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Message from CEO

Dear Stakeholders,

It is my pleasure to share with you CCI’s 12th Sustainability Report covering our performance in 2019, which has been another successful year marked with our achievements towards our targets. With accountability and integrity among our core values, CCI has been disclosing its social, environmental, and economic performance in line with international standards annually since 2009. I believe our holistic approach to sustainability that we reveal in these reports create value for us and our stakeholders by considering their expectations and sharing our goals, achievements, and projects.

Burak Başarır
Coca-Cola İçecek, CEO

Dear Stakeholders,

It is my pleasure to share with you CCI’s 12th Sustainability Report covering our performance in 2019, which has been another successful year marked with our achievements towards our targets. With accountability and integrity among our core values, CCI has been disclosing its social, environmental, and economic performance in line with international standards annually since 2009. I believe our holistic approach to sustainability that we reveal in these reports create value for us and our stakeholders by considering their expectations and sharing our goals, achievements, and projects.

As a multinational beverage company with operations in 10 countries and 26 plants, we employ approximately 8,500 employees, and we owe our success to our passionate and talented employees’ efforts and diligent work. This year, we expanded the scope of our report by including our Tajikistan operations and increasing the report’s coverage to 90.7% of CCI’s total production volume and 86.7% of employees.

CCI is one of the key bottlers in The Coca-Cola System in terms of the consumer base, and we serve a population of 400 million people in the geography of emerging markets with high growth potential and opportunities for our business. With our operations in Turkey, the Middle East, Central Asia, and Pakistan, we pledge to create value for all, by being a responsible corporate citizen for our communities, by being a great place to work for our employees, by being the preferred partner for our customers, and by offering an attractive portfolio of beverages for our consumers.

Although we have been exposed to macroeconomic fluctuations in 2019, with a continued focus on quality growth and successful portfolio strategy, we increased our market share in almost all our markets. Our consolidated net sales revenue increased by 15% to ₺12.25 billion and EBITDA by 19% to ₺2.3 billion. While growing our business, we were successful in using fewer resources and reduced energy intensity per TL revenue by 13.6% in 2019 compared to 2018.

Creating Value for Customers and Consumers

We gave utmost importance to consumer well-being together with customer value. While offering our consumers a wide choice of products fit for every lifestyle and occasion, product safety and quality remain to be the priority of our commitment to well-being. Our products are externally audited by a third-party and we received FSSC 22000 Food Safety System Certification Standard at all plants in 2019.

In line with our vision, we aim to be the preferred partner of our customers. We offer them unique solutions that would create win-win solutions. Enhancing customer value requires effective communication; thus, we engaged with over 12,000 customers through CCINext Sales Channel, interviewed about 6,000 customers in Turkey, Kazakhstan, and Pakistan and performed over 200,000 outbound calls, consequently increasing the satisfaction levels of our customers by 10 points.

Creating Value for Our People

I am proud of my team of passionate employees who respect and value each other and work in perfect harmony for our commitments to our social and ecological environment. 85% of CCI employees participated in the employee engagement survey, where the score of diversity & inclusion cluster increased by nine percentage points compared to 2016.

At CCI, we strive to create safe working conditions for all. Through training and safety programs, we continuously improve our health and safety performance, reducing the number of accidents by 12% in 2019. Our training and development platforms such as U30, Women in Leadership, and Accelerate Leadership Programs continued and helped CCI raise the future leaders of our company.

As the output of our unconditional respect within CCI, we launched our Human Rights Policy and CCI’m Human communications and training campaign across our company and provided 7,500 hours of human rights training to CCI employees. We expanded our efforts for human rights along our value chain, conducted supplier audits for compliance with Supplier Guiding Principles, and achieved a success rate of 89% for the SGP audits in all countries of operation.

Creating Value for Our Community

As CCI grows, both our direct and indirect economic impacts amplify consequently. Recent analyses show that the economic yield CCI creates with its input to the economy is 10-fold in Turkey and 1.6-fold in Kazakhstan. In Pakistan, CCI operations create an impact of 1.95% of total GDP. The indirect employment created by CCI operations in Turkey is 30,000 people.

During 2019, 1,080 volunteer employees in Turkey and Pakistan helped run ten community projects for the sake of the environment and the empowerment of youth and women, a total of 115 thousand beneficiaries, including 25 thousand women whom we supported the entrepreneurial potential. We also empower young people and women in our operations, where 48.3% of our employees are millennials, and the ratio of women holding management positions is %27.

World Economic Forum Global Risks Report 2019 shows that extreme weather events, mostly due to climate change, and failure of climate change mitigation and adaptation are the top two risks threatening the world economy. As CCI, we continuously work on reducing the natural resources we use for our operations with strict targets.

In 2019, through operational excellence projects and other efficiency and optimization efforts from logistics to using returnable glass bottles practices in the value chain, we avoided over 300,000 tons of CO2, which is equivalent to the amount absorbed by 25 million trees in a year. We saved about 130,000 m3 of water across seven countries of operation. The water replenishment rate
for Turkey reached 159% through community projects, and we replenished about 5 billion liters of water in Turkey through our water replenishment programs. In Turkey, Jordan, Kazakhstan, Azerbaijan, Pakistan, and Kyrgyzstan, we saved USD 2.09 million as a result of the efficient consumption of energy and water.

Partnership for the Goals and Future Outlook

As a strong supporter of UN Sustainable Development Goals, we believe in the power of partnerships and collaboration as addressed in Sustainable Development Goal 17. To enhance the value we create, we benefit from strategic partnerships with related business, social and environmental associations. As of 2019 end, CCI is an active member of reputable NGOs and business interest groups and continues supporting 20 Initiatives by undersigning their principles locally and internationally. In 2019, CCI became a member of ERTA; Integrated Reporting Turkey Network and joined “Business Initiative for Plastic” in Turkey.

We met most of our targets for 2019, and for the ones we could not, we will continue to work setting higher targets to run our business most efficiently and escalating the value we create for you, our valuable stakeholders. I would like to thank you for your feedback, contribution, and support in making CCI’s journey towards sustainability, exemplary.

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