In order to determine the degree that our operations comply with the CCI’s Human Rights Policy and TCCC’s Supplier Guiding Principles (SGP), audits were conducted by an independent auditing firm in 2019. Four CCI plants in Pakistan, Turkey, and Iraq passed these audits successfully. Due to collaboration with Disney brand, CCI Kazakhstan Almaty Plant was audited by Disney ILS (International Labor Standards) Social Audit and passed
Our local procurement policy supports the sustainable development of local economies and we support our suppliers to improve their sustainability performance with effective development practices. As part of our supplier agreements since 2002, the Supplier Guiding Principles (SGP) determine the social, environmental, ethical and economic minimal, which TCCS expect from their suppliers.
The latest human rights advancements from Ruggie, OECD and UNGC standards, as well as guidance provided by the Danish Institute for Human Rights study of TCCC policies and practices are reflected to SGP standards. At a minimum, our suppliers are required to meet these standards with respect to their operations.
We consistently cultivate effective communication and conduct audits & constructive practices in order to ensure that our suppliers adhere to our principles. Our suppliers receive a copy of our SGP at the beginning of the business relationship and are expected to transfer these principles to their stakeholders, in particular, to their workforce. We attach the SGP Policy to our supplier contracts when applicable, with the expectation that they will develop and implement appropriate internal business processes to guarantee their compliance with the SGP requirements. Supplier audits are conducted by TCCC and CCI’s trained personnel internally as well as by third parties. For our direct material and cold drink equipment suppliers, it is obligatory to undergo SGP audit and comply with SGP standards before signing contracts.
Third-party audits include confidential interviews both with employees and on-site contract workers. A supplier who fails to meet any aspect of the SGP requirements is expected to implement corrective actions. If a supplier fails to adhere to our principles, sanctions that include termination of the contract are applicable. The calibration of the SGP score was reverted to existing model in 2019 encompassing Raw Materials, Primary Packaging & Co-packers. With the revised logic, we were able to achieve 89% despite the expansion of supply base. We have revised our target for 2020 as 95%. As a result of the SGP audit, a remediation action plan that covers specific matters such as working hours (especially night shifts), rest day violation, overtime and health and safety, were sent to the relevant suppliers and supplementary audits were organized. In the last three years, TCCC audited all of CCI’s ingredient and packaging suppliers.
Sourcing of CCI’s raw materials accounts for a large portion of our economic, social and environmental footprint. For CCI, sustainable sourcing is purchasing ingredients from farm locations and suppliers that meet TCCC-approved standards. Sustainable agriculture is critical for us to meet the expectations of our consumers, customers and other stakeholders and to enable the continued growth of our business.
The Coca-Cola Company is addressing the challenges of agriculture availability, quality and safety also addressing the improvement of the well-being of farming communities. TCCC set its target on sustainably sourcing key agricultural ingredients by 2020 and developed Sustainable Agriculture Guiding Principles (SAGP).
TCCC’s approach to sustainable agriculture is founded on these principles that aims to assure responsible management in farming, protecting the environment, upholding human and workplace rights, and so contributing to build more sustainable communities. Compliance with SAGP is verified according to international third-party standards such as Bonsucro, Rainforest Alliance, Sustainable Agriculture Initiative Platform (SAI) and Fairtrade International or equivalent.
Milestones of CCI Sustainable Sourcing Activities
In 2016, conducted a feasibility study for sustainable sugar sourcing in Turkey.
In 2017, organized a workshop was on the SAGP compliance program for sweetener suppliers in Turkey.
In 2019, engaged with the farmers, super producers and international industrial platforms like SAI, to disseminate SAGP in Turkey and Pakistan. In cooperation with leading FMCG and beverage companies, we started “Sustainable Beet Sugar Production” Project to effectively understand and implement the best practices for the sustainable production of beet sugar in Turkey.
.jpg)
.png)
.png)
