Continuing our JOURNEY

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 

 TABLE OF CONTENTS

Section Page Section Page

A Message from Our CEO.................................1 Health and Wellness............................................14

Our Business at a Glance..................................2 Workplace. ................................................................ 20
Corporate Responsibility at CCE..................5 Marketplace.............................................................. 28
Governance.................................................................7 Environment.............................................................. 34
Engaging with Our Stakeholders................ 10 Community................................................................ 44
Global Issues............................................................12 Acknowledgments................................................ 48
GRI Index .................................................................. 49
United Nations Global Compact................. 49

2006 HIGHLIGHTS

Corporate Governance Marketplace

• Signed United Nations Global Compact in early 2007 •S
 pent more than US$140 million in supplier diversity,
• Enhanced governance of corporate responsibility by 40 percent higher than 2005
updating charter and renaming Corporate Responsibility •R
 eceived sales team awards in Great Britain, Canada,
and Sustainability Committee of the Board of Directors and Belgium

Health and Wellness Environment

• Launched new school beverage guidelines in the U.S. • I mproved water efficiency by six percent
and Canada • I ntroduced energy efficient initiatives that will reduce
• Undertook wide-ranging commitments to the lighting energy consumption by 50 percent
European Union Platform on Diet, Physical Activity,
Community
and Health
• Provided almost US$28.2 million to community
Workplace investment programs
• Created global Communications Council to promote • Paid US$4 billion in salaries and benefits, US$11
open internal communication billion with suppliers, and more than US$1.2 billion
• Developed award-winning program to address age in corporate taxes
diversity in Great Britain

Scope of Report

This report is our second Corporate Responsibility and Sustainability Report and covers the administrative offices. We believe the environmental impacts of these to be significantly less
calendar year 2006. We followed the G3 Guidelines of the Global Reporting Initiative, using the than production facilities. In addition, we do not cover the manufacturing of beverages that we
guidance on defining report content and quality and associated principles. only distribute, for example, ROCKSTAR energy drinks and Evian water. We are committed to
developing greater transparency in our reporting and to improving the quality and quantity of
Compared with our first 2005 Corporate Responsibility and Sustainability Review, there are data that we report. As we work to close gaps in our data-gathering systems, we believe it is
no significant changes in the scope, boundary, or measurement methods applied in the report. premature to seek external assurance.
The data in this report covers all of our operations­—production facilities, sales and distribution
centers, and administrative offices—unless otherwise indicated. Our environmental data covers Further information can be found on our Web site at www.cokecce.com. Requests for additional
our production facilities only; it does not yet include our sales and distribution centers and information or feedback on our reporting can be sent to crsreview@na.cokecce.com.


A Message from our CEO

In my first year at Coca-Cola Enterprises (CCE), I have seen concern to our business and our stakeholders—health and
firsthand how impressive the Coca-Cola brand and the wellness, water stewardship, energy and climate change,
capabilities of our employees are. However, we—and our sustainable packaging and recycling, and diversity manage-
industry—are also in uncharted territories. ment and inclusion. These issues are in line with the strategic
priorities of our business, and we are developing a three-
We are experiencing the greatest increase of material costs
year plan with performance targets for each issue in order
in our history, and both the retail environment and consumer
to focus our efforts. We still have a long way to go to embed
demands are changing rapidly. In addition, stakeholders have
CRS in our business and are working hard to close the gaps.
increasingly higher expectations of companies and we must
work together with governments and local communities to Some of our CRS initiatives benefit the bottom line immediately.
help address broader social issues, such as obesity and For example, our water efficiency has improved six percent
climate change. from 2005, and our new industrial and high-bay fluorescent
lighting program will not only reduce our carbon emissions
To ensure the long-term sustainability of our business, we
by 137,000 tons annually but will also significantly reduce
recently identified three strategic priorities:
our utility bills. Other initiatives, such as the hybrid 33000
• Expand our product portfolio and grow the value of our GVW trucks we helped develop, are longer-term investments.
existing brands to have the number one or strong number Nonetheless, I am convinced that our drive to be a leader in the
two in every category in which we compete. area of CRS in the communities in which we operate will help
ensure the long-term growth and profitability of our company.
• Improve our efficiency and effectiveness to be recognized as
the most valued beverage supplier to our customers. As a public sign of CCE’s commitment to corporate
responsibility and sustainability, in early 2007, I signed the
• Establish a winning and inclusive culture by attracting, devel-
United Nations Global Compact, the world’s largest voluntary
oping, and retaining a highly talented and diverse workforce.
initiative to promote corporate responsibility. We committed
Our commitment to corporate responsibility and sustainability to promote its 10 principles in support of human rights, labor
(CRS) is integral to achieving all three of these; it allows us to rights, the environment, and anti-corruption. We also commit-
fully leverage our global strengths while identifying risks and ted to reporting our progress through this annual Report.
opportunities we might not otherwise see, balancing financial
In preparing this publication, we followed the G3 Guidelines
considerations with social and environmental ones.
of the Global Reporting Initiative (GRI). We self-declare
In 2006, for example, we adopted groundbreaking new school this Report to be GRI Application Level B. In 2007, we will
beverage guidelines in the United States partnering with conduct focused stakeholder engagement sessions on our
the William J. Clinton Foundation and the American Heart CRS performance and reporting with opinion leaders in
Association as part of the Alliance for a Healthier Generation. North America and Europe. We also welcome your comments
These guidelines restrict the calories in beverages available to and hope you’ll take the time to give us your feedback at
children during the school day and determine age-appropriate crsreview@na.cokecce.com.
product selections for elementary, middle, and high schools.
Sincerely,
We made similar commitments in Canada and Europe.

We view CRS as a way to balance all of the considerations

that shape our decisions, weighing the possibility of growth
John F. Brock
today with the promise of sustainability in the future. We have
President and Chief Executive Officer
identified the social and environmental issues of greatest
Coca-Cola Enterprises Inc.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 

 Our Business at a Glance

In 2006, Coca-Cola Enterprises (CCE) celebrated its 20th anniversary. Over the past
two decades, we have grown to become the world’s largest bottler of Coca-Cola
beverages, serving a population of 412 million people across North America and
western Europe. In 2006, we distributed approximately 19 percent of The Coca-Cola
Company’s global volume.
Coca-Cola Enterprises is listed on the New York Stock Our Operations
Exchange under the symbol “CCE.” The Coca-Cola Company CCE has one global operating framework covering eight
is our largest shareowner, with approximately 35 percent of countries across North America and western Europe and is
our common stock as of December 31, 2006. headquartered in Atlanta, Georgia.

North America
46 U.S. states and all 10 provinces of Canada

1.5 billion cases distributed in 2006

396 production facilities, sales, and distribution

centers Europe
Approximately 62,700 employees Great Britain, continental France, the Netherlands,
Belgium, Luxembourg, and Monaco

500 million cases distributed in 2006

48 production facilities, sales, and distribution

centers

Approximately 10,700 employees


 OUR BEVERAGES
Our Beverages Our History
We manufacture and distribute some of the most popular While our company is only 20 years old, it has grown through
beverage brands in the world: Coca-Cola, Fanta, Sprite, Coke acquisitions of existing bottling companies. Many of our local
Zero, Diet Coke, and Coca-Cola light, as well as Minute Maid operations have deep roots in their communities and can be
orange juice and Dasani water. Beverages of The Coca-Cola traced to the first bottling franchise granted by The Coca-Cola
Company account for approximately 90 percent of our volume. Company more than a century ago.
In certain geographies we also distribute other brands,
Our Financial Results
including Cadbury-Schweppes products, Bravo! dairy products,
In 2006, CCE distributed approximately 42 billion bottles
AriZona teas, ROCKSTAR energy drinks, and Evian water.
and cans. We generated revenues of US$19.8 billion, with
In 2006, Coca-Cola Enterprises distributed more than two
strong free cash flow* of more than US$750 million.
billion physical cases* of beverages:
* Free cash flow – 2006 cash flow from operations less
• Regular, low- or no-calorie sparkling beverages
capital spending.
• Energy drinks
• Still and sparkling waters
• Ready-to-drink teas Online
• 100 percent juices and juice drinks
•C
 CE financial performance –
• Dairy-based beverages
See our 2006 Annual Report – www.cokecce.com
• Sports drinks
• CCE history – www.cokecce.com
• Coffee-based beverages.
• The Coca-Cola Company –
* Physical case – The unit of product sold by CCE to its www.thecoca-colacompany.com
customers. For example, a 24-pack case of 12-ounce cans,
or 288 ounces, would represent one physical case.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 

 Our Business System
OUR BUSINESS SYSTEM

Coca-Cola Enterprises and The Coca-Cola Company are separate companies from a legal and management
perspective. Coca-Cola is not just one brand made by one company. More than 300 bottling companies in more than
200 countries work with The Coca-Cola Company as part of this business system.

• Coca-Cola Enterprises produces and packages finished beverages in much of North America and western Europe
then sells and distributes those and other products to retail and wholesale customers. Coca-Cola Enterprises
purchases syrups and concentrates to make those products from The Coca-Cola Company and other companies.

• The Coca-Cola Company creates and markets brands and trademarks. It manufactures syrups and concentrates,
which it sells to its bottling partners.

• The Coca-Cola system refers to The Coca-Cola Company and its bottling partners. This is the most extensive
beverage distribution system in the world, with more than 300 bottlers operating in more than 200 countries.
Coca-Cola Enterprises is the largest Coca-Cola bottler within this system.

Our Manufacturing and Distribution Process and Key Impacts

Suppliers Coca-Cola Enterprises Customers and Consumers

Vending Machines
Ingredients & & Coolers
Bulk Packaging
e.g. lemon oil, vanilla &
cherry flavor

Concentrate Production Warehouses Transport Consumers

Plants Facilities

Ingredients & Packaging

e.g. water, sweeteners, and CO2 Customers

Over US$11 billion spent with 74,000 employees, 1.2 million customers sell beverages
84,000 suppliers almost US$4 billion in salaries and benefits to consumers
38 gigaliters of water used 2.4 million vending machines,
Challenges beverage dispensers, and coolers
• Reduce environmental impacts of supply chain 8,078 terajoules of energy used
• Ensure supplier labor practices in operations Challenges
• Enhance diversity of supply base • Improve energy efficiency of coolers
Challenges
• Help improve recycling of post-
• Improve water and energy efficiency consumer packaging
• Build a diverse workforce and inclusive culture • Support customer CRS initiatives

Community

Additional economic impacts: corporate taxes of US$1.2 billion paid

Estimated 1:10 job multiplier effect—i.e. 740,000 jobs indirectly supported across value chain
Community investment of more than US$28 million

Challenges
• Support multi-stakeholder initiatives to address obesity
• Engage with stakeholders and partners on Coca-Cola-related issues
• Contribute to watershed protection in local communities
• Support the United Nations Global Compact


Corporate Responsibility at CCE

Operating responsibly has been an important part of the way we have done business
since our company was established in 1986. Yet as social, environmental, and
sustainability challenges evolve, expectations of us rise.

To ensure our future success, we must balance these the long term. We are working to integrate social and
economic, social, and environmental considerations. We must environmental considerations into our business planning
also consider the short- and long-term impacts of our decisions, and decision-making as we focus on driving efficiency and
balancing growth today with sustainability in the future. effectiveness across our operations. For example, our stake-
holder engagement is becoming more systematic and we are
Integral to Business Strategy
integrating enterprise risk management into strategic and
Our CEO, John Brock, announced a new Global Leadership
business planning. We are also convening our first CRS
Agenda in early 2007 with the vision of making Coca-Cola
Summit in 2007, bringing together functional and facility
Enterprises the best beverage sales and customer service
managers to establish the first global targets for our most
company. The first-ever company-wide operating framework
significant environmental and social impacts.
establishes a clear vision and three strategic priorities aimed
at growing our business and creating value for our share- CRS Governance
owners. These priorities will be achieved while maintaining At our Board of Directors level, our progress is overseen by
our company’s core values. the Corporate Responsibility and Sustainability Committee.
The committee is chaired by Cal Darden, former Senior Vice
We must…
President of UPS. Other members include John Brock and
• Expand our product portfolio and grow the value of our Gary Fayard, Executive Vice President and Chief Financial
existing brands to have the number one or strong number Officer of The Coca-Cola Company. In April 2007, we
two in every category in which we compete. sadly lost a member and former chairman of the commit-
tee, Skeeter Johnston (see page 8). Mr. Johnston was
• Improve our efficiency and effectiveness to be recognized as
replaced by Curtis R. Welling, President and Chief Executive
the most valued beverage supplier to our customers.
Officer of AmeriCares Foundation, Inc., a leading humanitarian
• Establish a winning and inclusive culture by attracting, devel- aid and crisis relief organization.
oping, and retaining a highly talented and diverse workforce.

We see corporate responsibility and sustainability (CRS) as

Our Values
integral to success in achieving these strategic priorities. Us-
ing a CRS “lens” can help us respond to changing consumer Integrity.. ................ Always doing what is right
needs in light of health and wellness concerns, strengthen Service................... Exceeding the expectations
critical customer relationships, and build employee engage- of our customers
ment and pride. By increasing our efficiency and effectiveness,
Quality.......................... Excellence every time
we can save both costs and valuable natural resources. And
an inclusive workplace that allows employees to achieve Respect............... Listening, understanding, and
their personal best will ensure that we develop the talent and appreciating others
culture to achieve future success. Accountability.. ....... Responsible for results
CRS makes good business sense, and we are confident that it Teamwork.. ................. Winning together in the
will make our business stronger and more sustainable in workplace and marketplace

Fun.................................... Enjoying what we do

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 

 Joining the United Nations Global Compact
Case study

In early 2007, John Brock, CEO of Coca-Cola

Enterprises, signed the United Nations Global
Compact, signifying our commitment to operate
in a responsible and sustainable manner. We will
promote the Global Compact’s 10 principles of
human rights, labor standards, environmental
conservation, and anti-corruption and report our
progress toward implementing them.

Certain aspects of CRS are reported to other committees, Training

too. For example, our ethics performance is reported to the Compliance-related training is regularly conducted with
Audit Committee. Health and wellness is the responsibility of appropriate groups. All employees must complete ethics
the entire Board and as a social, ethical, and environmental risk training, for example, while competition law is taught to sales
deemed material and reported in our Form 10-K. In 2006, the and management functions. Additionally, our new school
CRS Committee provided guidance on improving our ethics beverage guidelines were the subject of extensive training for
compliance process, reporting our safety data more consis- our salesforce in 2006.
tently, and firmly committing to set performance targets.
We are also raising awareness of our CRS efforts internally.
Management and Accountability In 2006, our top 250 business leaders were updated on the
Our Corporate Responsibility and Sustainability Advisory actions of our CRS Advisory Council and CRS Committee
Council is composed of senior management from key func- of the Board, while our Public Affairs and Communications
tions in North America and Europe. This body is responsible team received training from corporate responsibility expert
for setting company-wide priorities, policies, and metrics, Jane Nelson. Ms. Nelson is Director of the Corporate Social
as well as reviewing our progress. The Council makes Responsibility Initiative at Harvard’s Kennedy School of
recommendations to the CEO and Executive Leadership Government and a Director of the International Business
Team. Each country or business unit now has a designated Leaders Forum.
Corporate Responsibility Manager, as well as a CRS steering
Reporting
committee in certain countries. The areas on which we focus
We strive to become more transparent and have dedicated
are those of greatest concern to our stakeholders and our
resources to communicating about CRS internally and exter-
business, such as health and wellness and the environment.
nally. In our 2005 Review, we followed the 2002 Sustainability
We establish relevant policies and standards and set key
Reporting Guidelines of the Global Reporting Initiative (GRI)
performance indicators to track our progress.
in developing the first corporate review of our progress. In this
Compliance 2006 Report, we have adopted the new GRI G3 Guidelines.
We strive to comply with applicable laws and regulations We now also publish country reports in Great Britain,
wherever we operate, and with our own policies and standards. France, the Netherlands, and Belgium.
Occasionally, we may not consistently meet these standards.
When we committed ourselves in 2005 to becoming a more
Compliance issues are managed by relevant functions at a
sustainable business, we knew the journey ahead would be
country level. These are raised to our General Counsel, who
challenging. In 2006, we made progress toward our goals.
then ensures that material issues are reported to the Audit
Much remains to be done in 2007, and in signing the UN
and CRS committees of the Board. Our compliance-related
Global Compact, we have taken a large step forward in our
performance in 2006 is reported in relevant chapters of
public commitment to corporate responsibility and sustainability.
this Report.


Governance

We recognize the importance of good governance to our business. We regularly review

our organizational structures to ensure that we uphold the highest standards of corporate
governance. In addition, we strive for uncompromising integrity in our business ethics.

Board Committees • Governance and Nominating Committee – Recommends

The Board of Directors of Coca-Cola Enterprises is composed corporate governance policies; reviews issues; recommends
of seven Board committees. candidates for senior officer positions and Board nomina-
tions; reviews potential director conflicts of interest, director
Corporate responsibility is overseen by the CRS Committee.
fees, and retainers; and evaluates CEO performance.
This committee reviews our policies and practices relating
to significant issues of concern to shareowners, the company, In 2006, the committee charters were updated as part of
employees, communities we serve, and the general public the Enterprise Risk Management (ERM) program, with risk
with specific oversight of corporate responsibility and categories assigned to specific committees. The composition
sustainability, legislative and regulatory issues, and diversity and charter of committees are available online.
management programs. Previously the Public Issues Review
A self-assessment process is used to evaluate Board
Committee, it was renamed in 2006 to better represent the
performance. Directors evaluate the performance of the
breadth of its responsibility and the importance of CRS to
Board overall, as well as committees on which they sit.
our business operations.
Directors
The other committees are as follows:
As required by listing requirements of the New York Stock
• Affiliated Transaction Committee – Reviews and Exchange, a majority of our Board of Directors members are
negotiates significant transactions between CCE and independent. At the end of 2006, eight out of 13 directors
The Coca-Cola Company by members of our Board who (62 percent) were independent. Additionally, each director
have no affiliation with The Coca-Cola Company. and officer of the company must complete a questionnaire
annually about any related-party transaction.
• Audit Committee – Oversees financial reporting, internal
controls, internal audit function, ethics programs, and legal The Chairman of the Board is not an executive officer of the
compliance. company. Lowry Kline serves as Chairman, and John Brock
assumed the position of President and CEO in May 2006.
• Human Resources and Compensation Committee –
Oversees people development, management succession, The composition of the Board is reviewed at least annually to
retirement planning, and compensation. Approves incentives, ensure the broad range of skills, background, and experience
stock options, and similar equity-based plans. that CCE needs. As we sharpen our focus on CRS, new
directors appointed in early 2007 bring additional expertise
• E xecutive Committee – Exercises certain powers of the
to our Board in the areas of packaging and recycling,
Board between meetings.
philanthropy, and sustainable development.
• Finance Committee – Reviews the annual budget and
All outside directors (not employees of CCE) are entitled
business plan, dividend policy, capital structure, and
to an annual retainer, as well as meeting fees. A portion
capital expenditures.
of payment is granted in stock options, which reflects the
financial performance of the company.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 

 On April 5, 2007, Summerfield (Skeeter) K. Johnston III passed away following a
IN MEMORIAM

serious sporting accident. Skeeter was the great-grandson of the first Coca-Cola
bottling franchisee and the son of our former Chairman and CEO, Summerfield
Johnston, Jr. Skeeter, 53, was a key contributor to the growth and evolution of
Coca-Cola Enterprises. With more than 27 years of experience in the Coca-Cola
system, he served Coca-Cola Enterprises in many capacities, eventually becom-
ing the Executive Vice President and Chief Strategy and Business Development
Officer before retiring in February 2004. Later that year, he was elected to our
Board of Directors. He chaired the Affiliated Transaction Committee, was the former
Chairman of the CRS Committee, and was also a member of the Finance Committee.

Executive leadership team In 2006, the only social, ethical, and environmental risk
Officers of the company are charged with responsibility for deemed material was health and wellness. As such, this
its day-to-day management, consistent with business strate- topic is overseen by the full Board.
gies approved by the Board of Directors. The President
In 2007, we will implement a new process to monitor the
and CEO also meets regularly with the Executive Leadership
company’s primary risks. Additionally, ERM will be incorporated
Team, the executive officers who report directly to him and
into annual and three-year business planning for North
are responsible for managing the company.
America and Europe, risk workshops will be conducted,
Compensation of senior management is linked to individual and a full-time Risk Manager has been appointed to manage
performance and that of the business. In the event of the process.
departure by senior and executive officers, severance
Responsibility for ERM lies with the Executive Vice President,
guidelines determine pay and benefits. In 2006, Human
Financial Services and Administration.
Resources and the Compensation Committee approved
severance benefits for former CEO John Alm that exceeded Business Ethics
these guidelines to ensure a smooth transition in management. All Coca-Cola Enterprises employees and directors must follow
the company’s strict Code of Business Conduct governing…
A shareowner resolution was put forward by the International
Brotherhood of Teamsters in 2006 to require, in some • legal compliance
instances, shareowner approval of the severance pay for
• dealings with customers, suppliers, competitors,
departing executives. The resolution did not get a majority
and regulators
of votes cast. In early 2007, the Board adopted an execu-
tive severance plan, with benefits less generous than in • recordkeeping, company assets, non-public information,
the past. and conflicts of interest

Enterprise Risk Management • workplace behavior

In 2006, Coca-Cola Enterprises further refined its ERM
• environmental performance.
framework. Our categorization of risks now includes internal
controls, finance, people/organization, corporate governance, Bribery and corruption of any kind are explicitly prohibited by
corporate responsibility and sustainability, affiliated transac- the Code, and we continually monitor the risks of corruption
tion, and external/competitive risks, which requires full across the company.
Board consideration.
The Code was most recently revised in 2005 and rolled out
Each risk category is assigned to an executive officer to in the United States. In 2006, it was launched in Canada
oversee and report to the Executive Leadership Team, and Europe, following modifications to conform to local
Risk Council, and relevant Board committees. laws and regulations.


Employees are encouraged to raise concerns to their In the United States, political contributions are made by
supervisor or Human Resources representative or to report the company and the Coca-Cola Enterprises Employee
anonymously to the Ethics and Compliance Hotline. This toll- Nonpartisan Committee for Good Government, a separate
free telephone and online reporting service is maintained by legal entity funded by employee contributions.
an independent third party. In 2006, there were no cases of
Approximately 65 percent of U.S. employees eligible to
corruption, although there were other violations of the Code.
participate choose to provide contributions, which are
Each incident is investigated and resolved by an appropriate
disbursed in a nonpartisan fashion and disclosed to the
level of management. Action is taken to sanction, and in some
Federal Election Commission and relevant state agencies.
cases terminate, employees and to strengthen controls to
In 2006, 2,840 employees gave US$412,686 to our
prevent recurrence.
Political Action Committee. Approximately 47 percent of
In 2007, we plan to upgrade this system to a single global our contributions was given to Democratic candidates
monitoring system to ensure consistency across the business (US$180,462); 46 percent was directed to Republican
and central data gathering. candidates (US$179,103); and seven percent was contributed
to nonpartisan candidates (US$25,850). In addition, our
Operational responsibility for the Code of Business Conduct
company provided corporate contributions to political entities
lies with the General Counsel.
totaling US$60,000.
Public Policy Development
Our business operations and profitability are affected by
Online
public policies, regulations, and laws. We therefore participate
in policy development on topics of legitimate concern to our • Corporate Governance – www.cokecce.com
business. We meet with officials directly and through industry
associations such as the American Beverage Association,
2007 and beyond
Refreshments Canada, and the Union of European Beverages
Association (UNESDA). • I mplement a new monitoring process for ERM

Decision-makers are informed about our position on such • Integrate ERM into annual and three-year planning

issues as health and wellness, the environment, taxation, •C

 onduct risk workshops in Europe and North
and transportation. For example: America

• We support recycling and recovery programs, but oppose •D

 evelop a global monitoring system for Code of
punitive taxation that singles out any one industry. Business Conduct

• We defend our use of ingredients, such as sweeteners

that have been extensively studied and approved by food
authorities as safe.

Our participation is governed by the company’s Code of

Business Conduct and is closely monitored. Operational
responsibility lies with the Senior Vice President, Public
Affairs and Communications.

Political Contributions
In Europe, we provide no political contributions to public
officials; in Canada, contributions are most often made
through the beverage association Refreshments Canada.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 

 Engaging with our Stakeholders

Respect is one of our company’s seven values. We define this as listening to,
understanding, and appreciating others. To earn the respect and trust of our
stakeholders and ensure our continued license to operate, we must understand
their needs and concerns.

Our philosophy is to be close to home—to be a part of our organizations. In the United States, our engagement
communities, a trusted supplier, a good employer, and a valued program, Operation Grass Roots Enterprise, has been active
corporate citizen. We already conduct ongoing dialogue with for 13 years. Ongoing training is provided, and a scorecard
local stakeholders wherever we operate, but we are becoming is used to measure performance at each facility. This program
more rigorous and systematic in our interactions. has been expanded and customized to fit the needs of the
stakeholders in the other countries we serve.
We have identified nine groups of stakeholders who are
either most affected by our business or who most affect our Stakeholder Concerns
business. These are our employees, consumers, customers, Through direct engagement and research, we identify the con-
shareowners, government and regulatory authorities, non- cerns of our stakeholders. We review and prioritize the issues
government organizations (NGOs), local communities and raised and, where appropriate, alter our approach. For example,
civic societies, and suppliers, including The Coca-Cola as concerns grew about beverages sold in schools, we worked
Company. We aim to keep these groups informed about our with parents, educators, and public officials to revise our
business and to have constructive discussions with them school beverage guidelines (see Health and Wellness).
on issues of common concern. In Belgium, for example, we
Social and environmental concerns vary by stakeholder
engaged with NGOs and other stakeholders in 2006 to gain
groups and by country. However, two issues were raised
feedback on our first system-wide Belgian CRS Report and
more consistently than others in 2006:
discuss future reporting plans. Similar sessions are being
held again in Belgium and other European countries in 2007. • Beverage sales in schools and marketing to youth

At the local level, an employee at each facility is responsible • Social and environmental concerns about The Coca-Cola
for maintaining relationships with community leaders and Company’s business in Colombia and India.

Engagement on Student Campuses

case study

In 2006, certain university campuses in Great Britain and North America called for boycotts of Coca-Cola beverages,
even removing them from some campuses, based on alleged human rights abuses in Colombia and water resource
management in India (see Global Issues).

Although CCE has no operations in Colombia or India, we continue dialogue with The Coca-Cola Company,
student groups, and institutions, such as the National Union of Students Services Limited in Great Britain. We also
facilitated the visit of Ed Potter, head of Labor Relations at The Coca-Cola Company, to the annual conference of
the National Union of Students (NUS) in Great Britain.

Following constructive engagement with external stakeholders, The Coca-Cola Company proposed independent
third-party investigations in Colombia and India. The NUS voted to continue dialogue and keep our products on
British university campuses, as did certain universities in North America.

10
 Non-government
Stakeholders for CCE organizations

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We have focused significantly on these issues in our day- Reporting

to-day engagement and our progress is reported in this Through meetings and Web site surveys, we gained valuable
publication. In 2007, we will conduct internal and external feedback from different audiences about our 2005 CRS
consultation on our corporate responsibility performance Review. In addition, the UN Global Compact communica-
and reporting with employees and opinion leaders in North tions team and student members of the Corporate Social
America and Europe. Responsibility Council at Harvard’s Kennedy School of
Government provided constructive criticism on our Review.
Memberships and Partnerships
This input was shared with the CRS Committee of the
In addition to direct engagement, we participate in industry
Board and helped shape our plans for future CRS publications
associations, civic organizations, and public-private part-
and initiatives. For example, we have gained agreement from
nerships. Industry associations are a key component in
our Board to set environmental targets and publicly report
representing our business interests and encouraging best
progress. Feedback also prompted us to include stakeholder
practices. We are members of many organizations at local,
commentaries in this Report.
national, and international levels, including the American
Beverage Association, Refreshments Canada, and UNESDA.
Online
In 2006, we worked with each of these to develop new
industry standards for responsible marketing in schools. •N
 ational Union of Students engagement –
http://www.nussl.co.uk/template.asp?pageid= 9661
We also belong to, or partner with, a large number of
•C
 CE stakeholder memberships and partnerships –
organizations focused on key social and environmental
www.cokecce.com
concerns to our stakeholders and our business.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 11

 Global Issues

The Coca-Cola Company works with more than 300 bottlers in more than 200
countries to operate the Coca-Cola system, the most extensive beverage distribution
system in the world.

While we are the largest bottler in this system, Coca-Cola student groups and activists have since alleged that The
Enterprises is only one part of this complex network. There Coca-Cola Company and its local Colombian bottler were
are several other international and publicly traded bottlers, as complicit in the murder and intimidation of unionists.
well as hundreds of small family-owned bottling companies.
The Coca-Cola Company has publicly condemned the
The issues outlined below are challenges The Coca-Cola violence in Colombia. In 2005, it signed a joint agreement with
Company and other bottling companies continued to address the IUF, the international organization representing unions in
in 2006. Although these are not issues that relate directly to the food and beverage sectors, reiterating its commitment to
Coca-Cola Enterprises, they involve other companies in the workers’ rights. The lawsuits filed in the United States against
Coca-Cola system and are of concern to certain stakeholders. the Coca-Cola bottlers in Colombia and The Coca-Cola
Company have been dismissed.
Colombia
Internal conflict and violence have plagued Colombia in recent The Coca-Cola Company continues to work with the
decades. Some stakeholders have raised questions related Coca-Cola bottlers in Colombia, organizations such as the
to labor rights issues at The Coca-Cola Company bottling International Business Leaders Forum (IBLF), and other
operations in Colombia. In 1996, a security guard was shot stakeholders on solutions to the problems facing Colombia.
and killed at the gate of a Coca-Cola bottling facility. Some In 2006, The Coca-Cola Company was a sponsor and
participant in multi-stakeholder conferences convened by
COSTA
the IBLF in Bogotá, New York, and London. The conferences
RICA
South America considered how business can collaborate with government,
TRINIDAD
& TOBAGO communities, and the NGO community to work together to
mitigate the impact of the conflict in Colombia. A public report
PANAMA
was issued from the conferences.
VENEZUELA

GUYANA The Coca-Cola bottlers in Colombia work to protect

employees by providing measures such as emergency cell
COLOMBIA SURINAM
phones, transportation to and from work, secure housing, and
security measures for union leaders. Special measures are in
place to protect union leaders and unionized employees who
ECUADOR feel threatened.

Finally, in 2006, both The Coca-Cola Company and the IUF

asked the United Nation’s International Labor Organization
(ILO) to conduct an independent and impartial assessment
BRAZIL
of labor relations and workers’ rights at bottling facilities in
PERU Colombia. The ILO agreed to conduct the assessment and
results will be made available as soon as the work is complete.

12
 Asia

PAKISTAN
India CHINA
NEPAL
There have been questions about The Coca-Cola Company’s
BHUTAN
environmental practices in India. Allegations have been made
that Indian sparkling beverages contained unsafe levels of
pesticide residues.

The Coca-Cola Company is committed to consistent, INDIA BURMA

responsible environmental policies and practices in India and BANGLADESH

everywhere else in the world. The company’s quality standards Arabian

Sea Bay of Bengal
not only meet, but often exceed, applicable laws.

Coca-Cola bottlers in India have been recognized by various

governmental bodies for their water stewardship efforts. In
fact, in India, the beverage industry is one of the most efficient
users of water in the country. The Coca-Cola Company
specifically has reduced water use ratios in India by 34
percent between 1999 and 2005. Government studies have
confirmed that the sparkling beverage industry is not the Indian Ocean
SRI LANKA
cause of water depletion in India.
Online
Independent tests and government tests also have confirmed
the safety of Coca-Cola products in India. The Coca-Cola • www.cokefacts.com
Company routinely analyzes the water, sweeteners, and other • www.thecoca-colacompany.com
ingredients used to make its products, and also tests finished • IUF – www.iuf.org
products to confirm their quality and safety. The company is • The International Labor Organization – www.ilo.org
completely confident in the safety of its beverages in India • The Energy and Resources Institute, India –
because they are produced to a high level of purity meeting www.teriin.org
applicable legal and other standards.

Although The Coca-Cola Company has its own environmental

management system, which includes regular audits of every
production facility within the system, the company asked The
Energy and Resource Institute (TERI) to provide an indepen-
dent perspective on the quality of the intake water used to
produce Coca-Cola products as well as the adequacy of the
company’s water resource management practices and policies
in India. TERI, an India-based nonprofit research organization,
has begun its assessment and will issue a public report. The
assessment will help The Coca-Cola Company and its bottlers
further improve environmental stewardship in India and gain
additional insights regarding best practices.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 13

 Supporting
health and wellness
As a leading beverage manufacturer, we can make a positive difference.
Coca-Cola Enterprises is committed to responsible sales and marketing,
providing a broad range of beverages, and promoting informed choice
and physical activity.

14
 HEALTH and Wellness

Obesity is a public health concern across North America In 2006, there were significant developments in all CCE
and Europe. Together with the food and beverage industry, territories with regard to responsible sales and marketing:
we join with educators, parents, sports and nutrition experts,
• In the United States, we partnered with the Alliance for
and public policy makers to address this challenge. It is
a Healthier Generation, founded by former President Bill
a complex problem, but CCE is committed to following
Clinton’s foundation and the American Heart Association,
responsible business practices and to promoting physical
to launch new school beverage guidelines (see page 16).
activity and nutrition education to help address obesity.
The first industry agreement in support of the Alliance’s
In 2003, we committed to a four-part strategy to meet the Healthy Schools Program to address childhood obesity,
needs of parents, educators, public officials, and others: these guidelines cap the number of calories for beverages
sold in schools and determine appropriate beverages for
1. Offer a wide variety of beverage choices
each age group.
2. Provide informed choice and nutrition information
3. Conduct sales and marketing responsibly • In Canada, we worked with Refreshments Canada to launch
4. Support physical activity and fitness. similar guidelines limiting the calories and range of beverages
in schools.
Given the wide-ranging nature of these commitments and
the materiality of the issue, operational responsibility lies • In Europe, we made commitments through UNESDA (see
with the Chief Executive Officer of the company. below) to avoid commercial activity in elementary schools
and to decide, together with parents and educators,
Responsible Sales and Marketing
appropriate beverages for middle and secondary schools.
Wherever we operate, we do our best to conduct our sales
Adherence is independently monitored. European Health
and marketing in a responsible way, particularly with regard
and Consumer Protection Commissioner Markos Kyprianou
to young people. Therefore, we work with peer industries,
publicly named and praised Coca-Cola among other food,
educators, and parents to develop an appropriate selection
drink, and retail industries for these initiatives in tackling
of beverages to offer in schools. We respect the classroom
obesity (see page 17).
as a commercial-free zone.

Addressing Obesity in Europe through Multi-Stakeholder Partnerships

CASE STUDY
We support the European Union’s multi-stakeholder initiative, the Platform for Action on Diet, Physical Activity, and
Health, which brings together key businesses, NGOs, physician associations, and consumer groups to agree on volun-
tary measures to combat obesity. We worked with the European beverage association, UNESDA, to make a series of
groundbreaking commitments to the platform for all beverages beyond mineral waters and pure juices including…

• Marketing to children – Avoidance of marketing through any media aimed at children under the age of 12, as well as
direct appeals to children to persuade adults to purchase.

• Vending in schools – No commercial activity in primary schools. In secondary schools, a full range of beverages
decided together with parents and educators.

• Consumer information – Improved nutritional labeling, including on-pack calorie information and testing of on-pack
Guideline Daily Amounts (GDA).

• Products and choice – More low- or no-calorie beverages. Increased choice and availability of different packaging
sizes to help reduce individual over-consumption.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 15

 “This is an important announcement and a bold step forward in the struggle
COMMENTARY

to help America’s kids live healthier lives. These industry leaders recognize
that childhood obesity is a problem and have stepped up to help solve it.
I commend them […] for taking this important step. There is a lot of work to
be done to turn this problem around but this is a big step in the right direction
and it will help improve the diet of millions of students across the country.”
Former President William J. Clinton, a leader of the Alliance for a Healthier Generation

These commitments are the result of extensive engagement not advertising to children under the age of 12. It adheres
in each country with health experts, educators, and parents. In to evolving guidelines such as the Children’s Food and
early 2007, for example, the American Beverage Association Beverage Advertising Initiative and the Children’s Advertising
consulted 700 parents on their views of its policy in practice. Review Unit in the United States, and similar guidelines in
A clear majority of parents (82 percent) supported this policy. other countries.
All of these commitments confirm and strengthen our own
Offering a Broad Range of Beverages
internal practices.
When CCE was formed in 1986, the beverages we offered
To ensure all sales employees in the education channel were largely sparkling beverages. Today, in response to the
understand the new guidelines, we conducted extensive changing needs and desires of our consumers, our portfolio
training and communications using Web-casts, videos, and is much broader and includes diet sparkling beverages,
sales presentations. Our adherence to these guidelines will juices and juice drinks, teas, sports and energy drinks,
be monitored and publicly reported. coffee-based drinks, and waters.

Media Advertising In 2006, we launched 19 such beverages:

The Coca-Cola Company is responsible for consumer
• Organic Valley – an organic milk
marketing, and for over 50 years has had a policy of
• Enviga – a calorie-burning tea

Working with the Alliance for a Healthier Generation in U.S. Schools

CASE STUDY

In the United States, we worked with the Alliance for a Healthier Generation and
industry representatives to limit the calories in beverages in schools. According to
new guidelines launched in 2006, only lower-calorie and nutritious beverages will be
sold and will be capped at 100 calories per container, except for certain milks and juices.

•E
 lementary schools will voluntarily only sell water and 8-ounce servings of juices
and fat-free and low-fat milks.

• Middle schools will voluntarily apply the same standard with 10-ounce portion
sizes of milk and juices.

• High schools will voluntarily offer only water, low- or no-calorie beverages with no
more than 10 calories per 8-ounce serving, and no greater than 12-ounce servings
of milk and 100 percent juice. Light juice, flavored water, and sports drinks can be
served with no more than 66 calories per 8-ounce serving. At least half of the
non-milk beverages will be water, and low- and no-calorie options.

16
“These commitments are good examples of concrete and verifiable action undertaken by industry

COMMENTARY
to tackle obesity and overweight. The EU Platform is producing results. I would therefore like to
congratulate the companies that made these commitments, encourage them to build on their good
work, and invite others to do the same—and more. It’s only by working together that we can hope to
halt and begin to reverse the growing obesity epidemic in Europe.”
Markos Kyprianou, European Health and Consumer Protection Commissioner

• AriZona teas
Our Wide Range of Beverages
• 11 new low- or no-calorie beverages.

Regular sparkling beverages still comprise approximately Teas/other 2%

55 percent of our total sales, though this is changing as Sports drinks 3%
sales of our other beverages grow. In 2006, light sparkling Juices/juice drinks 4%
and still beverages represented 45 percent of our sales Water 7%
volume, compared to 44 percent in 2005.
2006
As we provide an increased number of low- and no-calorie Volume Split
beverages, the average calorie content by volume of our Light sparkling 29%
portfolio has correspondingly decreased by 1.2 percent
since 2005 and is declining 1.8 percent per year since 2001.
Regular sparkling 55%

Nevertheless, we are sensitive to the concerns some

stakeholders have about non-nutritive sweeteners in low-
or no-calorie beverages. Aspartame continues to be deemed
safe by food safety authorities in countries where we operate,
and in 2006, the European Food Safety Agency reaffirmed its
safety while a groundbreaking study published by the National
Cancer Institute in the United States similarly found no link Calories per 8-ounce serving
between its consumption and cancer. 80

In addition to broadening our portfolio, we offer a wider

range of packaging sizes to create portion-control options.

Informed Choice
We place nutritional information on our packages in accor-
70
dance with The Coca-Cola Company’s policy and with local
regulations. To help consumers make informed choices, new
initiatives were introduced in 2006:

• In the United States, the Coca-Cola system voluntarily

expanded the nutritional information on our regular (non- 60
2001 2002 2003 2004 2005 2006
diet) beverages. The new labels will provide nutrition facts
not only for a standard 8-ounce serving, but also for the

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 17

 full container. Previously, labels only carried information In 2006, for example, we supported the pilot project
for an 8-ounce serving and indicated the number of servings Switch in the United States, a research-based family and
per package. This enhanced label will become more community wellness program with the respected research
broadly available throughout 2007. organization the National Institute for Media and the Family.
This innovative program helps communities, schools, and
• In Europe, the Coca-Cola system will pioneer voluntarily
families promote and choose healthy lifestyles. In an
placing the calorie content per serving on front panels
eight-month pilot during the year, approximately half of
of packages, along with the percentage of total recom-
the 600 children studied spent less time in front of the
mended daily calorie consumption this represents. In
television, ate more fruit and vegetables, and performed
addition, sugar, fat, saturates, and salt are shown per
more physical activity.
serving and as a percentage of the recommended
Guideline Daily Amounts (GDAs). This was launched in In 2006, the most significant programs we supported
2006 on Coca-Cola and Minute Maid beverages in Great included the following:
Britain and will be extended during 2007 to cover all
• North America – Live It! is a program designed to
beverages throughout our European territories.
encourage students to participate in physical activity
In addition to providing information on our beverages, and make healthy eating choices. We launched Live It! in
we support events that raise awareness of healthy Canada in 2006, reaching approximately 11,000 students
lifestyles. In Florida, for example, we partnered with the in 200 schools across all provinces. In the United States,
local Department of Health in 2006 to support the Youth the program included more than 3.3 million young people
Empowered Ambassadors for Health program to enable in 6,500 schools in 2006. Live It! consists of two elements:
youth leaders to become advocates for healthy lifestyles. Step with It and Fit it In. Step with It focuses on the health
We also supported health fairs across the United States benefits of all physical activity. Students receive a personal
in 2006. stepometer, an activity guide, and cards that suggest fun
ways to achieve 10,000 steps daily. Fit it In emphasizes nutri-
Physical Activity
tious alternatives, such as fruits and vegetables, for students
We continue our longstanding support of sports and
when making choices for lunch and other meals. Each
physical activity programs while seeking new opportunities
student receives activity cards that provide daily food tips.
to promote healthy lifestyles.
• Great Britain – Europe’s biggest school football tournament,
the Minute Maid Schools Cup is a partnership between
CCE and the English Schools Football Association, involving

New Calorie-Burning Tea Enviga

CASE STUDY

In 2006, our calorie-burning tea Enviga was

launched and intended to complement healthy
lifestyles. By drinking three cans a day, healthy
consumers can burn an extra 60 – 100 calories daily.
This is due to the powerful antioxidant EGCG that
speeds up metabolism and increases energy use,
especially when combined with caffeine.

18
A Growing Range

CASE STUDY
of Low- and No-Calorie Beverages
As consumers increasingly seek more choices, we
continued to expand our low- and no-calorie range
of sparkling beverages in 2006. Building on its early
success in the United Sates, Coca-Cola Zero was
launched in Great Britain and Belgium in 2006,
offering the same taste as Coca-Cola with no calo-
ries. The launch was the most successful beverage
product launch in Great Britain in the last three years.
Coke Zero was also introduced in the Netherlands
and France in early 2007.

40,000 boys and girls each year. To comply with the

British government’s new rules related to beverages in
Online
schools, the tournament was renamed from the Coca-Cola
Schools Cup in 2006. • American Beverage Association – www.ameribev.org
•A
 lliance for a Healthier Generation –
• France – We were a founding member of Fondation du
www.healthiergeneration.org
Sport, forging partnerships with municipalities to support
• UNESDA – www.unesda.org
sports associations and amateur clubs for young people.
• Refreshments Canada – www.refreshments.ca
We support youth sports programs in 14 major cities and
• Coca-Cola beverage and ingredient information –
in 2006, more than 20,000 young people participated
www.thecoca-colacompany.com
in our sports programs.

• N etherlands – Mission Olympic is the largest Dutch

2007 and beyond
youth sports program, conducted in partnership with the
Dutch Olympic Committee-National Sports Federation. •L
 aunch ten new low-calorie or nutritious products
In 2006, more than 150,000 young people participated, •L
 aunch two new smaller-size packages
with more than 300,000 expected to take part in the
•C
 ontinue to implement industry guidelines in
next two years.
each country
• Belgium – We partner with the Fund Open Stadium, •R
 eport progress on the Alliance for a Healthier
an initiative of the State Secretary For Sustainable Generation school beverage guidelines
Development and Social Economy and King Baudouin
Fund. This fund is for football coaches and clubs who
develop innovative projects that add value to local
communities. In 2006, CCE also became a gold sponsor
of the Camille Paulus Jeudgdsportfonds, a foundation
encouraging physical activity, especially among young
people and the disabled.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 19

 Developing a winning
and inclusive culture
Attracting, developing, and retaining a talented and diverse workforce is a
strategic priority for our business. We must develop a workplace where our
employees feel respected and are able to achieve their personal best.

20
 WORKPLACE

We employ approximately 74,000 people across our business, To ensure the success of this reorganization, we appointed
almost 95 percent of whom are full-time permanent employ- dedicated change management and communications
ees. Approximately 62,700 employees work in our North teams in North America and Europe to help us manage the
American production facilities, sales and distribution centers, process fairly and communicate candidly with employees.
and offices, while approximately 10,700 people are employed
Some positions were eliminated in 2006, and an additional
in Europe.
3,500 positions will be transitioned out during 2007 and
We aim to build a winning and inclusive culture at Coca-Cola 2008, some through attrition. All employees affected will be
Enterprises, providing a safe, fair, and diverse workplace and treated fairly with most receiving new assignments, or with
offering competitive remuneration and positive opportunities retraining, placement services, and severance pay that takes
for development. Accountability for each of the sections in this into consideration years of service. Where required, bargain-
chapter lies with the Senior Vice President, Human Resources. ing obligations with local unions will be followed on issues
affecting represented employees. In Europe, we will comply
Managing Change
with local and European consultation obligations.
To ensure our future success, we are making significant
changes to our business. This process began in 2005, when Fair Workplace
we reorganized our North American operations, flattening We strive to comply with all applicable employment and labor
hierarchies and maximizing contact with our customers. In laws in every country where we operate. We uphold interna-
2006, we undertook major changes in our go-to-market tionally recognized universal labor and human rights standards
model, resulting in significant restructuring of our business. and in early 2007, we signed the United Nations Global
Compact (see page 6), which supports these standards.

Employees Across Our Business

Full-time Part-time Seasonal Total

North America 59,100 2,789 803 62,692

Europe 9,809 410 480 10,699

Total 68,909 3,199 1,283 73,391

“A constructive dialogue between management and employee representatives

is crucial, especially in times of change. Employee representatives are able to COMMENTARY
quickly identify the hurdles for change in an organization, and help to build the
platform to implement potential improvements.
A constructive, transparent, and open two-way communication with
our European CCE management has taught us that we, as partners with
mutual respect, can increase the quality of decision-making on proposed
projects. In the future, we and CCE will continue to build further on our
collaborative relationship.”
Ab Ruigrok, Member of the Select Committee of the European Works Council

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 21

 Redeployment in France
case study

We are in the process of reorganizing our French operations, and we are closing two
logistics centers with the loss of 142 positions. Simultaneously, another 100 new
jobs are being created in sales. To manage this change, we undertook local impact
studies and consulted extensively with local employee representatives to mitigate
the impact on affected employees.

As a result, 55 percent of people whose jobs were eliminated were offered a new
assignment, while the remaining 45 percent were offered extensive training and
assistance in changing careers. Only three people did not accept the proposals and
they received CCE support while looking for another position.

Our policies prohibit the employment of anyone under the early 2007, we signed the Diversity Charter, an industry
legal age of employment and require the age of applicants initiative that requires signatories to prevent discriminatory
to be checked before offering employment. We will not practices against ethnic minorities, gender, and age.
tolerate forced or compulsory labor. Given the countries Additionally, we were among the first 40 companies to
in which we operate, we do not believe there is significant sign a charter with the French Ministry of Education to
risk of child labor or forced or compulsory labor in any of promote diversity through student-focused programs, and
our operations. our program Passport for Work (see Community) was cited
as a best practice.
Diversity and Inclusion
To be successful, CCE embraces a diverse and inclusive In most countries where we operate, diversity and inclusion
workforce that is representative of the communities we training is conducted for employees and managers and is
serve. Equality of opportunity and fair treatment are core included in orientation programs for new employees. In 2006,
to our workplace policies and practices. diversity-related training was conducted for approximately
5,000 employees.
In all countries in which we operate, equal opportunity,
anti-harassment, and anti-bullying policies have been Recruitment is managed by talent development committees
implemented, and a more structured approach to diversity in each business unit. Positions are advertised in a diverse
management is being developed. range of media in every country, while interviews are panel-
based and use objective criteria to ensure fairness.
Diversity action teams continue to guide progress in most
countries. In the United States, for example, we piloted our Our progress toward a diverse workforce and Board of
first local Diversity Action Council in 2006 to complement our Directors is gradual. Of the 13 directors on our Board
national Diversity Advisory Council. We plan to establish at the end of 2006, two were female and three were of
local action councils in each U.S. business unit. In France, minority background.
we established a Diversity Steering Committee and in

Diversity Across Senior Management

Female Age over 40 Ethnicity

Board of Directors 15% 100% 23% minorities

United States 17% 85% 10% minorities

Europe 8% 75% 95% European

22
“As a committed member of the Employers’ Forum on Age (EFA), CCE

COMMENTARY
Great Britain has been at the forefront of good practices on age issues.
The members of the EFA were so impressed by their work on communica-
tion of age issues that they presented CCE Great Britain with a special
award for an Outstanding Age Discrimination campaign in October
2006. CCE Great Britain received the award because of the early engage-
ment of their workforce on age issues and their innovative response to
raising awareness of age laws with all employees.”
Freda Line, Head of Employer Relations, Employers’ Forum on Age, Great Britain

It is not possible to give a global picture of ethnic representa- survey will be discussed in our 2007 Report along with
tion in our business, since in certain European countries related action plans.
it is illegal to collect ethnicity-related information about
Employee concerns can be raised through our hotline,
employees. In Canada, we do not track ethnic or gender
Ombuds Office, or diversity councils. In countries where a
data. In the United States, 10 percent of our senior manage-
diversity council or action team is in place, listening sessions
ment was of minority background. In Europe, over 95 percent
are held to seek employee input on specific issues. We
of our senior managers come from European countries.
thoroughly investigate all allegations of discrimination and
In 2006, turnover among our employees was 28.5 percent take appropriate action.
in North America and 11.5 percent in Europe. Turnover
A Safe and Healthy Workplace
does not seem to be affected by age, nationality, or gender
CCE is firmly committed to providing employees with a safe
but more by the role, with higher turnover in sales roles
working environment. Safety committees co-chaired by man-
than in manufacturing.
agers and employees have been established in all production
We also monitor our progress toward diversity and inclusion facilities, along with written health and safety programs and
through our employee engagement surveys. In 2006, policies. Many collective bargaining agreements reflect a
diversity questions were included for the first time in the joint commitment to safety by the company, and employee
survey of our employees in Europe. The results of this groups and unions are usually involved in safety initiatives.

Addressing Age Discrimination in Great Britain

case study
In Great Britain, 40 percent of the population will be over 50 years old by 2030.
Increased life expectancy and shortfalls in pensions mean that many people will
work longer before they retire.

To welcome and retain a wider age range in our workforce, we set up an Age Project
Team. We held focus groups, undertook internal communications, ensured recruit-
ment and development opportunities were age-neutral, and reviewed retirement
programs. In 2006, there was a 12 percent increase in new recruits over 40 years old,
and 22 percent of our 4,300 employees were over 45.

We received the Employer Outstanding Achievement Award at the 2006 Age Positive
Awards, organized by the government’s Department for Work and Pensions. We also
gained Age Positive Employer Champion status, while the Employers’ Forum on Age
awarded us the Best Age Discrimination Communications Campaign.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 23

 We aim to achieve certification of our Safety Management Protecting Employee Health
System under The Coca-Cola Quality System (TCCQS) We also conduct programs to promote employee health.
Evolution 3 (see Marketplace) by 2009. The safety For the highest-risk diseases, we offer education, prevention,
component of TCCQS has been externally benchmarked counseling, and treatment.
against OHSAS 18000. By the end of 2006, 14 out of 15
In North America, we prioritized the six most common serious
European production facilities had achieved this certification
conditions—cancer, coronary heart failure, congenital heart
as well as OHSAS 18001. In 2007, we aim to achieve
disease, diabetes, obesity, and asthma—and provided education
TCCQS and OHSAS 18001 safety certification of the
materials to all employees. Programs are outsourced to
remaining European facility, as well as TCCQS certification
a provider who also undertakes prevention, counseling,
of three North American facilities.
and case management. Treatment for employees and their
In line with our business strategy to improve our efficiency dependents is covered by our health plans. Information
and effectiveness, we are standardizing the approach we is available on the Intranet, and an annual health assess-
take to safety across our business. Following the appoint- ment is offered to all employees covered by the company
ment of a new Safety Director for North America in early healthcare plan. Lifestyle modification programs are also
2006, we focused on developing consistency in our safety available for those who wish to quit smoking, lose weight,
programs and our safety training. We are also building or manage stress.
capabilities and consistency at the European level, having
We continuously review employee needs and develop
previously managed safety only at the country level.
appropriate programs, such as PowerZone, a program in
We are also focused on driving accountability and awareness North America for back injury prevention. We will also con-
at all levels. Key performance indicators are reviewed tinue planning for emergencies, such as a natural disaster
and reported to senior management on a regular basis, or a pandemic. In addition, a healthy lifestyle component
and safety performance is among the measures included will be added to Safety committees in North America.
in business and individual performance assessments.
We are working on the standardization of our reporting
procedures. At present, our performance data is not ready
to include, but we aim to report our performance in our
2007 Report.

Safety Awards in Great Britain

case study

In Europe, our British operations again received recognition for excellence in

occupational health and safety from the Royal Society for the Prevention of
Accidents (RoSPA). In 2006, three of our production facilities won RoSPA Gold
Medal Awards in recognition of achieving a high level of performance over five or
more consecutive years. The awards recognize CCE’s work to develop occupational
health and safety management systems which achieve control of risk and low levels
of error, harm, and loss. Four additional CCE sites in Great Britain also won RoSPA
gold medals for work during 2006.

24
Sed de Saber Teaches

case study
English to Hispanic/Latino Employees
Hispanic and Latino employees identified a need to
improve their English language skills. We therefore
worked together with The Coca-Cola Company
and suppliers to develop Sed de Saber (Thirst for
Knowledge), an interactive English language learning
tool. Following a pilot program in 2005 with employ-
ees, customers, and communities, we distributed
300 learning tools to Hispanic employees in Colorado,
New Mexico, and Arizona. Based on positive em-
ployee response, an additional 1,400 learning tools
will be distributed to Hispanic employees in our West,
Southwest, and Southeast business units.

Labor Relations different functions and geographies. This body serves as

We respect the right of our employees to freedom of a sounding board in creating communications that more
association—to join or not to join unions and to engage in effectively engage employees. The council focuses on
collective bargaining. We protect those rights, so that they developing routines and technologies to help clearly and
are exercised without fear of retaliation or any other form consistently communicate our new strategy and priorities.
of discrimination. Given the countries in which we operate, We also strengthened our program of town hall meetings,
we believe that this freedom is not at risk in any of our holding more face-to-face meetings with employees.
business units. We will continue expanding our communications capabilities
in 2007.
Approximately 18,600 employees in North America in
approximately 170 different employee units, and most In return, we listen to our employees’ opinions and ideas.
employees in Europe, are covered by local labor agreements. We encourage our workforce to provide feedback on our
business and our culture in a variety of ways. Most significantly,
We inform and/or consult with employees, unions, and with
we measure our employee engagement through a survey
our European Works Council on major changes as soon as
every other year. In 2006, the engagement survey was
is practical and we are legally able to do so. We are commit-
conducted across Europe, while the North American coun-
ted to good faith bargaining and dialogue on the reasons
terpart was postponed until 2007 due to restructuring. In
for changes and their likely impacts. We follow local legal
addition, we do pulse surveys to seek feedback on specific
requirements with respect to the level of bargaining required
topics from specific regions.
with employee representatives and union groups regarding
major organizational changes. Our policy of ongoing and open Major change characterized 2006 for European employees:
social dialogue allows time to collect the input of employee a challenging business environment, some local restructuring
representatives before a final decision is made on projects projects, and the creation of a pan-European Supply Chain.
involving social change. This change agenda was reflected in the engagement
survey we conducted in late December. Seventy-three
Open Communication
percent of our employees contributed to the survey which
As we go through major organizational changes, it is vital
resulted in a below-average outcome primarily in the day-
that we communicate these changes candidly and transpar-
to-day work and work-interest areas. However, despite
ently with employees. In 2006, we established a global
this lower engagement score in a time of big changes, our
Communications Council including representatives from

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 25

 Salaries and Benefits

Approximate Total Total

no. of employees salaries benefits Total salaries & benefits

North America 62,700 US$2.88 billion US$417 million US$3.3 billion

Europe 10,700 US$571 million US$123 million US$694 million

Total CCE 73,400 US$3.45 billion US$540 million US$3.99 billion

employees reaffirmed their confidence in the relationships, Training and Development

teamwork, and work environment as very positive within the To attract and retain the talent that we need, we must
CCE Europe organization. invest in the professional development of our people. Our
orientation programs for new employees explain our ethics
Raising Grievances
and values, diversity and inclusion, safety, and our approach
We have a variety of ways that employees can raise
to corporate responsibility. We provide on- and off-the-
grievances or concerns. We have an open door policy that
job learning opportunities, enhancing both technical and
allows any employee with a problem or grievance to go to
leadership skills. We also offer hundreds of online courses.
any level of management, up to and including the Chief
Currently, we do not track training hours per employee.
Executive Officer. We encourage all members of management
to make themselves available to discuss conflicts and concerns. Performance Management
We aim for all employees to receive regular performance
A 24-hour Employee Hotline run by an independent third
reviews, and in 2006, we streamlined and simplified our
party is also available, allowing employees to report anony-
approach to performance management. All employees
mously if they wish. A summary of such inquiries, concerns,
from sales center manager upward were assessed on
and their resolution is reported to the Vice President, Labor
business results and leadership skills during the year.
Relations, the General Counsel, and the Audit Committee of
All supervisors and managers below this level have an
the Board of Directors. In North America, the Ombuds Office
objective review based on business results.
and the Solutions program provide alternative and confiden-
tial forms of conflict resolution. All of these approaches are Valuing Our Employees
governed by our non-retaliation policy. In 2006, we paid nearly US$4 billion in salaries and benefits
(see above). We aim to reward employees competitively
In 2006, no significant economic, environmental, or social
for their efforts. We determine compensation based on
issues were raised.
marketplace conditions and collective bargaining—not
gender. Even at entry level, we always pay more than the
local minimum wage. In addition to compensation, we offer
benefits such as tuition assistance for job-related courses
and an employee share purchase program.

26
 Coca-Cola Enterprises Johnston Legacy Scholarship Program

case study
Since 2002, Coca-Cola Enterprises has awarded 400 college scholarships
to children of its employees. The Coca-Cola Enterprises Johnston Legacy
Scholarship was created in honor of CCE’s 15th anniversary and as a tribute to
the company’s former CEO, Summerfield K. Johnston, Jr., who focused a significant
amount of his career on youth development and education. Mr. Johnston is the
grandson of the first licensed Coca-Cola bottler and built a lasting legacy of
giving back to the communities in which we operate. Each year, the company
provides more than US$1 million to students through this North American
scholarship opportunity.

Retirement Plans
Globally, we offer defined benefit and defined contribution Online
retirement plans to our employees based on various eligibility
• CCE Career Opportunities – www.cokecce.com
rules and geographic location. Our defined benefit plans
•E
 qual Opportunity Policy and Statement –
are funded from our general assets, asset-holding trusts,
www.cokecce.com
or insurance contracts. The estimated value of the plan’s
pension liabilities to be met by our general resources is
US$811 million, while a separate fund has assets set
aside to cover an estimated US$2.7 billion, 76 percent of
2007 and beyond
liabilities. We aim for all our plans to be funded wherever • I ntegrate diversity criteria into people strategies
we operate, and will ensure funding of our U.S. plans meets and senior management objectives
new standards by 2011, as required by law. • C ontinue to build safety capabilities and
Of our employees, approximately 80 percent participate in consistency
retirement plans. In 2006, employees contributed 0.6 percent • Achieve TCCQS E3 safety certification in four
of salaries to these plans. additional production facilities

• Conduct engagement survey in North America

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 27

 Providing
High-Quality Beverages
From business customers to consumers, people expect consistently high
quality from our beverages—and they are right to do so. We aim to meet and
exceed these expectations and to maintain long-term and positive relationships
with our suppliers, customers, and consumers.

28
 MARKETPLACE

Coca-Cola Enterprises is committed to consistently providing facility across our business now has a HACCP program.
customers and consumers with high-quality beverages. In 2007, we will use these programs to help mitigate risk.
Meeting or exceeding all regulatory and food standards is a
We adopted the Coca-Cola Quality System Evolution 3
fundamental requirement of our Quality Policy. We monitor
(TCCQS E3), the integrated management system for the
quality throughout the lifecycle of all our beverages, from
Coca-Cola business, to ensure we continue to achieve our
sourcing our ingredients to ensuring consumer satisfaction.
quality standards as we grow and diversify our business. In
Employees in quality assurance laboratories in every produc-
2006, we made strong progress toward our target of full
tion facility work to monitor the quality of our packaging and
certification of our quality management system (QMS) by
ingredients prior to use. Finished beverages are routinely
2007. By the end of 2006, 44 percent of our production
tested before they leave our facilities.
facilities were certified to the QMS standard of Evolution
We also monitor the quality of our beverages in the market- 3. Our goal is full company certification in all production
place, taking random samples from stores for testing and production/distribution facilities to TCCQS E3 (EMS,
against our quality standards and regulatory requirements. SMS, and QMS) by year-end 2009.
Each product package contains coded information that
Every facility is independently audited for quality each
also allows us to trace its production. In the event of a potential
year on behalf of The Coca-Cola Company. In addition,
quality issue, our systematic incident management process
our facilities are open to inspection and audit by local,
allows us to act swiftly to ensure our consumers receive
state, provincial, and national regulatory agencies.
only products of the highest quality.
Quality and product integrity are responsibilities of the
To further enhance our quality processes, we adopted
Vice President of Supply Chain Operations and Quality
Hazard Analysis Critical Control Points (HACCP), the food
for North America and the General Manager and Vice
safety methodology that identifies, manages, and monitors all
President, Supply Chain for Europe.
critical control points in the production process. By the end
of 2006, we had voluntarily developed HACCP programs Working with Our Suppliers
and conducted training in all North American production We conduct business with more than 84,000 suppliers
facilities. Since our European production facilities already and aim to build relationships based on shared values.
have programs in place, it means that every CCE production In 2006, we spent over US$11 billion with suppliers of

Supplier Diversity Spend Exceeds US$140 Million

CASE STUDY
In 2006, we spent more than US$140 million with minority- and women-owned
businesses (M/WBEs) in the United States—40 percent more than in 2005 and
our highest amount spent to date. We did business with 500 M/WBE companies
in 39 out of the 46 U.S. states where we operate. Our Manager of Corporate
Supplier Diversity received the Advocate of the Year award on behalf of Coca-Cola
Enterprises from the Georgia Women’s Business Council.

We plan to spend over US$150 million with M/WBE businesses in 2007, driven by
various factors, including a mentoring program which helps certified companies
to competitively seek business opportunities with us based on quality, service,
and cost.

Additionally, we are evaluating the possibility of expanding our Supplier Diversity

Initiative to other countries, such as Canada.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 29

 “Georgia Minority Supplier Development Council is an affiliate of the National Minority Supplier
COMMENTARY

Development Council (NMSDC), a network of 39 regional councils across the country, representing
more than 3,600 regional corporate members and over 16,000 certified Minority Business Enterprises
(MBEs), in addition to sister organizations in England, Brazil, and Canada. GMSDC is composed of a
network of corporate members with the largest number of certified and ethnically diverse business owners
in the Southeast. GMSDC is proud of the working relationship shared with Coca-Cola Enterprises
over the years.”
George Lottier, President, Georgia Minority Supplier Development Council

goods, services, and capital projects. We do not require We have also begun to work with suppliers to reduce the
our operations to source locally, but in practice the nature environmental impacts of the goods we source. Following
of our business often demands proximity of supply. As a three years of working with Eaton Corporation on testing
result, in 2006, 93 percent of goods and services were and development, for example, we pioneered the first hybrid
sourced in our countries of operation to reduce transportation 33000 GVW truck in 2006 (see Environment).
and improve service.
Responsibility for supplier relationship management lies with
Our procurement specialists build relationships with our the Vice President of Procurement for North America and the
suppliers that deliver the best value in terms of quality, cost, Vice President of Procurement for Europe.
service, and innovation.
Serving Our Customers
The Supplier Guiding Principles program of The Coca-Cola Our beverages reach our consumers through a network of
Company includes 79 percent of our third-party spending. customers across North America and Europe. More than 1.2
This program covers suppliers of ingredients, primary packag- million businesses, ranging from small independent retailers to
ing, and trademarked items and details our system’s values large international customers, sell our beverages. We aim to be
and our expectations of suppliers with respect to labor the most valued supplier to these customers.
standards, health and safety in the workplace, business
Large retailers are changing the retail landscape in North
integrity, and environmental practices. These principles
America and Europe. For instance, in North America our top
are part of supplier contracts and are subject to third-
20 customers account for 47 percent of sales volume and a
party assessment.
large share of our volume growth, and we anticipate that this
Since 2003, The Coca-Cola Company has commissioned will continue to rise.
independent auditors to verify compliance with this program,
Yet whether our customers are small independent vendors
starting with countries of highest risk. By 2006, 150 suppliers
or international supermarket chains, we are committed to
had been trained and 650 facilities had been audited.
providing them with high-quality products and service. We aim
CCE suppliers who are not covered by this program account to be their preferred supplier in the following areas:
for the remaining 21 percent of our spending. We are devel-
• Marketing and product innovation
oping our own Supplier Guiding Principles that articulate
• Shopper and consumer insights
the minimum standards that we expect of our supply base.
• Category management
We plan to roll these principles out in 2007. In addition, we
• Supply chain management
will develop a limited auditing process to assess compliance
• In-store execution.
against these principles, starting in areas of highest concern.

30
“The Georgia Women’s Business Council (GWBC) is one of 14 partnering organizations of the Women’s

COMMENTARY
Business Enterprise National Council (WBENC) which provides third-party certification that is required
by major corporations such as Coca-Cola Enterprises. Our corporate members understand the business
imperative to support women-owned businesses that add value to their bottom line.”
Roz Lewis, Executive Director, Georgia Women’s Business Council

Collaborative Business Development Wal-Mart to support the retailer’s commitments to reduce its
To achieve this, we adopt a collaborative approach, conducting environmental impacts. We are also partnering with a large
joint planning and tailoring of programs to their needs. Not only integrated oil company on a joint safety program, and with
do we do this with our major customers, but we also create The Home Depot on employee volunteerism.
programs for small-scale businesses. For example, there are
We assess what our customers need and how we perform
10,000 independent vendors in the United States who run
through surveys as well as through day-to-day engagement.
kiosks selling beverages and snacks in offices, hospitals, and
Surveys include internal questionnaires, such as the Coca-Cola
other workplaces. Most independently run kiosks lack the
system VOICE Tracker, as well as independent third-party
marketing tools to grow their business. We run a program to
studies, such as the Advantage Group Performance Monitor.
support these small independent retailers as an extension of
We do not track aggregated results but measure performance
our distribution system. FLO Coke is an online, one-stop-shop
by channel and country. For example, in the United States
resource designed by CCE and Coca-Cola North America
we improved in 2006 to #7 from #10 in Grocery and to #5
to provide them with online information about brands and
from #13 in Convenience Retail. In Canada, we maintained
channels as well as a monthly newsletter. More than 700
our #5 ranking in Grocery and moved from #3 to #1 in the
vendors have signed up since it was launched in 2005.
Convenience Retail channel. We know that we have gaps in
In addition, we work with larger customers on corporate a number of areas and are putting the plans and resources
responsibility initiatives. For example, we are working with in place to close them.

Supporting Independent Hispanic/

CASE STUDY
Latino Retailers
The Hispanic/Latino population accounts for more
than 12 percent of the U.S. population. In 2006, we
launched a new program with Coca-Cola North
America to support Hispanic retailers, many of
whom are independent vendors. Our Tienda Latina
program was piloted with 2,700 customers in 10
U.S. cities during the year. The program provides
these storeowners with tailored Spanish-language
marketing materials and promotions together with
media support. We build relationships with the
customers, holding get-togethers and providing them
with Hispanic shopper insights and other support.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 31

 Operational responsibility for customer relationships lies our favor and dismissed claims brought in the case of
with the Chief Customer Officer for North America and the Harmar Bottling Company et al vs. The Coca-Cola Company
Vice President, Strategy, Sales, and Marketing Innovation et al. In 2000, a jury found in favor of five distributors of
in Europe. competing beverage products who had filed a lawsuit
alleging that we and The Coca-Cola Company engaged in
Fair Commercial Practices
anti-competitive marketing practices. The Supreme Court’s
We believe in vigorous yet fair competition and strive
ruling overturned an earlier decision by the Court of Appeals.
to comply with the principles of fair competition and all
The court is now assessing whether to reconsider its
applicable regulations.
decision. The claims of three remaining plaintiffs are still
To ensure that we comply with antitrust and competition to be tried, and we intend to vigorously defend against an
laws, we conduct periodic training of sales and managerial unfavorable outcome.
employees. For example, our legal teams in Europe developed
In 2006, our sales represented approximately 13 percent of
and implemented a training program for our sales employ-
total non-alcoholic beverage sales in our North American
ees in 2006 on guidelines for respecting competition law.
territories and 18 percent in our European territories.
In the United States, our legal teams conducted training for
two-thirds of the target employee group in 2006 and plan Operational responsibility for antitrust and competition
to conduct training for the remainder in 2007. In Canada, law compliance training lies in the United States with the
we conducted antitrust training periodically throughout Deputy General Counsel, in Canada with the Canada
2006 and will continue such training in 2007. General Counsel, and in Europe with the General Counsel,
European group.
In 2006, there was activity in one significant competition-
related court case. The Texas Supreme Court ruled in

Award-Winning Sales Teams

CASE STUDY

In Belgium, we won the Salesteam Awards 2006

given by Belgian food retail magazine StoreCheck.
In 2006, 85 percent of store managers nationwide
named CCE among the top three suppliers in terms
of service. CCE won in the beverage category, as
well as the gold award overall.

In Great Britain, CCE was awarded Manufacturer

of the Year 2006 by trade publication Asian Trader.
The awards are the country’s leading awards for
independent storeowners.

In Canada, CCE was named A&P and Food Basics’

2006 Supplier of the Year. The honor acknowledged
our superior category management, brand/package
innovation, value-added marketing programs, and
excellent follow-up.

32
Listening to Our Consumers
To respond to consumer inquiries, together with The Online
Coca-Cola Company we maintain information centers in
• CCE Form 10K – www.cokecce.com
every country in which we operate. In 2006, these centers
• CCE Supplier Diversity – www.cokecce.com
handled almost 440,000 contacts by phone, email, and
• TCCQS – www.thecoca-colacompany.com
mail. Of these contacts, 51 percent were inquiries about our
• The Coca-Cola Company Supplier Guiding Principles –
products and promotions, 37 percent were questions related
www.thecoca-colacompany.com
to the quality of our products, and the remainder were sug-
gestions, compliments, and other information. This feedback
is an integral part of our quality management systems.
2007 and beyond
Improving consumer satisfaction is our goal, and we
continually strive to reduce the number of quality questions •E
 stablish CCE Supplier Guiding Principles
we receive. In our industry, consumer complaints are program
measured in complaints per million containers sold. In 2006, •C
 omplete certification of TCCQS Quality
the number of complaints was fewer than three complaints Management System
per million containers sold, achieving our goal of reducing a
further five percent, and this measurement is integrated into
our company and business unit quality metrics.

Operational responsibility for consumer affairs lies with the

Senior Vice President, Public Affairs and Communications
in North America and with the General Manager, Vice
President Supply Chain in Europe. Consumer information
from our call centers, as with other consumer contacts, is
protected for privacy purposes in accordance with local
laws and regulations.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 33

 Protecting
our environment
We aim to reduce the environmental impacts of our business activities and
products. Together with our suppliers, customers, consumers, communities,
and employees, we prioritize and manage these impacts. Increasingly, we are
integrating environmental considerations into our day-to-day business operations.

34
 ENVIRONMENT

Previously we focused largely on compliance. As environmental In 2007, we plan to set annual performance targets for priority
issues have become more critical, we realize the need to do issues, and we will report our progress in future reports.
more to understand and minimize the impacts our business
Compliance
has on the environment. These extend throughout our supply
The Coca-Cola Company conducts annual quality audits of
chain—from raw materials provided by suppliers to electricity
every production facility. In 2006, environmental auditing was
used by On-Premise equipment on customer premises and
incorporated into this process on a three-year cycle and
beverage containers that consumers recycle or dispose.
20 production facilities in North America were audited.
We also recognize that good environmental practice is good
European production facilities are audited annually as part
business; the fewer raw materials we use, the less waste we
of their ISO 14001 certification. In addition, our production
produce, the less electricity we use—the lower our costs are.
facilities are periodically inspected by governmental
Our Management Approach environmental agencies.
Our Environmental Policy commits us to integrating good
We strive to comply with all applicable laws and regulations.
environmental practices into our business and to working
In Europe, CCE has made significant progress in this regard,
with our stakeholders to manage our impacts. The policy
holding annual compliance reviews in all facilities, including
was most recently updated in 2005. The management
production, distribution, On-Premise, and office locations.
system we have adopted is The Coca-Cola Quality System
Evolution 3 (TCCQS E3). The environmental component We incurred no major fines in Europe in 2006—only one
of this integrated management system for the Coca-Cola fine of 3,000 Euros in Dongen, the Netherlands. In North
business has been externally benchmarked against ISO America, we had 133 incidences and incurred fines totaling
14001 (see Marketplace). US$618,995. Although the total fines paid are higher
than last year, one failure to conduct annual emissions
We have committed to achieve full TCCQS E3 certification
testing on delivery vehicles in California accounted for
in our 79 production facilities by 2010. Our 15 European
US$528,000 of the 2006 total.
production facilities achieved environmental certification
in 2006—one year ahead of schedule—as well as ISO In 2006, there were a total of 20 significant spills totaling
14001 certification. In North America, we plan to achieve approximately 8,900 liters. Fourteen of the spills were
E3 certification in three production facilities in 2007. diesel fuel spills, and others included sugar solutions and
beverage spills. We classify a significant spill as one which
Priority issues
is 95 liters or more, or of any quantity that enters a storm
The key environmental challenges that face our business
drain system. These are subject to a fine and local, state,
and our stakeholders:
or national response reporting. Each of these significant
• Water stewardship and conservation spills was immediately cleaned up and there were no
significant impacts resulting from the incidents.
• Energy and climate change
Accountability
• Sustainable packaging and recycling.
Given our history of gradual acquisitions, there are still differ-
To address these issues, we work closely with The Coca-Cola ent environmental management structures between North
Company and other bottlers through the Coca-Cola America and Europe. The Vice President, Customer Supply
Environmental Council and regional counterparts. Increasingly, Chain, is responsible for environmental performance in North
we also collaborate with suppliers, peer industries, NGOs, America, supported by an Environmental Affairs Department.
and communities on these issues. We conduct training on In Europe, the General Manager, Vice President, Supply Chain,
these and other priority issues. is responsible, supported by an Environmental Manager and a
cross-functional Environmental Leadership Council.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 35

 Our Water Sources

Public Supplies Water

72 sources As a beverage company, we cannot exist without water.
It is the primary ingredient of our beverages and vital to
Private Supplies
7 sources our production processes. Yet it is a finite natural resource
under increasing stress. We are therefore working hard
2006 to improve the efficiency with which we use water and
to protect watersheds in our communities. We are also
working with The Coca-Cola Company in 2007 to create
a Global Water Stewardship Roadmap for the Coca-Cola
system. This outlines near-, mid-, and long-term goals for
water stewardship—in terms of production facility water
usage and watershed protection—and we will report our
progress in future Reports.

Of our 79 production facilities, 72 withdraw water from

public sources. The remaining seven facilities—three in
Our Water Use Ratio North America and four in Europe—derive their water used
in production from private supplies. We have a clear under-
2005 2006 standing of the water risks to our business following the

1.95 1.83
highly detailed comprehensive analyses undertaken with
The Coca-Cola Company of every CCE production facility.
We studied the annual renewable freshwater supply, supply

liters liters
economics, and the social and competitive context of our
business. These assessments will be repeated in 2008 in
all North American plants.

Water Efficiency
In 2006, we used an average of 1.83 liters to produce one
liter of beverage, compared with 1.95 liters in 2005. This
marks an improvement of more than more than six percent

Improving Water Efficiency in Canada

CASE STUDY

Our Richmond, British Columbia, production facility was our first in Canada to undertake a series of initiatives to
improve water efficiency. Since 2003, measures taken have included…

• Converting water rinsers for the bottle line into de-ionized air rinsers
• Reclaiming water from carbon filter backwash
• Reducing water for backwash by optimizing backwash cycles
• Cooling air compressors with air rather than water, and reusing the hot air for space heating
• Concentrate chiller condenser conversion from being water-cooled to being cooled by air.

In 2006, these initiatives conserved approximately 23 million liters of water. In the future, the facility will convert full
goods conveyors to dry lube and capture post-rinse water for use as pre-rinse.

36
 “Our Clean Water Champions are partners from the business community who

COMMENTARY
recognize that healthy rivers and watersheds support strong local economies
and provide us all with a superior quality of life. Coca-Cola Enterprises is one
of our Clean Water Champions, and we are excited about the existing and
emerging partnerships we have with them. In the short term, we’ve already
identified ways that the company can further reduce water use at its facilities.
These include pretty simple, quick things like doing more rainwater harvesting
on site and using the captured water to meet needs that don’t need treated
drinking water. As other U.S. businesses and communities tackle issues of
watershed protection, we believe that our partnership with CCE can set a
good precedent.”
Don Elder, President, River Network

in our water efficiency. In 2006, we used 38 gigaliters of production facility will save 96 million liters of water annually,
water, of which 2.1 gigaliters was groundwater. In 2007, while optimization of water in the Grigny, France, production
we plan to improve our water use ratio an additional three facility—such as CIP (cleaning in place) modification of
percent. In North America, we implemented our water the automatic cleaning processes of CIP or recovery of
conservation toolkit during 2006. backwash water—will save 95 million liters of water annually.
In addition, our switch to one-way PET bottles in the
In our 2005 Review, we reported North American water
Netherlands saves an additional 182 million liters of water
and energy use from September 30 to October 1. Because
each year.
of improvements in our data collection, the figures are
now given for calendar year 2006, with a retrospective In 2007, we plan to convert a further 10 aqueous lube
calculation for 2005. As our analysis improved, we also lines, which will lead to savings of an additional 22.68
found that the water use ratio in the 2005 Review was million liters of water. Yet as we diversify our product mix
inaccurate; the correct ratio for 2005 is used here. into teas, juices, and other still beverages, their more
water-intensive production is likely to impinge our overall
We prioritized areas that would create the greatest water
future gains in efficiency. Beyond our own operations, we are
savings, and in 2006, implemented the following initiatives:
increasingly working in multi-stakeholder partnerships to
• Converted seven water rinsers to air rinsers, saving 37 address water sustainability.
million liters of water
For example:
• Converted two aqueous lube bottle conveyance lines to dry
• In Great Britain, we chair the Champions’ Group for Water
lube, saving approximately 4.54 million liters of water
Use, part of the Food Industry Sustainability Strategy by the
• Recovered and reused filter backwash water in two government Department for Environment, Food and Rural
production facilities Affairs (DEFRA). This strategy aims for an overall water
reduction target for the food industry of 20 percent by
• Piloted ozone sanitation to clean filling equipment.
2020 against a 2007 baseline, excluding water that forms
In Europe, we are focusing on poorer-performing facilities part or all of the product.
and those in more water-stressed areas. For example,
• In the United States, we helped to create the Arizona
optimization of water treatment at our Gent, Belgium,
Governor’s Business Advisory Group on Water Policy and

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 37

 “DEFRA’s Food Industry Sustainability Strategy (FISS) sets out how all those involved in the food and
COMMENTARY

drink industry in Great Britain can adopt best practice and help to achieve sustainable development.
CCE has provided strong support and leadership throughout the FISS process, and has been
instrumental in driving the work of the Champions’ Group on Water. I am delighted that CCE is
using its experience, knowledge, and strong track record on water stewardship to examine best
practice, look at ways of working, and identify barriers which may be discouraging the industry
from behaving in a more sustainable way.”
David Jones, Deputy Director, Food and Farming, Department for Environment Food & Rural Affairs

participated in the Georgia State Advisory Committee Directors in 2006, and our first collaboration is in Florida.
charged with developing the first state-wide water plan. Management from facilities in Texas also participated in a
Rio Grande watershed protection initiative with The
• In 2006, we were active in the Water Resource Stewardship
Coca-Cola Company, World Wildlife Fund, and Latin
in the Beverage Industry Roundtable organized by The
American bottler Coca-Cola Arca.
Coca-Cola Company and the Global Environment and
Technology Foundation. Wastewater
Before we release wastewater from our facilities, our policy
We are also expanding our focus to help protect community
mandates that all applicable permit standards for discharge
watersheds. In 2006, water source vulnerability assessments
to municipal treatment plants be met. For discharges to open
and training were conducted at three North American
bodies of water, our policy requires that it must be treated
production facilities, and two more production facilities will
at least to a standard capable of supporting fish life and in
be covered in 2007. As a result of our source vulnerability
accordance with applicable laws. In 2006, all our production
assessment, we also intend to develop more collaborative
facilities met our wastewater standard. Out of 79 production
relationships with our water providers to help us improve
facilities, 76 discharge it into municipal water treatment plants
our water efficiency and contribute to watershed protection.
where it joins wastewater from communities and other busi-
In 2007, we will continue to partner with River Network, nesses. The other three production facilities have full treatment
a U.S. non-profit organization working to help people facilities and release to regulated bodies of water. In 2006,
understand and protect rivers and watersheds. Our Vice we estimate we discharged 16 gigaliters of wastewater to
President, Customer Supply Chain, joined the Board of municipal treatment plants.

New Wetland Reed Filter System in Grigny, France

CASE STUDY

The French production facility in Grigny focused its environmental efforts on

water in 2006. Not only did the site achieve a 13 percent improvement in its water
efficiency, but employees also constructed a wetland or reed bed (phytorestora-
tion) system for wastewater treatment. This natural biological treatment system
uses plants to absorb nutrients and thereby reduce pollutants. The system has a
5,000-square-meter filter garden and is planned to be fully operational in 2007.
This initiative alone will reduce the biological load (BOD) of our wastewater by
45 percent.

38
Industrial and High-Bay Fluorescent Lighting

CASE STUDY
Lighting accounts for approximately 10 percent of the electricity consumption in our
manufacturing facilities and about 55 percent in sales and distribution centers.

To reduce this usage, we launched a program to replace high intensity discharge

(HID) lighting with industrial and high-bay fluorescent lighting. Occupancy and
motion sensors are being installed where possible to reduce consumption when
spaces are unoccupied.

Our goal is to replace all HID lighting in the United States by 2009. This will
reduce our electricity consumption for lighting by an estimated 50 percent, saving
an estimated 137,000 metric tons of CO 2 emissions a year.

In 2007, we are also launching an employee awareness and purchasing program

for residential-use compact fluorescent lighting.

Energy and Climate Change We used 8,078 terajoules (TJ) of energy in 2006. Technical
CCE recognizes that climate change is one of the most issues with data gathering for natural gas use in North
urgent environmental problems facing the world today. We America have prevented us from providing this particular
are committed to improving the efficiency with which we use data set. These technical issues will be resolved in time
energy and to reducing our CO emissions. We are attempting
2 for use in our 2007 publication. We strive to improve the
to calculate a carbon footprint in each country where we do efficiency of our energy usage and are developing an energy
business and set improvement targets for the future. conservation toolkit for use at our facilities. The toolkit will
be rolled out in 2007.
The three parts of our business that use the greatest amount
of energy: Some North American energy-efficiency initiatives in 2006:

• Manufacturing processes in our 79 production facilities • A three-year program to install fluorescent lighting that is 50
percent more energy-efficient throughout our U.S. plants and
• The 55,000 vehicles, including those that transport our
distribution centers by 2009 (see above).
beverages to customers
• An audit of all CO2 and compressed air lines that identified
• The 2.4 million coolers, beverage dispensers, and
leaks. We identified potential energy savings of 810 MJ and
vending machines.
aim to repair all leaks in 2007.
In each area, we have identified the greatest opportunities to
In Europe, we introduced extra bottle blowers on site,
save energy and are focusing on those.
thereby using 2.2 percent more energy than in 2005.
We continue to explore the possibilities of renewable energy Despite this additional energy use by manufacturing bottles
and are piloting a number of projects in our production on site, we are reducing the transportation of empty pack-
facilities and fleet. aging and reducing our overall carbon emissions. To identify
further energy reduction opportunities in North America,
Production Facilities
we participated in The Coca-Cola Company/World Wildlife
Our production facilities use mainly electricity and natural gas.
Fund Greenhouse Gas Workshop to help us establish a
We have installed solar panels in two facilities and conducted
baseline for production facility emissions and a target for
feasibility studies into wind power, but have not yet found
reducing greenhouse gas emissions by eight percent by
viable alternative energy sources.
2015. In 2007, other energy-efficiency measures will also
be introduced, such as high-efficiency motors in conveyors,
pumps, and refrigeration. We will continue to explore other

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 39

 Innovative New Hybrid Delivery Trucks
CASE STUDY

The groundbreaking hybrid 33000 GVW delivery

truck is the result of an intensive research and
development program we conducted together with
our supplier Eaton Corporation. The trucks, which
convert braking energy into supplementary power,
have up to 32 percent greater fuel efficiency and
significantly reduced emissions.

Following three years of testing, we introduced this

truck into our fleet in 2006 and plan to have 20 in
service by the end of 2007. We will help develop larger
GVW trucks in the future, and will also encourage
peer companies to invest in the technology to reduce
costs and make it a viable option for broader use.

opportunities, such as altering temperature settings for These initiatives are still in early stages and currently
warehouses, offices, and refrigeration and creating energy- represent only a fraction of our fleet. We are therefore
efficiency requirements for suppliers. improving efficiency in more immediate ways, too. For
example, we are minimizing vehicle miles traveled through
Fleet
freight optimization. In Great Britain, we started to move
Our fleet comprises 55,000 vehicles, including 21,000
products by rail rather than truck, while in France, we chair
delivery trucks. We are working to make these vehicles
the Demeter Environment and Logistics Club, bringing
increasingly fuel-efficient and to reduce the carbon
industry, logistics firms, and government agencies together
emissions they produce. We have been testing a number
to reduce the CO 2 emissions of shipping. In 2006, we used
of options:
more than 163 million liters of diesel, equivalent to more
• Working together with our supplier, we developed and put than 441,000 metric tons of CO 2 emissions.
into service the first hybrid 33000 GVW delivery truck
Sales and Marketing Equipment
(see above).
The energy used by our vending machines, beverage
• Alternative fuels are being tested. For example, our buying dispensers, and coolers represents a significant proportion
specifications now require that, where available, new of energy consumed by our business. We estimate that in
vehicles should be capable of running on ethanol (E85). 2006, this On-Premise equipment used 33 billion mega­
We are already using commonly available ethanol blends juoules (MJ) of energy, equivalent to 5.9 million metric tons
in many locations and are testing the use of biodiesel of CO 2 emissions.
blends in selected venues. As these fuels become more
While energy is used on customers’ premises, we nevertheless
widely available and our experience with their operating
have a responsibility for improving energy efficiency. In 2006,
characteristics grows, we plan to increase their use.
we began installing the energy management system EMS-55
• We are piloting the use of a fuel-borne catalyst in 1,200 in new coolers in Europe. This device has been proven to
older trucks and expect it to improve the fuel efficiency boost energy efficiency by up to 35 percent. We started
in those vehicles by 10 percent. installation in Belgium and are extending throughout
our European countries, saving an estimated 182 MJ
of energy and 21,800 tons of CO 2 emissions each year.
We are also trialing other initiatives, such as replacing

40
the fluorescent tubes in coolers with longer-lasting and to this closure, which saves plastic in the closure as well
energy-efficient light-emitting diodes (LED) lighting. as the bottle itself, began in late 2006 and will continue
throughout 2007.
Sustainable Packaging and Recycling
Packaging plays a vital purpose in delivering our beverages In Great Britain, we are working with the non-profit Waste
to consumers safely. Yet as natural resources become and Resources Action Programme (WRAP) to reduce the
depleted, energy costs rise, and landfills become full, weight of our 500 ml PET bottle by a further two grams
we must reduce its environmental impacts. Beverage to 24 grams, a 7.7 percent reduction. There are constraining
packaging is already among the most recycled consumer limits as to how much more material we can safely take
packaging, but we must continue to address its impacts, out of our packages, but we will continue to make reductions
throughout its lifecycle. We work with suppliers and partners where possible. We are also keen to use as much recycled
to make package design resource-effective, and we partner content in beverage containers as is viable. A large proportion
with governments, businesses, and communities to promote of the glass, aluminum, and steel we source is recycled already.
recycling. In our production facilities, we are minimizing
While plastic bottle packaging polyethylene terephthalate
waste and increasing the amount we recycle.
(PET) is recycled, it is generally used in industries such
Reducing Packaging as carpeting and textiles. Obtaining a consistently high-
We continue to reduce the amount of materials in our quality and cost-effective supply of food-grade-recycled
beverage containers. In the United States, we continue PET (rPET) still poses a challenge, especially in the face
to reduce the amount of raw materials used in packaging of worldwide competition for collected PET. In addition,
and in 2006, saved 8,100 metric tons. In 2007, we plan national standards vary on the reprocessing techniques
to save a further 12,600 metric tons. The further savings for rPET allowed. In the Netherlands, for example, we use
in 2007 will come as a result of a number of initiatives up to 25 percent rPET, in accordance with the agreement
such as converting to a lower-profile closure on our small between industry and the Dutch government; and in the
PET bottles in Canada and the United States. Conversion United States it is 3.8 percent; while in France, procedures

CASE STUDY
Commercial Recycling Champion
in Great Britain
In 2006, our Milton Keynes’ production facility Quality,
Safety, and Environment Manager was judged
Great Britain’s Commercial Recycling Champion.
The award, for excellence in recycling and waste
management, was organized by letsrecycle.com,
the leading news and information service for
recycling and waste management.

In the last three years, the Milton Keynes facility

has reduced the amount of waste it sends to landfill
more than tenfold, to less than 2.2 percent of all solid
waste produced. It now recycles or recovers on
average 97.8 percent of all waste, and in 2006, only
16.5 tons of waste were sent to landfill.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 41

 for use of rPET are too complex to currently allow us to participation in recycling. Pilot programs in 2007 will be
use this material. We support programs to improve the conducted in four states.
quality and reduce the cost of rPET as well as proposals
• In the Canadian province of Quebec, we helped establish
to align national standards.
a coalition to support advanced recycling in public spaces.
During 2006, our British operations partnered with WRAP Projects have been established in public transit systems,
to complete a large-scale trial aimed at boosting the use parks, hotels, restaurants, and other public spaces. We
of rPET. After rigorous technical, commercial, and safety also launched a public awareness campaign promoting
testing, around 500 tons of rPET was used in approximately recycling of all of our vending machines in Quebec.
75 million bottles with 25 percent recycled content and
• In the Netherlands, we helped establish new recycling
placed in the market. Despite the trial’s success, large-
and recovery body Nedvang (Netherlands from Waste
scale commercial implementation requires more research,
to Value). We are also implementing industry obligations
and a cost-effective commercial supply of recycled material
under new 2006 regulations on packaging.
remains in its infancy. We will conduct further research
into materials and blend ratios of rPET and virgin PET with In 2007, we will partner with RecycleBank, a consumer
our suppliers. education and incentive program in the United States.
RecycleBank has piloted programs in Philadelphia and
Marketplace Recycling
throughout Delaware and will extend to the Northeast
To ensure that Coca-Cola Enterprises is well-positioned to
and Southern United States. Since recycling depends on
respond to the growing opportunities related to recycling,
public participation, we also support litter control programs.
a new company-owned entity, Coca-Cola Recycling (CCR),
In every country of operation, we regularly participate
LLC, was established in late 2006. The primary role of
in clean-ups with such organizations as Keep America
this new organization is to improve recycling activities at
Beautiful and its affiliates.
Coca-Cola Enterprises. Working independently yet within the
company, CCR, LLC, will promote best practices in recycling Recycling at Our Facilities
practices across the company, establish metrics to gauge In our production facilities, we minimize packaging waste
performance, and develop cost-efficient solutions to promote from the supplies we receive, and we strive to reuse,
and increase recovery and reclamation of packaging materials recycle, or recover as much as possible of our production
used by Coca-Cola Enterprises. CCR, LLC, will also work waste. In 2006, we recycled 46,592 metric tons and in
closely with The Coca-Cola Company to support package Europe, we recovered a further 2,706 metric tons of waste.
sustainability initiatives in North America, and will establish In Europe, we recycled or recovered 95 percent of our
collaborative working relationships with our European production waste, serving as best practice for the rest of
operations to support European recycling activities. our business. As this is the first year our North American
waste disposal companies could provide data, we can-
In every country where we conduct business, we support
not make comparisons with previous years, nor can we
recycling and recovery programs. Often a founding
calculate recycled waste as a percentage of total waste.
member, we work together with peer industries, packaging
suppliers, and regulators to improve recycling rates. Equipment Disposal
Given the impacts of disposing of end-of-life On-Premise
In 2006, we supported the following new initiatives:
equipment, we carefully adhere to local waste disposal
• We supported the American Beverage Association, requirements. As a beverage manufacturer, we generate
becoming a founder member of the National Recycling negligible quantities of hazardous waste because such
Partnership, a groundbreaking effort with the U.S. substances are generally avoided for food safety reasons.
Environmental Protection Agency to reinvigorate public In Europe, a directive on waste electrical and electronic

42
equipment (WEEE) requires companies to be financially
responsible for recovery and disposal of end-of-life equipment.
This has limited impact on our business since we already
take back old equipment to re-service or recycle.

Biodiversity
Our production facilities and sales centers are located
in urban or industrial areas, so we do not believe that we
have significant impacts on local biodiversity. Nonetheless,
we continue to investigate potential impacts.

Online

• C CE Environmental Policy Statement –

www.cokecce.com
• TCCQS – www.thecoca-colacompany.com
• RecycleBank – www.recyclebank.com
• River Network – www.rivernetwork.org

2007 and beyond

• Achieve TCCQS E3 environmental certification in
a further three plants in 2007

• E stablish targets for water and energy efficiency

initiatives

• Commission 20 hybrid trucks

• Launch energy conservation toolkit in North

American production facilities in 2007

• C omplete lighting retrofit of all U.S. plants

by 2009

• I nstall energy management system EMS-55 in

new cooler purchases in Europe

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 43

 Investing
in Our Communities
With more than 400 facilities and 74,000 employees, Coca-Cola Enterprises has
significant impacts on local communities. We try to ensure that our contribution
is a positive and beneficial one, engaging with a wide range of local stakeholders
and helping to improve the quality of life.

44
 COMMUNITY

Economic Impacts Community Engagement

First and foremost, Coca-Cola Enterprises benefits communi- It is vital that we enjoy the trust of local communities. We work
ties by providing employment. In 2006, we paid nearly US$4 hard to establish this wherever we have a facility. Yet we are
billion in employee salaries and benefits. conscious that we must continue to earn that trust and cannot
take it for granted.
Furthermore, independent economic impact studies have
demonstrated that for each job in the Coca-Cola system, Wherever we operate, we actively engage with local
another 10 are supported locally in our value chain. In sourcing community leaders and organizations. We understand our
ingredients, goods, and services, we paid more than US$11 obligation to listen to these groups to make sure we take into
billion in 2006 to suppliers, 93 percent of which is in the account their needs and concerns. As decisions are made
countries where we operate. In 2006, we approved an to renovate, relocate, or build new facilities, for example, we
investment of US$265 million over the next two years in engage with local stakeholders to inform, listen, and integrate
facility infrastructure. feedback into the process.

As well as creating jobs and doing business with tens of Our Operation Grass Roots Enterprise program in North
thousands of customers and suppliers, CCE also brings such America requires every facility to nominate one person to
indirect benefits as knowledge transfer, innovation, technology, represent the company with local stakeholders. In Europe,
and encouragement to other potential investors. we have customized the program for each country in which
we do business. In 2006, we conducted training with these
In 2006, Coca-Cola Enterprises paid over US$1.2 billion
representatives and with local management, and beginning in
in corporate taxes to national, provincial, state, and local
2007, we will measure our community involvement against
governments. We generated additional public revenue from
a set of metrics such as developing alliances with local
taxes on employee income, sales, customs duties, municipal
water organizations.
charges, packaging recovery fees, rates, and levies. In addition,
we provide support through funding our community investment
programs and infrastructure.

CASE STUDY
Major Economic Impact Award in Detroit
The Detroit, Michigan, suburb of Highland Park is
undergoing major transformation after decades of
neglect. Non-profit economic development agency HP
Devco, Inc., helped attract US$300 million to support
the economic growth and community development.

In 2006, we invested US$5.5 million in setting up a

new sales and distribution center in Highland Park.
The sales center distributes more than nine million
cases of product annually in metropolitan Detroit and
employs 384 people, making us the fourth largest
employer in the area. We were recognized with the
2006 Major Economic Impact Award for investment
and job creation in Highland Park by HP Devco, Inc.
Michigan Governor Jennifer Granholm is featured at
our ribbon-cutting ceremony.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 45

 “One of the single most important, and often overlooked, contributions that a
COMMENTARY

corporation can make to the countries and communities in which it operates is

to create local economic value. This is an area where Coca-Cola Enterprises
has demonstrated measurable impact over the past year through support-
ing small enterprise development and job creation along its supply and
distribution chain, transferring technologies, contributing to local public
revenues, and helping to establish a sound, enabling environment for private
sector investment. The company’s partnerships with its business partners,
small retailers, and community organizations to support rebuilding efforts in
New Orleans deserve particular mention, and demonstrate the important role
that business can play in disaster relief and recovery.”
Jane Nelson, Senior Fellow and Director, Corporate Social Responsibility Initiative,
Kennedy School of Government, Harvard University

We also encourage employee volunteering in local commu- employee volunteerism, fundraising, management time,
nities, hold open house days, conduct facility tours, and lend or business expertise provided, although these are also
our facilities for local activities. significant contributions.

In New Orleans, we continued our support of relief efforts in We work together with civic groups and non-profit
2006 (see below), working closely with community organiza- organizations, government agencies, and industry peers on
tions and local authorities. In addition, with housing still a our community programs. They are generally selected for their
critical issue, we continued to house 56 displaced employee relevance to community needs and on our ability to make a
families on our land. We also provided land for 120 trailers contribution, based on our skills and expertise. While programs
belonging to the Federal Emergency Management Agency are determined locally according to community need, there are
(FEMA) for displaced members of the emergency services. generally four themes that we support:

Community Investment Programs 1. Youth development and education

Since the establishment of Coca-Cola Enterprises two 2. Health, wellness, and physical activity
decades ago, our management and Board have been 3. Environmental conservation, with a focus on water,
committed to helping improve the quality of life in the sus­tainable packaging and recycling, and energy and
communities we serve. In 2006, we invested almost climate change
US$28.2 million locally through programs, sponsorships, 4. Local community and business development.
in-kind, and charitable contributions. We do not yet quantify

Rebuilding Our Communities in New Orleans

CASE STUDY

After Hurricane Katrina struck New Orleans in 2005, CCE immediately provided funds, in-kind support, and volun-
teers to relief efforts. In 2006, we supported 260 Katrina-related community organizations, clean-up events, and
fundraisers. We participated in every clean-up and contributed to almost every community organization requesting
help. Over 450 volunteer hours were provided to Habitat for Humanity, Katrina Krewe, and New Orleans Tourism
Industry Clean-Up alone.

In addition, we helped to establish partnerships between communities and business partners like Wal-Mart. We
also helped smaller retailers, organizing a recovery team of 38 people to visit every outlet in the metro area to help
clean up and provide new sales equipment.

46
 Promoting Youth Leadership in North America

CASE STUDY
In Canada, 4,800 young people participated in Youth Action in 2006, a two-year
program with the Boys & Girls Clubs to develop leadership potential, community
participation, and physical activity among youth. In addition, a toolkit was distributed
to all 700 clubs nationwide to ensure the sustainability of the program.

In the United States, we sponsor the Student Leadership Conference together

with the Andrew Young School of Policy Studies at Georgia State University.
This annual event provides 175 students with opportunities to become effective,
ethical, and engaging leaders in their schools and communities.

Youth Development and Education as a best practice by the Ministry of Education to promote
We focus on education and positive youth development diversity. It was also recognized as one of the top 100
as a way to create opportunities for young people, programs by HALDE, an independent high commission that
especially for those from a disadvantaged background. promotes equality and non-discrimination. We are extending
Our programs address reading and literacy; staying in school; the program to other facilities.
mentoring; enhancing self-esteem, leadership, and life skills;
Health, Wellness, and Physical Activity
promoting community service; supporting academic
The Coca-Cola system supports sports and physical activity
achievement; and providing resources and developing
everywhere it operates. We have broadened our activities
business-education partnerships.
in recent years to include activities beyond competitive
Key programs: team sports. For example, our Live It! program in the United
States and Canada involves fun physical activity rather than
United States – The Coca-Cola Scholars Foundation
competitive sports, and also provides healthy eating tips.
provides 250 young people with scholarships each year.
More than 3,700 students have received over US$32 million In every country where we operate, we support sports and
in scholarships in the last 20 years. Camp Coca-Cola is a physical activity programs (see Health and Wellness).
five-year leadership and volunteerism program providing
Environmental Conservation
year-round activities to disadvantaged youth, while Valued
In addition to minimizing the environmental impact of our
Youth helps secondary students at risk of dropping out to
business, we also support public education and conserva-
tutor younger students.
tion programs. In particular, we focus on water stewardship,
Great Britain – Secondary school students develop their recycling, and energy conservation.
understanding of business at three Education Centers
New programs in 2006 included Green Teams, a joint program
set in our facilities. The initiative is aligned with the
with The Coca-Cola Company and Keep Texas Beautiful.
British government’s business education agenda. In 2006,
The program provides support materials for communities to
785 schools and over 12,000 students participated. The
minimize litter and maximize recycling at public events. In
program received a “Big Tick” award for excellence from
2007, we are broadening our work with the River Network in
the non-profit organization, Business in the Community, as
the United States to help protect rivers and their watersheds
one of 700 companies identified as making a positive impact
through public education. In Canada, we will also launch our
on young British people.
Green Steward program, which encourages employees to
France – The Passport for Work program assists young collectively improve their facility’s environmental performance.
people in inner-city areas in finding employment. In 2006,
210 people were given an opportunity to experience work
at our Pennes-Mirabeau facility. The program was cited

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 47

 Mission Olympic
CASE STUDY

on Tour in the Netherlands

Mission Olympic is the largest youth activity in the
Netherlands. In 2006, Mission Olympic­ – The Tour
was launched, visiting schools with workshops in
fashionable sports, such as capoeira, basketball,
rhythm, or breakdance. In its first year, this project
reached 3,000 students.

Local Community Development

In addition to the key areas that we support wherever we do ONLINE
business, our local operations have the flexibility to respond
•C
 oca-Cola Scholars Foundation –
to local community needs. In Great Britain, for example, we
www.coca-colascholars.org
provided a refurbished building on the site of our Sidcup facility
• Camp Coca-Cola – www.campcocacola.org
to the local community for use as a medical center because
• Valued Youth – www.thecoca-colacompany.com
existing facilities could not cope with demand. As of 2006, a
• Education Centers – www.cokecce.co.uk
10-person medical staff, including one doctor, use the center
• Passport for Work – www.coca-cola-entreprise.fr
as a base. We also make our facilities and employee volunteers
available for local charitable causes. In the United States, for
example, we partner with the Storehouse Teacher Resource
Center of North Texas to operate the Saturday Store from our
sales center, providing free school supplies to teachers from
high-need schools.
Acknowledgments

Corporate Information Acknowledgments

Corporate Address: External Consultant: Katie Meech

Coca-Cola Enterprises Inc. Design: Sater Creative – www.satercreative.com

P.O. Box 723040 Printing: Williams Printing – www.williamsrrd.com
Atlanta, GA 31139-0040
Published by Coca-Cola Enterprises, Public Affairs
Contact Information: and Communications

Phone: 770-989-3000 This report is printed on recycled paper.

Fax: 770-989-3790
Email: crsreview@na.cokecce.com

Coca-Cola Enterprises is an Equal Opportunity Employer.

Copyright 2007, Coca-Cola Enterprises Inc.
“Coca-Cola” is a trademark of The Coca-Cola Company.

48
GLOBAL Reporting Initiative INDEX

GRI Index
Section page Section page Section page

Strategy and Analysis Governance, Commitments, Disclosures of

1.1 ............................................................1 Engagement Management Approach
1.2 ...................5, 11-12, 14-19, 21-27, 4.1 – 4.7.........................................11-12 Economic........................... 3, 28-33, 45
29-33, 35-43, 45 4.8 ............................. 12-13, 24, 29, 35 Environmental................................34-43
4.9 .....................................................5, 11 Social:
Organizational Profile
4.10........................................................ 11 Labor Practices
2.1 – 2.9.............................................. 2-3
4.11........................................................ 38 and Decent Work................... 20-27
2.10.................... 23, 24, 32, 41, 45, 47
4.12.........................................1, 6, 15-17 Human Rights.............. 21-23, 25-26
Report Parameters 4.13.......................................................... 8 Society..........6-9, 30, 32, 35, 44-47
3.1 – 3.11, 3.13..... Inside Front Cover 4.14 – 4.17.............................................7 Product Responsibility...........14-19,
3.12........................................................ 48 28-29, 33

Core Performance Indicators

Indicator page Indicator page Indicator page Indicator page Indicator page

EC1.................3, 45 EN21............ 37-38 LA13............ 22-23* SO4....................13* EN24................ N/A

EC3......................27 EN22..................42* LA14...................26* SO5.................... 13 EN29............39-40
EC6..................... 29 EN23.................. 35 HR2....................30* SO7.............. 31-32 LA6...................... 23
EC7...............22-23 EN26............36-42 HR4....................23* PR1..................... 29 LA9...................... 23
EC8......................47 EN28.................. 35 HR5.................... 25 PR3............... 17-18 LA11....................21
EN2 ............ 40-41* LA1.......................21 HR6.................... 22 PR6...............15-16 LA12................... 26
EN3...............38-40 LA2......................23* HR7.................... 22 SO6.................... 13
Additional Indicators
EN8..................... 36 LA4...................... 25 SO1....................45* PR5..............31, 33
EC9..................... 45
EN11................ N/A LA5...................... 25 SO2....................12*
EN5..................... 40
EN12................ N/A LA8...................... 20 SO3.................... 13
EN18............38-40 *partially reported

Principles of the UN Global Compact
The Global Compact asks companies to “embrace, support and • Principle 5: the effective abolition of child labor; and,
enact” a set of principles in the areas of human rights, labor • Principle 6: the elimination of discrimination in respect of
standards, the environment, and anti-corruption: employment and occupation.
Human Rights Environment
• Principle 1: Businesses should support and respect the • Principle 7: Businesses should support a precautionary
protection of internationally proclaimed human rights; and, approach to environmental challenges;
• Principle 2: make sure that they are not complicit in human • Principle 8: undertake initiatives to promote greater
rights abuses. environmental responsibility; and,
• Principle 9: encourage the development and diffusion of
Labor Standards
environmentally friendly technologies.
• Principle 3: Businesses should uphold the freedom of
association and the effective recognition of the right to Anti-Corruption
collective bargaining; • Principle 10: Businesses should work against all forms
• Principle 4: the elimination of all forms of forced and of corruption, including extortion and bribery.
compulsory labor.

Coca-Cola Enterprises 2006 Corporate Responsibility and Sustainability Report 49

www.cokecce.com