Coca-Cola European Partners Strives for Net Zero Emissions
Coca-Cola European Partners (CCEP) is set to accelerate the decarbonisation of its business by reducing absolute greenhouse gas (GHG) emissions across its entire value chain - including scope 1, 2 and 3 emissions - by 30 per cent by 2030 (vs 2019)** and setting a path to become a Net Zero business by 2040, in alignment with a 1.5˚C pathway and the Paris Climate Agreement.
The Key Takeaways:
- Reducing greenhouse gases across all five pillars of CCEP’s value chain ─ ingredients, packaging, operations, transport, refrigeration.
- A commitment from CCEP to support its strategic suppliers to set their own science-based targets and use 100 per cent renewable energy.
- Unlock support in the form of a three-year, €250mn investment providing targeted financial support to aid its decarbonisation programme.
- See the inclusion of greenhouse gas emissions reduction target in CCEP’s long-term management incentive plan (LTIP).
CCEP will reduce GHG emissions across all five areas of its value chain – ingredients, packaging, operations, transportation and refrigeration. Crucially, there is a significant focus on reducing scope three emissions via a commitment to support strategic suppliers to set their own science-based carbon reduction targets and use 100 per cent renewable electricity.
CCEP’s immediate action plan is supported by a three-year €250m investment which will provide targeted financial support to decarbonise its business. This includes sustainable packaging initiatives, such as the progression of its 100 per cent rPET roadmap and investing in the scaling of depolymerisation technology, which will help accelerate the delivery of its longer-term net-zero objectives.
The ambition is underpinned by the inclusion of a GHG emissions reduction target in CCEP’s long term management incentive plan (LTIP) – 15 per cent of the LTIP awarded in 2020 will be based on the extent to which CCEP reduces GHG emissions over the next three years.
It builds on work undertaken over the last decade to reduce GHG emissions across CCEP’s entire value chain by 30.5 per cent (vs 2010) as part of This is Forward, its joint sustainability plan with Coca-Cola in Western Europe. CCEP’s 2030 GHG reduction commitment has been approved by the Science-Based Targets initiative (SBTi) as being in line with a 1.5˚C reduction pathway as recommended by the Intergovernmental Panel on Climate Change (IPCC).
As part of its journey to Net Zero, CCEP will invest in projects which remove carbon from the atmosphere or verified carbon offset projects. However, it will focus on reducing emissions as far as possible and will only offset where essential and where it can’t reduce emissions any further.
Commentaries From the Executive
Damian Gammell, CEO of Coca-Cola European Partners
“Our vision has always been to deliver loved brands, done sustainably, and today we recognise the even greater urgency to address climate change, one of the most serious and complex challenges facing society and our planet. We have developed an ambitious plan to reduce greenhouse gas emissions which uses absolute science-based carbon reduction targets to underpin our ambition and chart our progress.”
“We have a responsibility to the communities we serve to keep taking this action on climate. We know it will be a long and challenging journey – there are no quick fixes or silver bullets - but we are determined to drive this change as fast as we can and to play our part in helping and influencing others. We’ve made significant progress so far, and looking ahead, we will continue to help lead the transition to a low carbon future by putting environmental impact at the heart our decision-making.”
María Mendiluce, CEO of the We Mean Business coalition
“Coca-Cola European Partners is showing clear leadership by aligning its development strategy with the 1.5ºC pathway and the Paris Agreement. By engaging key suppliers in the shared objective of aligning with science and investing in renewable energy, not only will they tackle the biggest emission reduction challenges but also contribute to the green recovery.
They are ensuring their business is ready to grasp the opportunity and excel in the transition to a zero-carbon economy.”
Joe Franses, Vice-President, Sustainability at Coca-Cola European Partners
“The world is at a critical point, and we must all play our part to cut greenhouse gas emissions, to limit global temperature increase to 1.5°C and protect the future of our planet. Climate change may be bigger than all of us, but it is not beyond us. That’s why CCEP is working towards a Net Zero future. And why we’re taking action now to reduce greenhouse gas emissions across our entire value chain, from the ingredients we source, packaging we use, to the drinks we sell. As we move through our first three-year plan, we will continue to adapt and solve key challenges to help set new milestones to achieve our longer-term reduction vision.”