

A partnership approach

“We are delighted to work together with our customer Coca-Cola HBC on our mutual 2030 science-based greenhouse gas emission reduction targets and longer-term net zero aspirations. By working as a team, we will strive to cut the product carbon footprint of beverage cans in half by 2030.” - Kathleen Pitre, Chief Commercial and Sustainability Officer, Ball Corporation

“Crown is proud to be a supply partner of Coca-Cola HBC and of its commitment to sustainability. Their ambitious new sustainability goals align with our own initiatives, including our own net-zero and science-based-targets, and we are fully on board for this journey.” - Dr. John M. Rost, Vice President, Sustainability & Regulatory Affairs, Crown Holdings, Inc.

“As Tetra Pak also has a net-zero target and SBTi approved 1.5-degree aligned 2030 targets, we look forward to working with Coca-Cola HBC to reduce GHG emissions and together achieve our joint aims.” - Markus Pfanner, Vice President Sustainability Tetra Pak

The new commitment is also endorsed by the “We Mean Business” coalition and Coca-Cola HBC has joined the list of companies supporting the “Race to Zero” initiative.

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